Agricultural Economics Commons^™

Evolving Protein Demand And Income Elasticity, Timothy Meyer

Cornhusker Economics

Teaching large classes in the Ag Econ department has some unique benefits. One of them is that I have a pulse on the attitudes of a large cross-section of producers. One concern that has been gradually gaining momentum is the threat that plant protein poses against traditional animal protein, namely beef.

Trends in protein demand do not support this specific fear. In general, consumers’ appetite for animal protein continues to grow. This article explains the concept of income elasticity, along with the changing income elasticities of specific meats.

Allowing Consumers To Choose Quantities In Choice Experiments Impacts Consumer Choice, Rationality, And Willingness-To-Pay Estimates, Elliott James Dennis

Cornhusker Economics

Choice experiments are frequently used by industry and academic researchers to examine existing and hypothetical products. These experiments generally fix the quantity purchased and allow product attributes to vary. New choice experiments have explored allowing quantity to be a flexible choice attribute. In a recently published paper, we explored the potential differences and similarities between these two choice experiment frameworks. To illustrate these comparisons and any relative improvements by using a quantity choice framework, we used a between-subject design that assessed U.S. meat preferences.

Farm Program Projections And Management Implications, Bradley D. Lubben

Cornhusker Economics

USDA’s Farm Service Agency annually distributes commodity program payments to enrolled crop producers every October. The payments come either as Agricultural Risk Coverage (ARC) payments or Price Loss Coverage (PLC) payments With higher commodity prices since last fall, the expectations for payments and the reliance on payments as part of the farm’s bottom line are substantially reduced. However, there are still some payments to be made and some important lessons from the current outlook for prices and farm program support.

Measuring Palatability As A Linear Combination Of Nutrient Levels In Food Items, Jeffrey S. Young

Faculty & Staff Research and Creative Activity

It well known that palatability and nutritional quality of foods and/or diets are viewed as being in tension with one another. While there exist multiple measures of healthiness, there are no such measures for tastiness. This gap limits the degree to which researchers can investigate this tension and its implications for dietary behavior and hence public health and nutrition policy. The scope of future work concerning the dietary behavior of Americans would expand greatly if researchers better understood consumers’ willingness to eat certain foods, which matters as much as recommending those foods for them to eat in the first place. …

Lrp-Feeder Cattle Insurance Usage Up With Recent Changes, Jay Parsons

Cornhusker Economics

Market uncertainties pose a significant risk to cattle producers, who have a substantial amount of money invested in breeding livestock, land, and other infrastructure. Live-stock Risk Protection (LRP) insurance became available in the early 2000s from the USDA Risk Management Agency to provide cattle and swine producers with a simple price risk management tool to protect against unexpected down-swings in the national market price. LRP is a single-peril insurance product that provides an indemnity to insured producers if a national price index falls below a selected coverage price on the end date of the policy. LRP insurance functions like a …

Joint Bidding In Conservation Auctions: An Experimental Study Of Policy Design And Performance, Simanti Banerjee

Cornhusker Economics

In designing conservation policies both ecologists and economists have argued that greater spatial coordination of producer land use adoption can improve environmental outcomes for a range of important environmental targets such as wetlands restoration, nutrient pollution reduction,and species conservation. Economists have suggested two types of incentive policies for achieving such spatial coordination: the Agglomeration Bonus (AB) (Parkhurst and Shogren, 2007) and spatially-connected auctions (Banerjee et al., 2015). However, a majority of the analyses to date have focused on incentives aimed at individual land manager participation in such schemes (e.g., Fooks et al., 2016). In contrast, a number of countries such …

Balancing Food Security And Environmental Sustainability By Optimizing Seasonal-Spatial Crop Production In Bangladesh, Man Li, Zhe Guo, Wei Zhang

Applied Economics Faculty Publications

The intensification of crop production has been identified as one of the major drivers of environmental degradation. While significant advances could still be made with more widespread adoption of sustainable intensification technologies that address the agronomic efficiency of nitrogen fertilizers, the dynamic use of agricultural land across seasons and associated crop-specific responses to fertilizer applications have so far been largely overlooked. This paper explores the potential for improving the economic-environmental performance of crop production through spatially integrated modeling and optimization, as applied to Bangladesh. Results show that per-billion-Taka nitrogen loss from soil would decline by 83% from the baseline level …

Economic Implications Of Disasters On Cooperative Sector In Calabarzon, Philippines, Ceptryl S. Mina, Liezel S. Cruz

