Agricultural Economics Commons^™

Eu And Us Consumers’ Willingness To Pay For Genome-Edited Apples, John C. Beghin

Cornhusker Economics

New Plant Engineering Techniques (NPETs) refers to new biotechnology tools that allow alterations to a plant’s genome by adding, resequencing, or silencing some of its genes or combined with genes from a crossable plant (so-called cisgenesis). NPETs include genome editing (GenEd) tools, such as Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR), and transcription activator-like effector nucleases (TALEN). These techniques lead to mutations in plants, which could have been obtained with conventional hybridization and genetic mutation techniques. For that reason, they may be perceived as more natural. These techniques might raise fewer concerns than transgenic techniques incorporating foreign genes into a …

The Potential For Moral Hazard Behavior In Irrigation Decisions Under Crop Insurance, Karina A. Schoengold, Paloch Suchato, Taro Mieno, Timothy Foster

Cornhusker Economics

The Federal Crop Insurance Corporation provides one of the most widely adopted risk mitigation tools used by crop producers across the United States. In 2018, over 90% of corn and soybean acres were insured in most of the Great Plains and Midwestern United States (Farm Bureau, 2019). As with all insurance, there are questions of whether moral hazard behavior occurs with insurance enrollment. In economics, moral hazard refers to cases where someone makes riskier decisions when he or she is protected from the full cost of doing so. For example, someone with fire insurance on their home may be less …

Evaluating The Impact Of Covid-19 On Nebraska Land Auctions And Implications For Future Farm Real Estate Sales In 2021, Jim Jansen, Jeffrey Stokes

Cornhusker Economics

The Nebraska Farm Real Estate Market Survey and Report 2020-2021 provides insight into recent trends on the market value of agricultural land and cash rental rates 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 2021 evaluates the effects of COVID-19 on Nebraska land auctions over the prior year and implications for this transaction method involving future agricultural …

Beef Cow Operations During Drought: Dealing With More Than Dry Conditions, Matthew Stockton

Cornhusker Economics

The most recent drought conditions have grown to cover a large portion of the west and the central United States, as shown in Figure 1. Those depending on rain continue to watch and hope that conditions will change, while implementing and considering various strategies to preserve their livelihoods. Those who have been in the business for years have seen other occasions when dry conditions limited forage production and created hardship. Each occurrence has varying outcomes, depending on the many factors faced by individuals. While drought may produce the same dry conditions for many, its effects are individualized. There are as …

Growing Climate Solutions Act Of 2021, J. David Aiken

Cornhusker Economics

On June 24, 2021, the U.S. Senate adopted S. 1251, the  Growing Climate Solutions Act of 2021. Cosponsored by  54 senators, including Nebraska Senator Deb Fischer, S. 1251 seeks to make it easier for farmers and ranchers to participate in voluntary carbon credit markets and to get a fair share of the carbon credit revenue they generate. If  adopted by the U.S. House of Representatives and signed into law by the President, S. 1251 would go a long way in facilitating effective producer participation in U.S. carbon markets.

Weight Status Perceptions And Food Choice, Christopher R. Gustafson

Cornhusker Economics

Does your weight status—whether your height and weight put you into the normal weight, overweight, or obese category—predict your food choices, or even the types of food you’ll pay attention to when making a choice? What about the weight status you perceive yourself to be? These are important questions because the percentage of the population that is overweight or obese in the U.S.—and world-wide—has been increasing for decades despite a wide range of efforts aimed at slowing/reversing its growth. In the U.S., over 70 percent of the population is overweight or obese. High body weight has numerous consequences for individuals …

Revenue Protection Crop Insurance And Prices Rising From Spring To Fall, Jessica J. Groskopf, Cory Walters

Cornhusker Economics

Storm damage has been felt by many Nebraska farmers this growing season. Crop insurance is a useful tool to help farmers mitigate production losses coming from storm damage. However, given current price trends, the amount of support producers will receive cannot yet be determined. This article will review how revenue protection crop insurance works when prices rise from the spring to the fall.

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 …

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.

Crop Insurance Premium Subsidies Are A Means Of Income Redistribution, Charalampos Mavroutsikos, Konstantinos Giannakas, Cory Walters

Cornhusker Economics

The U.S. federal crop insurance is a major farm policy aimed at providing risk protection/reduced risk expo-sure to agricultural producers. A key component of this policy is the provision of multiple contract options and premium subsidies that reduce the cost of crop insurance to agricultural producers. Premium subsidies have been growing over time and accounted for more than $6 billion in government outlays in 2019, with $2 billion being applied to coverage levels of 80% and higher (USDA-RMA, 2020). While the government has justified the use of premium subsidies as a necessary means of increasing producer participation in crop insurance, …

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.

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.

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).

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