Agriculture Commons^™

Why Agriculture Productivity Falls: The Political Economy Of Agrarian Transition In Developing Countries, Rashed Al Mahmud Titumir

Purdue University Press Books

Why Agriculture Productivity Falls: The Political Economy of Agrarian Transition in Developing Countries offers a new explanation for the decline in agricultural productivity in developing countries. Transcending the conventional approaches to understanding productivity using agricultural inputs and factors of production, this work brings in the role of formal and informal institutions that govern transactions, property rights, and accumulation. This more robust methodology leads to a comprehensive, well-balanced lens to perceive agrarian transition in developing countries. It argues that the existing process of accumulation has resulted in nonsustainable agriculture because of market failures—the result of asymmetries of power, diseconomies of scale, …

Managing Market Volatility In 2023, Jay Parsons, John Hewlett, Jeff Tranel

Center for Agricultural Profitability

Current prices for agricultural commodities are strong. The average auction market price in early May for 500–600-pound steer calves in Nebraska was $264 per cwt. Heifer prices were $30 lower, at $234 per cwt. Elevator prices for corn in western Nebraska are in the high $6-per-bushel range. Wheat prices at the elevator are around $8 per bushel. Hay prices are $200 to $300 per ton if you can find it. Severe drought and world market volatilities over the last couple of years have pushed all of these markets higher. Growers and sellers of these commodities are anxious for harvest to …

New Loan Payment Calculator Tool Launched, Jessica Groskopf

Center for Agricultural Profitability

The Center for Ag Profitability has released its Loan Payment Calculator, a web-based tool that makes it easy to calculate annual loan payments. Users must enter the total purchase amount, down payment amount, annual interest rate (APR), duration in years, and the starting year of the loan. The calculator tool allows users to download the payment schedule, also called amortization, as a PDF or CSV file.

Using Breakeven Analysis For Better Decisions, Larry W. Van Tassell

Center for Agricultural Profitability

One of the merits of enterprise budgeting is the value of statistics obtained by producers as they engage in decision-making activities. Some of the easiest and most useful computations that can be obtained from enterprise data are breakeven values. As the name suggests, a breakeven gives the price or yield required for the revenue obtained from the enterprise to equal the costs encumbered to produce that revenue.

The Changing Cost Of Cattle Transportation, Elliott James Dennis

Center for Agricultural Profitability

Diesel is one of the primary inputs in the transportation of goods throughout the United States. Livestock hauling is no exception. Feeder cattle are generally transported long distances in the fall as they move from summer grazing to placement in backgrounding operations or directly into feedlots. Cattle, and other livestock in general, can handle transportation stress fairly well – to a point. Trucking feeder cattle long distances can impact animal health outcomes, and improper animal handling can lead to bruised or injured cattle. These negative impacts can generally be offset by appropriate stocking densities, proper trailer ventilation, correct animal handling …

Variability Of Cost And Return Of Dry Direct Seeded Lowland Rice In Major Rainfed Growing Areas In The Philippines, Oliver C. Ocampo, Hazel Anne F. Makahiya, Marjorie V. Pamplona, John Kenneth L. Motilla, Niño Paul Meynard C. Banayo, Crisanta S. Bueno, Pompe C. Sta. Cruz

The Philippine Agricultural Scientist

This study was conducted to evaluate the variability of net income and return on investment (ROI) as affected by grain yield, cost of production, and gross income across provinces wherein the mechanized dry direct seeding technology was being deployed. The study was conducted during 2019 wet season involving 54 sites from 14 provinces with farmers practicing mechanized dry direct seeding technology under rainfed lowland condition. Grain yield varied (0.72 – 6.73 t ha^-1) across provinces and within each province. Total cost of production varied (PhP 23032 – 43421 ha^-1) across provinces. Most sites in Cagayan had …

Reducing Scope 3 Emissions By Investing In Regenerative Agriculture In Supply Chains, Stephanie Cain

Master's Theses

The agricultural industry has an opportunity to shift to a more sustainable practice that helps restore vital topsoil, improve water quality, reduce environmental impact, and sequester atmospheric carbon into the vast soil carbon pool. However, to implement these practices at considerable scale, agricultural producers require access to resources and capital they rarely have and can be difficult to acquire. As a company, investing in regenerative agriculture in supply chains can lead to reduced Scope 3 emissions, more resilient supply chains, and better marketability as an investment fund, an employer, and a brand. Insetting regenerative agriculture can protect supply chains against …

Managing Calf Market Risk With Lrp In 2023, Jay Parsons

Center for Agricultural Profitability

When profit margins are strong, livestock owners have a natural tendency to relax a bit and enjoy the business of producing animals. Expansion may come to mind and effort is often put forth to improve production output. Protecting market price may become a secondary priority. However, a lot can happen between now and marketing time. Price trends can suddenly turn and quite often expectations may not be met. Protecting price should be just as much — maybe more — of a priority when the price outlook is optimistic, as it is in a downward trend. An unprotected, overly optimistic price …

