Agricultural Economics Commons^™

Accounting Assumptions And The Farm Business, Timothy Meyer

Cornhusker Economics

Farmers in Nebraska and the surrounding area have been slow to adopt accrual accounting methods. This is no surprise; the alternative, cash accounting, is simple, provides a real-time analysis of the cash position of the firm, and works well with income tax preparation. However, cash accounting has no methodology for the special timing of agricultural production or specific processes to evaluate profitability, liquidity, or solvency. Accrual accounting, GAAP (Generally Accepted Accounting Principles), and finally the FFSC (Farm Financial Standards Council) rectify these shortcomings. Adoption of GAAP, and subsequently the FFSC “tweaks” will allow farmers and ranchers in Nebraska to make …

Maryland Nutrient Management Policies, J. David Aiken

Cornhusker Economics

Nonpoint pollution control. The federal Clean Water Act (CWA) regulates point sources of water pollution (such as municipal and industrial wastewater discharges to river and streams) but not nonpoint sources (NPSs), like farm runoff. EPA has provided financial incentives to states to develop and implement NPS programs but does not regulate NPSs itself. Clean water groups have sued to force states to implement wasteload allocation under the CWA on streams not meeting water quality requirements and to require cities and idustries to clean up their wastewater discharges to improve water quality. States can elect to regulate NPSs under this total …

Does Targeting Healthy Food Labels To Populations At High Risk Of Diet-Related Diseases Increase Label Effectiveness?, Christopher Gustafson

Cornhusker Economics

The decades-long increase in obesity in the U.S. has inspired multiple policies aiming to improve individuals’ food choices, which play an important role in diet-related diseases. Early policies—which have continued to be implemented and refined—took the view that providing consumers with information would give them the tools needed to choose a healthy diet. Both nutrition facts panels, which are provided on the side or back of nearly all packaged food products in the U.S, and calorie labeling in restaurant chains with 20 or more locations seek to address a lack of information among consumers.

While nutrition information is a necessary …

Swagriculture: A Qualitative Examination Of Women’S Participation In Samoa’S Agriculture Industry As Farmers And Growers, Charlotte Crandall

Independent Study Project (ISP) Collection

This study is an examination of how women participate in agriculture in Samoa as farmers and growers, what hardships women encounter and how they overcome these, and the organizations that influence people’s experiences. Censuses have historically undercounted the number of women in agriculture in developing countries, largely due to rigid international definitions of what counts as labor, which overlook cultural nuances, and this study aims to fill this gap in research. Data was collected through nine Talanoa-inspired interviews with women involved with farming or growing in Samoa, and overarching themes were analyzed. The themes have been grouped by the specific …

H-2a Temporary Agricultural Workers On Small Farms: Case Study Observations And Lessons Learned, Barrett Vaughan, Lerosha Ford, Silvia Brashier, Miles Robinson

Professional Agricultural Workers Journal

Abstract

The experiences of two small farmers in their efforts to employ and retain temporary agricultural workers through the H-2A Program were documented through an illustrative case study. Interviews of the farmers were conducted regarding the measures that they had to take in preparing for, employing, housing, hosting, managing, and financing the workers. These temporary agricultural workers were sought in support of these farmers’ continued participation in an initiative to assist small and limited-resource farmers in supplying produce to a major retailer. It was concluded that there are at least four priority areas for employing H-2A workers: planning, applying, maintaining …

Using A Role-Driven Race Equity Reform Approach To Mitigate The Effects Of America's History Of Racism On Food Insecurity, Kenya N. Washington, Darryl E. Williams Jr.

Professional Agricultural Workers Journal

Abstract

Food insecurity, or the lack of reliable access to sufficient quantities of nutritious food, affects African Americans and other minorities disproportionately. This paper examines how America’s history of racism created and sustains the Nation’s racially disparate food system. Food insecurity contributes to hunger. This paper contemplates disparities in other American systems, including education and criminal justice, as exemplars of the broader ramifications of hunger. Finally, the paper examines the potential of individual action to address problems in any system. It champions the adoption of a role-driven race equity reform strategy as a tool to confront the current food insecurity. …

An Examination Of Heir Property, The 1980 Emergency Land Fund Study, And Analysis Of Factors That Influence African American Farmers' Actions Related To Farmland, Roy W. Copeland, William K. Buchanan

Professional Agricultural Workers Journal

Abstract

The study focused on heir property and analyzing African American farmers continuing in farming and dealing with clouded title. It specifically assessed the main issues raised by the 1980 Emergency Land Fund’s (ELF) study. It also surveyed a sample of African American farmers on heir property and related issues. It used descriptive statistics and logistic regression analysis to analyze the data. It found that 35% of respondents had a portion of their farms (50% or less) on heir property. This study reasonably confirms ELF’s findings on the percentage of African American-owned land held as heir property. Also, for farmers, …

