Agricultural Economics Commons^™

Forages At Kca Foreword [2019], Christopher D. Teutsch, Christi L. Forsythe, Rehanon Pampell

Forage Symposium at the Kentucky Cattlemen’s Convention

No abstract provided.

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 …

Two Essays On Input Substitution And Optimal Decision Making In Crop And Livestock Production Systems, John T. Allison Jr.

Theses and Dissertations--Agricultural Economics

The thesis presented consists of two essays that analyze input substitution and decision making in crop and livestock production systems. The first essay consists of a whole-farm analysis that sought to optimize feed mixes and enterprise combinations for an organic dairy operation in the Southeastern United States. This was accomplished through mathematical programming where whole-farm net returns were maximized, and total feed costs were minimized simultaneously for four milk production level cases. Additionally, the sensitivity of the system and break-even milk price were explored. Results suggest substitutability in ration components where an increase in supplemental feeds is justified by additional …

Three Essays On Saudi Arabia Agricultural Markets, Yosef Abdulrahman Alamri

Theses and Dissertations--Agricultural Economics

The first essay compares six common models, linear, quadratic, Cobb-Douglas, translog, logarithmic, and transcendental, to estimate wheat yield and area functions for Saudi Arabia. Data cover 1990-2016 for all the variables that affect wheat supply. After testing the models using Box-Cox, multicollinearity, and autocorrelation tests, we decide that the Cobb-Douglas models provide the best fit for both yield and area. We find the price elasticity of wheat is inelastic. Yield price elasticities are more inelastic than area elasticities. The impact of government policy number 335 has a larger effect on area than yield. The cultivated area of wheat, the one-year …

Effects Of Agricultural Loans In Developing Countries – Benin Case Study, Nicaise S. M. Sagbo

Theses and Dissertations--Agricultural Economics

Limited access to financial services is known as a major constraint to agricultural development (FAO, 2002). Farmers need liquidity to face agricultural expenses throughout the production cycle but mainly at the beginning. Mainstream financial institutions are reluctant to serve the agricultural sector for several reasons. First, they consider the sector to be highly risky with low performance. Also, agricultural activities depend on the weather, they take place in remote rural areas, and commodities prices are volatile. All these aspects make it hard for standard banks to reach their profit goals when lending to farmers. Since microfinance was conceived, it has …

Utilizing Large Scale Datasets To Evaluate Aspects Of A Sustainable Bioeconomy, Gwanseon Kim

Theses and Dissertations--Agricultural Economics

This dissertation combines large scale datasets to evaluate crop prediction, land values, and consumption of a crop being considered to advance a sustainable bioeconomy. In chapter 2, we propose a novel application of the multinomial logit (MNL) model to estimate the conditional transition probabilities of crop choice for the state of Kentucky. Utilizing the recovered transition probabilities the forecast distributions of total acreages for alfalfa, corn, soybeans, tobacco, and wheat produced in the state from 2010 to 2015 can be recovered. The Cropland Data Layer is merged with the Common Land Unit dataset to allow for the identification of crop …

The Local Food System Vitality Index: A Pilot Analysis To Demonstrate A Process For Measuring System Performance And Development, Jairus J. Rossi, Timothy A. Woods, Alison F. Davis

Agricultural Economics Faculty Publications

Identifying successful development priorities for local food systems (LFSs) is a challenge for pro­ducers, LFS advocates, Extension agents, and policymakers. Consumer perceptions and prefer­ences regarding what constitutes an active, healthy, and vibrant LFS often differ within and between diverse communities. Producers, development entities, and others would benefit from rapid assessment processes that provide detailed information on consumer preferences and potential market opportunities within their LFS.

