Life Sciences Commons^™

Rural Movers Studies ... People Are Moving For Community Attributes And Jobs, Marilyn R. Schlake

Cornhusker Economics

University of Minnesota researchers conducted a Rural Movers Study to determine the motivations of people who moved within one to five years to rural Minnesota communities. Their findings are not unlike earlier research conducted at the University of Nebraska in 2008. The Rural Movers Study showed that 31 % of respondents moved due to a job or job offer. However, this was not one of the primary reasons individuals moved. For those individuals who did not move for employment, 76% wanted to find a good environment for raising their children, 67% moved to be closer to relatives, 64% looked for …

March 1st Filing Deadline, Tina N. Barrett

Cornhusker Economics

One of the many special tax provisions that has applied only to qualified farmers is the relief from estimated tax requirements. A qualified farmer, who is a calendar year taxpayer, can avoid the estimated tax payment penalty by either: 1) Filing an estimated tax payment by January 15th that is either 2/3 of your expected tax for the current year or 100% of last year's tax, whichever is less, or 2) Filing and paying 100% of the tax by March 1'1.

Importance Of Good Communications For Generational Ag Business Transfers, Allan Vyhnalek

Cornhusker Economics

Adapted from Right Risk, volume 10, Issue 10, October 2022.

Effective communication within a farm or ranch family, especially when multiple generations are operating and managing the business, is the underpinning of all other decisions made in a family business. It is critical that farm and ranch families identify areas of contention and develop communication skills that will allow them to negotiate satisfying outcomes. This may involve basic skills training, including communication, problem solving, and decision making.

The Impact Of Policy Design On Willingness To Pay For Ecosystem Services From Prairie Strips, Karina Schoengold, Badri Khanal, Taro Mieno, Lisa Schulte Moore

Cornhusker Economics

Ecosystem services from farmland conservation are public good benefits. The value of these benefits is primarily measured using methods that determine the willingness to pay (WTP) for those benefits. Prairie strips, a farmland conservation practice, provide ecosystem services such as improved water quality, soil health, and biodiversity (Schulte et al., 2017). The state of Iowa is a major corn producer and contributes significant amounts of nitrogen and phosphorous to the Gulf of Mexico (Alexander et al., 2008). The development of conventional agricultural systems has also resulted in a significant loss of biodiversity, including a dominant land cover of tallgrass prairie. …

How Effective Are The Russian Sanctions?, Wesley Peterson

Cornhusker Economics

Russia's invasion of Ukraine has led to extensive economic, financial, trade, and other types of sanctions directed at individual Russians and the Russian economy. The long-term negative effects of the war on the Russian economy may be even more severe and the broader impacts of the conflict mean that it will have serious repercussions for future global economic, political, and diplomatic relations.

Innovation In Futures Markets: Event Contracts, Speculation, And Hedging, Fabio Mattos

Cornhusker Economics

The CME Group has recently launched a new type of contract whose payoffs are based on specific events. These contracts are called event contracts but are also known as prediction contracts or information contracts. They are short-term contracts that expire at the end of each trading day. Traders can take positions in these contracts as they predict whether the price of a given asset will finish the trading day above or below a set value.

Discusses: How are they traded? Main characteristics of event contracts. Event contracts offered by CME group and event examples on October 21, 2022. Why were …

Historical Corn Price Evolution Implications For Pre-Harvest Hedging, Cory Walters, Richard K. Preston

Cornhusker Economics

Commodity markets evolve through information provided by participating buyers and sellers and throughout this process the conditions in which commodity markets work are revealed. Producer pre-harvest commodity marketing can be further developed by incorporating information on how commodity markets work, leading to better farm financial performance.

We investigate how commodity markets have historically evolved from spring to fall. While changes in future prices appear random in any given year, observing average daily prices over 32 years could uncover a seasonal tendency. In the past 32 years, the average daily price tends to be higher in the spring than the fall, …

New Cooperative Approaches: Successes And Opportunities, Charlotte Narjes

Cornhusker Economics

The National Cooperative Business Association CLUSA International states that there are 40,000 co-ops in the United States that range in size. Examples of cooperatives include the local Ace Hardware (purchasing cooperative) to Land O' Lakes. Cooperative businesses operate across virtually all industries, or sectors. The most common cooperative in Nebraska is the agricultural cooperative. According to the Nebraska Cooperative Council ag facts, in June 2020 there were 401 cooperatives located across the state providing jobs and services in many rural communities. In addition, there are over 64,400 farmers and ranchers that are voting members of Nebraska cooperatives with many members …

2022 Nebraska Ballot Issues, J. David Aiken

Cornhusker Economics

Three issues will be on the 2022 statewide ballot, one proposed by the Nebraska Unicameral and two added to the ballot by initiative petition. The three issues are: 1) public payments to expand commercial airline service; 2) requiring photo IDs for voting; and 3) increasing the Nebraska minimum wage from $9/hour to $15/hour.

