Agricultural Economics Commons^™

Corn Co-Product Logistics: An Application Of Linear Programming, Dmitry Kalashnikov Adams

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

The purpose of this thesis is not to explore new ways to apply or to study the general field of linear programming. Rather the emphasis is on applying a particular type of linear programming to a specific problem. In this thesis the classic case of linear programing - the transportation problem – is used to optimize corn co-product logistics between six ethanol producing facilities. At the core, the problem of corn germ logistics lies in transporting products from areas of excess supply to areas with excess demand. The challenge of optimizing corn germ logistics lies in managing transportation between producing …

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.

Essays On Agricultural Technology, Resource Allocation And The Value Of Information, Pedro W. Vertino De Queiroz

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

This dissertation studied the adoption of agricultural technologies and the value of information for the allocation of resources in agriculture. Chapter 1 studied traditional (e.g., land and labor) and commercial (e.g., machinery and fertilizers) inputs in South American agriculture. Acemoglu’s directed technical change was used to estimate the process of induced innovation using deforestation as source of exogenous variation for the agricultural land supply. The results indicated that larger availability of land in intensive deforestation countries caused more land-complementary inputs (machinery) to be used relative to labor-complementary inputs (fertilizers). Technical change was biased towards land. Chapter 2 studied nitrogen fertilizer …

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.

A Commonly Forgotten Tool In Retirement Planning: Health Savings Accounts, Austin Duerfeldt

Cornhusker Economics

Many individuals are aware of IRAs, 401(k) plans, 403(b) plans, and others when starting to build their retirement portfolio. These plans all have their benefits and drawbacks that need to be accounted for. What surprises many is there is another tool that you may be qualified for and are underutilizing. A Health Savings Accounts commonly referred to as an HSA, has some interesting possibilities that could be useful. An HSA is a type of savings account that lets you set aside money on a pre-tax basis to pay for qualifying medical expenses. While you cannot generally use this money saved …

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).

Determinants Of Discretionary Agricultural Policy Adoption: The Case Of The Livestock Friendly County Program In Nebraska, Cicely Batie

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

This study analyzes the voluntary approach to agriculture promotion programs through the lens of the Nebraska Livestock Friendly County (LFC) Program. In 2003, the Nebraska Department of Agriculture (NDA) launched the LFC program to bolster the livestock sector in participating counties. The program is unique because of its voluntary nature and targeted agricultural promotion efforts. The NDA designates counties as “Livestock Friendly,” and assists them in streamlining approval processes for livestock feeding operations. This thesis examines why a program like LFC is necessary, the patterns of its adoption across Nebraska, and finally, its impact on the livestock sector of participating …

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 …

2021 Women In Agriculture Conference, Jessica J. Groskopf

Cornhusker Economics

More than 200 attendees joined the virtual 2021 Nebraska Women in Agriculture Conference from the comfort of their own homes, February 19-20. While this conference looked different compared to years past, it still captured the goals of building relation-ships while gaining valuable knowledge.

The two-day event offered both a live stream and an on-demand learning opportunity for the attendees. Two keynote speakers, four live workshops, and more than 10 on-demand workshops gave attendees a variety of topics and knowledge to take back to their operations.

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 …

The Biden Climate Plan, J. David Aiken

Cornhusker Economics

President Obama had an aggressive climate plan that included regulation of carbon emissions from power plants. Hillary Clinton would have continued with aggressive policies to slow and reverse global warming but was defeated by Donald Trump in 2016. President Trump sought to undo most of President Obama’s climate policies and pursued a fossil-fuel friendly energy and climate policy. The 2020 election of President Biden marks a resumption of ambitious policies to slow and ultimately reverse global warming. This newsletter identifies three major policies the Biden administration is expected to pursue and attempts to explain what policy implication might look like.

Strategically Making Your Farm Or Ranch Profitable, Matthew Stockton

Cornhusker Economics

The word ‘strategically’ sounds sophisticated and is often used to imply the presence of some secret idea that will always work to increase profit. The word seems to suggest that to be strategic requires special knowledge or an almost magical method of accomplishing something. In truth, however, strategy is simply a plan of action or policy designed to achieve something desired, and it can be complex or basic, as each occasion requires. Strategy can be good or bad, a successful endeavor or a disaster. The key to good strategy is to have clear understanding of desired out-come, as well as …

Payroll Protection Program Increases Eligibility, Marilyn R. Schlake, Austin Duerfeldt

Cornhusker Economics

As the COVID-19 pandemic continues to impact business-es across the country, the Small Business Administration (SBA) has issued new guidelines for the Payroll Protection Program (PPP) in 2021. These guidelines increase the eligibility rules for self-employed, sole proprietors and 1099 workers, including agricultural producers, that allow them to apply and access the PPP Loan funds.