In this paper, we introduce the analytic possi­bilities of our Local Food System Vitality Index (LFSVI). Using data collected from a pilot survey in Lexington, Kentucky, we rapidly assess the per­formance of 20 different components …

2018 – 2019 Kentucky Agricultural Economic Situation And Outlook, Kenneth H. Burdine, Todd D. Davis, Jerry Pierce, William M. Snell, Timothy A. Woods, Jeffrey W. Stringer

Agricultural Situation and Outlook

This publication covers the situation and outlook for 2018-2019 in the following areas:

• U.S. Agricultural Economy;
• Kentucky’s Agricultural Economy;
• Selected Commodity Profiles - Cattle; Poultry; Hogs; Equine; Dairy; Corn; Soybeans; Wheat; Tobacco; Fruits, Vegetables and Greenhouse; and
• Forestry.

New Market Opportunities And Consumer Heterogeneity In The U.S. Organic Food Market, Gwanseon Kim, Jun Ho Seok, Tyler B. Mark

Agricultural Economics Faculty Publications

This paper investigates what factors and characteristics of organic consumers affect annual organic food expenditure by using Nielsen’s consumer panel dataset from 2010 to 2014. To be specific, this paper explores new marketing opportunities by investigating organic consumer heterogeneity in different household income levels by utilizing the multilevel model. Findings in this study will contribute to the previous and existing literature in three-folds. First, we find that the organic consumers are more heterogeneous in the high-level of income groups (approximately above $60,000), as well as the low-income households between $35,000 and $45,000. This finding demonstrates that the income levels above …

Point-Of-Sale Specific Willingness To Pay For Quality-Differentiated Beef, Kar Ho Lim, Michael Vassalos, Michael R. Reed

Agricultural Economics Faculty Publications

Despite the growing interest of producers and consumers toward grass-fed, local, and organic beef, the supply chain for these products to reach consumers is not always clear-cut. Among the available options are direct-to-consumers and the conventional food supply chain. Although consumers may pay a premium for beef differentiated by quality attributes, the willingness to pay (WTP) difference across point-of-sales is unclear. In this study, we contrast the WTPs for conventional, grass-fed, local, and organic beef by brick-and-mortar supermarkets (B&Ms), farmers’ markets, and via online stores. We conduct a choice experiment with a nationwide online sample of American consumers. The findings …

Is Aging The Important Factor For Sustainable Agricultural Development In Korea? Evidence From The Relationship Between Aging And Farm Technical Efficiency, Jun Ho Seok, Hanpil Moon, Gwanseon Kim, Michael R. Reed

Agricultural Economics Faculty Publications

This paper examines the effects of aging and income subsidies on farm efficiency in Korea by utilizing the Korean Farm Household Economic Survey from 2008 to 2015. A stochastic frontier model with a non-monotonic assumption on the effect of efficiency factors is implemented to reflect a super aging and less developed production structure in Korean agriculture. This study finds continuously decreasing farm efficiency with age, which contradicts the commonly assumed inverted-U relationship between age and productivity. Especially, we find that labor is the most important factor to explain recent farm efficiency losses in Korea. Furthermore, this paper finds that the …

A Systematic Review Of Consumer Preference For E-Cigarette Attributes: Flavor, Nicotine Strength, And Type, Samane Zare, Mehdi Nemati, Yuqing Zheng

Agricultural Economics Faculty Publications

Objective

Systematic review of research examining consumer preference for the main electronic cigarette (e-cigarette) attributes namely flavor, nicotine strength, and type.

Method

A systematic search of peer-reviewed articles resulted in a pool of 12,933 articles. We included only articles that meet all the selection criteria: (1) peer-reviewed, (2) written in English, and (3) addressed consumer preference for one or more of the e-cigarette attributes including flavor, strength, and type.

Results

66 articles met the inclusion criteria for this review. Consumers preferred flavored e-cigarettes, and such preference varied with age groups and smoking status. We also found that several flavors were …

Determinants Of Weanling Thoroughbred Auction Prices, Charlotte R. Hansen, C. Jill Stowe

Agricultural Economics Faculty Publications

Determinants of prices of 1,302 weanling Thoroughbreds sold at the 2010 Keeneland November Breeding Stock Sale are investigated. A hedonic pricing model is adopted to identify price determinants, and the corresponding marginal values of those determinants are estimated. Prices were responsive to pedigree quality variables, including the sire's stud fee, the stage of the sire's breeding career, and whether the dam or the dam's progeny had earned “black type.” In addition, individual weanling characteristics such as gender, age, state of birth, and sale placement influenced price. Results can be used as a decision tool by both buyers and sellers.

