Business Commons^™

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 …

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 …

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 …

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 …

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. …

High Bmi Predicts Attention To Less Healthy Product Sets: Can A Prompt Lead To Consideration Of Healthier Sets Of Products?, Christopher Gustafson, Kristina Arslain, Devin Rose

Department of Agricultural Economics: Faculty Publications

While the food environment has been implicated in diet-related health disparities, individuals’ ability to shape the food environment by limiting attention to a subset of products has not been studied. We examine the relationship between BMI category and consideration set—the products the individual considers before making a final choice—in an online hypothetical shopping experiment. Specifically, we focus on the healthiness of the consideration set the individual selected. Secondly, we examined the interaction of a health prompt (versus a no-prompt control) with BMI category on the healthiness of the consideration set. We used linear probability models to document the relationship between …

What Determines The Success And Failure Of Environmental Crowdfunding?, Takahiro Kubo, Diogo Veríssimo, Shinya Uryu, Taro Mieno, Douglas Macmillan

Department of Agricultural Economics: Faculty Publications

Online crowdfunding can help address the perennial financial shortfalls in environmental conservation and management. Although many online crowdfunding campaigns fail to collect any funds due to not achieving their targets, little is known about what drives success. To address this knowledge gap, we applied a mixed-methods approach to data from 473 successful and failed campaigns hosted on the online crowdfunding platform Readyfor. We found that fundraising performance varied by topic, with campaigns on pet animal management outperforming those focussed on landscape management and sustainable use. We also found that marketing strategies associated with online findability and increased reach through social …

The Relationship Between Bodyweight Status And Weight Perception Explains Differences In Calories Ordered In A Food Choice Exercise, Jean-Claude Mbarushimana, Christopher Gustafson, Henriette Gitungwa, Eliana Zeballos

Department of Agricultural Economics: Faculty Publications

Understanding food choice is critical to be able to address the rise in obesity rates around the globe. In this paper, we examine the relationship between measured (BMI, using self-reported height and weight) and perceived weight status with the number of calories ordered in a controlled online food choice exercise. A total of 1044 participants completed an online food choice exercise in which they selected ingredients for a sandwich from five categories: meat/protein, cheese, spread/dressing, bread, and vegetables. We examine the number of calories ordered by participants and use linear regression to study the relationship of BMI category relative to …

Consumer Valuation Of And Attitudes Towards Novel Foods Produced With New Plant Engineering Techniques: A Review, John C. Beghin, Christopher Gustafson

Department of Agricultural Economics: Faculty Publications

We follow the PRISMA extension for scoping reviews to review the emerging international body of empirical evidence on consumers’ attitudes and willingness to pay (WTP) for novel foods produced with New Plant Engineering Techniques (NPETs). NPETs include genome/gene editing, cisgenesis, intragenesis, and RNA interference. These novel foods are often beneficial for the environment and human health and more sustainable under increasingly prevalent climate extremes. These techniques can also improve animal welfare and disease resistance when applied to animals. Despite these abilities of NPETs, evidence suggests that many, but not all, consumers discount these novel foods relative to conventional ones. Our …

Relative Valuation Of Food And Non-Food Risks With A Comparison To Actuarial Values: A Best–Worst Approach, Kayode Ajewole, Elliott James Dennis, Ted C. Schroeder, Jason Bergtold

Department of Agricultural Economics: Faculty Publications

This study empirically tests the relative importance that U.S. consumers place on immediate and long-term food and non-food risks. We use a best–worst survey method to elicit relative rankings and weights for each risk in terms of its perceived cost and likelihood. Immediate food risks are perceived to be more costly but less likely than long-term food risks. Immediate non-food risks are perceived to be both more costly and likely than long-term non-food risks. Overall, food risks are perceived to be less expensive than non-food risks. The combination of perceived cost and likelihood is used to define a measure of …

Consumer Reactions To E. Coli And Antibiotic Residue Recalls: Utility Maximization Vs. Regret Minimization, Elliott James Dennis, Kayode Ajewole, Jason S. Bergtold, Ted C. Schroeder