Nebraska Land Link, Jessica Groskopf, Allan Vyhnalek

Cornhusker Economics

Nebraska Extension is pleased to announce that the Nebraska Land Link is open for applications. Nebraska Land Link connects new or beginning farmers and ranchers seeking land with landowners who wish to lease, sell or gift their land to a new or beginning farmer or rancher. The web-based enrollment and information for the program can be found at https://farm.unl.edu/landlink

2021 Nebraska Crop Budgets Review, Glennis Mcclure

Cornhusker Economics

For the 2021 production year, 83 budgets for 15 crops including 2 cover crops and pasture budgets are avail-able from the University of Nebraska-Lincoln, the Department of Agricultural Economics and UNL Crop Specialists. The budgets are published online at crop-watch.unl.edu/budgets in two formats including a printable pdf file version and an Excel file version. In-formation on crop budgeting procedures, machinery operation and ownership costs, material and service prices, and a crop budget production cost summary are included in the format of each budget. In general, cash costs per bushel of corn for both dryland and irrigated budgets were projected lower …

Buy Fresh, Buy Local: Nebraska Working Together For Local Food, Margaret Milligan

Cornhusker Economics

Direct market farms in Nebraska are made up of people passionate about raising good food for their fellow Nebraskans. They grow vegetables, fruits, meat, grains, and value-added products to sell directly to consumers in their communities.

During the pandemic, these small farms have experienced restaurant sales vanishing, farmers’ market attendance de-creasing, and slots filling up at the small meat processors where they take their livestock. At the same time, there has been a renewed interest from consumers seeking reliable, transparent food produced close to home. It’s been a volatile year, and it has required quick pivoting, group coordination and action …

Why Do People Follow Popular, Or Fad, Diets?, Christopher R. Gustafson

Cornhusker Economics

The tradition of goal setting at the start of a year—New Year’s resolutions—is deeply engrained in American society: estimates suggest that between 40 and 50% of adults set New Year’s Resolutions. Many of the most common goals relate to weight management—initiating exercise programs, dieting, or both—which is perhaps unsurprising since over 70% of American adults are overweight or obese.

Relationships Between Community Resilience And Perceived Community Outcomes, Rebecca J. Vogt

Cornhusker Economics

The definition of resilience is the capacity to recover quickly from difficulties. Synonyms include toughness, perseverance and grit. The severe weather events of the spring of 2019 and the ongoing COVID-19 pandemic are likely testing the resilience of rural Nebraskans and their communities. The 2020 Nebraska Rural Poll examined how rural Nebraskans rate their communities on dimensions that measure its resiliency. While it is important to assess how resilient rural Nebraskans believe their communities are, it is also critical to understand how these perceptions correlate to perceived community change, perceived community powerlessness and ease or difficulty of leaving the community.

Surviving Variable Yields And Prices, Kara Zimmerman, Cory Walters, Jessica Groskopf, Matthew Stockton, Kate Brooks

Cornhusker Economics

A marketing strategy focusing on prices from the most re-cent past, indirectly gives little or no weight to all of the other possible price outcomes. While it is intuitive that the most recent prices are more likely to play a role in our decision-making process, there are other price events that can happen. The seasonal price path from the 2019/2020 crop year was nothing like we have recently experienced. Sup-pose we entered the 2020’s marketing decision using a seasonal approach that considers only the average price series over the past 5 years (2015-19 average), Figure 1. The seasonal average indicates …

Livestock Indemnity Program: A Case For Managing Risk With Good Recordkeeping, Jay Parsons

Cornhusker Economics

Keeping good records is an important risk management tool for agricultural producers. Good records provide accurate, complete and consistent information that leads to better decision making. Good records also keep the farm or ranch operation in a good position to participate in USDA programs when those opportunities are available.

