Business Commons^™

Government Program Decision Analysis In Nebraska At The Farm Level, Tatum R. Brunkow

Department of Agricultural Economics: Dissertations, Theses, and Student Research

The one-year extension of the 2018 Farm Bill until September 30, 2024, has extended several government programs for the 2024 crop year including those in Title I: Commodities. This analysis looks at three different financial scenarios and analyzes five different alternatives for a case farm to select the optimal farm program decision for the operation by evaluating net farm income. Since 2021, eligible producers have been able to elect either Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) for their operation on an annual basis. Support levels for these programs are trending close together making the election decision more …

2022 Census Of Agriculture: Nebraska Highlights, Kathleen Brooks, Bradley Lubben

Cornhusker Economics

In February 2024, the United States Department of Agriculture National Agricultural Statistics Service published data from the 2022 Census of Agriculture. This data is collected every five years. The current article highlights a few of the Nebraska numbers. Two significant highlights from the data are the total number of farms and the total value of production. U.S. farm numbers declined modestly in the U.S. from 2.04 million in 2017 to 1.90 million in 2022. The total value of production for U.S. farms and ranches increased substantially from $388.5 billion in 2017 to $543.1 billion in 2022. Crop production accounted for …

Program Requirements For Beef Cattle Certified As Usda Organic, Carsten Loseke, Elliott James Dennis

Cornhusker Economics

This document provides an overview of the use and production of the USDA Certified Organic program for the beef cattle industry, with an emphasis on the state of Nebraska. We detail what cattle qualify, feed requirements, medical and health standards of cattle, and premiums paid by consumers for USDA certified organic products. All information is taken from the Organic Foods Production Act Provisions available in the Federal Register.

Insurance, Policy, And Education For Livestock Producers, Milan Chauhan, Bradley Lubben

Cornhusker Economics

Federal crop insurance programs have existed since the 1930s, but for livestock producers, federal insurance programs were virtually nonexistent until the past 20 years. Livestock producers may not face exactly the same production risks that crop producers face, but they do face similar production risks related to grazing capacity and forage production and of course face price risks just like crop producers do.

Nebraska Crop Budgets 2024, Robert N. Klein, Glennis Mcmclure

Department of Agricultural Economics: Presentations, Working Papers, and Gray Literature

The 2024 Nebraska Crop budget projections were created using cropping practice norms for many producers in Nebraska. However, each individual farming operation is unique, and these budgets should be used only as a guide. The budgets for 2024 are available in the Agricultural Budget Calculator program at:https://agbudget.unl.edu/. To modify these budgets, you can download UNL budgets into your ABC program account or create your own. In addition, the reports for each of the 2024 crop budgets are saved as printable (PDF) files. See also the new budget calculator at https://cap.unl.edu/abc.

The following individuals contributed to these budgets …

Crop-Livestock Diversification And Efficiency In Agriculture, Jay Parsons, Maroua Afi

Cornhusker Economics

Diversification is a familiar strategy for managing risk in agriculture. It can take several forms including growing more than one crop or operating a farm with both crop and livestock enterprises. As with other strategies for managing risk, diversification comes with a unique set of costs. Managing a farm with multiple enterprises creates additional overhead as well as additional demands on management, labor, land, capital, and other resources. Diversification adds complexity to an operation and too much complexity can lead to inefficiencies.

Producer Long-Term Marketing Opportunities With Ethanol Plants, Austin Harthoorn, Logan Lloyd, Cory Walters, Kate Brooks

Cornhusker Economics

Commodity marketing operates in a complex decision environment with constant information flow, which can conceal long-run financially profitable marketing opportunities for producers. In the corn marketing space, the competitive role of ethanol plants throughout the state may provide producers with long-run financial gains by strategically approaching marketing decisions. In this article, we characterize whether producers can gain financially from strategically marketing corn to ethanol plants. For example, do ethanol plants provide a better long-run return from pre-harvest hedging, spring sale, or harvest sale?

We investigate three important contracting times--forward contract for harvest delivery (called pre-harvest hereafter), harvest delivery, and spring …

Things To Consider Before Co-Signing A Loan, J. David Aiken

Cornhusker Economics

In the context of family farms, includes some general points to consider before you sign a loan guarantee for a family member who is heavily in debt.

Conclusion: Having to consider whether to co-sign a child's loan is a very difficult situation-no one wants to be part of losing part of the family farm or ranch to loan foreclosure. But if the loan guarantee isn't part of a financial turnaround plan that has at least a fighting chance of success, don't sign the guarantee unless you absolutely don't need the money for your own retirement.

Deficit Irrigation Management For Irrigated Corn In Nebraska: Economically Viable?, Lia Nogueira, Cory Walters, Emily O'Donnell, Wesley Peterson, Suat Irmak

Cornhusker Economics

In this study we determine the economic value of deficit irrigation management using both technological and methodological advancements. The use of soil moisture probes represents the technological improvement. We provide improvements in the methodology as follows. Regarding data, we employ a field-size study, instead of plots, where the irrigation decision is determined by the moisture level in the soil measured through a soil moisture probe. Regarding the understanding of the yield response to water, although we examine the commonly used quadratic function, we improve upon this specification by also examining an alternative response function, the linear response stochastic plateau. Our …

2023 Nebraska Women In Agriculture Conference, Jessica Groskopf, Katie Hothem

Cornhusker Economics

Includes a recap of the 38th Nebraska Women in Agriculture Conference held in February 2023 in Kearney, Nebraska.

