Business Commons^™

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. …

The Economic Impact Of New Technology Adoption On The U.S. Apple Industry, Nichole L. Busdieker-Jesse, Lia Nogueira, Hayri Onal, David S. Bullock

Department of Agricultural Economics: Faculty Publications

We develop a temporal and spatial partial equilibrium model to evaluate the welfare impact of new technology on the apple industry to control fire blight. We show significant benefits of GM technology relative to conventional methods and other new methods such as microencapsulation of biological agents. We also show that the cost-reduction benefits of the technology exceed the yield-increasing benefits.

Nebraska Cash Corn Prices And Basis Patterns, Jessica J. Johnson, Cory Walters

Department of Agricultural Economics: Faculty Publications

Local cash grain prices can be broken down into two components, futures and basis.1 The futures portion is determined by buyers and sellers of futures contracts, which often represents factors influencing global supply and demand. The basis portion represents factors influencing the local elevator. For any grain marketing decision, sale or purchase, there is a corresponding basis. Understanding the forces driving basis and how to maximize returns from basis is central to making informed grain marketing decisions. The purpose of this publication is to provide an understanding of how basis works for a primary commodity grown in Nebraska, aimed at …

Requiring Pollutant Discharge Permits For Pesticide Applications That Deposit Residues In Surface Waters, Terence J. Centner, Nicholas Eberhart

Department of Agricultural Economics: Faculty Publications

Agricultural producers and public health authorities apply pesticides to control pests that damage crops and carry diseases. Due to the toxic nature of most pesticides, they are regulated by governments. Regulatory provisions require pesticides to be registered and restrictions operate to safeguard human health and the environment. Yet pesticides used near surface waters pose dangers to non-target species and drinking water supplies leading some governments to regulate discharges of pesticides under pollution discharge permits. The dual registration and discharge permitting provisions are burdensome. In the United States, agricultural interest groups are advancing new legislation that would exempt pesticide residues from …

Accounting For Product Substitution In The Analysis Of Food Taxes Targeting Obesity, Zhen Miao, John C. Beghin, Helen H. Jensen

Department of Agricultural Economics: Faculty Publications

We extend the existing literature on food taxes targeting obesity. We systematically incorporate the implicit substitution between added sugars and solid fats into a comprehensive food demand system and evaluate the effect of taxes on sugars and fats. The approach conditions how food and obesity taxes affect total calorie intake. The proposed methodology accounts for the ability of consumers to substitute leaner low-fat and low-sugar items for rich food items within the same food group. This substitution is integrated into a calibrated demand system in addition to the substitution among food groups, using recent food intake data and existing demand …

Key Findings Of The Ntm-Impact Project, David Orden, John Beghin, Guy Henry

Department of Agricultural Economics: Faculty Publications

This special issue of The World Economy presents research findings from the European Commission–funded project “Assessment of the impacts of non-tariff measures (NTM)—on the competitiveness of the EU and selected trade partners” (NTM-Impact). Directed toward the EU and its trade partners, the project’s first overall objective was to collect and analyze new data on NTMs for key and representative agri-food products. This involved three components: creating a large symmetric international database on the diverse types of governmental standards and regulations used to address food safety and quality issues, constructing measures of heterogeneity among these standards and regulations; and evaluating the …

The 2010 Economic Impact Of The Nebraska Agricultural Production Complex, Eric Thompson, Bruce Johnson, Anil Giri

Department of Agricultural Economics: Faculty Publications

Nebraska’s agricultural production complex is remarkable in both its sheer volume of production and its diversity. The state is a national leader in the production of major crop and livestock commodities. It is also home to major input industries tied to agriculture as well as sectors processing agricultural production into value-added products, all of which contribute to its economic significance. Moreover, the growth of the state’s agriculture over the past decade has been phenomenal. In 2010, total farm cash receipts exceeded $20 billion for the first time, essentially double the 2000 level. And while the nation’s economy was hit by …

Economic Impact Of Stable Flies (Diptera: Muscidae) On Dairy And Beef Cattle Production, David B. Taylor, Roger D. Moon, Darrell R. Mark

Department of Agricultural Economics: Faculty Publications

Stable flies, Stomoxys calcitrans (L.), are among the most damaging arthropod pests of cattle worldwide. The last estimate of their economic impact on United States cattle production was published 20 yr ago and placed losses at $608 million. Subsequently, several studies of effects of stable flies on beef cattle weight gain and feed efficiency have been published, and stable flies have become increasingly recognized as pests of cattle on pasture and range. We analyzed published studies and developed yield-loss functions to relate stable fly infestation levels to cattle productivity, and then estimated the economic impact of stable flies on cattle …

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 …

Externalities From Roaming Livestock: Explaining The Demise Of The Open Range, Terence J. Centner, Ronald C. Griffin

Department of Agricultural Economics: Faculty Publications

Fence-in laws in most states require ranchers to pay for fences to keep their livestock from trespassing onto others' property. Some states, or jurisdictions within states, have a fence-out rule that requires ranchers' neighbors to pay for fences to keep livestock out. Both rules are Pareto optimal. Using a potential Pareto criterion, we show that a preference for fence-out in some areas may end as conditions change, such as increased nonranching land uses. Changed conditions may have legal consequences. Specific fence-out and fence cost-sharing provisions may be potentially Pareto inefficient and may be challenged for being unconstitutional under the due …

Obligations And Penalties Under Lemon Laws: Automobiles Versus Tractors, Terence J. Centner, Michael E. Wetzstein

Department of Agricultural Economics: Faculty Publications

Distinctive new provisions of tractor lemon laws which create obligations and provide penalties for defective self-propelled agricultural equipment are contrasted with provisions of automobile lemon laws. Lemon-law obligations involve both producers' guarantees to provide consumers with a serviceable vehicle and producers' promises to remedy defects. Due to fewer manufacturer obligations under the tractor lemon laws as opposed to automobile lemon laws, tractors may be expected to have more defects than automobiles. Yet the tractor lemon laws contain fewer penalties in the form of restitution remedies. The inconsistences of these obligations and penalties suggest tractor laws may be inefficient.