Department of Agricultural Economics: Faculty Publications

Food safety remains a major issue to many consumers. Previous studies examining the economic impact of food safety recalls have focused on Class I recalls. Antibiotic residue in meat products, a Class II recall, has increased in consumer importance yet little is known about how much research and development expenditure should be allocated to reduce antibiotic residue pre- and post-harvest. This study compares demand elasticities and the decrease in willingness to pay in response to either an E. coli (Class I) or antibiotic residue (Class II) recall. We compare and contrast two competing behavioral frameworks, Random Utility and Regret Minimizing. …

The Influence Of Crop Insurance Agents On Coverage Choices: The Role Of Agent Competition, Nathan Delay, Hayley Chouinard, Cory Walters, Philip Wandschneider

Department of Agricultural Economics: Faculty Publications

We examine how competition among crop insurance agents affects coverage choice in the federal crop insurance program. Agents may influence producers’ insurance decisions to maximize their total compensation. We develop a theoretical model of producer–agent interaction to examine how loss potential, agent compensation mechanisms, and market competition affect the coverage level selected. Using crop insurance unit-level datasets from five states, we find evidence that agent market concentration and agents’ market share matter in the insurance coverage decisions of producers but that the economic significance of the influence is relatively small. Agent influence over coverage level, premium, and liability choice is …

Health Policy: Universal Pre-Existing Conditions, Gary D. Lynne

Department of Agricultural Economics: Faculty Publications

Next to food policy, perhaps no domestic policy issue has raised the ire of more people than that related to the healthcare system. The US Affordable Care Act, which was based in and otherwise formulated with a heavy orientation towards the shared Other-interest in health, has been rejected outright by many who see the healthcare system is only to facilitate maximizing one’s own Self-interest. The latter perspective is easily understood, as there is perhaps nothing more in one’s own Self-interest then taking care of one’s health. So, it would be easily expected that many people would consider mainly their own …

Food Policy: Stability, Sustainability, And Safety, Gary D. Lynne

Department of Agricultural Economics: Faculty Publications

Everyone needs to eat, and eat well, as it is essential to the process of slowing down the pace to and time of our death, the point of maximum entropy for each person. As a result, it is perhaps the best example of the need to seek one’s Self-interest. It also puts us in the position, however, to more easily Empathize, walk-in-the-shoes of someone who may not have enough food, or the best kind of food, and help in forming a shared Other-interest, too. As a result, we might choose to support, with our tax money, some kind of a …

Tax Policy: Pay The Price, Gary D. Lynne

Department of Agricultural Economics: Faculty Publications

Taxes are the price we pay in order to obtain many of the outcomes pursued in the shared Other-interest. So, Metaeconomics in contrast to Microeconomics gives a substantive analytical system for dealing with the tax question, because of recognizing the Other-interest. Metaeconomics clarifies that taxation is about paying for, and thus bringing forth the payoffs from that which we share, like recording deeds and titles to private property; enforcing property rights, which is essential to a Market; licensing, registering, and enforcing patents; military, police, and fire services; road and harbor construction and maintenance; dams and reservoirs to provide for water …

Introduction To Metaeconomics, Gary D. Lynne

Department of Agricultural Economics: Faculty Publications

Metaeconomics is fundamentally about the problem of having too much emphasis on the Market or too much emphasis on the Government. It is about the essential need to bring empirical reality and ethics into finding balance: It is essential to achieving a good capitalism. Why? Well, because of the natural tendency to excessive Greed. As DeWaal (2009) would have it, we live in an age of Empathy: Ego based Greed is out. The Greed needs to be tempered, balanced, and perhaps bounded, with Empathy-based ethics. And, as Metaeconomics makes clear, it is because there is a dual nature of human …

Is The World Converging To A ‘Western Diet’?, Azzeddine Azzam

Department of Agricultural Economics: Faculty Publications

Objective: To test the nutrition transition hypothesis of global dietary convergence to a ‘Western diet’.

