Business Commons^™

Effect Of Beef Heifer Development Systems Utilizing Corn Residue And Late Summer Planted Cover Crops On Growth, Reproductive Performance, And Economics, Hannah F. Speer, Robert A. Cushman, Harvey Freetly, Jay Parsons, Jessica Windh, M. E. Drewnoski

Department of Agricultural Economics: Faculty Publications

The objective of this study was to evaluate growth and reproductive performance of heifers developed using 3 different winter systems in the midwestern U.S. Spring-born heifers (n = 1,156; 214 d of age; SD ± 17 d) were used in a 3-yr study to evaluate performance in winter development systems, which utilized cover crop (CC) and corn residue grazing. Heifers were assigned to 1 of 3 treatments: grazing corn residue with 0.77 kg/d dried distillers grains (CD) or 1.69 kg/d wheat midds (CW) supplementation followed by a grower ration in the drylot, or grazing late summer planted oat-brassica CC followed …

Economic Research On Ethanol Feed-Use Coproducts: A Review, Synthesis, And Path Forward, Elliott James Dennis, Daniel Gertner, Galen E. Erickson

Department of Agricultural Economics: Faculty Publications

During the mid-2000s to the early 2010s, the domestic ethanol industry witnessed substantial growth, with ethanol coproducts emerging as vital elements for plant profitability and livestock feeding. Initially serving as supplementary revenue streams, coproducts from ethanol production have evolved into diverse value-added offerings, bolstering revenue streams, and sustaining profit margins. This study reviews existing economic research on ethanol coproducts, detailing methodologies, product focus, and research locations. Initially gathering 972 articles from 9 databases, 110 articles were synthesized. We find that most studies primarily examined the growth and future of the ethanol industry with a limited focus on specific coproducts. Feed-use …

Health Prompts Affect Consideration Of Health But Not Intertemporal Preferences While Promoting Healthier Food Choices, Olivier Tuyizere, Christopher Gustafson, Devin J. Rose

Department of Agricultural Economics: Faculty Publications

Diet-related diseases impact populations across the globe. While intertemporal preferences—a fundamental preference for the distribution of benefits across time—have been used to explain low-quality food choices, the recent literature proposes another cause: inattention to the future implications (or opportunity costs) of the options faced. Food choices tend to become habitual to conserve cognitive resources, rather than carefully modeling future health impacts. Both low discount rates for future benefits and attention to future health impacts predict healthier decisions. While intertemporal preferences are stable, attention may provide an opportunity to intervene in the decision process to promote healthier decisions. In this study, …

The Economic Impacts Of Social Activism And Corporate Social Responsibility On Food Fraud, Anubrata Deka, Amalia Yiannaka, Konstantinos Giannakas

Department of Agricultural Economics: Faculty Publications

The study examines the relationship between the corporate social responsibility (CSR) investments of a food firm, an activist’s incentive to target the firm to uncover and deter fraudulent behavior, and the firm’s incentive to commit food fraud. Specifically, we develop a game theoretic model to analyze the strategic interaction between a food firm that decides whether to provide a credence food attribute and whether to misrepresent the quality of its product, and an activist who decides whether to monitor the firm and launch a campaign to uncover and remove false/misleading quality claims. We further examine the effect of CSR and …

Can Machine Learning Models Provide Accurate Fertilizer Recommendations?, Takashi S. T. Tanaka, Gerard B. M. Heuvelink, Taro Mieno, David S. Bullock

Department of Agricultural Economics: Faculty Publications

Accurate modeling of site-specific crop yield response is key to providing farmers with accurate site-specific economically optimal input rates (EOIRs) recommendations. Many studies have demonstrated that machine learning models can accurately predict yield. These models have also been used to analyze the effect of fertilizer application rates on yield and derive EOIRs. But models with accurate yield prediction can still provide highly inaccurate input application recommendations. This study quantified the uncertainty generated when using machine learning methods to model the effect of fertilizer application on site-specific crop yield response. The study uses real on-farm precision experimental data to evaluate the …

Synthesis Of Current Evidence On Factors Influencing The Suitability Of Synthetic Biodegradable Mulches For Agricultural Applications: A Systematic Review, Michael Madin, Katherine Nelson, Kanji Fatema, Karina Schoengold, Abhilekha Dalal, Ikenna Onyekwelu, Rushrukh Rayan, Sanaz Saki Norouzi