The Livestock Indemnity Program (LIP), one of the USDA disaster assistance programs administered by the Farm Service Agency (FSA), is an example of how good recordkeeping can be rewarded. LIP provides compensation to eligible livestock producers who have suffered livestock death losses in excess of normal mortality due to adverse weather, …

The Economy, The Stock Market, And A Bucket Of Chicken, Timothy Meyer

Cornhusker Economics

Economists, unlike MDs and lawyers, are never able to sidestep professional questions. Whether it is at parties, or waiting to pick up kids from school, the “economy” is al-most as common as the weather for small talk. Fortunately, most economists are eager to opine on the current state of affairs, and almost as many are willing to guide laypeople to a truer understanding of what the “economy” actually is. This article will provide a definition of the economy, the Gross Domestic Product (GDP), and their importance. It will conclude by addressing the difference between the overall economy and the performance …

Assessment Of Grain Safety In Developing Nations, Jose R. Mendoza

Department of Food Science and Technology: Dissertations, Theses, and Student Research

Grains are the most widely consumed foods worldwide, with maize (Zea mays) being frequently consumed in developing countries where it feeds approximately 900 million people under the poverty line of 2 USD per day. While grain handling practices are acceptable in most developed nations, many developing nations still face challenges such as inadequate field management, drying, and storage. Faulty grain handling along with unavoidably humid climates result in recurrent fungal growth and spoilage, which compromises both the end-quality and safety of the harvest. This becomes particularly problematic where there is little awareness about health risks associated with poor …

2020 Nebraska Ballot Issues – Election Results, J. David Aiken

Cornhusker Economics

This publication provides educational information regarding the two constitutional amendments recommended by the Unicameral to Nebraska voters and the four citizen ballot initiatives on the November 2020 general election ballot.

Seasonal Forecast Based Preharvest Hedging, Eric D. Hunt, Cory Walters, Toni Klemm, Iyore Eronmwon

Cornhusker Economics

Given the immense effect of weather on agriculture, skillful weather forecasts are of importance to agricultural producers for effective decision making. Weather forecasts affect operational decisions such as whether or not to irrigate (where applicable), when to apply fertilizer, when to spray herbicide and pesticide, and certainly the timing of planting and harvesting. At the seasonal time scale, say in the spring, just before planting, weather forecasts may be used for strategic decision making on outcomes, say from preharvest hedging (hereafter referred to hedging), that will not be realized until the fall or harvest. Historically, the lack of skill in …

Pork In The Future: The New Futures And Options Contracts On Pork Cutout, Fabio Mattos

Cornhusker Economics

The CME Group has announced its plan to launch futures and options contracts on pork cut-out. The new contracts are scheduled to start trading on November 9, 2020. The exchange has al-ready been offering futures and options contracts on lean hogs and now adds another contract that the industry can use for risk management. While the existing futures contract on lean hogs is based on prices paid for hogs in the U.S., the new con-tract on pork cutout is based on prices paid for wholesale cuts of pork.

The Economic Impacts Of Social Activism In Food Markets, Anubrata Deka, Emie Yiannaka, Konstantinos Giannakas

Cornhusker Economics

Private politics, usually led by nongovernmental organizations (NGOs) and social activists, focuses on changing the behavior of private economic agents through social pressure rather than through government action (although government action is also possible) (Baron, 2003). The food sector has been experiencing increased social pressure from social activist organizations to achieve diverse goals, ranging from improving food safety and food fortification to increasing transparency in food markets. A primary reason for the increase in organized activism in the food sector is the proliferation of the provision of credence attributes which are attributes unobservable through search or experience (consumption and use). …

Corruption And Cooperative Organizations, Konstantinos Giannakas, Murray E. Fulton

Cornhusker Economics

Although the literature is limited, there is evi-dence that corruption in cooperatives and inves-tor-owned firms (IOF) is widespread in develop-ing and transition economies where corruption generally is common. Cooperative corruption is also found closer to home. Two recent examples from the United States include the Ashby Farm-ers’ Cooperative Elevator in Minnesota where the general manager stole from the cooperative and the Tri-County Electric Cooperative in South Carolina where board members enriched them-selves with perks and benefits. In Canada, the PACE Credit Union was placed under the regula-tor’s control in 2018 after two senior executives were discovered to have received secret …

Distillers Grains Pre, During, And Post Covid-19: Ongoing Recovery And Structural Demand Implications, Daniel Gertner, Elliott James Dennis

Cornhusker Economics

Prior to the shutdowns caused by the COVID-19 pandemic, distillers grains and other co-products of ethanol production played a crucial role in maintaining the rev-enue stream of dry mill ethanol plants (Irwin 2020). With low crude oil prices over the last half of the decade and corn prices holding steady over the same period of time, the margin for error in the ethanol industry was thin. More than a third of Nebraska’s ethanol plants either temporarily or permanently closed in 2019 (MacroTrends 2020); (York News Times 2019). To prevent similar outcomes, ethanol plants focused on diver-sifying their operations to produce …