On The Market For "Lemons": When Low Quality Does Not Drive High Quality Out Of The Market, Konstantinos Giannakas, Murray E. Fulton

Cornhusker Economics

In a research article published in Nature's Humanities and Social Sciences Communications (available at https://www.nature.com/articles/s4l 599-020-00658-w) we identify the conditions under which the introduction of a low -quality product does not drive its high-quality counterpart out of the market but, instead, ends-up coexisting with it. Using a theoretical framework of heterogeneous consumers and producers in the context of a market for quality- ( or vertically-) differentiated products supplied by producers differing in their production efficiency, we show that the equilibrium quality configuration in a market depends on both the unobservability of product quality by consumers and the relative costs …

Don't Let The Past Sink Your Future, Timothy L. Meyer

Cornhusker Economics

Decision scientists have many algorithms for making decisions. These algorithms can be qualitative and subjective, such as following a 7-step process, to highly quantitative procedures like minimax regret, or linear programming. These techniques are very different from each other, but in one way they are very similar; they never, ever suggest the manager become emotional and use past decisions to guide the future.

Past decisions and events should guide decision-making. They help managers assign probabilities as well assessing performance. Viewing these events and situations as permanent paths is where sunk costs become problematic.

Includes discussions of four scenarios.

The Storm In World Fertilizer Markets Continues, John C. Beghin

Cornhusker Economics

This article updates the recent article on world fertilizer markets by Beghin and Nogueira (2021), which noted the perfect storm affecting global fertilizer markets through high demand, droughts affecting fertilizer supply, high fossil energy prices, COVID 19-related supply-chain disruptions, and trade policies, all conspiring to elevate fertilizer nominal prices to levels not seen since 2008. In the last 10 months, the Ukraine-Russia war and associated trade sanctions have exacerbated the disruptions in fossil energy, grain, vegetable oil, and fertilizer markets already present in 2021. On the more hopeful side, some United States trade policy developments will help reduce US fertilizer …

Setting The Stage For The Next Farm Bill Debate, Bradley D. Lubben

Cornhusker Economics

The 2018 Farm Bill is set to expire in September 2023. New farm bill legislation will be needed by then if authority is to be extended for a wide range of programs from farm support to conservation, nutrition assistance, credit, trade promotion, rural development, research and education, and more.

The agricultural committees in Congress have already held initial hearings and many agricultural and other interest groups have noted their policy priorities. However, formal debate on a new farm bill is not expected to begin in earnest until early 2023 when a new session of Congress convenes.

While the formal debate …

Nebraska’S Rural Population: Historical Facts And Future Projections, Cheryl A. Burkhart-Kriesel

Cornhusker Economics

Drive down any rural highway in our state and you will quickly conclude that we are a collection of small towns and villages, with a few larger cities thrown in. Some of them are thriving while others are not. You might ask yourself, why the difference? To fully appreciate this current situation, you need to think back to how our state developed.

Our state has 530 incorporated places with 89% of these communities having fewer than 3,000 people. Nebraska is not alone in this fact, with our neighboring states of Kansas, Oklahoma, North Dakota, South Dakota, and Iowa in the …

Disagreements And Proper Respect In Farm/Ranch Succession, Allan Vyhnalek

Cornhusker Economics

Adapted from "Does Disrespect Have a Place in Your Ag Legacy?" Volume 6, Issue 1, February 2021, Ag Legacy, by Caleb Carter, consultant to the Department of Agricultural and Applied Economics in the University of Wyoming College of Agriculture and Natural Resources.

Briefly covers disagreements and proper respect in farm/ranch succession.

Flint Michigan Drinking Water Crisis, J. David Aiken

Cornhusker Economics

Briefly covers the Flint, Michigan drinking water crisis including providing some background, a timeline of events, and key takeaways from the perspective of public policy.