Department of Agricultural Economics: Faculty Publications

Mulching practice offers farmers an opportunity to minimize the effects of drought, water loss, and soil erosion on crop production. Plastic film is widely used as a mulching material; however, contamination of arable lands by residual plastic has become a serious concern. Synthetic biodegradable mulch films and sprays may offer a more sustainable alternative to plastic films, however current evidence on the factors that influence the suitability of these products for agricultural applications is fragmented, making it unclear under what conditions these products meet agronomic, environmental, and societal needs. We address this gap by conducting a systematic review of studies …

Spatially Coordinated Conservation Auctions: A Framed Field Experiment Focusing On Farmland Wildlife Conservation In China, Zhaoyang Liu, Simanti Banerjee, Timothy N. Cason, Nick Hanley, Qi Liu, Jintao Xu, Andreas Kontoleon

Department of Agricultural Economics: Faculty Publications

How best to incentivize land managers to achieve conservation goals in an economically and ecologically effective manner is a key policy question that has gained increased relevance from the setting of ambitious new global targets for biodiversity conservation. Conservation (reverse) auctions are a policy tool for improving the environmental performance of agriculture, which has become well-established in the academic literature and in policy making in the US and Australia. However, little is known about the likely response of farmers to incentives within such an auction to (1) increase spatial connectivity and (2) encourage collective participation. This paper presents the first …

On The Economics Of The Transition To A Circular Economy, Ahmed Chennak, Konstantinos Giannakas, Tala Awada

Department of Agricultural Economics: Faculty Publications

Humanity is facing complex challenges posed by population growth, climate change, and the need to increase food, feed, fiber, and bioenergy production while confronting the scarcity of natural resources. The transition to a circular economy, characterized by reduced resource use and waste, is being increasingly recognized in academic, business, and policy making circles as essential to meeting these challenges, with the emphasis being on the development of methods and processes that enable and facilitate the transition from a linear to a circular economy. This paper argues the need for an increased emphasis on the economics of the circular economy and …

Emotional Responses To Covid-19 Stressors Increase Information Avoidance About An Important Unrelated Health Threat, Christopher Gustafson, Kate Brooks, Syed Imran Ali Meerza, Amalia Yiannaka

Department of Agricultural Economics: Faculty Publications

The COVID-19 pandemic, like other crises, has had direct and indirect impacts on individuals, many of which have been negative. While a large body of research has examined the impacts of COVID-19 on people’s lives, there is little evidence about how COVID-19 affects decision-making broadly. Emotional responses to COVID-19-related stressors, such as illness and income loss, provide a pathway for these stressors to affect decision-making. In this study, we examine linkages between exposure to COVID-19-related stressors—focusing on temporally specific local case counts and loss of income due to the pandemic—and decisions to access information about antimicrobial resistance (AMR), another critically …

Toward An Effective Approach For On‑Farm Experimentation: Lessons Learned From A Case Study Of Fertilizer Application Optimization In Japan, Takashi S.T. Tanaka, Taro Mieno, Ryoya Tanabe, Tsutomu Matsui, David S. Bullock

Department of Agricultural Economics: Faculty Publications

On-farm experimentation (OFE) is increasing worldwide. Appropriate OFE procedures may differ depending on the characteristics and circumstances surrounding farms, such as climate, field conditions, farm size, degree of agricultural digitalization, and a farmer’s socioeconomic background. This study aims to guide the future development of OFE in Japanese grain farming by examining the experimental setup, data analysis, and farmers’ activities within their socioeconomic and institutional communication and learning networks. The results of this typical OFE case study, which estimates a field’s economicallyoptimal fertilizer variable-rate application map for winter wheat production, are reported. The outcomes of the case study, which are intended …

Economics Of Deficit Irrigation Utilizing Soil Moisture Probes In The Western Corn Belt, Emily O’Donnell, Lia Nogueira, Cory Walters, E Wesley F. Peterson, Suat Irmak

Department of Agricultural Economics: Faculty Publications

Effective irrigation management is critical for future food supplies and the prosperity of producers engaged in irrigation production. Through a deficit irrigation field experiment, we determine the financial impact on producers caused by changing irrigation costs, corn prices, extreme weather events, and restricting irrigation levels. Results suggest that the optimal economic strategy within our constrained optimization model is to fully irrigate, with the economic impact highly dependent on commodity prices, restriction level, and irrigation costs. The greatest economic losses caused by irrigation restrictions come from decreases in yield. Some simulations resulted in negative profits, indicating that a switch to alternative …

The Role Of Behavioural Factors And Opportunity Costs In Farmers' Participation In Voluntary Agri-Environmental Schemes: A Systematic Review, Sergei Schaub, Jaboury Ghazoul, Robert Huber, Wei Zhang, Adelaide Sander, Charles Rees, Simanti Banerjee, Robert Finger