Journal of Economics, Management and Agricultural Development

Cooperatives serve as an important tool for improving the living conditions of members and their community. However, like any other business enterprise, cooperatives are also exposed to disasters that may affect their
operations. This study analyzed the economic effects of disasters on cooperatives in CALABARZON, Philippines. Results of the Pearson’s chi-square test showed that cooperatives are exposed to various types of natural, biological, and humaninduced disasters. It was found out that disasters lead to increased operational costs and reduced net surplus. Using emergency-use-only cell phones and generators, changing production patterns, limiting high risk-customers, buying insurance, and establishing online and offline …

Experiences And Coping Strategies During The Covid-19 Pandemic Among Fishers And Farmers In The Island Province Of Guimaras, Philippines, Gay Margarett A. Gange, Louie Marie T. Eluriaga, Alice Joan G. Ferrer

Journal of Economics, Management and Agricultural Development

This study describes the experiences and coping strategies related with the COVID-19 threat and the community quarantine policy by the fishers and farmers in the island province of Guimaras. Both food producers faced marketrelated problems such as low demand, low prices of catch and produce, and logistical problems. While the in-kind support (e.g., food provisions) received and adaptive measures (e.g., continued with fishing or adjusted harvest schedule; use of social media or delivery services in marketing) allowed them to get by during the pandemic, there is a need to develop more resilient farming and fishing households. Short-term support can be …

Archipelago On Lockdown: An Assessment Of The Effects Of The Covid-19 Pandemic On Philippines’ Micro, Small, And Medium Enterprises (Msmes) Across The Food Value Chain, Remund Jordan D. Labios, Dinah Pura T. Depositario, Nohreen Ethel P. Manipol, Renen Szillardo C. De Guzman, Dia Noelle F. Velasco

Journal of Economics, Management and Agricultural Development

The paper examined the effects of COVID-19 pandemic on the Philippines’ MSMEs across the food value chain and the strategies that food-based MSMEs employed to cope with disruptions. A food value chain framework was used to
analyze the food-based MSMEs, focusing on the input and service provision, production/farming, processing, transport and storage, retailing, and consumption. Results revealed the following: (1) different quarantine protocols across provincial and local boundaries contributed to the complexity of transporting inputs and products; (2) limited mobility of manpower contributed to the challenges of continuing business operations; (3) there was an observed increase in new financing programs …

An Assessment Of Swine Industry In The Philippines, Christian Paul L. Fang, Cenon D. Elca

Journal of Economics, Management and Agricultural Development

This paper assessed the performance of swine industry in the Philippines by synthesizing secondary data from 1990 to 2020. Inefficiencies in major swine value chain segments were identified. The factors affecting swine production and pork consumption were determined using multiple regression analysis. The bottlenecks found along the chain are yellow corn supply deficit, fragmented structures of yellow corn and backyard farms, high disease susceptibility of backyard farms, and compromised meat quality produced from private slaughterhouses. The own price, inventory, and slaughtered animals have significant direct effects on swine production. The retail price of pork and income have significant direct influences …

The New Center For Agricultural Profitability, Larry Van Tassell

Cornhusker Economics

The complex problems faced by agriculture today cannot be solved by isolated disciplines. A holistic, systems approach is needed to address the profitability of agriculture. To assist with these needs, the University of Nebraska-Lincoln has approved the development of the Center for Agricultural Profitability (CAP) within the Institute of Agriculture and Natural Resources. CAP will be housed in the Department of Agricultural Economics and will provide a uniting locale for faculty from various disciplines to engage with faculty from the department. CAP will seek to bridge departmental silos and bring together faculty with expertise in several areas (e.g., agribusiness, economics, …

2020 Nebraska Income Averages, Tina N. Barrett

Cornhusker Economics

Each year the numbers gathered by Nebraska Farm Business, Inc tell a story. Sometimes that story is subtle like a drought or storm that affects a small region of the state. Sometimes it is obvious like the drought in 2012, the run-up of commodity prices from 2008-2013, or the impact of the worldwide pandemic of 2020. The one thing that was unique about the story of 2020 was that the sub-stories are not necessarily what you would expect.

What Do Higher Commodity Prices Mean For Cash Rent?, Allan Vyhnalek

Cornhusker Economics

Anyone watching the corn and soybean prices of the last six months or so must be amazed at how fast and how high prices have gone. Just a year ago, cash prices for 2020 corn were bouncing around the $3.00 per bushel area. Now the cash price for 2020 corn delivered to an ethanol plant is nearly $7.00+ per bushel. What do, or what should, these change in prices do to cash rent?

American Rescue Plan Act For Local Communities, Marilyn R. Schlake

Cornhusker Economics

On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by President Biden. ARPA provides direct relief to all 19,000 cities, towns and villages across the United States affected by COVID-19. The purpose of ARPA is to support pandemic recovery efforts, replace public sector lost revenue, spur job growth, jump start economic growth through household and business stabilization and ad-dress systemic public health and economic challenges.

