Social and Behavioral Sciences Commons^™

2012 Nebraska Crop Budgets, Roger Wilson

Cornhusker Economics

Overall, average projected cash costs per unit of production for 2012 are almost 15 percent higher than the 2011 projections made in April.

Some of this increase is due to a higher labor wage. Twenty dollars per hour was used as the wage rate in 2012, compared to $12 per hour in 2011. Wage rates vary substantially from one producer to the next, and there is no suitable index for determining a representative wage. It is not likely that actual wages paid increased that much from one year to the next, so this change represents an adjustment upwards as well …

Growing The Experience Economy, Cheryl Burkhart-Kriesel

Cornhusker Economics

Some of us, and I confess I am in this group, can remember when our mother would make us a birthday cake. She used basic ingredients or commodities like flour, sugar, eggs and cocoa to create it from scratch. It was always a wonderful creation and quite affordable – probably under 50 cents for the entire cake. Then a few years later it seemed fashionable to use cake mixes and canned frostings. Betty Crocker, Duncan Hines and others figured out that they could take the commodities and package them in such a way as to make a consumer good. …

Equity Redemption Practices Of Nebraska Farmer Cooperatives, Jeffrey S. Royer

Cornhusker Economics

The ability of a cooperative to redeem the equities of members and former members depends on its particular business and financial characteristics. However, data on the equity redemption practices of other cooperatives can provide useful benchmarks for assessing a cooperative’s equity redemption performance. A recent U.S. Department of Agriculture (USDA) report based on a 2008 survey of 792 farmer, rancher, and fishery cooperatives offers valuable information about the equity redemption practices of cooperatives according to organizational form, major business activity, asset size, and geographic location. In particular, the report contains some information specific to Nebraska cooperatives.

In 2008, there were …

Public Opinion And Food Animal Welfare, Randolph L. Cantrell

Cornhusker Economics

In the October 12, 2011 edition of Cornhusker Economics, Professor Dave Aiken brought us up to date on the issue of food animal welfare as it might affect Nebraska agriculture. His update was rendered out of date a mere six days later when the Nebraska Farmers’ Union (NEFU) and the Humane Society of the United States (HSUS) announced an agreement and the formation of a new advisory body, the Nebraska Agricultural Council of the Humane Society of the United States. The stated goal of the new organization is “To advance more humane practices on farms and ranches and to …

The Increasing World Population: A Call For Entrepreneurial Leadership And Innovation, Connie Reimers-Hild

Cornhusker Economics

According to the United Nations, the world’s population hit seven billion on October 31, 2011. The United Nations is projecting the world population to reach 9.3 billion by 2050. The new population landmark set off alarms in governments and organizations around the world. Most of the growth will occur in the poorest and least developed regions of the world, which already must work to resolve issues related to shortages of quality food, soil, air and water. Many people living in these countries also lack access to education, healthcare and global political capital.

More developed countries face many of the same …

Nebraska’S Entrepreneur Acceleration System, Marilyn Schlake

Cornhusker Economics

On December 8, 2011, 120 Nebraska business owners will complete their first year enrollment in the Entrepreneur Acceleration System (EAS). The program encourages the growth of a business by creating value-based relationships with customers through engaged employees, leading to economic growth and job creation. It was offered in partnership with Gallup, Inc., University of Nebraska- Lincoln Institute of Agriculture and Natural Resources, Nebraska Department of Economic Development and the Greater Omaha Chamber of Commerce.

Twenty-six individuals from various Nebraska communities and business backgrounds were selected to participate in the EAS mentor training at the Gallup Campus in Omaha, in the …

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Cornhusker Economics

Thanksgiving Holiday

Changing Farm Policies For Changing Times, Bradley Lubben, Jim A. Jansen, Matthew C. Stockton

Cornhusker Economics

It has long been said that farm policy and farm bills are much more evolutionary than revolutionary. Policy changes tend to occur rather slowly and gradually, unless some economic or policy shock creates an opportunity or urgent need for a change in policy direction.