Department of Agricultural Economics: Faculty Publications

Agri-environmental schemes (AESs) are increasingly implemented to promote the adoption of environmentally friendly practices by farmers. We use a systematic review to explore the role of behavioural factors and opportunity costs in farmers' decisions to participate in AESs in Australia, Europe and North America. Behavioural factors influence how farmers value and perceive options, while opportunity costs relate to farmers' forgone utility when choosing to participate in schemes. We synthesise insights from 79 articles and over 700 factors explaining the participation in AESs. We find that a set of behavioural factors seem consistently connected to participation, including agricultural training, advice and …

Evaluating The Relative Impact Of Multiple Healthy Food Choice Interventions On Choice Process Variables And Choices, Christopher Gustafson

Department of Agricultural Economics: Faculty Publications

Fiscal tools—taxes and/or subsidies—are increasingly used to address diet-related health problems. However, some studies have found that these tools are markedly more effective if attention is drawn to the tax or subsidy, suggesting that the price change alone may go unnoticed in the complex food environments that consumers face. Interventions that prompt individuals to consider health during choice show promise for promoting healthy food choices in both simple laboratory settings and complex, real-world markets. In this pre-registered study, I examine the impact of dietary fiber health prompts and/or dietary fiber subsidies on the per-serving fiber content of foods chosen, the …

Food Fraud: A Persistent Problem That Demands A Comprehensive Approach, Amalia Yiannaka

Department of Agricultural Economics: Faculty Publications

Food fraud commonly refers to the deliberate and economi­cally motivated adulteration and mislabeling of food, but more broadly defined it also includes food theft, simulation that makes a fraudulent food product look like the legiti­mate product it copies, diversion, and overrun (Moyer et al. 2017). It is a longstanding and persistent challenge that impacts the global food sector; according to some estimates, food fraud results in annual costs of $40 billion (Food Standards Agency 2020). The complexity of globalized agri-food supply chains which are long, fast-moving, and involve a large number of intermediaries, coupled with lax regulatory monitoring and oversight …

Special Issue: Agri-Food Systems Transformation: Sustainability, Resilience, And The Role Of Technology, Rui Mao, Aleksan Shanoyan, Kate Brooks

Department of Agricultural Economics: Faculty Publications

The agri-food systems around the world are faced with the challenges from unprecedented short-term shocks and long-term supply and demand shifts. The need for transformation towards more sustainable and resilient agri-food systems has thus risen to the centre of attention of agribusiness industry and policy decision makers. Technological innovations in the areas of supply chain management, environmental protection, and nutrition improvement have a potential of playing an important catalytic role in such systematic transformations. This special issue includes 11 research articles examining a range of strategic and technological solutions aimed at facilitating the resilience and sustainability of agri-food systems to …

New Plant Engineering Techniques, R&D Investment And International Trade, Stéphan Marette, Anne-Célia Disdier, Anastasia Bodnar, John C. Beghin

Department of Agricultural Economics: Faculty Publications

New plant engineering techniques (NPETs) may significantly improve both production and quality of foods. Some consumers and regulators around the world might be reluctant to accept such products and the global market penetration of these products may remain low. We develop a parsimonious economic model for R&D investment in food innovations to identify conditions under which NPET technology emerges in the context of international trade. The framework integrates consumers' willingness to pay (WTP) for the new food, the uncertainty of R&D processes, the associated regulatory cost of approval, and the competition between domestic and foreign products. With generic applicability, the …

Consideration Of Nutrients Of Public Health Concern Highlighted In The Dietary Guidelines For Americans 2020-2025 Among A Large Sample Of Us Primary Shoppers, Christopher Gustafson, Devin Rose

Department of Agricultural Economics: Faculty Publications

The objective of this research is to estimate the proportion of consumers who consider nutrients identified in the Dietary Guidelines for Americans 2020-2025 (DGA) as being of public health concern during food choice using a large, population-weighted sample of U.S. residents. A question was included in a bi-monthly survey of consumer scanner panel members, asking whether respondents considered each of eight nutrients in a check-all-that-apply format. Four of these nutrients are under-consumed nutrients, while three are nutrients to avoid. Calories was additionally included, as over-consumption of calories causes weight gain. Weighted mean proportions and 95% confidence intervals were …

Active Consideration Of Future Health Can Be Prompted By Simple Health Messages And Improves Nutritional Quality Of Food Choices, Christopher R. Gustafson