Asymmetric Price Volatility Transmission Between U.S. Biofuel, Corn, And Oil Markets, Sayed Saghaian, Mehdi Nemati, Cory Walters, Bo Chen

Agricultural Economics Faculty Publications

Linkages between agricultural commodity and energy prices have become more complex with increased ethanol production. The concern is whether the new corn–ethanol links lead to volatility-spillover transmission between food and energy prices. We investigate asymmetric volatility spillovers between oil, corn, and ethanol prices using a BEKK-multivariate-GARCH approach. Additionally, we use daily, weekly, and monthly futures prices to examine whether the use of different-frequency data leads to inconsistent results. The results support the existence of asymmetric volatility transmission between corn and ethanol prices. Furthermore, the volatility-spillover effects are different for the different-frequency prices, and positive and negative price changes generate inconsistent …

Coffee Market In China, Ran Zhu

Theses and Dissertations--Agricultural Economics

Although China is generally known as a tea-consuming country, both the production and consumption of coffee in China has seen double-digit growth in the last decade. This upward trend is projected to continue as long as investment is sustained and levels of disposable income continue to increase. In this rapidly expanding market, it is important for coffee producers and retailers in China to understand the preferences of emerging Chinese coffee consumers. Using survey data from Hubei and Zhejiang, China, we apply a Tobit regression model to analyze Chinese coffee consumers. Results show that the length of time consumers have been …

On-Farm Utilization Of Precision Dairy Monitoring: Usefulness, Accuracy, And Affordability, Elizabeth A. Eckelkamp

Theses and Dissertations--Animal and Food Sciences

Precision dairy monitoring is used to supplement or replace human observation of dairy cattle. This study examined the value dairy producers placed on disease alerts generated from a precision dairy monitoring technology. A secondary objective was calculating the accuracy of technology-generated disease alerts compared against observed disease events. A final objective was determining the economic viability of investing in a precision dairy monitoring technology for detecting estrus and diseases.

A year-long observational study was conducted on four Kentucky dairy farms. All lactating dairy cows were equipped with a neck and leg tri-axial accelerometer. Technologies measured eating time, lying time, standing …

The Impact Of Biofuel Policies On Overshooting Of Agricultural Prices, Mahdi Asgari

Theses and Dissertations--Agricultural Economics

The Federal Reserve has increased nominal interest rates since early 2016. It is expected that commodity prices will drop in response to this monetary intervention. The overshooting hypothesis explains that commodity prices are more flexible than manufacturing prices and therefore are more volatile. In this situation, it is expected that agricultural commodities decline significantly (i.e., overshoot) and gradually return to their long-run equilibrium. This adjustment behavior has implications for income stability and financial viability of farmers.

This research contributes to the overshooting literature by including the energy sector in the overshooting model. The interlinks between energy and other sectors in …

Two Essays On Whole Farm Modeling And Crop Marketing In Western Kentucky, Benjamin A. Martin

Theses and Dissertations--Agricultural Economics

This thesis is composed of two essays that investigate whole farm planning and crop marketing in western Kentucky. In the first essay, contracting decisions between food corn producers and a mill are analyzed to observe factors affecting the bushel amount farmers contract. Unbalanced panel data containing seven years’ worth of pricing and contract information are used with a fixed-effects model to generate parameter estimates and quantify their effect on bushels contracted. It was found that contract attributes, market condition, and relationship-specific assets had a significant effect on producers’ food corn contracting decisions. The second essay utilizes mixed-integer programming to optimize …

2017 – 2018 Kentucky Agricultural Economic Situation And Outlook, Kenneth H. Burdine, Todd D. Davis, Jerry Pierce, William M. Snell, Timothy A. Woods, Jeffrey W. Stringer, Bobby Ammerman, Chad Niman, William R. Thomas

Agricultural Situation and Outlook

No abstract provided.