The current debate in Washington could provide just that shock to point federal farm policy in a new direction. Farm legislation authorized in the 2008 Farm Bill expires in 2012, and the initial debate over re-authorization was already well underway when the Federal Debt Ceiling/Deficit Reduction Compromise legislation was passed in August. That legislation created a …

Nebraska Isolated Lands Statutes, J. David Aiken

Cornhusker Economics

Nebraska statutes establish a procedure for owners of land that does not have access to a public road, to have the county build an access road at the landlocked landowner’s expense. These statutes are called the Isolated Lands Statutes (NRS §§ 39-1713 to -1719). The process to provide access to isolated lands is not simple, and probably costly. The best way to avoid these situations is to make sure your land has access to a public road before you buy it. This newsletter provides a general overview of the isolated lands statutes. If you have questions regarding the isolated lands …

Animal Welfare Update, J. David Aiken

Cornhusker Economics

Beginning in 2002, the Humane Society of the United States (HSUS) embarked upon a campaign to ban battery cages for laying hens, gestation crates for pregnant sows and veal crates for veal calves. The HSUS strategy is to gather sufficient signatures to place their animal welfare initiative on the ballot, and present an emotional campaign regarding food animal confinement including sad pictures of laying hens, pregnant sows and veal calves in tight confinement. This approach has resulted, in recent years, in voter support exceeding 60 percent.

It seemed that the HSUS could do no wrong, and that wherever they proposed …

Does Contribution Equal Compensation?, Dave Goeller

Cornhusker Economics

Should contributions to the success of a family farm or ranch be compensated? One of the most difficult decisions owners of a farm and ranch business confront occurs when one heir returns to the family business, while he or she has siblings that do not. If you start out with the premise that we all love our children and hope to treat them fairly, it follows that if contributions to the success of the farming business are more or less equal we should compensate our children more or less equally. The difficulty arises because the farming heir will many times …

Buyer Willingness To Pay For Irrigation Systems: Evidence From The 2011 Nebraska Farm Real Estate Market Survey, Chris L. Thompson, Bruce Johnson

Cornhusker Economics

In Nebraska, irrigation is the best risk management tool to hedge against weather variations that negatively impact crop production. An agricultural producer’s ability to “make rain” is insurance against yearly variation in both yields and financial returns. As technology has progressed, reducing labor requirements and increasing efficiency of water application, irrigation has become a mainstay on thousands of Nebraska farms. In fact, the state ranks first in irrigated acres.

Along with increased irrigation come irrigation regulations to control over-use or abuse of water rights. With legal restrictions forcing the year to year management of irrigation allocations, some producers in Nebraska …

“I Think I’M Going To Have A Tax Problem This Year”, Tina N. Barrett

Cornhusker Economics

Many things in agriculture move fast. Technology is growing and changing rapidly. Input dealers are knocking on your doors earlier and earlier each year. This summer it seemed like many producers were dealing with marketing their 2010 crop, growing their 2011 crop and making input decisions on their 2012 crop. Each of these things complicates the tax planning each year. Add that to the record high profitability many agricultural producers have seen over the past five years, and one of the most common comments I’m hearing is “I think I’m going to have a tax problem this year.” You’re not …

Farmland Values: The Effects Of Commodity Prices, Yields, Profit Margins And Capitalization Rates, Matthew C. Stockton

Cornhusker Economics

Recent price increases for many of the crops grown in Nebraska have been followed directly by higher input costs. Land cost is one of these escalating factors. Typically, those that invest in real estate or land use a ratio of income relative to opportunity cost to evaluate the value of that purchase. This ratio involves factors related to the lands use and productive capacity, and is known as the “Capitalization rate” or “Cap Rate.”

The Economic Effects Of Purity Standards In Biotech Labeling Laws, Konstantinos Giannakas

Cornhusker Economics

Discussions on the appropriate regulatory norms for biotech or genetically modified (GM) foods date back to the early 1980s. Twenty-five years later, a consensus on what such norms should be remains elusive. While the safety of GM foods prior to their commercialization is evaluated through, more or less, the same methods around the world, countries differ widely on their treatment of GM foods that have been deemed safe for market introduction. Some countries, including the United States and Canada consider these GM foods substantially equivalent to their conventional counterparts, and do not require segregation and labeling of these products. Others, …

Legal Fences In Nebraska, J. David Aiken

Cornhusker Economics

This week I received two telephone calls asking “What is a legal fence in Nebraska?” Our recent fencing statute - which requires all landowners to split the cost of a division fence 50/50, is probably the source of this interest. So this newsletter begins with a brief history of the legal fence’s role in Nebraska fence law, and then lists the legal fence provisions in the 2011 Nebraska fence statutes.