Nebraska Farmland Values And Cash Rental Rates In 2023, Jim Jansen, Jeffrey Stokes

Cornhusker Economics

The market value of agricultural land in Nebraska increased by 14% over the prior year to an average of US $3,835 per acre, according to the 2023 Nebraska Farm Real Estate Market Survey. This marks the second-largest increase in the market value of agricultural land in Nebraska since 2014 and the highest non-inflation-adjusted state-wide land value in the 45-year history of the survey.

The University of Nebraska-Lincoln’s Department of Agricultural Economics annually surveys land industry professionals across Nebraska, including appraisers, farm and ranch managers, agricultural bankers, and related industry professionals. Results from the survey are divided by land class and …

The Impact Of Organized Activism On Technology Sharing, Ahmed Chennak, Amalia Yiannaka

Cornhusker Economics

What factors influence a firm's decision to share its technology with competitors? While patent licensing has received considerable attention in the literature, studies have typically focused on the optimal licensing contract for product and process innovations in various market settings. A key finding of this literature is that the optimal licensing strategy depends on the type of the patentee; that is, whether the patentee is a producer in the market (insider patentee) or not (outsider patentee). Little attention has been given, however, to the role the general public can play on firms' incentives to share their innovations through licensing contracts …

Role Of Social Network On Technology Adoption: Application To Nebraska Producers In The Face Of Undesirable Vegetation Transitions, Sabrina Gulab, Holly K. Nesbitt, Simanti Banerjee, Theresa Floyd

Cornhusker Economics

Conclusion

Producers need to have access to information regarding new conservation practices and technologies to ensure land management in the face of ecological threats in general and vegetation transitions (VTs) in the context of our study. This study investigates the role of an individual producer's social network on the willingness to seek information about technologies and management practices and the likelihood of new technology adoption with special attention to risk attitudes and producer spillover effects. Our results provide evidence that network composition and information obtained through a producer's social network don't influence an individual's willingness to seek information about new …

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 …

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 …

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 …

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.

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 …

Perceptions Of The Economy And Employment In Nonmetropolitan Nebraska: 2022 Nebraska Rural Poll Results, Rebecca J. Vogt, Heather Akin, Cheryl A. Burkhart-Kriesel, Bradley Lubben, L. J. Mcelravy, Timothy L. Meyer, Steven A. Schulz, Amanda Tupper

Nebraska Rural Poll

Most rural Nebraskans believe most of the listed economic items will become worse or much worse over the next 12 months when asked in May and June. Almost nine in ten think the following will become worse: inflation, gasoline or diesel fuel prices, grocery prices, and interest rates. In fact, at least four in ten rural Nebraskans believe the following items will become much worse in the next 12 months: gasoline or diesel fuel prices, inflation, grocery prices, and healthcare costs. The two items that had less than one-half believing they would become worse or much worse during the next …

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 …

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 Design Of An Agricultural Youth-Centered Rural Development Program In Rwanda, Laetitia Igiraneza Sinyigenga

Honors Theses

Rwanda is primarily a rural, young, and agriculture-based country. The referred variables- agriculture, rural population, and youth- can be creatively merged to engage and empower youth for rural development. This paper indicates the utilization of cross-disciplinary knowledge to design an agricultural youth-centered rural development program in Rwanda. The program uses the interdependence of economic sectors (agriculture and education) with resources (environmental & natural resources and human resources) to boost rural community development. The program’s main activities- mentorship, agribusiness training, tutoring, exposure visits, and community work- highly reflect the requirement for advancing the selected main economic sectors and resources. There is …

Regional Minimums In The U.S. Beef Complex, Elliott James Dennis, Bradley Lubben

Center for Agricultural Profitability

This report shows how the currently proposed policies differ; shows how these policies have aligned with historical market behavior; provides alternative specifications to regional minimums; and suggests policy alternatives to regional minimums.

The main purpose of this report is to show how current and potential alternative specifications of regional minimums would have historically aligned with observed market behavior. However, the fundamental question in the debate of the validity and effectiveness of regional minimums first rests on whether robust price discovery has historically occurred over time and within each USDA-AMS region. If there has been a lack of price discovery during …

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 …

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 …

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 …

Views Of Well-Being In Nonmetropolitan Nebraska: 2022 Nebraska Rural Poll Results, Rebecca J. Vogt, Heather Akin, Cheryl A. Burkhart-Kriesel, Bradley Lubben, L. J. Mcelravy, Timothy L. Meyer, Steven A. Schulz, Amanda Tupper

Nebraska Rural Poll

This year, rural Nebraskans are more pessimistic about their current situation than they’ve been in the past nine years. The proportion believing they are worse off than they were five years ago was 21 percent, up from the 11 percent reported last year. This is the highest level since 2013, when 26 percent believed they were worse off. This increase in pessimism did not translate into a decrease in optimism, however. This year, one-half of rural Nebraskans believe they are better off compared to five years ago, similar to 52 percent last year. The corresponding change occurred in a decrease …

Nebraska Farm Real Estate Market Highlights 2021-2022, Jim Jansen, Jeffrey Stokes

Nebraska Farm Real Estate Reports

Introduction

The Nebraska Farm Real Estate Market Highlights 2021-2022 report represents the 44th edition of the annual series. These reports provide an important insight on agricultural land market dynamics for stakeholders across Nebraska. In today’s market, where market transactions exceeding $1 million dollars are the norm, objective market information and analysis is more critical than ever. The focus of the report continues to be on providing unbiased information for agricultural land values and rental rates so industry participants can make educated and informed decisions.

This year, the February 2022 survey of nearly 188 expert panel members from across the state …