Toward Effective Rural Community Development In Black Belt Counties: Conceptual And Methodological Issues, Andrew Zekeri

Professional Agricultural Workers Journal

Abstract

The objectives of this paper are to (1) specify what “rural”, “community”, and “development” mean, and (2) what should be the essential steps to be taken to achieve an effective rural community development. Rural is a territorial concept, and it means an extent of dispersion of people in a local ecology. Community is a natural disposition among people who interact with one another on different matters that compromise a common life. Development is an organized intentional effort of local people to work together towards a shared goal. Community development is building the capacity of community residents to act effectively …

A Retrospective Study Of Epa's Record Of Decision Report On The Woolfolk Arsenic And Lead Contamination In Fort Valley, Georgia, Ovigueroye L. Ojarikre, Oreta Samples, Jacques Surrency

Professional Agricultural Workers Journal

Abstract

Heavy metal contamination is a major anthropogenic challenge in communities with heavy presence of chemical industries. Most of the contamination is due to the improper disposal of chemical waste. The study involved the evaluation of the levels of arsenic and lead regarding remediation activities carried out by the Environmental Protection Agency (EPA). It compared the results of the EPA’s 1993 soil analysis of arsenic and lead, and a subsequent soil analysis of the same mapped areas. It also covered the evaluation of the level of arsenic dust in the attics of residential properties and evaluation of the EPA’s record …

The Difference Between Maximum Profit And Maximum Production, Matthew Stockton

Cornhusker Economics

Nitrogen fertilizer (N) is commonly used as a production input to increase crop yields. It is included as one of the six Testing Ag Performance Solutions (UNL TAPS) program decision choices and contributes much to productivity as well as costs. Its use however is not without controversy. The over-application of N gets into the groundwater and nearby waterways becoming a pollutant. Excessive use does little or nothing to increase revenue but can inflate costs, thereby reducing profit. For these reasons and others, using the right amount of N has become a popular and important topic among those that use and/or …

The Role Of Farm Size In Crop Insurance, Sankalp Sharma, Cory Walters

Cornhusker Economics

The role of farm size in crop insurance has been a reoccurring U.S. political issue with multiple attempts at legislation proposing to limit premium subsidies to large producers. For instance, in 2015 bill S.2244, amongst other items, proposed to cap crop insurance premium subsidies at $40,000 per year1. The most recent attempt was made by the current administration in mid-2017, where they introduced the same premium subsidy cap of $40,000 per year. The first mention of the $40,000 figure emerged from a report sanctioned by the Government Accountability Office in 2012 (GAO-14-700, 2014)2. Eventually no premium subsidy caps were included …

Potential Economic Impact Of The Goshen/Gering-Ft. Laramie Tunnel Collapse, Jessica J. Groskopf

Cornhusker Economics

Goshen and Scotts Bluff Counties reside in the High Plains and receive less than 16 inches of average annual precipitation. This low precipitation makes surface-water irrigation a critical component of modern agriculture in this area. Farmers in these counties produce irrigated alfalfa hay, corn, sugar beets, and dry edible beans, as well as other hay and crops.

Surface-water refers to water derived from melted snow that is delivered through a series of dams and canals from the mountains of Colorado and Wyoming along the North Platte River. This infrastructure, often referred to as “The North Platte Project,” was built by …

Ag Lenders Panel Provides Insight Into Beef Systems Initiative, Jay Parsons, D. D. Redfearn, Mary E. Drewnoski

Cornhusker Economics

In 2017, the University of Nebraska-Lincoln Institute of Agricultural and Natural Resources (IANR) and Nebraska Extension made a commitment to implement a multidisciplinary Beef Systems Initiative (BSI). The BSI is administered by the Center for Grassland Studies and is comprised of six projects designed to develop and support the implementation of beef production systems that optimize feed resource use, natural resource conservation, and producer success in Nebraska through improved management of perennial grasslands and systems of integrated crop-beef cattle production. In addition to the BSI, a parallel project funded by the Foundation for Food and Agriculture Research (FFAR) is studying …

Managing Farm/Ranch Transfer To Next Generation, Allan Vyhnalek

Cornhusker Economics

The first step to have the next generation come back to the farm or ranch is to get them there. The next step is to keep them there. This requires thought about how to transfer management and ownership of the operation over a period of time. Four phases of transfer have been identified and are discussed in this article.

The first phase is Testing. Before transferring management and ownership, the current owner needs to feel like the younger generation is ‘tested’ or able to effectively help with the operation. One older farmer said to me, “I think my sons want …

Accounting For Risk: Agricultural Land Leases And Natural Disasters, Jim Jansen, Jeffrey Stokes

Cornhusker Economics

According to recent findings from the USDA Agricultural and Resource Management Survey, agricultural land rent totaled $2.44 billion in Nebraska for 2018. The survey found rent as the third largest farm and ranch production expense (USDANASS 2019). Natural disasters limiting the ability of farmers or ranchers to fully utilize rented land pose a financial risk to these operators.

