Agricultural Economics Commons^™

Expanding The Farm Income Safety Net, Bradley D. Lubben

Cornhusker Economics

When the 2018 Farm Bill was passed in December, producers were looking ahead to implementation and thinking of the coming decision between enrollment under the Agricultural Risk Coverage (ARC) program or the Price Loss Coverage (PLC) program. With continued low price projections at the time, the safety net decision may have seemed relatively straight-forward. Now, with all of the weather and market challenges in 2019 coupled with ad hoc assistance expected from the federal government, the safety net and the decisions related to it have become exceedingly complex. A look at the wide and expanding safety net for crop producers …

Nebraska Property Taxes And The 2019 Flood, J. David Aiken

Cornhusker Economics

Much of eastern and central Nebraska suffered devastating flooding in March 2019. Much agricultural land, as well as agricultural, residential, industrial and commercial property has been damaged or destroyed. A 2019 bill just enacted— Legislative Bill 512—allows property owners suffering significant flood damage to have the 2019 property taxes on flood damaged property lowered.

Under prior Nebraska law, land and buildings were valued for property tax purposes on January 1 of each year. There were no statutory provisions for changing that property valuation after January 1 due to property damage, although some county assessors have done so in the past. …

Point-Of-Decision Prompts And Cognitive Resources, Christopher R. Gustafson

Cornhusker Economics

Many of us have long-term goals to maintain or achieve a healthy body weight. However, most of us have a hard time following through on these plans. Maintaining a healthy body weight requires constant consideration of the future consequences of our current actions, which are shaped by our immediate desires, such as eating the tasty-looking brownie at the coffee shop or relaxing after a long day of work instead of forcing ourselves to go to the gym. The difficulty in balancing short-term and long-term goals is reflected in the change in the average American body type over the past five …

Four Steps To Improved Group Productivity, Cheryl A. Burkhart-Kriesel

Cornhusker Economics

Just ask anyone - people waste a lot of time in meetings – all kinds of meetings. The meetings could be work related, within community organizations or even within a family. They can be anywhere people get together and want to go beyond a discussion and move toward action. Groups, both large and small, often discuss important issues but many times the conversations are all over the place or they are so short that decisions are often hard to make due to the lack of clarity and focus in the discussion.

Want to change that situation? If so, here is …

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

Cornhusker Economics

After several years of growing agricultural prosperity and U.S. net farm income that peaked at almost $124 billion in 2013, the most recent forecast from UDSA's Economic Research Service projects net farm income at less than $70 billion for 2019. The six-year cumulative decline since 2013 is primarily due to a drop in commodity prices, a result of growing supplies, and more recently, trade conflicts and declining exports for key commodities. While the aggregate financial position of U.S. agriculture remains relatively strong with an aggregate debt-asset ratio of less than 14% (USDA-ERS, 2019), total debt has grown while profit margins …

A Successful Year For The Nebraska National Agri-Marketing Association, Austin Harthoorn, Kara Heideman, Rosalee A. Swartz

Cornhusker Economics

The University of Nebraska-Lincoln National Agri- Marketing Association (NAMA) chapter finished in second place at this year’s national marketing competition. The chapter also won the John Deere Signature Award. The John Deere award is given to student chapters based on business knowledge, academic excellence, leadership development and community citizenship. Chapter members Marydith Donnelly and Brent Miller earned scholarships and Allison Brockman made finals in the sales competition.

NAMA marketing team members presented their marketing plan for EnTotal, a dog food made from black soldier fly larvae. The students developed the product concept, which is modeled on insect-based dog foods available …

The Farmers’ Federation: Regional Racial Mythologies As Agricultural Capital, Jama Mcmurtery Grove

Graduate Theses and Dissertations

In 1927, the Farmers’ Federation agricultural cooperative in Western North Carolina launched an organization to solicit funds from wealthy donors. The money raised through philanthropic campaigns enabled the cooperative to fund large-scale agricultural projects, which helped members navigate the dramatic agricultural transformations of the early twentieth century. Although the cooperative advocated a progressive program of business-minded, scientific farming, its leadership modified programs to reflect farmer members’ limited resources and the realities of mountain production. As a result, the co-op provided a crucial bridge between white farmers and new methods of agricultural production that reached deep into peoples’ familial and productive …

Evaluation Of Herd Size Management Strategies, Colson A. Tester

Graduate Theses and Dissertations

This thesis is comprised of two studies examining the effects of price signal based herd size management strategies on profitability of cow-calf operations. Herd size management strategies were evaluated across the previous two cattle cycles, 1990-2014, using a fixed land resource and included a variety of production scenarios. These scenarios varied in terms of stocking rates, fertilizer applications rates, and calving season. Each scenario was also analyzed both with and without weather effects on forage production. Weather effects were simulated using a production index derived from satellite imagery across the observed 25-year period. Three herd size management strategies: i) constant …

