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January, 2020

By: Holley, Kristen; Jensen, Kimberley L.; Lambert, Dayton M.; Clark, Christopher D.
This study applies a bivariate Multiple Indicator–Multiple Causation model to examine farm and operator characteristics associated with the likelihood of using pasture management (PM) and prescribed grazing (PGR) practices. Data are from a survey of cattle operations. Most commonly used practices included adjusting livestock and pasture fertilization. Least used were geotextiles in trafficked areas and buffering sensitive areas. Use of PM practices was income sensitive. Land stewardship and government conservation incentive views influenced PGR. Results suggest complementarities between most PGR and PM practices. However, those with higher opportunity costs and off-farm benefits (e.g., stream crossings) are not complementary with other practices.

May, 2021

By: Mulenga, Brian P. ; Raper, Kellie Curry ; Peel, Derrell S.
Existing studies on calf management practice adoption tend to treat practices individually and, by implication, ignore the possibility that some practices are more likely than others to be jointly adopted. This study applies market basket analysis to examine bundling of calf management practices based on the likelihood of joint adoption using producer survey data. Results indicate that the base practices of horn management, deworming, and castration are the three most widely adopted practices and are more likely to be jointly adopted in varying combinations with other practices. We discuss implications for extension programming and future studies concerned with understanding practice adoption decisions.

May, 2018

By: Schaak, Henning; Musshoff, Oliver
Milk production methods and pasture usage have gained increasing attention in recent years. This paper studies possible influences on the decision to adopt grazing practices as well as on the extent of these practices. German dairy farms were analyzed using a multivariate sample-selection model. Results indicate that specialized farms and farms with greater pasture acreage per cow are more likely to adopt grazing practices; farms with larger herds are less likely to adopt. For farmers utilizing grazing, length of daily pasture access depends on production-related variables, while the annual period depends only on farm specialization.

July, 2001

By: Lusk, Jayson L.; Marsh, Thomas L.; Schroeder, Ted C.; Fox, John A.
This study estimates wholesale demand for pork, chicken, and quality differentiated beef. We estimate meat retailer own- and cross-price demand elasticities for USDA Choice and Select boxed beef. Results indicate that meat retailers have more elastic demand for lower quality graded beef. Retail beef price has a strong positive relationship with Choice and Select boxed beef demand, and a strong negative relationship with wholesale pork and chicken demand. Seasonal analysis reveals demand for both beef quality grades becomes highly price inelastic during the summer months. The two beef quality grades are substitutes during the winter; however, Select beef is not a substitute for Choice beef in the spring and summer.

August, 2008

By: Mueller, Julie M.; Loomis, John B.
While data used in hedonic property models are inherently spatial in nature, to date the majority of past regression analyses have used OLS models that overlook possible spatial dependence in the data when estimating implicit prices for environmental hazards. This paper explicitly addresses spatial dependence in a hedonic property model. We use robust testing procedures to determine the existence and type of spatial dependence in our OLS model. After identifying the nature of the spatial dependence, OLS estimates of the implicit price of wildfire risk are compared to implicit prices obtained using a spatial error model with three different spatial weighting matrices. Spatially corrected estimates of implicit prices are often found to be nearly the same as those obtained using OLS. Our results indicate that the inefficiency of OLS in the presence of spatially correlated errors may not always be economically significant, suggesting nonspatial hedonic property models may provide results useful for policy analysis, and spatial and nonspatial hedonic property models may provide results useful for policy analysis, and spatial and nonspatial hedonic property models might be pooled in meta-analysis.

April, 2005

By: Characklis, Gregory W.; Griffin, Ronald C.; Bedient, Philip B.
Approaches for evaluating salinity management benefits are generalized and extended to incorporate consideration of desalination and long-term changes in salinity concentration and water use patterns. Previous research indicates urban users incur the vast majority of salinity-related damages in affected regions, suggesting municipalities may benefit by considering mitigating actions independent of agriculture. However, previous studies have included no consideration of desalination. Earlier studies have also considered stepped increases in salinity, assuming a single future concentration when estimating the long-term benefits of salinity reduction, an approach inconsistent with the incremental nature of these increases. Long-term changes in water use patterns (urban vs. agricultural), when considered at all, have often been treated in the same stepwise fashion. For this analysis, a suitable region is selected and the benefits of a hypothetical salinity management program are estimated using the approach described. These results are then compared with those obtained through the use of several previous methods. Findings suggest that consideration of desalination and incremental variations in salinity and water use patterns can substantially lower the estimated benefits of regional salinity management programs.