The 2019 floods and related natural disasters lave left many landlords and tenants across Nebraska wondering how resulting damages will influence their agricultural properties . Contractual lease arrangements may have not fully accounted for these natural disasters. This article provides guidance on …

2018 Nebraska Top Efficient Farms, Tina N. Barrett

Cornhusker Economics

A quarter doesn’t buy much these days so it’s easy to dismiss the value, but when 25 cents is what separates the cost of production per bushel of corn between two groups, the difference in net return starts to add up.

In 2018 the net farm income average of all farms included in the Nebraska Farm Business, Inc. group was $94,121. That was a surprisingly high number, but when compared to the net income of $261,059 for the group called the Top Efficient Farms, it shows there is a significant difference. The Top Efficient Farms group is a selection of …

Assessing The Economic Viability Of Arkansas Farms Under The 2018 Farm Bill, Grant Wilson

Graduate Theses and Dissertations

For over a century, the American agricultural industry has relied on federal government support to aid in the maintenance and expansion of farming operations. Since 1933, a series of 18 farm bills have shaped agricultural policy into what is commonly known as the agricultural safety net. The 2018 farm bill was passed on December 20, 2018 and is the most recent update of the agricultural safety net. Commodity programs and federal crop insurance are two key components of today’s agricultural safety net, and many times, these programs may be the difference between a net loss and a positive net income …

Ag Lease Termination And Hunting Rights, J. David Aiken

Cornhusker Economics

There are many questions regarding the differences between written and unwritten agricultural land leases for cropland and for pasture. This Q&A explores some of the more important differences, focusing on lease termination requirements and the status of hunting rights on leased cropland and pasture. How are cropland leases terminated in Nebraska? That depends on the type of cropland lease. If it is a written lease, the lease terminates according to its terms. If the lease does not address how the lease is terminated, it automatically terminates without notice on the last day of the lease (no six- months notice requirement). …

Estimating Demand Elasticities For Rice In Benin, Ogoudele Simon Codjo

Graduate Theses and Dissertations

Rice consumption in Benin is increasing along with shifting consumer demand toward higher quality rice. In this context of changing demands, experimental estimation methods provide an effective way to estimate the current state of consumer preferences. We conducted a hypothetical choice experiment in 15 open markets in Benin to analyze the demand for rice and its substitutes. The results reveal that consumers value quality rice, even those in the low-income class. While high income consumers are more likely to choose high quality imported rice, low- and middle-income consumers are more likely to select high quality domestic rice among the set …

Poultry Labeling: Knowledge, Perceptions, And Preferences Among Adolescents, Eleni L. Parsons

Graduate Theses and Dissertations

The purpose of this study was to determine the knowledge, perceptions, and preferences of adolescents in regard to the labeling of poultry products. The theory of planned behavior (TPB) and Elaboration Likelihood Model (ELM) were used to display the relationship of perceptions, attitude, and behavior intentions. Quantitative data was collected in a descriptive research design. The population included youth, aged 14 – 18 years, involved in the Arkansas 4-H State O’Rama competition (N = 400). The sample (n = 80) ensured a 90% confidence interval of the population. Data was collected by administering paper surveys that addressed four product labels …

The Economic Evaluation Of Input Use Prescription Maps: Are You Paying To Make Less Profit?, Grant Edward Gardner

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

Variable Rate Prescriptions used by farmers to apply agricultural inputs are largely privatized and are normally seen only by the farmer that applies the prescription and the consultants whom create the prescription maps. Farmers need a way to evaluate the prescriptions that are being applied to fields. This paper explores modeling techniques which could be applied by farmers to determine the profitability of a particular consultant. Regression modeling is used on field trials which have been divided into site-specific management zones (SSMZ) based on a consultant’s variable rate prescriptions. Production functions are created for each management zone. The production functions …

Which Credence Production Attributes Do Consumers Prefer? The Case Of Milk, Emmanouil Petrakis

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

The interest of consumers for non-traditional food production attributes like antibiotics free and animal welfare have made consumer preferences more complex. These new attributes, usually non-identifiable by inspection or experience of the product are called credence attributes. The objectives of this study are to analyze consumer preferences for milk production attributes by eliciting the relative importance of these attributes for consumers, and to identify possible sources of heterogeneity related to consumer characteristics and actual purchase data. The research method used to elicit consumer preferences is Paired Comparison Method. Consumers from California and Texas were administered the online survey questionnaire in …

Essays In Microeconomics, Teng Ma

Graduate Theses and Dissertations

This dissertation consists of three essays of different topics in microeconomics.

