Agricultural Economics Commons^™

National Agri-Marketing Association Annual Conference Professional Growth Opportunities For Unl Students, Caleb Nuehring, Rosalee A. Swartz

Cornhusker Economics

The National Agri-Marketing Association (NAMA) annual conference in April of each year is a highlight for Nebraska NAMA students. The students look forward to opportunities to network with professionals and attend sessions and workshops presented by internationally known speakers and experts.

NAMA is comprised of 23 professional chapters in six regions nationwide and has more than 3,500 professional and student members. NAMA members include professionals in agribusinesses, commodity associations, advertising and public relations agencies, as well as faculty, staff, and students from universities across the u.s. and Canada. At the state level, Nebraska's professional Cornhusker Chapter has nearly 70 members. …

Strengthening Nebraska Businesses, Charlotte Narjes, Anne Byers

Cornhusker Economics

The Nebraska Broadband Initiative in 2013 launched a new effort to help Nebraska businesses increase their economic vitality by understanding how to more effectively use broadband technologies. Key points of this initiative include:

Benchmarking Data: Gather data through a business assessment to establish initial benchmarks and measure impact.

Providing Resources to Businesses: Help individual businesses understand how they can use broadband to increase their economic vitality, understand their Return on Investments (ROI) and assist them in identifying steps for implementation.

Building Capacity: Build capacity in Nebraska for business coaches (i.e., economic developers, extension educators and Department of Economic Development field …

Technology Use In Agriculture, Rebecca J. Vogt, Charlotte Narjes, Anne Byers, Connie Hancock

Cornhusker Economics

In September 2013, the Nebraska Broadband Initiative partnered with the Strategic Networks Group (SNG) to conduct an email survey of Nebraska businesses on their use of broadband technologies. Responses from over 800 Nebraska businesses show that broadband is being widely used and is benefitting businesses across the state. The complete report can be found online at http://broadband.nebraska.gov/. Seventy of those businesses self-reported being in the agriculture/forestry/fishing industry. This paper will take a closer look at the responses from this industry sector.

Community Vitality Connects Nebraska, Charlotte Narjes, Connie Hancock

Cornhusker Economics

Fostering the future of Nebraska is the underlying mission of the newly formed Community Vitality Initiative (CVI) launched by UNL Extension. The Community Vitality Initiative is focused on expanding partnerships to build communities where businesses thrive, entrepreneurs have access to the resources they need and young people want to return. Currently multi-disciplinary teams include faculty from the Departments such as Ag Economics and the Department of Child, Youth and Family Studies and will include faculty from all the University campuses and service providers from outside of the University.

Technology Use By Businesses In Nebraska: Regional Comparisons, Rebecca J. Vogt, Charlotte Narjes, Roger Terry, Connie Hancock

Cornhusker Economics

In September 2013, the Nebraska Broadband Initiative partnered with the Strategic Networks Group (SNG) to conduct an email survey of Nebraska businesses on their use of broadband technologies. Responses from over 800 Nebraska businesses show that broadband is being widely used and is benefitting businesses across the state. This paper will take a closer look at the re-sponses by region of the state. For this report, the re-gion boundaries are defined by the Nebraska Economic Development Districts.

Five Things You Probably Don’T Know About Handshake Farm Leases, J. David Aiken

Cornhusker Economics

Around half of Nebraska farmland is leased but there are some things you probably don’t know about leases that you probably should be aware of.

So, there some things that most folks probably don’t know about ag leases?

Yes. But I want to emphasize up front that smart tenants realize that if they push their legal rights to the limit, they probably will lose the lease in the end. That being said, landlords probably have narrower legal rights than they thought under handshake (i.e. unwritten) agricultural leases in Nebraska.

Virtual Water, Marianna Khachaturyan, E. Wesley F. Peterson

Cornhusker Economics

Life on earth depends on water. Unfortunately, water resources are not evenly distributed. There are countries with abundant water supplies, such as Brazil or Canada, and countries that lack water resources, such as Egypt or Jordan. Because water is critical for the production of food and other goods, as well as for human consumption, recreation and ecosystem support, competition among the various users for available supplies is often intense. The problem is compounded by the fact that water markets often work imperfectly or are lacking altogether.

What can countries with limited water resources do? In rare cases, it may be …

Regional Broadband Plan Priorities Presented To The Nebraska Public Service Commissioners, Charlotte Narjes, Roger Terry, Connie Hancock, Rebecca J. Vogt, Jan Jackson Cejka

Cornhusker Economics

Nebraska Broadband Initiative regional plan priorities were presented to the Nebraska Public Service Commissioners in July. These priorities were created by extension led planning teams located across the state. The Departments of Agricultural Economics and Agricultural Leadership, Education and Communication (ALEC), along with Extension are collaboratively working on the broadband initiative.

