Social and Behavioral Sciences Commons^™

Understanding Spatial Welfare Impacts Of A Grain Ethanol Plant, Justin Van Wart, Richard K. Perrin

Department of Agricultural Economics: Faculty Publications

This study inquires into the spatial welfare impacts of a grain ethanol plant established in an area with a beef feeding industry. Beef feeders, corn farmers, and the ethanol plant interact with each other simultaneously in a dynamic market situation. To date, there are no studies which simultaneously analyze the welfare impacts of an ethanol enterprise on the three major players affected by the existence of a plant. In this market situation, some interesting phenomena have been noted which raise some intriguing questions. Why do plants sell ethanol byproduct feed at prices below corn price, even though studies show the …

Chinese Regional Agricultural Productivity: 1994-2005, Haizhi Tong, Lilyan E. Fulginiti, Juan P. Sesmero

Department of Agricultural Economics: Faculty Publications

Agricultural productivity growth in Chinese provinces during the 1994-2005 period is examined using two alternative approaches: a parametric stochastic frontier and a non-parametric Malmquist index. These models are suitable to the Chinese situation due to the existence of procurement prices, quotas, and other interventions that have distorted prices. Results show that there is high but declining productivity growth rates in the mid 1990’s with productivity growth decreasing in the late 1990’s but with a reversal of the trend around 1998 when growth rates start accelerating. A stochastic frontier translog production function is estimated to obtain an alternative measure of total …

Nebraska Farm Real Estate Market Developments 2008-2009, Bruce B. Johnson, Ryan Lukassen

Department of Agricultural Economics: Faculty Publications

Following strong value advances over the past several years, Nebraska farmland values throttled down and stabilized across most of the state during the 12-month period ending February 1, 2009. According the 2009 UNL Nebraska Farm Real Estate Survey, the average all-land value rose just over 1% for the year. Some modest decreases in value were reported for some classes of land, but relative to recent trends for residential and commercial property across the U.S., stable values for agricultural land speaks to its relative strength in the current recession.

Regional differences in value shifts were rather significant over the time period. …

Department Of Agricultural Economics Publications In 2008

Department of Agricultural Economics: Faculty Publications

Annual Department of Agricultural Economics Faculty Publication List (for 2008)

The Impact Of Weather Extremes On Agricultural Production Methods: Does Drought Increase Adoption Of Conservation Tillage Practices?, Ya Ding, Karina Schoengold, Tsegaye Tadesse

Department of Agricultural Economics: Faculty Publications

One benefit of conservation tillage practices is an increase in soil moisture. The paper combines panel data techniques with spatial analysis to measure the impact of extreme weather events on the adoption of conservation tillage. Zellner’s SUR technique is extended to spatial panel data to correct for cross-sectional heterogeneity, spatial autocorrelation, and contemporaneous correlation. Panel data allows the identification of differences in adoption rates as a function of the severity of past drought or flood events. The adoption of no-till, alternative conservation tillage, and reduced till are estimated relative to conventional tillage. Extremely dry conditions in recent years are found …

“I Don’T Want To Be Selling My Soul”: Two Experiments In Environmental Economics, Natalia V. Ovchinnikova, Hans J. Czap, Gary D. Lynne, Christopher W. Larimer

Department of Agricultural Economics: Faculty Publications

We conducted two experiments in the context of environmental protection. We found that profit considerations and personality traits are among the essential determinants of individual contributions to the solution of environmental problems. The results show that environmental considerations are powerful motivators and subjects are willing to forgo pecuniary profits for the sake of “doing-the-right-thing”. The study shows that the environmental groups can purchase carbon offsets directly from the providers at a lower-than market price and still obtain a relatively large market share.

Is Corn Ethanol Economically Viable In The Long-Run?, Richard K. Perrin

Department of Agricultural Economics: Faculty Publications

The corn ethanol industry is in the pits, with plants being idled and firms declaring bankruptcy. Not only that, but each month seems to bring a new study assailing corn ethanol because it doesn’t help the environment, or it doesn’t reduce dependence on foreign oil, or it drives up food prices, or it is harmful to health.

These assertions each have some basis, and they have gone far to undermine public policies in support of corn ethanol. So what then is the future for the industry? Can it survive without mandates and subsidies? To answer, we must first look at …

Efficiency In Midwest Us Corn Ethanol Plants: A Plant Survey, Richard K. Perrin, Nickolas F. Fretes, Juan P. Sesmero

Department of Agricultural Economics: Faculty Publications

Continuation of policy support for the US corn ethanol industry is being debated due to doubts about the greenhouse gas effects of the industry and the effects of the industry on food prices. Yet there is no publicly available data on the economic and technical performance of the current generation of plants, which constitute the overwhelming majority of the industry. This study helps to fill that gap. Seven recently constructed ethanol plants in seven Midwest US states provided details on input requirements and operating costs during 2006 and 2007. Results show that technical performance is substantially better than current estimates …

Pricing And Welfare Impacts Of New Crop Traits: The Role Of Iprs And Coase's Conjecture Revisited, Richard K. Perrin, Lilyan E. Fulginiti

Department of Agricultural Economics: Faculty Publications

Crop traits are durable when embedded in varieties, and thus they may be subject to Coase's conjecture that monopolists who sell durables may be unable to earn normal monopoly rents, or in the extreme case, not any rents at all. To determine the potential relevance of this conjecture for the crop traits market, we analyze the theoretical time path of trait prices under three systems of intellectual property rights (utility patents, plant breeders' rights, and none), alternative assumptions about sellers' ability to commit to future action, and alternative assumptions that buyers are either myopic or far-sighted with respect to expectations …

Empathy Conditioned Conservation: "Walking-In-The-Shoes-Of-Others" As A Conservation Farmer, Robert Sheeder, Gary D. Lynne

Department of Agricultural Economics: Faculty Publications

Since the destruction and despair caused by the dust bowl of the 1930’s, Americans and their government have taken a keen interest in natural resource conservation policy on agricultural land throughout the country. As a reflection of this, the farm bill of 1936 entitled the “Soil Conservation and Domestic Allotment Act” included for the first time provisions that provided payments and support to farmers willing to employ soil conservation measures on their farms (Cain and Lovejoy, 2004). While the main purpose of this bill was to provide financial support to impoverished farmers dealing with low commodity prices, the fact remains …

Nebraska Farm Real Estate Market Developments 2008-2009, Bruce B. Johnson, Ryan Lukassen

Department of Agricultural Economics: Faculty Publications

Following strong value advances over the past several years, Nebraska farmland values throttled down and stabilized across most of the state during the 12-month period ending February 1, 2009. According the 2009 UNL Nebraska Farm Real Estate Survey, the average all-land value rose just over 1% for the year. Some modest decreases in value were reported for some classes of land, but relative to recent trends for residential and commercial property across the U.S., stable values for agricultural land speaks to its relative strength in the current recession.

Regional differences in value shifts were rather significant over the time period. …

How Coupled Are Decoupled Farm Payments? A Review Of The Evidence, Arathi Bhaskar, John C. Beghin

Department of Agricultural Economics: Faculty Publications

This survey paper explores the literature on decoupling of farm programs that has emerged in the last 10 years. The paper identifies and assesses the various channels of potential coupling of decoupled farm payments and provides a taxonomy of coupling mechanisms found in theoretical and empirical papers. Coupling of decoupled payments is pervasive but effects when measurable are small, with the exception of the impact on land values. The paper points to unresolved issues on potential coupling mechanisms for further research.

Domestic subsidies to agriculture were brought under the discipline of global trade rules for the first time in the …