Chapter 1 investigates the effect of environmental uncertainty over the issue of resource allocation in a common pool resources setting. This chapter provides a model of how agents allocate resource among abatement technology, production, and saving with an endogenously determined uncertain damage. The results of a laboratory experiment show a negative effect of uncertain damage on abatement technology adoption and a non-linear relationship between the investment in abatement technology and the self reported risk aversion. Contrary to the “common belief” that greater risk averse agents invest more in abatement …

The Value Of Grazed Corn Residue For Crop And Cattle Producers, Jay Parsons, D. D. Redfearn, Mary E. Drewnoski

Cornhusker Economics

The Western Corn Belt has historically been corn and wheat cropping systems with cattle integrated on nearby grasslands. Recent agricultural production data ranked Nebraska, South Dakota, Kansas, and North Dakota in the top 10 states for both corn and beef cattle production in the United States. In 2017, these four states had about 20% of the beef cow inventory in the United States with Nebraska alone having 1.9 million beef cows (USDA National Agricultural Statistics Service, 2018). Forage-based livestock production is a fundamental component of these agricultural economies. However, a large quantity of grasslands in this region were converted into …

2019 Nebraska Property Tax Issues, J. David Aiken

Cornhusker Economics

Nebraska property taxes are the tenth highest in the United States, sales taxes are the ninth lowest, and both income taxes and total state taxes are in the middle. Property taxes account for 38% of total state and local tax collections in Nebraska, the highest of any tax. Sales taxes are 29% of total tax collections, and income taxes are 26%. If property taxes, sales taxes and income taxes were equalized as sources of state and local revenue, property taxes would need to be reduced over $600 million.

Sixty percent of property taxes go to K-12 education funding. Nebraska state …

The World Is In Better Shape Than Most People Think, E. Wesley F. Peterson

Cornhusker Economics

Steven Pinker (2018, page 40) reports that “… large majorities in eleven developed countries said ‘the world is getting worse’ and in most of the last forty years a solid majority of Americans have said the country is ‘heading in the wrong direction.’” Recent polls conducted by the Pew Research Center show that Americans are pessimistic about the future (Gramlich, 2019) and that around the world many people are dissatisfied with the way democracy works in their countries (Wike et al., 2019). According to Twenge (2019), the level of happiness in the United States has been trending down for the …

The Economic Evaluation Of Input Use Prescription Maps: Are You Paying To Make Less Profit?, Taro Mieno, Grant Gardner

Cornhusker Economics

Technological advances in data collection and analysis engines have made variable rate input use application much more common. Producers typically purchase software that produces site-specific prescription maps or purchase maps from consultants. The process of generating prescriptions maps is typically black-box, i.e. the process is unknown. Does using these purchased maps lead to more profits for producers?

This article discusses a method of verifying the economic profitability of site-specific prescription maps using an on-farm field experiment and statistical and economic analysis. A 76-acre field in Crawford County, Ohio is used for the study.

The maps on the following page are …

Cover Crop Utilization Across Nebraska And Implications For Cropland Lease Arrangements In 2019, Jim Jansen, Jeffrey Stokes, Jay Parsons

Cornhusker Economics

The Nebraska Farm Real Estate Market Survey and Report 2018-2019 provides insight on recent trends in the market value of land and cash rental across the state. Each year the special feature section from this report covers topics on new or emerging issues related to the agricultural land industry in Nebraska. These topics reflect interest expressed by panel members and readership of the Nebraska Farm Real Estate Market Highlights Reports. The special feature section in 2019 focuses on trends and considerations for cover crops across Nebraska and implications on cropland lease arrangements.

Findings from the 2017 Census of Agriculture in …

Dealing With Control Of The Farm/Ranch, Allan Vyhnalek

Cornhusker Economics

As I have traveled the state presenting farm and ranch succession/transition workshops, I’ve run into several family situations where the older generation is lucky enough to have the next generation come back to the farm. The younger generation, in some instances, is not that young anymore and have formed knowledgeable opinions about how the farm or ranch should operate. I wrote this article to challenge both the younger and older generations as they move their operation forward as a family.

Long term family cohesiveness can become challenging if there are control issues within the family. The younger generation often brings …

Will “Matopiba” Change The Competitive Landscape In The International Grain Market?, Fabio Mattos

Cornhusker Economics

In a previous article in this space (on 6/20/2018), I discussed changes in the corn market and highlighted how the rapid growth of the Brazilian winter crop has been reshaping the market within Brazil and abroad. However, since corn exported by Brazil comes mainly from the country’s center-west, its competitiveness in the international market is grossly impacted by the transportation infrastructure in Brazil. The same issue applies to Brazilian soybeans as well.

The development of a new agricultural frontier in Brazil, in a region known as Matopiba, may help Brazilian grain become more competitive and bring more changes to the …