Higher Cattle Prices Are Good But Wide Profit Margins Are Better, Elliott James Dennis

Center for Agricultural Profitability

Feeder and fed cattle prices have continued to rise throughout the first part of the year. Reduced cattle supplies and relatively stable beef demand have helped support higher prices. Fed and feeder cattle prices have reached all-time heights, at least nominally. In low inflationary environments comparing nominal prices across time would be less problematic. Contrary to previous sentiments, inflation has not been transitory. Inflation, as measured by the Personal Consumption Expenditures Excluding Food and Energy (Chain-Type Price Index), has increased significantly in the last 3 years (see Figure 1) and thus comparison across years should be done using real prices …

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

Cornhusker Economics

The Extension Risk Management Education (ERME) program, funded by USDA's National Institute of Food and Agriculture, provides training to help producers learn new strategies to manage complex and growing agricultural risks. ERME strives to achieve this goal by encouraging and funding innovative programs across the country and helping programs focus on tangible results. Four regional grant-making ERME Centers are located across the country at the University of Delaware (Northeast), the University of Arkansas (South), Washington State University (West) and the University of Nebraska-Lincoln (North Central) along with a Digital Center at the University of Minnesota to help administer online application, …

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 …

Ireland V. United States: Agricultural And Environmental Sustainability Policies, Lauryn O'Grady

Accounting Undergraduate Honors Theses

The United States and Ireland have varying practices to achieve similar objectives in regard to environmental sustainability. While the European Union has maintained and updated a uniform policy throughout its existence--the Common Agricultural Policy--the United States instead created short-term solutions to a long-term problem. Not only does the United States tend to solve issues in the short-term, the policies between agricultural production and environmental sustainability are not necessarily aligned or remotely relative to the other. While the United States’ new Global Food Security Strategy implements parts of both agricultural and environmental sustainability, much of the history was not based off …

Foreign Ownership Of Agricultural Land In The United States: A Case Study Concerning The 2023 Grassroots Policy And Legislative Landscape, Mary Eichenberger

Agricultural Economics and Agribusiness Undergraduate Honors Theses

Historically, foreign ownership of land in the United States has existed for centuries. Many state laws expressly allow for foreign ownership of agricultural land in their state. However, this study will find that a push to amend these laws has begun in recent years in state and federal legislatures. Grassroots member-focused agricultural organizations, representative of the agricultural community, have also seen a shift in member-developed policy. This shift is toward an attitude of concern and increased oversight of foreign land investment. From the data gathered, it can be inferred that public awareness in the agricultural community is increasing concerning foreign …

Understanding The Operations And Decision-Making Of Cow-Calf Farmers In Northwest Arkansas, Clayton Weyl

Agricultural Economics and Agribusiness Undergraduate Honors Theses

Societal pressure on farmers has become a more central part of the rhetoric surrounding livestock production. This study includes farmers in the discourse on the rhetoric surrounding climate change via interviews and simulations tailored to their operation. Previous research has addressed regenerative agricultural practices and conditions that influence farmer decision-making, but little research has analyzed decision-making in tandem with environmental practices. The literature reveals that cow-calf producer decision-making is influenced by their reliance on cattle as an income source, and farmers overall choose climate-friendly practices based on their perceptions about climate change. The goal of this research was to gather …

Crafting The Brand: Characterizing Consumer Perspective Of Brand Equity Among Microbreweries In Northwest Arkansas, Alyssa Johnson

Graduate Theses and Dissertations

Craft beer and craft breweries are on the rise across the United States and more importantly, in Arkansas. Throughout the past two decades, craft beer has gained popularity in the state of Arkansas as the number of craft breweries have risen across the state. However, there is currently little literature on how branding in craft breweries in Northwest Arkansas is used to gain and retain loyal consumers. This study aimed to add to the academic literature and provide practical recommendations to practitioners on how brand equity is built among craft breweries in Northwest Arkansas, using qualitative interviews. Marketing strategies of …

Solar Grazing As A Possible Vegetation Management Solution: A Budget Analysis, Byron Louk

Agricultural Economics and Agribusiness Undergraduate Honors Theses

A growing response to climate change among agricultural producers is to integrate renewable energy production in their portfolio of enterprises. Nonetheless, land use competition for agricultural production and solar energy production exists. To alleviate some of this competition, and possibly generate income for sheep grazers, photovoltaic (PV) system operators may save on operations and maintenance by grazing forages under solar panels rather than using mechanical or chemical means of vegetation management. “Solar grazing” operations have been shown to be economically feasible for PV system operators who own the land and pay for sheep grazing as a method of vegetation management, …