December, 2011

By: Campiche, Jody L.; Dicks, Michael R.; Shideler, David W.; Dickson, Amanda
The Food Security and Rural Investment Act of 2002 included a new provision that allowed managed haying and grazing (including the harvest of biomass), if consistent with the conservation of soil, water quality, and wildlife habitat, in return for partial reductions in the annual CRP payments. The legislation provided for managed (or limited use) haying and grazing on the CRP acreage rather than prohibiting all use. This research analyzed whether or not the alternative grazing and haying scenarios would dramatically impact the price of beef or hay, and we estimated the impact such changes would have on state economies.

July, 1997

By: Cooper, Joseph C.
Using farmer responses to contingent valuation method (CVM) survey data in combination with actual market data from four watershed regions in the United States, this study estimates the minimum incentives payments a farmer would accept in order to adopt more environmentally friendly "best management practices" (BMPs). Combining actual market data with the CVM data adds information to the analysis, thereby most likely increasing the reliability of the results compared to analyzing the contingent behavior survey response data only. Given the decision to adopt, the article also presents a pooled model for the number of acres enrolled in the BMPs as a function of the incentive payments. Adoption rates predicted with the combination data model are significantly higher over a wide range of offers than those predicted using the traditional discrete choice analysis with the hypothetical data only. Hence, using the traditional CVM analysis results to determine payments to attain a given level of adoption may result in overpayment.

January, 2015

By: Chavas, Jean-Paul; Shi, Guanming
This paper uses conditional quantile regression to analyze the effects of genetically modified (GM) seed technology and management on production risk in agriculture, with an application to the distribution of corn yield in Wisconsin. Using the certainty equivalent (CE) as a welfare measure, our analysis decomposes the welfare effects of risk, management, and agricultural technology into two parts: mean effects and risk premium (measuring the cost of risk). We document how biotechnology and management interact to improve agricultural productivity and reduce farm risk exposure. For corn, we find that GM European Corn Borer (GM-ECB) technology consistently increases CE (the increase ranging from +4.6% to +11.8%) and that a significant part of this increase can come from risk reduction. We also show that the benefits of the GMECB biotechnology are heterogeneous: they vary significantly across regions as well as across management schemes

December, 2001

By: McKenzie, Andrew M.; Thomsen, Michael R.
Using an event study, we examine the impact of recalls for E. Coli O157:H7 on wholesale and farm-level beef prices. Prices for boneless beef, a high-volume product primarily used for processing into ground beef, react negatively to recalls, suggesting incentives exist for packing firms to adopt measures that reduce the risk of contamination. However, there is no reaction in live cattle prices and very little reaction in boxed beef prices to recall events. This suggests short-run price responses found at the wholesale level for boneless beef do not transmit back to the farm level.

July, 1995

By: Lambert, David K.; Shonkwiler, John Scott
This study attempts to link factors affecting the demand for Bureau of Land Management grazing to perceived changes in permittee welfare over the 1962-92 period. Annual demand for federal forage is found to be sensitive to active preference, beef cow and breeding ewe inventories, and grazing fees and nonfee allotment utilization costs. No evidence is found to support the notion that the demand for grazing has been affected by changes in property rights associated with the federal grazing permit that are not reflected in higher user costs. The total decrease in welfare generated from the permit that are not reflected in higher user costs. The total decrease in welfare generated from the permit to graze public lands has been about 9% per authorized cattle animal unit month and 65% per authorized sheep animal unit month over the study period.

December, 2013

By: Heng, Yan; Hanawa Peterson, Hikaru; Li, Xianghong
Concerns over laying hens’ welfare have led to many different labels for eggs and changes to state regulations. Consumer attitudes toward farm-animal welfare were examined using a national survey in the context of preferences for eggs differentiated by layer management practices. Most respondents perceived caged housing and other conventional management practices as reducing hens’ welfare and were willing to pay a premium for eggs produced in cage-free and other nonconventional production systems. Although participants responded to information about environmental consequences of management practices, they placed more weight on animal welfare issues than environmental issues in their egg-purchase decisions.

April, 2014

By: Lambert, Dayton M.; English, Burton C.; Harper, David C.; Larkin, Sherry L.; Larson, James A.; Mooney, Daniel F.; Roberts, Roland K.; Velandia, Margarita; Reeves, Jeanne M.
A 2009 survey of cotton farmers in twelve states collected information about the use of georeferenced precision soil testing (PST). Adoption of PST technology and the interval until retesting were examined with a Poisson hurdle regression. Survey data were calibrated using a post-stratification weighting protocol. Farming experience, farm size, land ownership, variable rate fertilizer management plans, and the use of soil electrical conductivity devices were correlated the with period until PST adopters retested soil. Understanding how producers perceive the useful life of soil-test information may be important for monitoring the effectiveness of best nutrient management practice adoption.