Examining The Capacity Of Nebraska Rangelands For Cattle, Kaitlyn Cumming, Jay Parsons, Walter H. Schacht, Brian Baskerville

Cornhusker Economics

According to the 2017 United States Department of Agriculture National Agriculture Statistics Service report (USDA-NASS 2017), Nebraska is the number one ranked state in the United States for both cattle on feed and for beef slaughtering capacity. It ranks number two in all cattle and calves while ranking number four in the number of beef cows. Beef production has a $12.1 billion impact annually to the Nebraska economy including $6.5 billion in direct sales (Nebraska Beef Cattle Facts 2016).

Given the above information, a research question was motivated to evaluate the forage production of Nebraska’s perennial grazing land systems and …

Untangling The Economic And Social Impediments To Producer Adoption Of Organic Wheat, Donya L. Ralph-Quarnstrom

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

Consumer demand for organic products has shown double-digit growth in recent years encouraging the development of a wider range of goods (Greene, 2017). Americans with an annual household income under $30,000 actively purchase organic foods at nearly the same rate as households with over $75,000 in annual incomes, 42% versus 49% (Greene et al., 2017). Previous research observed the adoption of organic farming practices on a combination of different grains, fruits and vegetables, meat, and dairy products from across the globe. However, this is the first study to examine the adoption of organic wheat in the Western U.S. By addressing …

Optimization Of The Light Environment For Broiler Chickens, Douglas J. Aldridge

Graduate Theses and Dissertations

The use of artificial light sources has been necessitated by the use of fully enclosed rearing facilities for improved environmental control. Light Emitting Diodes (LED) have been developed as a light source that reduce the utilities required to provide equal light to that of incandescent sources. The following reports were carried out to investigate the effects of two light color temperatures, light intensity and light intensity gradients on broiler chicken production and behavior. The first investigation consisting of two consecutive trials investigated the effect of two light color temperatures (2700 K and 5000 K) in addition to the preference for …

Nebraska Strong - Social Capital In Action, Marilyn R. Schlake

Cornhusker Economics

We have heard it and we have witnessed it in action. Nebraska Strong has been a unifying message that is bringing Nebraskans, friends and family together from across the nation. Signifying strength, determination, and a resolve to rebuild, Nebraska Strong has bolstered communities and individuals who have, in some cases, lost all semblance of what they had prior to the disastrous March blizzard and floods. Through this simple message, individuals have begun to utilize their social group networks or social capital to support recovery efforts.

Through the study of communities that have experienced major disasters, researchers found the existence of …

The Impact Of Different Data Processing Methods On Site-Specific Management Recommendation, Taro Mieno, Joe D. Luck, Zhengzheng Gao

Cornhusker Economics

Precision agriculture has the potential to enhance farming profitability substantially via site-specific management of fields. One of the promising ways of generating such profitability-enhancing input is to a use recommendation map is on-farm randomized trials. The process of generating an input (say nitrogen) using a recommendation map typically involves the following steps:

1. Design and implement randomized input use trial

2. Collect yield data along with other field characteristics (Slope, Electrical Conductivity, and Organic Matter)

3. Process the data for statistical analysis

4. Conduct regression analysis to estimate production function (how the input affect crop yield)

5. For each of …

The Role Of Insured Bushels And Pre-Harvest Hedging For An Eastern Nebraska County Under Rain-Fed Growing Conditions, Cory Walters, Richard Preston

Cornhusker Economics

At the beginning of the crop year crop producers face unknown yields and prices resulting in a large range of end of season (fall) net income. Producers can chose to participate in risk management tools, resulting in a reshaping of the fall net income distribution. Two of the most common tools are crop insurance and pre-harvest hedging (hereafter referred to as hedging). The most common crop insurance policy sold today is Revenue Protection (RP) where both yield and prices are insured. RP policy represents an intriguing crop insurance contract since it not only insures against price declines between spring and …

Nebraska Women In Agriculture “Take Charge Of Change”, Jessica J. Groskopf

Cornhusker Economics

A crowd of almost 300 gathered together Feb. 21 and 22 in Kearney, Nebraska for the 34th Annual Nebraska Women in Agriculture Conference, with the theme “Take Charge of Change.”

The conference is one of the longest-running women's conferences of its kind in the country. The goal of the Nebraska Women in Agriculture Conference is for women to build relationships with each other while gaining valuable knowledge about managing risk on their farms and ranches. The event featured 4 general session speakers and over 30 workshop sessions.

