Agribusiness Commons^™

Exploring Producers' Willingness To Pay For Ecosystem Services: Three Essays On Soil Health, Location Preferences, And Cover Crop Adoption, Kaouter Essakkat

Dissertations and Doctoral Documents, University of Nebraska-Lincoln, 2023–

This dissertation comprises three essays: one assessing Midwest producers' willingness-to-pay (WTP) for soil health-enhancing ecosystem services (ES), another examining the impact of policy implementation locations on WTP, and a third identifying factors influencing producers' adoption of cover crops (CC).

The first essay pioneers the understanding of agricultural producers’ valuation of soil health-associated ES amid growing concerns of soil degradation due to agricultural intensification. Using a discrete choice experiment, this study assesses producers’ WTP for a policy that incentivizes ES provision, specifically improved water quality, carbon sequestration, and enhanced crop yield. Surveying producers across Iowa, Kansas, and Nebraska, our results show …

2024 Nebraska Agricultural Custom Rates With Statewide Survey Summary, Glennis Mcclure

Cornhusker Economics

The 2024 University of Nebraska-Lincoln Custom Rates Survey indicates that rate increases are the norm since the latest survey was completed in 2022. Table 1 provides a summary and percentage change for several common custom operations from 2022 to 2024. Custom field operations such as drilling and planting show increases in 2024 from seven to twenty-seven percent and harvesting rates for various crops indicate state average rate increases from fourteen to twenty-three percent, with the irrigated corn harvest now at $47.84 per acre for the state average. Other custom services, such as spraying for weed control using a self-propelled sprayer, …

Nebraska Farm Real Estate Market Highlights 2023-2024, Jim Jansen, Jeff Stokes

Nebraska Farm Real Estate Reports

For the fifth consecutive year, the all-land average value in Nebraska rose for the year ending February 1, 2024, averaging approximately 5% higher than the prior year. Figure 2 summarizes these figures and trends along with the percent changes over the preceding year’s all-land average for the eight districts in the state.

The statewide all-land average value for the year ending February 1, 2024, averaged $4,015 per acre, or about a 5% ($180 per acre) increase from the prior year’s value of $3,835 per acre. Rates of increase were the highest in the North and Northeast Districts, as these areas …

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 North Central Extension Risk Management Education Center, Part I: Helps Producers Manage Risks, Christine Lockert, Sheila Aikanathan Johnson, Bradley D. Lubben

Cornhusker Economics

Established in 2001, the North Central Extension Risk Management Education Center (NCERMEC) has a long history of supporting risk management education programs serving producers in the region. Located at the University of Nebraska-Lincoln Agricultural Economics Department, the Center is one of four regional Extension Risk Management Education (ERME) Centers located throughout the country. ERME is funded through USDA’s National Institute of Food and Agriculture (NIFA) and was authorized by the Agricultural Risk Protection Act of 2000. The fundamental purpose of the ERME program is to educate producers to manage risk and position their farm or ranch for future growth and …

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 …

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 …

The Future Of The Organization Of The Petroleum Exporting Countries, Mikayla Gross

Honors Program: Senior Projects (Public)

The Organization of the Petroleum Exporting Countries (OPEC) is a multinational and intergovernmental organization that dictates the petroleum exportation policies of 13 countries: Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, the Republic of the Congo, Saudi Arabia, the United Arab Emirates and Venezuela (About Us, 2023). The mission of OPEC is to ensure a stable supply of petroleum through its shared policies for its Member Countries and consumers (Our Mission, 2023). Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela founded OPEC in 1960 under the foundations and principles that dictated the international world order. Those foundations and principles …

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 …

Will Saf Turbocharge The Corn Ethanol Market?, Richard K. Perrin, Lilyan E. Fulginiti, Felipe Miranda De Souza Almeida

Cornhusker Economics

The long-run outlook for the corn ethanol industry is questionable, due to a transition to electric and hybrid vehicles. One source of hope for the long run is the potential demand for producing Sustainable Aviation Fuel (SAF). SAF is a key component in the United States Aviation Climate Action Plan, a path to net-zero greenhouse gas (GHG) emissions in the aviation industry by 2050. Demand for ethanol for SAF offers hope to the ethanol industry, but it depends a great deal on policy decisions that are being made now. Here we sketch out this story.

Based on the information available …

2024 Nebraska Farmland Values And Cash Rental Rates, Jim Jansen, Jeffrey Stokes

Cornhusker Economics

The market value of agricultural land in Nebraska increased by 5% over the prior year to an average of $4,015 per acre, according to the 2024 Nebraska Farm Real Estate Market Survey. This marks the third consecutive year of increases in the market value of agricultural land in Nebraska, setting another high in the non-inflation-adjusted statewide land value in the survey's 46-year history.

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 …

Value Of Gain In The Lamb Feeding Industry, Jay Parsons

Cornhusker Economics

Value of gain (VOG) is a term in the livestock feeding industry that refers to the average value of a pound of gain. It is the most appropriate revenue value to use in comparison to the cost of gain to determine profit margin.