Sb 545. Costs Of Distributing Dry·Bulk Fertilizer--Effects Of Plant Size, Plant Utilization, Use Density, And Method Of Delivery And Application, Dale G. Anderson, James Miller

Department of Agricultural Economics: Faculty Publications

1. About 1.8 million tons (1.6 million t) of fertilizer were applied by ~ ebraska farmers in 1978, an increase of nearly 800 percent over 1954 levels. Slightly more than one-third of recent usage was dry-bulk fertilizer.

2. Utilization of plant capacity was the most important of the cost factors analyzed. Even at capacity output, average fixed costs accounted for half to two-thirds of average total costs. Increasing plant output from 50 percent to 100 percent of capacity saved from $12.23 to $17.01 per ton ($13.48 to $18.75/t), depending on plant size and type of application/delivery system.

3. Economies of …

Grain Transportation Problems In Nebraska -- Causes And Cures. Proceedings Of The Nebraska Grain Transportation Seminar, Dale G. Anderson, Dean Linsenmeyer, Michael S. Turner

Department of Agricultural Economics: Faculty Publications

The Nebraska feed grain and soybean harvest of 1979 was one which will not soon be forgotten by those who participated in its production and marketing. Yields and production broke all previous records. Record export demands for the crop placed record service requirements on transportation and handling systems. Record movements of grain from farms to elevators and to inland and export terminals were reported. At the same time, complaints of inadequate capacity to store and transport the grain were perhaps also of all-time record proportions. Corn and milo accumulated in open piles on farms and at country collection points. Problems …

Ec77-868 Grain Pricing Alternatives, Lynn Lutgen

Department of Agricultural Economics: Faculty Publications

Grain marketing decisions during the 1950's and 60's were not as critical as in the past few years. During the 50's and 60's grain producers faced stable prices resulting from government production controls with prices fluctuating over the year perhaps 15 cents to 25 cents per bushel. As a result, producer marketing decisions had very little influence on revenue obtained by the firm. With more international involvements, producers have gone from an era of stable prices and large government surpluses to an era of unstable, widely fluctuating, and now declining prices for most major grains. The producer has two basic …

Economic Impact Of Railroad Branch-Line Abandonments: Results Of A Southcentral Nebraska Case Study, Dale G. Anderson, Floyd D. Gaibler, Mary Berglund

Department of Agricultural Economics: Faculty Publications

Some 249 miles of Nebraska rail line have been abandoned since 1963; another 310 miles are in contention at abandonment proceedings. The abandonment of these and other lines could have serious economic implications for grain elevators, farmers, and rural communities.

Track abandonment is occurring during a time of rapid expansion in the grain industry. U. S. corn and grain sorghum production increased more than 40 percent during the decade ending in 1973. Exports of these commodities increased 157 percent during the same period. Increases in grain production and exports, along with a shorter harvest season, are placing great strains on …

Place Discrimination In Rail Shipments Of Wheat From Great Plains Origins, Dale G. Anderson, Brian L. Mariska

Department of Agricultural Economics: Faculty Publications

The purpose of this study was to determine whether shipments of wheat by railroad from Nebraska and other Great Plains States are discriminated against relative to shipments from other wheat producing states and regions. Primary objectives were: 1. To develop a technique for measuring place discrimination. 2. To employ the technique in testing empirical data for evidence of discrimination. 3. To analyze the results and explore implications for geographically- separated wheat shippers. Ratios of railroad revenue/out-of-pocket costs for the years 1958 and 1966 were used to compare the relative cost burden borne by wheat shipments in geographically-separated hauls. Resulting ratios …

Mp25 The Problem Of Freight Car Supply, John Richard Felton

Department of Agricultural Economics: Faculty Publications

As early as 1907 the Interstate Commerce Commission held extensive hearings on freight car shortages. At frequent intervals ever since, Congress and the commission have addressed themselves to the problem of freight car supply with considerable vigor but meager results. Allegations of an inadequate supply of freight cars have been widespread in recent years. The decline in the number of freight cars is easy to document: between 1959 and 1968, the number of cars used in grain transport (boxcars and covered hopper cars) declined by 26%. If, however, consideration is given to changes in car capacity and car miles …

Commercial Farm Law: The Uniform Commercial Code, Thomas B. Allington, Clayton K. Yeutter

Department of Agricultural Economics: Faculty Publications

Commercial law includes such topics as sales contracts, notes, checks, shipping and storage documents, and a variety of financing instruments. Over the years much of the law on these topics has become complex, confusing, and often obsolete. The Uniform Commercial Code, or U.C.C., is designed, first, to bring about uniformity in state laws governing commerce, and second, to clarify, simplify, and modernize these laws. The Code's success in this respect is shown by the fact that it has now been adopted by almost all states. It became effective in Nebraska on September 2, 1965. Drafting of the U.C.C. dates back …