The keynote speaker this year was Marji Guyler- Alaniz, President and Founder of …

Impact Of Selected Financial Measures On The Term Debt Repayment Ability Of Illinois Grain Farms, Samuel Awortwe Johnson

Theses and Dissertations

A clear and accurate assessment of the financial performance of a farm business is an important component of financial management at any time but becomes even more crucial in periods of economic downturn in the farm sector. Farmers continue to increase their debt even though the prices of commodities are low, and the prices of inputs are high (Krapf, Raab, & Zwilling, 2017). In addition, high family living expenses can also place financial pressure on farms (Scott, 2016). This study focused on identifying and estimating the impact of key factors which included financial measures and family living expenses on the …

Market Impacts Of A Meat Tax, Regan Gilmore, Azzeddine Azzam

Cornhusker Economics

Over time, animal activists and environmentalists have made calls to put a tax on meat. What effect would that have? To find out, we estimated the impacts that a retail-level greenhouse gas (GHG) tax on meat would have on livestock and grain markets.

The research used a multi-market economic model that integrates the beef, pork, and poultry markets with the corn, distillers' grain, soybean, soymeal, and ethanol markets. For GHG taxes, we used those provided by Springman et al. based on a emission price (social cost) of $52 per metric ton of carbon dioxide equivalent estimated by EPA. Emissions by …

Nebraska Farm Real Estate Values Continue Gradual Declines In 2019, Jim Jansen, Jeffrey Stokes

Cornhusker Economics

The market value of agricultural land in Nebraska declined by three percent over the prior year to an average of $2,650 per acre according to the 2019 Nebraska Farm Real Estate Market Survey (Figure 1 and Table 1). This marks the fifth consecutive year of downward pressure as market values have dropped approximately 20 percent since reaching a high of $3,315 in 2014.

The University of Nebraska-Lincoln Department of Agricultural Economics annually surveys Nebraska land professionals including appraisers, farm and ranch managers, and agricultural bankers. Results from the survey are divided by land class and summarized by the eight Agricultural …

Things To Consider Before Co-Signing A Loan, J. David Aiken

Cornhusker Economics

Parents co-signing loans for their children is common in agriculture. This usually happens when the child needs a loan to purchase land, livestock, or farm equipment. Lenders are more willing to make the loan to a beginning producer if the parents co-sign. This means the parents promise to repay the loan if the younger producer cannot. Parents have been doing this as a way to help their kids get started in agriculture for decades. If the child turns out to be an effective producer, the risk of the parents being on the hook for the unpaid loan balance is pretty …

2019 Nebraska Property Tax School Funding Issues, J. David Aiken

Cornhusker Economics

Nebraska agricultural property taxes are among the highest in the United States. Over the last three years, Nebraska farmers and ranchers have paid nearly 31 percent of their net farm income as property taxes (47 percent in 2017). When state and federal taxes are factored in, this represents an effective tax rate of more than 50 percent (over 60 percent in 2017). While no one particularly enjoys paying property taxes (or any other tax), property taxes are especially burdensome for Nebraska farmers and ranchers.

The proposed 2020 constitutional amendment to provide property tax relief would require dramatic state spending cuts, …

Three Key Factors To Balance When Choosing A Calving Season Based On Profitability, Matthew Stockton, Devin Broadhead

Cornhusker Economics

Cow producers base major decisions such as calving season on expected economic outcomes which include productivity, input costs, personal capability, individual preferences, markets, and so on. Calving systems are generally categorized into three seasons, spring, summer and fall. Many producers select the spring calving season to maximize the weaned calf weight at the end of the summer grass season. Unfortunately this increases feeding costs since extra nutrition is needed in the spring, prior to pastures being opened. Also due to the widespread adoption of this early spring calving, the mass marketing in late fall often results in depressed calf prices …

Negotiating Cash Rent: What It Takes To Negotiate Like A Pro, Austin Duerfeldt

Cornhusker Economics

The number one question I receive is about cash rent prices. Many landlords and tenants are working to find an equitable arrangement before February 28, 2019. Given the constraints on both sides, real estate taxes and the farm economy finding that arrangement is difficult. Becoming creative in how you analyze and value different cash rent options is necessary. Before sitting down face to face, here are some suggestions and preparations I recommend that can help maximize success.