Department of Agricultural Economics: Faculty Publications

Many choices that people face daily have implications for future health and well-being. Choices about what foods to purchase and consume are one of the most frequent—and universal choices—that people must make. The ongoing rise of overweight and obesity rates—and associated diet-related diseases—in the US and many other countries illustrates the future health consequences of low-quality dietary choices. While a large body of research shows that individuals with a tendency to consider the future make a wide range of healthier decisions, research on limited attention and exogenous factors influencing choice suggests that attention to the future consequences of choices may …

Us Consumer Identification Of The Health Benefits Of Dietary Fiber And Consideration Of Fiber When Making Food Choices, Christopher Gustafson, Devin J. Rose

Department of Agricultural Economics: Faculty Publications

The purposes of this study were to (1) determine beliefs in the health benefits of dietary fiber, an under-consumed nutrient of public health concern, and (2) determine the relationship between beliefs about dietary fiber and consideration of fiber when making food choices. We conducted a nationally representative within-subject randomized online survey of 42,018 US primary shoppers in May–June 2021. Participants selected health benefits they believed were associated with consumption of fiber from a list of six benefits recognized by the Food and Drug Administration (FDA), one indirect benefit, and one unrelated benefit. Respondents then indicated which nutrients, if any, they …

The Role Of Risk In Farmland Contract Choices, Chelsea Arnold, Jisang Yu, Mykel Taylor, Leah H. Palm-Forster, Simanti Banerjee

Department of Agricultural Economics: Faculty Publications

Understanding the role of risk in farmland leasing contract choices is important to assess the welfare consequences of farm policies or environmental changes that affect production risk. We use a unique dataset of landowners and tenants in Kansas to examine the role of risk in their farmland leasing contract choices. We find that greater production risk and more risk-averse landowners encourage fixed cash rent contracts. As many variables can potentially affect contract choices, we use a penalized regression to show that the inclusion of relationship variables leads to little change in the main results.

The Potential Cost Of Regulation Of Methane And Nitrous Oxide Emissions In U.S. Agriculture, Tshepelayi Kabata, Lilyan E. Fulginiti, Richard K. Perrin

Department of Agricultural Economics: Faculty Publications

Background: Most studies on the environmental impacts of agriculture have attempted to measure environmental impacts but have not assessed the ability of the sector to reduce or mitigate such impacts. Only a few studies have examined greenhouse gas emissions from the sector. This paper assesses the ability of states in the U.S. to reduce agricultural emissions of methane and nitrous oxide, two major greenhouse gases (GHGs) with important global warming potential.

Methods: The analysis evaluates Färe’s PAC (pollution abatement cost) for each state and year, a measure of the potential opportunity costs of subjecting the sector to GHG …

A Review Of Registrations For Over-The-Top Dicamba Products And Liability For State Governments For Appropriating Neighbors’ Right To Exclude, Terence J. Centner

Department of Agricultural Economics: Faculty Publications

Injuries inflicted by spray applications of dicamba herbicides on neighboring properties have raised questions about the validity of the dicamba registrations and the adequacy of protection accorded others. An evaluation of the documentation used by the Environmental Protection Agency in approving the 2020 dicamba registrations discloses a lack of evidence supporting issuance of the registrations. In the lawsuit challenging the 2020 registra- tions, the court may decide they need to be vacated. While over-the-top dicamba products for use on soybeans and cotton have been beneficial in controlling weeds, their volatility has caused major offsite injuries. Neighboring property owners have the …

Causes And Consequences Of Fake Transparency/Excess Information In Food Claims, Susweta Ray, Konstantinos Giannakas

Department of Agricultural Economics: Faculty Publications

This study develops novel multi-stage game-theoretic models of heterogeneous firms and consumers in vertically differentiated food product markets with asymmetric information to analyze the economic causes and market and welfare consequences of excess information/ fake transparency in food labeling. Analytical results indicate that the firms’ incentives to adopt the excess information strategy, the Nash equilibrium configuration of firms adopting the strategy, and the market and welfare impacts of excess information are case-specific and dependent on the consumer reaction to excess information, the quality of the firms’ products, the degree of product differentiation between the brand producing firms, and whether the …

The Economics Of A “Portion Size Reduction” Policy, Hanin Hosni, Konstantinos Giannakas

Department of Agricultural Economics: Faculty Publications

This study develops novel models of heterogeneous consumer preferences for different dining options and imperfect competition among food suppliers to analyze the market and welfare effects of portion size reduction (PSR) for food away from home. Different scenarios on the nature of differentiation of the dining options, the information available to consumers, and their response to links between portion size and obesity, food waste, and climate change are considered within this framework. The market and welfare effects of the policy are quantified using a simulation analysis. The analysis shows that the market and welfare effects of the policy are case-specific …