Business Competency For Ag Businesses; A Key To A Prosperous And Sustainable Future, Matt Stockton

Cornhusker Economics

Husker Ag SMARTS, a statewide professional business management training program was developed and is delivered by the Department of Agricultural Economics, University of Nebraska-Lincoln. It is in conjunction with several partners, University of Nebraska Extension and financial institutions across the state. This joint effort has been financially supported by banking institutions and public funding through the North Central Risk Management Education Center. Local banks and cooperatives have been excited to see this program offered, and have been very supportive in giving scholarships, identifying possible participants and encouraging their clients to become involved.

The SMARTS portion of the program’s name is …

Nebraska And “The Great Recession” - Jobs And Income: 2007-2009, Randolph L. Cantrell

Cornhusker Economics

Recovery may be seen as weak, but “The Great Recession” which officially began with a second consecutive quarter of negative economic growth in December, 2007, officially ended in June, 2009.

The effect of the recession on employment was dramatic and continues through today, with a seasonally adjusted national unemployment rate at 9.2 percent as of July, 2011, according to the National Bureau of Labor Statistics. Unemployment remains at or above ten percent in seven states.

Nebraska fared better than most states during the recession. The state’s seasonally adjusted unemployment rate never exceeded five percent and is currently at 4.2 percent …

Sustainable Practices Like Recycling: Could Colleges And Universities Be Role Models?, Prabhakar Shrestha, Gary D. Lynne

Cornhusker Economics

For the very first time in the history of the University of Nebraska-Lincoln, this year's summer graduates wore a "green" gown for their commencement exercises. The gown is made from sustainably harvested wood pulp, with zippers made from 100 percent recycled plastics. Practices like these are a step in a positive direction, suggesting colleges and universities could become leaders in sustainable practices, as well as in ensuring that the curriculum used in helping form the education obtained by students includes sustainability principles.

Gender, Interdisciplinarity And Global Food Crises, Marianna Khachaturyan, Ann Mari May, Gale Summerfield

Cornhusker Economics

Higher education plays a pivotal role in analyzing and offering potential solutions to the world’s problems, and seldom have the world’s economic and social problems appeared more critical. As the world’s population increases and faces the unpredictable effects of climate change and begins to come to terms with the possibility of peak oil and its implications, we face rising concerns about food security and global food crises.

As we work to address these growing concerns it is increasingly apparent that our research must be interdisciplinary in nature. Because women play critical roles in the supply and consumption of agricultural products, …

Past Successes And Future Prospects For Nebraska Agriculture, Ray Supalla

Cornhusker Economics

When I joined the University of Nebraska-Lincoln faculty in 1976, Nebraska had 5.5 million irrigated acres, irrigated corn yields averaged 115 bushels per acre, irrigation water was worth $25 per acre per year, center pivot irrigated land was selling for $1,000 per acre, net farm income averaged $0.8 billion per year and both groundwater pumping and nitrogen fertilization practices were unrestricted. Today as I prepare to retire, Nebraska has 8.5 million irrigated acres, irrigated corn yields average 186 bushels, irrigation water is worth more than $100 per acre per year, pivot irrigated land is selling for over $4,000 per acre, …

Use Of And Satisfaction With Home Broadband Service By Business Ownership, Rebecca J. Vogt, Charlotte Narjes, Connie Hancock

Cornhusker Economics

Technology is critical for businesses to remain competitive in this knowledge-based economy. Many businesses are home-based, making it necessary to have adequate Internet service at home. So how are business owners and farmers/ranchers currently using technology in their homes? Is their home Internet service meeting their needs?

The Nebraska Public Service Commission was awarded a grant from the Department of Commerce's National Telecommunications and Information Administration (NTIA) to conduct a study of broadband use and needs in Nebraska. The University of Nebraska- Lincoln conducted the survey for the Commission. In addition, the Nebraska Information Technology Commission (NITC) Community Council and …

Satisfied Customers Are Not Good Enough, Cheryl A. Burkhart-Kriesel

Cornhusker Economics

There used to be a time when all a business wanted were satisfied customers. Having satisfied customers was seen as the pinnacle of success. But today it appears that is not the case.