This article was originally prepared for distribution to students in Aiken's AECN 357 environmental and natural resources law course.

Flexible Cropland Lease Arrangements Across Nebraska In 2022, Jim Jansen, Jeffrey Stokes

Cornhusker Economics

Survey results shown and discussed in this report are findings from the University of Nebraska-Lincoln's 2022 Nebraska Farm Real Estate Market Survey. Complete results from the survey may be found at the Nebraska Farm Real Estate website: http://cap.unl.edu/realestate.

Unl-Taps Crowdsourcing Team Offers Public An Inside View, Matt Stockton, Krystle Rhoades, Tessa Burford

Cornhusker Economics

At the beginning of the 2022 production season, the University of Nebraska at Lincoln (UNL) Testing Ag Performance Solutions (TAPS) program kicked off the TAPS Crowdsourcing Team. Designed as an opportunity for the public to interact with the hands-on management of a TAPS sprinkler corn irrigated competition plot, the Crowdsourcing Team offers anyone a chance to be involved with the intricacies of crop production. Part of a multistate Conservation Innovation Grant (CIG) practicum, the Crowdsourcing Team is an online community that encourages learning through experience, as well as discussion with peers and professionals.

Scotus Invalidates Obama Clean Power Plan, J. David Aiken

Cornhusker Economics

On June 30, 2022, the Supreme Court of the United States (SCOTUS) ruled in the case of West Virginia v. EPA that the US Environmental Protection Agency (EPA) could not implement the 2016 Obama administration Clean Power Plan (CPP). This article briefly discusses the CPP, the CPP litigation, the Court's opinion in West Virginia v. EPA, and what the decision means for Biden administration climate policy.

Active Consideration Of Health And Nutritional Quality Of Food Choices, Christopher R. Gustafson

Cornhusker Economics

Everyone can be positively influenced by effective interventions promoting healthier food choices. A handful of recent papers have documented positive impacts on dietary quality resulting from interventions that remind people to consider health through prompt messages or subtle priming in supermarkets and in controlled, online experiments. These studies have focused on the impact of reminders on nutritional quality rather than explaining how reminders work. An exception, Arslain, Gustafson, and Rose (2021), collected data on multiple elements of individuals' choice processes to trace the impact of reminders on decisions, showing that reminder messages led people to consider a healthier set of …

Use Of Livestock Risk Protection Insurance For Cattle Continues To Grow, Jay Parsons

Cornhusker Economics

When used as a regular part of a market risk management plan, livestock risk protection (LRP) insurance can help protect profits in years where markets turn for the worse. The recent changes to the program have made LRP insurance more appealing to cattle producers and sales of LRP have subsequently increased dramatically. Strong price increases may make LRP unnecessary, but it is difficult to predict when the price increases will end. LRP insurance is a safety net, reducing downside price risk by providing a floor on national price expectations while also allowing producers to take advantage of higher national prices …

Comparing The Performance Of Cooperative Plans For Equity Accumulation And Retirement, Jeffrey S. Royer

Cornhusker Economics

Equity allocated to members plays a crucial role in financing agricultural cooperatives. Although retained earnings not allocated to members have become an increasingly importantsource of equity in recent years, U.S. Department of Agriculture (USDA) data show thatallocated equity still accounted for 55.5 percent of the $47.5 billion in total equity held in U.S.cooperatives in 2020. [1] Allocated member equity differs from unallocated equity fromretained earnings in that it is owned by individual members and there is an expectation thatit will be redeemed in cash when it is eventually replaced by newer allocations. A recent study has examined the comparative performance …

The Farm And Ranch Hired Labor Market, Larry Van Tassell

Cornhusker Economics

The historical causality between increased agricultural mechanization and reduction in farmlabor is a well-known relationship. The reduction in both family and hired farmworkers onU.S. f arms from 1950 to 2000 is presented in Figure 1. In 1950, the nearly 10 million farmlabor force was composed of 23.5% hired farm workers. In 2000, the last year this data wasavailable, farm labor had reduced to 3.19 million workers and was comprised of 35.4% ofthose workers being hired. The reduction in total farm workers and the trend of reduced farmlabor and a relative increase in hired farm labor appears to have stabilized during …