Irrigation-As-A-Service For Smallholder Farmers, Ishani Lal

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

Irrigation is a crucial management practice that can help increase food security among smallholders globally while mitigating climate change impacts. High-efficiency irrigation technologies such as drip kits and sprinkler systems are relatively expensive and smallholder farmers cannot afford them to buffer crop yields against low precipitation. In many developing countries, farmers participate in robust informal markets for renting and sharing of irrigation equipment. Such services may be operated by farmers or via a third party such as irrigation start-ups, water user associations, non-governmental organizations, or even government agencies. These services are referred to collectively as Irrigation-as-a-Service (IaaS).

The objective of …

Corn Grain Marketing Strategy Unbiasing For 2023, Matt Stockton, Shannon Sand

Cornhusker Economics

Discusses cognitive biasing errors that may be employed--in the context of corn market strategizing--such as the Dunning-Krueger effect, availability or distancing bias, gambler's fallacy, and anchoring bias.

Environmental And Agricultural Effects On Waterfowl Population In Arkansas, Caleb Sipes, Ellison Stephens, Marissa Young

ATU Research Symposium

This paper discusses some of the positive and negative effects of environmental and agricultural influences on the waterfowl population in the state of Arkansas. Waterfowl hunting has been a prominent source of revenue to the state of Arkansas for many decades. Waterfowl hunting will continue to be prominent in this state in future as long as Arkansans maintain and preserve the natural resources here as well as use our own to further progress the waterfowl industry in Arkansas. Through aerial surveying, requiring hunters to purchase licenses and stamps to legally hunt waterfowl, and conservation efforts from the Arkansas Game and …

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 Center For Agricultural Profitability Contributes To Collaborative Adaptive Management Project At The Barta Brothers Ranch, Jay Parsons, Mitchell B. Stephenson, Kyle Martens

Cornhusker Economics

In 2020, the University of Nebraska's Barta Brothers Ranch (BBR) launched a collaborative adaptive management ( CAM) project to address risks and uncertainties related to grassland management in the Sandhills. The project brings together UNL faculty engaged in research, extension and teaching across multiple disciples, departments and geographic locations. All three Institute of Agriculture and Natural Resources (IANR) District Research, Extension, and Education Centers are involved the project (Eastern Nebraska, Panhandle, and West Central) along with three East Campus based centers: the Center for Grassland Studies, the Center for Resilience in Agricultural Working Landscapes, and the Center for Agricultural Profitability …

Workforce Trends To Watch In 2023, Cheryl A. Burkhart-Kriesel

Cornhusker Economics

The rise of quiet quitters, digital nomads, and shaky employee trust are some of the major workforce trends that need watching in 2023, according to a recent article published by the Harvard Business School. Coupled with an uncertain economy and a tight labor market, business owners can view these potential trends as either challenges that pull their business down or opportunities that offer a competitive advantage. To leverage these toward business growth and increased productivity, it takes an understanding of how these trends emerged and how they could be an asset in an ever-changing business environment.

Covers: quiet quitters, digital …

Early Herd Rebuilding Could Happen Through The Bred Cow Market, Elliott James Dennis

Center for Agricultural Profitability

The USDA Cattle Inventory report showed a 4% reduction in beef cows, a 6% decrease in heifers held back for retention, and a 5% reduction in heifers expected to calve this year (USDA-NASS 2023). Feeder cattle supplies will be reduced nationally in 2023. Continued liquidation in 2023 will depend on the profit margins producers expect to receive.

Rising Interest Rates: What They Mean For You And The Economy, Timothy L. Meyer

Cornhusker Economics

Discusses rising interest rates what they mean for agricultural workers and the economy.

2023 Nebraska Crop Production Budgets Higher Costs And Risks, Glennis Mcmclure

Cornhusker Economics

The Nebraska crop budgets are available for the 2023 production season. The 84 budgets indicate cost of production increases. Estimated average economic or total costs per bushel for 2023 corn production are expected to be at least 23% to 25% greater than last year. Soybeans are estimated to be 13% to 19% more in economic costs per bushel, with wheat production costs having jumped over 20% compared to last year and running as high as 63% higher over the last two years combined. Cost scenarios for individual producers can vary based on their timing of input purchases and price variabilities.

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 …

Heifers On Feed Indicate Long-Term Liquidation Still Occurring, Elliott James Dennis

Cornhusker Economics

This article was first published in the Livestock Marketing Information Centers' (LMIC) In the Cattle Markets newsletter on January 9, 2023.

Combining the historical quarterly percentage of heifers on feed and cattle inventory report can provide an indicator of how many heifers will be held back for replacement in the 2023 report.