Towards Consumer-Oriented Mushroom-Based Product Development: An Exploratory Study In Rice-Based Farming Communities In Central Luzon, Philippines, Josefina F. Ballesteros, Rosaly V. Manaois, Amelia V. Morales, Riza Abilgos-Ramos

Journal of Economics, Management and Agricultural Development

This study determined consumers’ awareness and interest towards mushroom and mushroom-based product ideas. A survey of 222 adults was conducted in rice-based farming communities in selected provinces, namely, Aurora,
Bulacan, Nueva Ecija, and Pampanga. Results showed that taste, nutritional, and health benefits were the top attributes considered by both sexes whenever they buy food for household consumption. Most of the respondents (99%) liked eating mushroom because of its palatability (71%) and perceived healthiness (26%). However, the majority (76%) consumed mushrooms only once a month or seldom in a year due to its limited availability. Food supplements, coffee-like beverages, and snacks …

2021 South Dakota Producer Resurvey Descriptive Results, Tong Wang, Jessica Ulrich-Schad, Stephen Cheye, Ness School Of Management And Economics

South Dakota Farm Survey

From January to March 2021, researchers from South Dakota State University (SDSU) and Utah State University (USU) conducted a resurvey of South Dakota of commodity crop producers in the eastern part of the state to study their attitudes and usage of soil and water conservation practices including cover crops, diversified crop rotations, conservation tillage, and integrated crop and livestock management. These same producers completed a similar survey in 2018 (see Wang et al. 2021a, b; Saak et al. 2021; Kolady et al. 2020; Avemegah et al. 2020).1 In the 2018 surveys, farming operations in 34 South Dakota counties east of …

The Wild Side Of Commodity Markets: Hedging In Times Of High Volatility, Fabio Mattos

Cornhusker Economics

Commodity markets go through periods with low volatility when we generally see small variations in prices, as well as periods with high volatility, when we tend to see large swings in prices. Regardless of the degree of price volatility in the market, producers can always use marketing contracts as a way to hedge the price risk of their operation. Even though the general mechanics of hedging are the same in periods of low volatility and high volatility, some aspects of hedging become more evident in times of high volatility. In this article, we will discuss some of these aspects focusing …

North Central Extension Risk Management Education Center, Christine Lockert, Bradley D. Lubben

Cornhusker Economics

Farmers and ranchers face many risks and challenges in production agriculture on a daily basis. Changing market fundamentals, farm policy reforms, and crop insurance program developments defined the risk environment that led to the authorization of agricultural risk management education as part of the Agricultural Risk Protection Act of 2000. The education efforts have been designed to help producers manage the full range of production, marketing, financial, legal, and human risks that are all part of agriculture.

Nebraska National Agri-Marketing Association And The Continued Covid Effect, Brianna Gable, Rosalee A. Swartz

Cornhusker Economics

The University of Nebraska’s National Agri-Marketing Association (NAMA) student organization is one of more than thirty student chapters across the U.S. and Canada. The objective of student NAMA on campus is to learn first-hand from professionals in marketing, advertising, communications promotion, sales, and public relations, about the many career opportunities in agri-marketing. As chapter members, students develop valuable personal contacts and working relations with agri-marketing professionals and have meaningful opportunities to develop and practice their managerial skills and leadership abilities.

Determinants Of Female Bargaining Power In Northern Mozambican Households, Sara Marilyn Gardner

Agricultural Economics and Agribusiness Undergraduate Honors Theses

Melinda Gates stated, “If you search for poverty, you will find women who don’t have power. If you explore prosperity, you will find women who do have power and use it.” Throughout Sub-Saharan Africa, women are expected to perform disproportional amounts of labor but are often ignored in household decision-making regarding social and economic matters. The United Nations Development Program (UNDP) states that women in Mozambique are highly disadvantaged, relative to men, due to low levels of education, maternal health risks, restricted economic prospects, and cultural norms. This study aims to better understand the causes of female empowerment in Northern …

Can Small-Scale Poultry Initiatives Alleviate Food Insecurity And Increase Empowerment For Women In Economically Disadvantaged Areas?, Patrick Daniels

Accounting Undergraduate Honors Theses

In the summer of 2019, I, along with 8 other students from the University of Arkansas departed the United States for the Central American country of Belize. Despite our limited knowledge of what Belize held in store for us, we were enthusiastic about the coming months. While we had different projects, we all set out with the same universal question in mind. How can we use the knowledge we have gained through education to make a positive impact on the lives of people living in an impoverished town? Some of the members of our team worked alongside local businesses to …

Is Nebraska Farmland A Good Investment?, Jeff Stokes, Jim Jansen, Jared Stauffer

Cornhusker Economics

Economists analyze the performance of financial in-vestments in a variety of ways. Probably the most significant analysis undertaken is the quantification of the tradeoff between risk and return. While individuals are generally thought to prefer investments offering higher returns, they also prefer to not be exposed to excessive risk. And because higher returns are generally associated with higher risk, investors tend to choose investments that are consistent with their specific risk/return goals. In this article, Nebraska farm-land (dryland, irrigated, and grazing) is analyzed from the perspective of its investment potential by quantifying the risk/return tradeoff.