With everyone wanting to take their business to “the next level,” it is no surprise that businesses, especially in the service and sales area, are looking for new ways to take their satisfied customers and transform them into passionate advocates.

Land Reform And Farm Structure In The Former Soviet Union, Marianna Khachaturyan, E. Wesley F. Peterson

Cornhusker Economics

Land is a critical input for agricultural production. At the same time, land has long been seen as a store of wealth, an asset that may be held for a wide range of purposes and that may account for a significant share of a nation’s resource stock. The way in which land is owned, used and transferred has varied over time and throughout the world. Laws and customs governing land ownership, use and transfer, are known as institutions, and are extremely important determinants of agricultural output. Insecurity of land ownership rights, for example, may reduce not only the incentive individual …

Foreign Land Investments And Traditional Land Ownership Rights In Africa, Kepifri Lakoh, E. Wesley F. Peterson

Cornhusker Economics

This is the second in a series of three Cornhusker Economics articles on the institutions governing the ownership, use and transfer of agricultural land around the world. Last week, the focus was on the difficult transition from social to private land ownership in the countries of the Former Soviet Union. This week, the issue concerns the recent increase in land purchases in Africa by foreign governments and firms, referred to by some as a new colonial land grab.

Property Rights In Post-Conflict Sri Lanka, Ryan P. Anderson, E. Wesley F. Peterson

Cornhusker Economics

This is the third and final article in a series on property rights. In the previous two articles we saw how conflicts often emerge during the transition from one set of legal or social institutions to another. In this article we consider how such challenges helped spark a prolonged civil war in Sri Lanka, and how they might finally be resolved now that peace has been realized.

National Agri-Marketing Association (Nama) Annual Conference Connects Student Members With Professionals, Kristin Witte, Rosalee A. Swartz

Cornhusker Economics

The opportunity to connect with professionals is an important aspect of college life for students. It helps them to more clearly understand career possibilities, and learn from professionals who are in careers and working for companies and organizations in the students’ areas of interest. The National Agri-Marketing Association (NAMA) is an outstanding venue for promoting connections between students and professionals. It is comprised of over 25 chapters in six regions nationwide, and has more than 3,500 professional and student members. Nebraska’s Midlands (professional) Chapter works closely with the University of Nebraska student chapter. Students are invited to monthly Midlands meetings …

Transboundary Water Issues In The Kura-Araks River Basin, Marianna Khachaturyan, Karina Schoengold

Cornhusker Economics

Water resources that are shared across boundaries by different states or countries are referred to as “transboundary” or “international” water resources. Worldwide, there are about 263 international basins that are shared by two or more countries, with 40 percent of the world population living on these international basins (Giordano and Wolf, 2003). This is an increase from the 214 basins that were identified in 1978, due to better mapping technology and newly emerging nations. For example, the collapse of the Soviet Union in 1991 created 15 new independent nations and simultaneously created new transboundary water resources.

Be A Part Of The Plan - Engaging People - Linking The World, Charlotte Narjes, Rebecca J. Vogt, Connie Hancock

Cornhusker Economics

Broadband is transforming the economy and society. Businesses are using telecommunications to speed up transactions, reduce costs and expand their markets. New technologies such as cloud computing are allowing businesses to further reduce costs, and increase flexibility and mobility. Students at all levels are taking courses via distance learning technologies. eHealth technologies are making complete patient information available at the point of care, eliminating the need to run redundant tests and reducing the risk of dangerous drug interactions. Broadband technologies are also opening significant opportunities for the agricultural sector to increase accuracy of production and profits, and stay abreast of …

Rural - Urban Interdependencies: What Can We Learn From Minnesota?, Cheryl A. Burkhart-Kriesel

Cornhusker Economics

In the current era of political hard choices driven by government austerity, it is not surprising to see a change in emphasis from statewide community collaboration and partnership to “every community for itself.” When tough choices at the state and regional level need to be made, one of the key issues is often where to put those limited resources . . . is it in rural areas or urban areas?

But what if we stepped back and approached this in a different way . . . instead of considering resource allocation in terms of rural or urban, what if we …