2022 Census Of Agriculture: Nebraska Highlights, Kathleen Brooks, Bradley D. 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 …

Increasing Workforce Skills: The Possible Disconnect Between Employers And Potential Job Seekers, Cheryl A. Burkhart-Kriesel

Cornhusker Economics

In a multi-year survey of potential job seekers, those who are likely to change jobs in the next year or who are likely to reenter the workforce in the next year, several key training obstacles for improving their employment situation were identified. There seemed to be only slight differences in how they viewed these challenges, regardless of whether they saw their potential job as a career, a steppingstone to a career, or just a job to get by. The cost of training, the lack of available training, the distance or transportation to the training, lack of time, and the knowledge …

Predicting Sedentarism And Its Impact On Caloric Requirements, Jacob Michels, John C. Beghin

Yeutter Institute International Trade Policy Review

A recent study conducted by PhD candidate Jacob Michels and Agricultural economist John Beghin delves into the question of whether global estimates of food insecure populations need a reevaluation of their methodology to account for increasing sedentarism. This reevaluation is prompted by the increasing prevalence of sedentary lifestyles worldwide, which calls for a redefinition of caloric thresholds indicating the onset of food insecurity. In this short article, we provide a nontechnical summary of their investigation recently published in Michels and Beghin (2024).

Slight Cost Of Production Changes Noted In The 2024 Nebraska Crop Enterprise Budgets, Glennis Mcmclure

Cornhusker Economics

The Nebraska crop budgets are available for the 2024 production season. The 84 enterprise budgets prepared in the October 2023 timeframe use input prices collected as of that time. Overall, estimates reflect slight cost of production decreases in the budgets when compared to the 2023 cost estimates. For 2024, the main drivers of cost decreases are due to decreased fuel and fertilizer costs. In some cases, pesticide costs decreased, yet for some of those products, prices increased. Seed and interest costs have increased for 2024 adding to cash expenses, while land opportunity costs and depreciation costs have continued to rise …

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.

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 …

Perceptions Of The Farm Bill Among Nonmetropolitan Nebraskans, Rebecca J. Vogt, Heather Akin, Cheryl A. Burkhart-Kriesel, Bradley D. Lubben, L. J. Mcelravy, Timothy Meyer, Steven A. Schulz

Nebraska Rural Poll

The federal legislation known as the farm bill encompasses all things related to agriculture and food. This includes not only farm income safety net and conservation programs that typically come to mind when thinking about the farm bill, but also domestic food assistance programs (like SNAP), rural development (providing funding for items like broadband service, utilities, and housing programs) as well as programs that are focused on specific producers and crops. Given the variety of programs it entails, how familiar are rural Nebraskans with the farm bill and federal agricultural policy? Do rural Nebraskans support federal spending on the various …

Perceptions Of Childcare In Nonmetropolitan Nebraska, Rebecca J. Vogt, Heather Akin, Cheryl A. Burkhart-Kriesel, Bradley D. Lubben, L. J. Mcelravy, Timothy Meyer, Steven A. Schulz

Nebraska Rural Poll

Lack of childcare is an issue in many rural Nebraska communities. According to a report from Voices for Children, most counties in the state (91%) do not have enough available licensed childcare slots to meet the current demand there. Furthermore, 11 counties in the state have no licensed childcare facilities. Many communities are exploring options of how to address these shortages to maintain their current residents or to be able to attract new residents. Given these challenges, what types of childcare are rural Nebraskans currently using? How far do they drive to get to their childcare? And how do rural …

Insurance, Policy, And Education For Livestock Producers, Milan Chauhan, Bradley D. 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 …

Community Well-Being And Civil Discourse In Nonmetropolitan Nebraska, Rebecca J. Vogt, Heather Akin, Cheryl A. Burkhart-Kriesel, Bradley D. Lubben, L. J. Mcelravy, Timothy Meyer, Steven A. Schulz

Nebraska Rural Poll

Rural Nebraskans are more positive about the current change in their communities this year but are less positive about its future. Starting two years ago, the proportion believing their community changed for the worse was more than the proportion believing it had changed for the better (similar to what occurred in 2003 and 2009). However, this year that trend reversed back to the typical pattern. This year, more believe their community has changed for the better than has changed for the worse. When asked about what they expect ten years from now, this year more people believe their community will …

U.S. Trade And Investment Restrictions: Laudable But Costly Goals, Christine Mcdaniel

Yeutter Institute International Trade Policy Review

U.S. Commerce Secretary Raimondo’s recent visit to China resulted in the announcement of a new “export control enforcement information exchange” between the United States and China. The laudable goal is to prevent China from using U.S. technology for military purposes against the United States or our allies. An information exchange may be a way to explain things to each other, but the fact remains that the export controls are indeed in place. China represents large revenue streams for three of the largest US chip producers—about 20% for Nvidia, 60% for Qualcomm, and 20-30% for Intel. If these U.S. companies cannot …

Perceptions Of Well-Being And The Economy In Nonmetropolitan Nebraska, Rebecca J. Vogt, Heather Akin, Cheryl A. Burkhart-Kriesel, Bradley D. Lubben, L. J. Mcelravy, Timothy Meyer, Steven A. Schulz

Nebraska Rural Poll

This year, rural Nebraskans are more pessimistic about their current situation than they’ve been in the past ten years. The proportion believing they are worse off than they were five years ago was 27 percent, up from the 21 percent last year and 11 percent in 2021. This is the highest level since both 2003 and 2009, when 28 percent believed they were worse off. This increase in pessimism was matched with a decrease in optimism. This year, less than onehalf (45%) of rural Nebraskans believe they are better off compared to five years ago, down from 50 percent last …

Higher Education Exports Before And After Covid, John C. Beghin, Byungyul Park

Yeutter Institute International Trade Policy Review

Historically, the higher education system in countries belonging to the Organization for Economic Cooperation and Developing (OECD), a grouping of advanced economies, and especially in the United States, has been a magnet for foreign students, both graduate and undergraduates. Graduate students tend to be supported by teaching and research assistantships from the hosting university and do not generate direct revenues for the hosting institution. They do contribute to the economy with their productivity in research projects and with their private consumption. In contrast, most undergraduate foreign students pay fees and tuition which are often higher than those paid by local …

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 …

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.