Ag Carbon Credits, J. David Aiken

Cornhusker Economics

There is a lot of discussion in the ag community about ag carbon credits as part of a larger U.S. strategy to reduce carbon emissions and avoid the very worst impacts of global warming. This newsletter takes us through some of the basics regarding what ag credits are and why they are a current topic of discussion.

Steps To Become A Welcoming Community, Cheryl A. Burkhart-Kriesel

Cornhusker Economics

Just because some rural areas are declining does not mean that all areas are declining or are destined to decline. Rural population gains are often seen in high amenity counties that support both tourism and early retiree relocation and in counties that are located just beyond metropolitan borders. But those are not the only places where gains are being made. Rural areas across the nation are becoming more culturally diverse with “racial and ethnic minorities accounting for 83 percent of rural population growth between 2000 and 2010” (Johnson, 2012).

Monitoring And Trends Of Antimicrobial Use In Livestock Production, Elliott James Dennis

Cornhusker Economics

There has been growing consumer and human medical profession concern about the use of “Shared Use/Medically Important” antimicrobials in food-animal production. The concern partially stems from the concern that livestock and poultry fed antimicrobials can develop resistant bacteria which can then be passed on to humans primarily via consumed meat and poultry products. To curtail this real or hypothetical consumer concern, major restaurants, food service companies, food processors, and supermarkets have pledged to reduce or eliminate meat and poultry that were raised with a non-negative quantity of antimicrobials. For example, Wendy’s© pledged that 50% of procured beef would come from …

The Impact Of China’S Environmental And Trade Policies On U.S. Plastic And Paper Waste Exports, Savant Nzayiramya, John C. Beghin

Cornhusker Economics

This article documents major environmental and trade policy changes in China and their impact on plastic and paper waste trade between the U.S. and China and other trade partners. The article explains how U.S. plastic waste exports have been nearly annihilated by these policies. Paper waste trade is more resilient and has survived the policy shifts in China, although quite diminished.

The Impact Of Covid-19 And Economic Policies On Nebraska Farm Real Estate In 2021, Jim Jansen, Jeffrey Stokes

Cornhusker Economics

Land industry professionals responding to the annual survey attributed the rise in Nebraska farm real estate values to current interest rate levels, crop prices, and COVID-19 disaster assistance payments provided to operators across the state. These forces substantially impacted farm and ranch finances across Nebraska. Operators faced an exceptional amount of risk and uncertainty when navigating production decisions during the height of the COVID-19 pandemic. Lower interest rates and disaster assistance payments provided stability to an industry facing an unpreceded economic shutdown and disruptions of supply chains.

Community Supported Enterprises – Preparing For The Future, Charlotte Narjes

Cornhusker Economics

The Bayard Grocery store made headline news in Nebraska the end of January with the announcement of its upcoming closure. Unfortunately, a grocery store closing is not uncommon in Nebraska or across the United States. A North Dakota study from the state’s association of rural electric cooperatives in 2017 found that in communities with 2,100 people or fewer, there are 98 full-service grocery stores, down from 137 in 2014. In addition, A PEW Trusts article in October 2019, further addresses the nationwide challenge of rural grocery store closures. Challenges include decreased population, competition from superstores (i.e., Walmart), and rural food …

Hemp Production Network Effects: Are Producers Tipped Toward Suboptimal Varietal Selection By Their Neighbors?, Tanner Mccarty, Jeffrey Young

Journal of Applied Farm Economics

The 2018 farm bill removed industrial hemp from the Schedule 1 Controlled Substance List. In response, states scrambled to enact hemp legislation. Some hemp flower producers report their hemp fields were cross- pollinated by a neighbor growing a different hemp cultivar. For hemp flower crops, cross- pollination reduces cannabinoid concentration levels within the flower; these concentration levels dictate flower price. We show that in a repeated game, once a sufficiently large percentage of growers decide to plant hemp fiber/seed crops, cross-pollination forces flower growers to convert to fiber/seed to avoid the negative network externality. Over time, a stable, suboptimal Nash …