2022 Nebraska Agricultural Custom Rates With Statewide Survey Summary, Glennis Mcclure

Cornhusker Economics

With rising operational costs for agricultural machine hire and services, rates reported on the 2022 University of Nebraska-Lincoln Custom Rates Survey were mostly higher than rates reported on the 2020 survey, ranging from 6% to nearly 20% greater on some common custom services. For example, state average custom rates for harvesting corn and soybeans per acre increased to $41.63 and $40.18 from $39.34 and $37.29, respectively, two years ago. Planting row crop average rates across Nebraska range from $20.17 per acre (no coulters, without band applicator) to $23.50 per acre for ridge planting with band applicator,up 6% to 8% from …

Commodity Marketing For High School Students, Fabio Mattos

Cornhusker Economics

Agricultural commodities play a major role in Nebraska’s economy and are central to the life of many families in the state. Learning the main concepts of commodity marketing becomes essential for young Nebraskans considering careers in the agricultural industry or in farming. Therefore, in the last 10 years, the Department of Agricultural Economics has been expanding its curriculum in commodity marketing and merchandising, as has already been discussed in this space a few years ago (“Commodity Trading Room Comes Online at UNL,” 6/29/2016). Following the same ideas, we are now expanding our efforts to offer a program in commodity marketing …

Complying With Cecl – Applying The Scale Method To Nebraska Community Banks, Jeffrey Stokes, Jared Stauffer

Cornhusker Economics

Current Expected Credit Losses (CECL) is a new expected credit loss accounting standard that was first introduced by the Financial Accounting Standards Board (FASB) in 2016. This new method is meant to replace the current Allowance for Loan and Lease Losses (ALLL) standard. CECL requires the estimation of expected losses over the life of a loan, while ALLL is based on historic, or incurred, losses. This change largely affects banks, but other financial institutions that hold or trade securities can also be subject to the rule. Although CECL was introduced in 2016, the implementation of the rule has had a …

The 30x30 Program: A Federal Land Grab?, J. David Aiken

Cornhusker Economics

In January 2021, the Biden Administration issued a climate policy executive order.[2] [or EO].[3] Section 216 of the Biden climate EO, Conserving & Protecting our Nation’s Lands & Waters, directed the U.S. Department of the Interior, the U.S. Department of Agriculture, and the U.S. Department of Commerce (which includes NOAA, the U.S. National Oceanic & Atmospheric Administration) to prepare a report “recommending steps that the United States should take, working with state, local, tribal and territorial governments, agricultural and forest landowners, fishermen and other key stakeholders to achieve the goal of conserving at least 30% of our lands and waters …

Grocery Store Transitions To Multi-Own Ership - Opportunities And Challenges, Marilyn Schlake

Cornhusker Economics

Independent grocery stores, stores whose owners operate fewer than four outlets, play a vital role in Nebraska communities. These stores help ensure food access for residents, particularly in rural areas. The recent decline in Nebraska’s total number of rural grocery stores is attributed to the closure of these independent stores, which are often owned by individuals or small groups. Finding qualified, motivated owners to purchase and operate independent grocery stores presents pressing challenges for many rural communities. Despite challenges, research shows that rural Nebraska communities perceive their independent grocery store to be an important community amenity. This suggests rural communities …

North Central Extension Risk Management Education Center Helps Producers Manage Risks, Christine Lockert, Brad Lubben, Sheila Aikanathan Johnson

Cornhusker Economics

Farmers and ranchers face many risks and challenges in production agriculture every day. Changing market fundamentals, farm policy reforms, and crop insurance program developments defined the risk environment that led to the authorization of agricultural risk management education as part of the Agricultural Risk Protection Act of 2000. The educational efforts that have followed have been designed to help producers manage the full range of production, marketing, financial, legal, and human risks that are all part of agriculture. In the more than two decades since, the risks facing producers have continued to grow. Producers managed through both the opportunities of …

The Coming Global Food Crisis, E. Wesley F. Peterson

Cornhusker Economics

Inflation driven by rising prices for food, energy, and other consumer goods has become a major concern in the United States and other high-income countries. A far more serious issue is the effect of rising food prices on low-income households in many developing countries in Africa, Asia, and Latin America. Global food prices had been rising in 2020 and 2021 as a result of supply shortages caused by adverse weather conditions exacerbated by climate change, war and civil strife in various countries, and economic shocks in the aftermath of the Covid-19 pandemic and the consequent disruption of global supply chains …