Is There A Best Cow Size For Beef Cattle Producers?, Matthew Stockton, Sunil P. Dhoubhadel, Leslie Aaron Stalker

Cornhusker Economics

There are individuals in the beef cattle industry who claim there is a need for smaller brood cows, because smaller cows are more efficient and therefore more profitable. On the other hand, there are those who claim the larger the cow the better, and these generally are those who feed calves to slaughter. The proponents of both sides seem to have logical reasons that support their claims. So who is right?

Conservation Compliance Under The House And Senate Versions Of The 2013 Farm Bill: A Role For Empathy Nudging?, Hans J. Czap, Natalia Czap, Gary D. Lynne, Mark E. Burbach

Cornhusker Economics

Current and past farming practices have led to significant environmental degradation in the form of soil erosion (sediments), as well as fertilizer and chemical related water pollution. The United States Department of Agriculture (USDA) has long tried to implement policies to temper such negative effects on the environment. The 2008 Farm Bill which currently guides agricultural and related environmental/conservation policy is being revised on this front. The United States Senate and the House of Representatives are each currently proposing a version of the 2013 Farm Bill to change the existing system, making it more efficient in achieving environmental (and other …

Affordable Care Act And Your Ag Business, Marilyn R. Schlake, Carroll S. Welte, Charlotte Narjes, Jim Crandall

Cornhusker Economics

Implementation of the Affordable Care Act (ACA) is steadily moving forward. Whether you agree or disagree with the ACA, the fact is that it is currently the national law. Already we are seeing changes affecting how hospitals, doctors and insurance carriers operate. Regulations impacting individuals and businesses in the areas of benefits covered, maximum out-of-pocket costs, taxes and penalties began on October 1st. Spend time now to evaluate how these changes will affect you, your family and your business operations.

Be A Part Of The Plan - Engaging People - Linking The World, Charlotte Narjes

Cornhusker Economics

The Nebraska Broadband Planning Initiative, in its fourth year, is designed to increase adoption and utilization of broadband in communities and regions. Goals of this initiative include:

Increase adoption and utilization of Broadband in communities and regions with an emphasis on unserved and underserved regions.

Work as a region in developing regional Broadband plans that increase adoption and utilization of broadband.

Increase understanding of importance of Broadband as a foundation of economic growth.

The Initiative is focused around the following project areas:

Mapping

Planning (capacity building, technical assistance and regional planning).

Cooperative & Nebraska “Blue Sky” Statutes, J. David Aiken

Cornhusker Economics

Cooperative fever is sweeping Nebraska. Agricultural producers are looking for ways to add value to what they produce, often through forming “new generation” cooperatives or by forming limited liability companies (LLCs). New generation cooperatives differ from traditional cooperatives in that new generation cooperatives typically (1) have closed membership and (2) process goods produced by co-op members. New generation cooperatives are more like citrus and other fruit cooperatives that have existed in other parts of the country. The Nebraska Unicameral is providing financial assistance to assist developing these kinds of value-added efforts through LB1348, the “Agricultural Opportunities and Value-Added Partnerships Act.” …

Amartya Sen And World Food Day 2000, Bettina Klaus

Cornhusker Economics

As every year, World Food Day took place on October 16th. Being relatively new to UNL (and the U.S.), and being an assistant professor in the Economics Department (joint with the Agricultural Economics Department) with research interests in social choice and game theory, the probability that I would get involved with World Food Day were slim. However, somehow it caught my eye that the yearly teleconference that accompanies World Food Day featured the 1998 Nobel prize winner for economics, Professor Amartya Sen. The 2000 World Food Day’s teleconference topic was “Poverty and Hunger: The Tragic Link” and in a superb …

Faculty Exchange Program In Second Year At Unl, Lynn Lutgen

Cornhusker Economics

The Agricultural Economics Department joined USDA in a Faculty Exchange Program (FEP) with the Ukraine and Russia in the spring of 1999. Each year four professors from the Ukraine and Russia arrive in Lincoln in August and leave the middle of December. While in Nebraska they take classes, travel, and develop class outlines and news articles that they will use when they return home. This year we have three professors visiting from the Ukraine and one from Russia. The following are their impressions of the U.S. and Nebraska, along with some thoughts on the Faculty Exchange Program.