Economic Impact Of The Sugarcane Aphid Outbreak In South Texas, Samuel D. Zapata, Rebekka Dudensing, Danielle Sekula, Gabriela Esparza-Díaz, Raul Villanueva

Entomology Faculty Publications

The objective of this study was to estimate the economic impact of the sugarcane aphid (SCA) outbreak in the Rio Grande Valley (RGV), Texas. Local producers were surveyed to gather detailed information about crop production and pest control practices. Collected data were used to estimate the reduction in profit associated with the SCA infestation, as well as the monetary value of the prevented loss attributed to control efforts. Sorghum industry losses were then used to assess the overall economic impact of the SCA outbreak in the RGV economy.

Hedonic Pricing Of Chocolate Quality Characteristics: Is There A Difference For Fruit Or Nut Chocolate?, Willie B. Bedell, Michael R. Reed

Agricultural Economics Presentations

Chocolate campaigns in the United States have focused on the production of premier quality and healthy blend chocolate bars. We expect that merchandising efforts will offer a higher price for fruit or nut blend chocolates. Using online retail data from Amazon, eBay, and Walmart, we applied the hedonic function to estimate retailers offer price for a blended bar. The findings show that online retailers have mixed offer prices for a blend or plain bar. The paper suggests that studies would learn much more from a data and analysis that control for quantity sold and time effects in the chocolate market.

Assessing Tourists’ Preferences For Recreational Trips In National And Natural Parks As A Premise For Long-Term Sustainable Management Plans, Diana E. Dumitras, Iulia C. Muresan, Ionel M. Jitea, Valentin C. Mihai, Simona E. Balazs, Tiberiu Iancu

Agricultural Economics Faculty Publications

Sustainable tourism management plans rely on relevant and consistent information about factors that can influence the decision to visit a protected area. This paper uses the choice experiment method to investigate tourists’ preferences with regard to recreational trip characteristics in national and natural parks in Romania. An on-site survey questionnaire was administered to visitors. The multinomial logit model was employed to investigate the preference orderings of the identified groups of recreational users. Overall, results indicate that tourists gain benefits after visiting the parks. Main preference differences were found for information sources and location of campsites. Visitors who stated that the …

Impacts Of A Community Supported Agriculture (Csa) Voucher Program On Food Lifestyle Behaviors: Evidence From An Employer-Sponsored Pilot Program, Jairus J. Rossi, Timothy A. Woods, James E. Allen Iv

Agricultural Economics Faculty Publications

Community supported agriculture (CSA) programs have recently received attention for their potential to influence food lifestyle behaviors and health outcomes. We build on and expand inquiries into the relationship between CSA participation and behavior change by presenting the results from a controlled pilot study of first-time CSA shareholders. We offered 95 first-time shareholders a $200 voucher to participate in a CSA. Prior to and immediately following CSA participation, these shareholders completed a survey on food lifestyle behaviors. Using econometric analyses, we measured shareholder behavior changes against an 82 person control group. All participants were drawn from a pool of individuals …

Selection Of Breeding Stock By U.S. Meat Goat Producers, Narayan Nyaupane, Jeffrey Gillespie, Kenneth Mcmillin, Robert Harrison, Isaac Stienei

Community & Leadership Development Faculty Publications

Using nationwide survey data, we investigate U.S. meat goat producer preferences and willingness to pay for meat goat breeding stock attributes. Discrete choice experiments were employed, and mixed logit and latent class models were used for analysis. Results showed that producers preferred animals that were highly masculine/feminine, had good structure and soundness, and were of the Boer breed, whereas they preferred fewer animals that were older, of Kiko and Spanish breeds, and priced higher. Significant preference heterogeneity was found among the respondents. Larger-scale producers had greater preference for high masculinity/femininity, good structure and soundness, and Boer bucks.