Simulated Dataset Of Corn Response To Nitrogen Over Thousands Of Fields And Multiple Years In Illinois, German Mandrini, Sotirios V. Archontoulis, Cameron M. Pittelkow, Taro Mieno, Nicolas F. Martin

Department of Agricultural Economics: Faculty Publications

Nitrogen (N) fertilizer recommendations for corn (Zea mays L.) in the US Midwest have been a puzzle for several decades, without agreement among stakeholders for which methodology is the best to balance environmental and economic outcomes. Part of the reason is the lack of long-term data of crop responses to N over multiple fields since trial data is often limited in the number of soils and years it can explore. To overcome this limitation, we designed an analytical platform based on crop simulations run over millions of farming scenarios over extensive geographies. The database was calibrated and validated using data …

Comparative Performance Of Cooperative Equity Retirement Plans, Jeffrey S. Royer

Department of Agricultural Economics: Faculty Publications

This paper compares the performance of revolving fund, percentage-of-all-equities, and base capital plans, and special plans for redeeming equity held by estates or based on member age. It also examines how the performance of the base capital plan is affected by changes in the base period, relaxing the equity requirements for underinvested members, and a variable cash patronage refund program. The base capital plan performs better than other systematic plans but places financial burdens on young members. Two modifications can mitigate that problem with only a slight diminution in performance. Special plans benefit cooperatives operating revolving fund plans the most.

How Do Consumers’ Beliefs About Product Price, Taste, And Health Affect Attention To Health-Differentiated Product-Sets?, Henriette Gitungwa, Christopher R. Gustafson

Department of Agricultural Economics: Faculty Publications

Objectives: Consumers facemyriad food products in supermarkets, obviating consideration of all options. Consumers are likely to direct scarce attention to products they believe will provide them the best outcome. However, consumers may hold inaccurate beliefs— particularly about health attributes which can lead them to omit items from consideration that they would have optimally considered We examine how consumers’ beliefs about the relative price, taste, and healthiness of food product sets affect the healthiness of the set of products they consider.

Conclusions: Believes about relative differences in nutritional quality of foods importantly influence consideration of products, potentially perpetuating misconceptions about relative …

Weather Impacts The Agricultural Production Efficiency Of Wheat: The Importance Of Precipitation Shocks, Bowen Chen, Elliott James Dennis, Allen M. Featherstone

Department of Agricultural Economics: Faculty Publications

Many studies have explored the determinants of technical efficiency in crop production, but fewer have examined how weather might change technical efficiency over time. We estimate weather effects on technical efficiency using data from 540 Kansas winter wheat farms from 2007/08 to 2016/17 using a panel stochastic frontier model that controls for farm-specific heterogeneity with farm fixed effects. Results show that precipitation is nonlinearly related to technical efficiency and that extreme temperature is associated with lower technical efficiency. Improving resilience to precipitation shocks is key to sustained efficient wheat production in Kansas.

The Role Of Premium Subsidies In Crop Insurance, Charalampos Mavroutsikos, Konstantinos Giannakas, Cory Walters

Department of Agricultural Economics: Faculty Publications

This study develops a novel framework of heterogeneous producer attitudes towards risk to analyze different, stated and revealed, roles of crop insurance premium subsidies and underlying policy objectives of the government. The analysis reveals a strong connection and a complementarity between the roles of premium subsidies in increasing producer participation in crop insurance, inducing a desired separating equilibrium in the presence of asymmetric information, and transferring income to agricultural producers participating in the program. Developing an alternative design of premium subsidies that can achieve the stated government objective of increased producer participation and induce any desired separating equilibrium at significantly …

Pesticide Usage Is Compromising People’S Health In The United States: Ideas For Reducing Damages, Terence J. Centner

Department of Agricultural Economics: Faculty Publications

The development of synthetic pesticides has provided new tools for addressing troublesome pests. A review of parts of the registration process for pesticides in the United States identifies an outdated evaluation system that undervalues health damages. Registration fails to adequately consider co-formulants and effects of exposure to multiple chemicals. Frustration with failures to protect people and property from damages accompanying pesticide usage has led injured plaintiffs to resort to tort lawsuits to secure relief. However, litigation involves compensating injured persons after they are injured rather than preventing injury. A more proactive approach would be to prevent situations that injure people. …