Journal of Agricultural and Resource Economics
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We identify optimal producer-selected coverage options across all marketing months and insurable commodities within Livestock Risk Protection Insurance. Optimal contracts are defined as those having combinations of coverage length and level that have historically provided the highest probability of a positive net return and the highest average net return. Using probabilistic modeling, we evaluate the effect of producer size on the likelihood of purchasing optimal contracts. Results indicate that (i) optimal contracts generally have relatively higher coverage levels, (ii) producers often purchase contracts not identified as optimal, and (iii) producers are categorized within two distinct groups when considering optimal contract selection.
We identify optimal producer-selected coverage options across all marketing months and insurable commodities within Livestock Risk Protection Insurance. Optimal contracts are defined as those having combinations of coverage length and level that have historically provided the highest probability of a positive net return and the highest average net return. Using probabilistic modeling, we evaluate the effect of producer size on the likelihood of purchasing optimal contracts. Results indicate that (i) optimal contracts generally have relatively higher coverage levels, (ii) producers often purchase contracts not identified as optimal, and (iii) producers are categorized within two distinct groups when considering optimal contract selection.
We investigate the dynamic and spatial determinants of the distribution of agricultural productivity around the world, with a focus on the effects of climate on production risk. We treat weather shocks as part of the error term and proceed evaluating the probability distribution of agricultural productivity conditional on climate. The adverse effects of higher temperature are found to be more severe in countries exhibiting low agricultural productivity. The negative codependence across countries means that spatial diversification tends to reduce food insecurity at the world level. This effect contributes to dimming the adverse effects of rising temperatures on world food insecurity.
We use a choice experiment to elicit consumers’ preferences and willingness to pay (WTP) for lettuce with the “Alaska Grown” label, taking into account its interactive effects with the organic and hydroponic grown claims. We test whether providing information about local food benefits affects consumers’ WTP for the Alaska Grown label. The results show that consumers are willing to pay a premium for lettuce with the Alaska Grown label; providing information further increases their WTP. However, the information effect is limited or negative if organic or hydroponic claims are present on the locally grown foods.
Effective pest management ensures the safety and quality of California produce, protects producers, and maintains export market access. California’s new Sustainable Pest Management (SPM) framework targets removal of certain priority pesticides but also seeks to reduce economic risk to growers and activate new markets to drive SPM. Removing pesticide products from the registered list of allowable pest control agents increases the need for new pesticides. However, pesticides that are federally approved can be delayed for use in California by 1–3 years. We evaluate the economic implications of SPM and California’s registration process for lettuce.
This article investigates effective communication strategies to enhance farmers’ engagement with climate change mitigation. Through an online survey experiment of more than 500 Irish livestock farmers, it examines the impact of message framing—focused on reputation concern or expenses—on information engagement, knowledge, and intentions to adopt greenhouse gas mitigation measures. The findings reveal that while framing significantly reduces engagement with the information, it does not affect knowledge or implementation intentions. This underscores the complexity of motivating climate action, suggesting that advisory programs should employ positively framed messages to generate interest, despite challenges inherent in discussing climate change mitigation.
In this study, we investigate the mental well-being of agricultural economics PhD students at 33 universities in the United States. Analysis of our survey data reveals that about 40% of respondents reported experiencing symptoms indicative of depression, anxiety, or suicidal ideation. Although most participants recognized the meaningfulness of their work, achieving a satisfactory work-life balance emerged as a prominent concern. Notably, stress levels were consistent across departments irrespective of their rankings. Furthermore, our examination uncovers some racial disparities: Hispanic and White students exhibited a higher prevalence of mental health issues but were more inclined to seek treatment, while Asian and Black students reported lower prevalence but faced challenges accessing support services.
We examine the interdependence of high-yielding (HY) variety adoption and farm and farmer characteristics to achieve almost self-sufficiency in rice production in Bangladesh. We use data collected by the International Rice Research Institute (IRRI), Bangladesh, to estimate yield differentials, return differentials, and risk. We find that HY rice varieties contributed 61.34%, plot-specific attributes contributed 3.08%, and farmer-specific characteristics contributed 35.58% toward rice productivity. Additionally, adopting HY varieties resulted in a base return increase of about 154.03%. Plot-specific attributes had larger effects on the return model than on the differential yield model, while farmer-specific characteristics adversely impacted HY return gains.
This study analyzes the effects of the proposed Mexican import ban of GM corn on Mexican, US, and global corn markets. This import ban would have caused considerable trade reallocations. Mexico would have had to import from France, Colombia, and Indonesia to fill the void left by lost imports from the United States. In turn, the United States would have had to divert its lost export sales in Mexico to Japan, Colombia, South Korea, and itself. Because of these trade reallocations, Mexico would have imported from more expensive sources. The United States would have exported to distant countries. Welfare would have decreased in many countries, with Mexico incurring large losses.
This study examines the impact of India’s wheat export ban on the domestic wheat market amid the 2022 food price crisis. Study uses nonlinear autoregressive distributed lag (NARDL) approach. Findings show an asymmetric transmission of changes in global prices to domestic prices in the long and short run under an open trade regime. The transmission elasticity for positive changes in world wheat prices is 53 percentage points higher than that of a negative change in world wheat prices. We found a symmetric relationship between the world and domestic wholesale wheat prices in the export-restricted regime. Export ban was not successful in curbing rise in wheat price increases.
This study investigates the relationship between crude oil and agricultural prices. Findings reveal limited causal connections among commodities during periods of stability. However, crude oil emerges as a critical driver of causal patterns during crises. Bidirectional connections between crude and soybean oil are frequently influenced by biofuel demand and crises. Crude oil shows the most connections with corn, followed by soybean oil and wheat. The dynamic correlation results confirm a robust correlation between crude and soybean oil. Finally, price bubbles exist for all commodities, with varying duration and intensity.
This study examines consumer perceptions and willingness to pay for organic specialty bakery products by incorporating prior taste beliefs, given product taste attributes, and information on organic production practices. Hypothetical choice experiments for three specialty bakery products were conducted via a nationwide online Qualtrics survey with 721 respondents. Results indicate that, on average, respondents believe that organic specialty bakery products are less tasty than conventional products. Notably, taste beliefs significantly influence their willingness to pay and utility. Providing product taste information dampened the effects of negative taste biases but improving consumer organic knowledge did not. Industry implications are discussed.
We investigate the relationship between herders’ development resilience to climate change and grassland ecological compensation policy (GECP). Using a three-period panel dataset of 679 herders in China, we find that the development resilience of 44% of herders is lower than the overall average. Climate change has a nonlinear effect on herders’ development resilience, while GECP enhances development resilience and significantly mitigates the adverse effects of temperature change. The mechanism analysis shows that supplementary feeding, nonfarm employment, and grassland transfer are influencing paths, and the synergistic effect of climate change and GECP is realized by influencing herders’ grassland transfer.
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