Per-Ingredient Calorie Information Reduces Calories Ordered More In A Food-Away-From-Home Setting Than Information Provided Per, Christopher Gustafson, Eliana Zeballos

Cornhusker Economics

Obesity rates in the United States have risen dramatically over the past five decades, reaching what many public health officials have referred to as epidemic proportions. A common policy response to this obesity epidemic—which is often attributed to overconsumption of highly caloric, unhealthy foods—has been to increase consumers’ access to nutrition information to help them to make healthier choices. Recently, the increasing frequency of food consumption at restaurants led to the development of nutrition labeling requirements for restaurants with 20 or more locations. The rule, requiring food retailers to post calorie amounts and to make available information about other nutrients …

Tax Strategies For Farmers And Cooperatives Under The New Section 199a, Greg Mckee

Cornhusker Economics

This tax season will be the first time cooperatives and their patrons will consider the income tax consequences of the Tax Cuts and Jobs Act of 2017 (TCJA). A key element of the TCJA, Section 199A, affects farm income tax liability. Not only is the Section 199A deduction a good tax break for farmers, it changes incentives for farmer patrons to market through cooperatives. It also changes incentives for how cooperatives distribute their income. Cooperative members, their boards of directors, and management teams will have many tax strategy options to consider in 2019.

The good news about Section 199A is …

Trends In Nebraska Agricultural Land Ownership And Rental Patterns, Jim Jansen, Jay Parsons, Kate Brooks

Cornhusker Economics

In Nebraska, different types of rental arrangements are used on agricultural land. These arrangements commonly include crop share, cash lease, and cash lease with flexible provisions.

Crop Share: landowner receives a percentage of actual crop yield as payment for leasing the agricultural land to the tenant. The landowner may share input and production costs of raising the crop.

Cash Leases: landowner receives an agreed upon cash payment amount for leasing the agricultural land to the tenant.

Cash lease with Flexible Provisions: land owner and tenant set a base cash rental rate which can flex upon actual crop yields, prices, or …

Avoid Family Trouble When Planning Farm/Ranch Succession, Allan Vyhnalek

Cornhusker Economics

The story goes like this: The family has one brother who stayed on the farm to work with Mom and Dad. Mom and Dad are now gone. The other brothers and sisters are now wanting to meet to determine an equitable way to split the assets. The on-farm brother has been there over 50 years. He has contributed sweat, management, and value to the operation for decades.

Then the reality sets in. There is a family conversation about the farm now that the parents are gone. It is fairly common to have a difference in perception about the on-farm brother’s …

Examining Preferences For Rural Living And How To Save The Rural Economy, Rebecca J. Vogt

Cornhusker Economics

Recent articles in the New York Times and the Washington Post discuss preferences for rural living and if rural economies can be saved. Data from the Nebraska Rural Poll and other state surveys are used to further explore these topics.

Evaluating Water Management Policy In Saudi Arabia Using A Bilevel, Multi-Objective, Multi-Follower Programming Approach, Jawad Alhashim

Theses and Dissertations--Agricultural Economics

Over the past five decades, the Saudi government has adopted many agricultural policies aimed to: achieve self-sufficiency of food, increase the participation of the agricultural sector in the economy, and reduce the consumption of irrigation water. Due to conflicts among government objectives and the incompatibility of farmers' objectives with those of some agricultural policies, the government has not been able to fully achieve its objectives.

To accomplish its goals the government, or decision maker needs to understand the farmer, or follower, reaction when s/he adopts a new decision. The dissertation aims to build a model that achieves government goals of …

In The Round: The Future Of Food, Teddy Bekele, Jane Black, Mitchell Davis, Jon De La Para Harper, Natalie Dinicola, Virginia Dunleavy, Sam Fiorello, Kimberly Flowers, Raj Gollamudi, Daniel Hewett, Jak Knowles, Tom Laurita, Robert Lawrence, Maureen Mazurek, Robyn Metcalfe, Mike Miille, Hari Pulapaka, Jenneffer Pulapaka, Patricia Risica, Simone Sala, Chase Sova, Karen Washingon, Tom Weis, Center For Complexity

Future of Food

In collaboration with PopTech, the Center for Complexity (CfC) hosted a two day convening in March 2019 to discuss the future of food, conducted in-the-round. Conversations-in-the-round offer an experimental and collaborative forum where a variety of perspectives collide to reimagine how we should approach navigating complex challenges.

30 professionals, community leaders, ag-tech startups, policymakers, local activists, global aid administrators, and many other important voices in the food industry were in attendance. We did not set out to create solutions, rather we devoted our time to exploration — a process that allowed us to assess, discover, reality-check, and strategically plan the …

Nebraska Farm Real Estate Market Highlights 2018-2019, Jim Jansen, Jeffrey Stokes

Extension Farm and Ranch Management News

Introduction

The Nebraska Farm Real Estate Market Highlights 2018-2019 report represents the 41st edition to the annual series. These reports provide an important insight on agricultural land market dynamics for stakeholders across Nebraska. In today’s market, where market transactions exceeding a million dollars are the norm, objective market information and analysis is more critical than ever. The focus of the report continues to provide unbiased information on agricultural land values and rental rates so industry participants can make educated and informed decisions.

This year, the February 2019 survey of nearly 125 expert-panel members from across the state provided current information …