The Influence Of The Agricultural Cluster On The Fayette County Economy [2017], Alison Davis, Simona E. Balazs

Community and Economic Development Initiative of Kentucky Reports

Executive Summary:

Historically, employment associated with agriculture in Fayette County has been limited to production agriculture. Recently, the Ag Cluster has been extended to include agricultural inputs and food processing and manufacturing. However, there are hundreds of establishments in the county that are service-based (finance, veterinary, recreation), transportation, communications, as well as wholesale and retail businesses that are 100% dedicated to agriculture. These businesses have never been included in an economic impact study exploring the impact of agriculture in Fayette County. Ignoring these businesses underestimates the value of the agricultural sector. This is particularly important in Fayette County because of …

International Diffusion Of Food Safety Standards: The Role Of Domestic Certifiers And International Trade, Rezgar Mohammed, Yuqing Zheng

Agricultural Economics Faculty Publications

We examined the cross-national adoption of six major private food safety standards, focusing on the role of certifiers and international trade. Results show that the number of certification bodies existing in the domestic country, food exports, and the proportion of food exports to North America had positive effects on a country's adoption of food safety standards. Distance leads to product differentiation for the standards and therefore disadvantages developing countries in Africa and Asia for adopting the standards, which are all based in the United States or Europe. Providing these countries with better access to certifiers can alleviate this geographic disadvantage.

Impacts Of Corn Price And Imported Beef Price On Domestic Beef Price In South Korea, Gwanseon Kim, Tyler Mark

Agricultural Economics Faculty Publications

South Korea is one of the largest beef importing countries in the world. Australia, USA, and New Zealand provide the majority of beef they import. The objective of this study is to evaluate the price relationship of Korean cattle and corn, prices of the imported beef and corn, and prices of Korean cattle and imported beef. We examine threshold points using threshold vector autoregressive (TVAR) model by assuming the presence of nonlinearity. We find that there are two thresholds in Australian beef price with first difference data. This study finds that the current Korean beef price is positively affected by …

Investment For Trade? Impact Of Investment From Gulf Cooperation Council Countries On Trade, Sattam Faleh Almodarra

Theses and Dissertations--Agricultural Economics

The world has made great progress over the centuries through the massive increase in the interconnectedness of nations around the globe. Today, the world is connected through various ways, including the movement of goods, people, and money. The amount of goods traded across countries borders has drastically increased as the result of technological progress and the removal of barriers to trade. Not only has the world become more interconnected with the physical flows of goods and services, but also countries of the world have become more integrated financially. This study proposes to analyze how increase in financial flows, as measured …

Three Essays On Food Safety Regulations And International Trade Of Agricultural Products, Jun Ho Seok

Theses and Dissertations--Agricultural Economics

This dissertation investigates food safety regulations and international trade of agricultural products dividing into three aspects: the signalling effect from U.S. strict food safety regulations on U.S. vegetable exports, political determinants of sanitary and photosanitary non-tariff barriers, and the impact of trade barriers on employment in developing countries. In chapter 2, we investigate the impact of high U.S. maximum residue limit (MRL) standards on U.S vegetable exports to 102 countries utilizing the hierarchical model. MRL, which is one of non-tariff barriers with respect to food safety, is applied to home and foreign countries at the same time. Thus, firms in …

An Examination Of Milk Quality Effects On Milk Yield And Dairy Production Economics In The Southeastern United States, Derek T. Nolan

Theses and Dissertations--Animal and Food Sciences

Mastitis is one of the most costly diseases to dairy producers around the world with milk yield loss being the biggest contributor to economic losses. The objective of first study of this thesis was to determine the impacts of high somatic cell counts on milk yield loss. To accomplish this, over one million cow data records were collected from Southeastern US dairy herds. The objective of the second study was to determine optimum treatment cost of clinical mastitis by combining two economic modeling approaches used in animal health economics. The last objective of this thesis was to determine how much …