July, 1996

By: Anderson, Kim B.; Mapp, Harry P., Jr.
The evolution of Cooperative Extension Service techniques used to teach decision making in a risk environment is examined. Interviews of selected Cooperative Extension economists indicate that research methods used to evaluate and describe risk are more complex than those used in extension programs. Research is an essential component of the development and implementation of extension programs. Because most producers have some understanding of risk, and many use financial strategies to manage risk, and important product of risk research has been educating extension economists and researchers. When developing risk management programs, it is stressed that "simplicity is powerful."

May, 2021

By: Feuz, Ryan ; Feuz, Kyle ; Johnson, Myriah
Feedlot managers make difficult culling decisions using their best subjective judgment together with advice from animal health professionals. Using routinely collected operational feedlot data and five well-known classification methods, we construct mortality predictive models to aid managers in making objective culling decisions. Simulation results suggest that net return per head for calves having been treated at least once for any health incident would increase on average by $14.01 if the best-performing model were used as a culling decision aid. The probability of a positive return is 60.9%. Using cost-sensitive learning, the average value may increase to $45.27/head.

December, 2001

By: Baker, Gregory A.; Burnham, Thomas A.
Conjoint analysis is used to elicit consumer preferences for attributes of genetically modified foods. Market segments are identified based on a cluster analysis of respondents' preferences for brand, price, and GMO content. A logit analysis is used to analyze consumer characteristics associated with the acceptance of GMO foods. Those consumers who were most risk averse, most likely to believe that GMOs improved the quality or safety of food, and most knowledgeable about biotechnology were the most likely to be accepting of GMO foods. These findings are used to develop implications for producers and regulators of GMO foods.

January, 2022

By: Ning, Xin ; Grant, Jason H. ; Peterson, Everett B.
We assess the effect of bovine spongiform encephalopathy (BSE) on Japanese beef imports from the United States and competing suppliers. Using a source-differentiated almost ideal demand system of beef imports with endogenous smooth transition functions, we find that a nonlinear structural change has occurred in the Japanese beef import market in the wake of BSE. The BSE outbreaks led an instantaneous, persistent impact on Japanese beef imports lasting over a decade, causing a significant shift in Japanese consumer preferences for beef imports from different origins. Over half of the estimated expenditure, own-price, and cross-price elasticities have changed in the aftermath of BSE, and some have not returned to their pre-BSE levels even after the trade recovery period.

December, 2009

By: Gillespie, Jeffrey M.; Nehring, Richard F.; Hallahan, Charles B.; Sandretto, Carmen L.
U.S. dairy operations are sorted via a multinomial logit model into three production systems - pasture-based, semi-pasture-based, and conventional. Region, farm size, financial situation, and production intensity measures impact system choice. Analysis follows to determine the impact of production system on enterprise profitability. Region, farm size, and demographic variables impact profitability, as does system choice - semi-pasture-based operations were less profitable than conventional operations on an enterprise, per hundredweight of milk produced basis. Significant differences were not found in the profitability of pasture-based operations versus those using other systems.

September, 2021

By: Lim, Kar H.; Hu, Wuyang; Nayga, Rodolfo M. Jr.
Consumers may perceive grass-fed beef to be superior in terms of food safety due to false impressions and a persistent, unproven narrative. Such misperception can distort the market, which may require policy intervention. Using a discrete choice experiment, results indicate that those who perceive higher food safety risks from consuming beef and those who hold the belief that grass-fed beef is safer than grain-fed have a stronger preference for grass-fed beef. This is an important finding as there is no scientific consensus that grass-fed beef is safer. This potential misperception warrants further scrutiny.

September, 2021

By: Yu, Charng-Jiun; Du, Xiaodong; Phaneuf, Daniel
We quantify the impact of the Clean Water Act (CWA) on farm waste management practices of U.S. dairy concentrated animal feeding operations (CAFOs), including storage capacity, land application, and manure removal. We employ a double-hurdle model to examine how dairy farmers adjusted their practices in response to a major policy revision of the CWA in 2003. We find that the revision significantly increased the adoption rate of nutrient management plan (NMP) among dairy CAFOs. The results suggest that the CWA had a heterogeneous and limited impact on dairy CAFOs' waste management practices.