Design: Consumer-waste-adjusted FAO Food Balance Sheets are used to construct for each country a Western Diet Similarity Index (WSI), expressed as a ratio of calories from animal-sourced foods, oils, fats and sweeteners to total per capita calories. β-Convergence and associated speed are estimated by growth regressions using 1992–2013 panel data. Speed of convergence, a non-linear function of income per capita, globalisation and urbanisation, determines the steady-state or long-term global WSI. The long-term global WSI is compared with the WSI of the group of countries with …

Net Return Distributions When Metaphylaxis Is Used To Control Bovine Respiratory Disease In High Health-Risk Cattle, Elliott James Dennis, Ted C. Schroeder, David G. Renter

Department of Agricultural Economics: Faculty Publications

This study’s objective was to estimate net returns and return risk for antimicrobial metaphylaxis options to manage bovine respiratory disease (BRD) in high health-risk feedlot cattle. The effectiveness of antimicrobials for metaphylaxis varies by cattle population. How differing antimicrobial effectiveness translates to net return profitability for heterogeneous cattle populations is less understood. Net returns and return risk were assessed using a net return simulation model adapted to allow for heterogeneity in high health-risk cattle placement characteristics and antimicrobial choice to control BRD. The net return model incorporated how antimicrobials modify BRD health and performance outcomes. Health and performance outcomes were …

The Effect Of Presenting Relative Calorie Information On Calories Ordered, Christopher Gustafson, Eliana Zeballos

Department of Agricultural Economics: Faculty Publications

In this research, we tested the effect of a novel method of presenting calorie information—highlighting relative differences in calories among ingredients. We conducted an online hypothetical food choice experiment where 633 participants selected the ingredients for a sandwich from five categories: meat/protein, cheese, spread/ dressing, bread, and vegetables. Each participant was randomly assigned to one of four calorie information conditions: 1) a condition in which no information about calories was provided, 2) a condition in which calorie information was provided for each ingredient, 3) a condition in which calorie information was presented relative to the highest calorie item, and 4) …

Wildlife Viewing: The Impact Of Money-Back Guarantees, Takahiro Kubo, Taro Mieno, Koichi Kuriyama

Department of Agricultural Economics: Faculty Publications

Wildlife sightings are not always guaranteed. To address this risk, tour operators often offer a money-back guarantee as a refund mechanism. However, studies have overlooked the influences of such refund mechanisms on tourists' tour participation decisions and tourism revenue. We conducted choice experiments to examine the impact of such mechanisms using a case of Amami rabbit tourism in Japan. We found that the guarantee significantly influences the tourists’ decision-making and tour revenue. In particular, we found that the expected tourist participation rate and tour guide revenue vary drastically depending on the probability of the rabbit encounter. The maximum expected revenue …

Value Of Arrival Metaphylaxis In U.S. Cattle Industry, Elliott James Dennis, Ted C. Schroeder, David G. Renter, Dustin L. Pendell

Department of Agricultural Economics: Faculty Publications

Although several studies have estimated economic impacts of antimicrobials for growth promotion, little is known about economic impacts of the common animal health management strategy known as metaphylaxis: administering antimicrobials to groups of animals to prevent disease. This article develops a new framework to map animal disease to producer profitability and determine societal economic impacts surrounding metaphylactic use of antimicrobials in beef cattle production. Results indicate the direct net return value of metaphylaxis to the U.S. fed cattle industry is at least $532 million. Beef producer surplus losses of $1.8 billion would be associated with eliminating metaphylaxis.

Measurement Of Commodity Price Risk: An Overview Of Brazilian Agricultural Markets, Daniel Henrique Dario Capitani, Fabio Mattos

Department of Agricultural Economics: Faculty Publications

This study explores different procedures to estimate price risk in commodity markets. Focusing on Brazilian agricultural markets, the paper proposes to assess both dispersion and downside risk measures using five different approaches (volatility, coefficient of variation, lower partial moments, value at risk and conditional value at risk). Results suggest that some commodities have large price variability but small downside risk, while other commodities show small price variability and large downside risk. Thus, there is no single answer to the question of which commodity exhibits more price risk, but rather distinct answers depending on how risk is perceived by different individuals. …