Potential Cost Of Agricultural Water For Meeting In-Stream Flow Demands, Raymond J. Supalla

Cornhusker Economics

In 1997 the states of Colorado, Nebraska and Wyoming signed a Cooperative Agreement (CA) which called for making 130,000 to 150,000 acre feet of additional water available for meeting endangered species needs along the Big Bend Reach of the Platte River. Three projects, one in each state, will contribute 70,000 acre feet towards this goal. The remaining 60,000 to 80,000 acre feet must be acquired thorough other means, the most likely being the purchase or leasing of rights to what is now irrigation water. If the CA is eventually implemented, all purchases and leases of irrigation water will be negotiated …

Projecting Cash Needs And Production Costs, Roger Selley

Cornhusker Economics

Some producers suggest they prepare a cash flow if needed for their lender, but otherwise find the projection too dependent upon unknowns to be useful. Earlier newsletters have suggested using projected cash flow commitments to determine the level of crop insurance coverage. Much of the information required to prepare a cash flow projection can also be used to prepare a projected return over variable costs (gross margin) for individual enterprises. Gross margins can be used to project, for example, which crops will be most profitable.

Value-Added And The Declining Farm Share Of Consumer Expenditures For Food, Jeffrey S. Royer

Cornhusker Economics

The farm share of consumer expenditures for food has fallen substantially over the past five decades. As shown in Figure 1, consumer expenditures for domestically produced farm foods increased from $50.9 billion in 1952 to $618.4 billion in 1999. The farm value of these foods increased from $20.4 billion to $120.5 billion during the same period, representing a decline in the farm share from 40 percent to 20 percent.

Producer Protection Act Of 2000, J. David Aiken

Cornhusker Economics

Agricultural production contracts are becoming more widespread in Nebraska. (Contract production should be distinguished from custom farming, which is not at issue here). Under ag production contracts, farmers may contract to produce crops or livestock typically for processors. Contracting is widespread in the broiler industry, and is becoming more common in the swine and beef industry, and for some crops. The Producer Protection Act of 2000 (PPA) is a proposed model state statute prepared by the National Association of Attorney Generals to deal with legal issues associated with agricultural contracting. The PPA was developed in order to avoid some problems …

Carbon Sequestration: What’S It All About?, Douglas H. Jose

Cornhusker Economics

The following article is based on an interview I did with Professor Dan Walters on the Market Journal video broadcast on October 16. The full interview can be viewed by going to the Rural Routes website (ruralroutes.unl.edu) and clicking on “broadcast” under the “October Market Journal” heading.

The Effects Of Biotechnology On Concentration And Structure In The Agricultural Inputs Industry, Konstantinos Giannakas, Murray Fulton

Cornhusker Economics

In the last five years, biotechnology has emerged as a major focus of interest in agriculture. This article focuses on one of the many questions that have arisen around this new technology. In particular, the purpose of the paper is to identify the scope and significance of the links between biotechnology and the structure and conduct of the agricultural inputs industry and to develop a framework for analyzing the distribution of the benefits of innovations due to biotechnology.

Marketing: A Changing Concept In Changing Times, Allen Prosch

Cornhusker Economics

Pork Powerhouses 2000, the annual report from Successful Farming magazine changed this year when they recast the report as the 50 largest commercial pork producers in North America. Recognizing the movement of pork production in the international sector, while not innovative in itself, indicates the changes in agriculture taking place in the world. The minimum number of sows to make the list increased sixty-six percent (66%) from 1999's 7,200 sows to 12,000 sows this year. Eight Canadian firms made the list this year with a total of 202,200 sows.

Renting Grain Storage Facilities, Larry Bitney, Wade Nutzman

Cornhusker Economics

Renting a grain bin from a neighbor may be the answer to a producer’s grain storage needs. Retired farmers, those who have excess storage capacity, and those who have scaled back their operations may want to generate some income from renting out their bins. In most cases the parties involved want to know, “What is a fair rental rate?”

Improved Beef Demand Benefits Nebraska Cattle Producers, Richard T. Clark

Cornhusker Economics

From 1979 until 1997 inflation-adjusted, retail beef prices in the U.S. declined by over 30%. During this same time period, per capita consumption declined about 10 pounds. These two facts, declining prices and declining consumption, lead to the conclusion that demand for beef in the U.S. declined over this time period.

Employee Motivation, Lance L. Cummins-Brown

Cornhusker Economics

Currently in the state of Nebraska, there is a shortage of agricultural workers. As Nebraska’s population continues to move east, and the size of grain and livestock operations continue to increase, finding and retaining employees will become a necessity for more agricultural producers. Research is being conducted at the University of Nebraska to improve the leadership skills of producers. Even though there are many skills successful leaders need to have, one of the most important is being able to motivate your employees. A recent study looked at the relationship between an employee’s source of motivation and the type of behaviors …

Is Grass The Cheapest Feed?, Richard T. Clark

Cornhusker Economics

A recent IRM meeting with cattle producers in Gering highlighted the fact that different producers have different approaches to answering this question. It was quite obvious that the answer is “it depends.” It depends on the availability and cost of alternative sources of nutrition for the animal, labor costs and producer goals.

Agriculture, Trade And The Wto, E. Wesley F. Peterson

Cornhusker Economics

The Uruguay Round (UR) of trade negotiations, conducted under the auspices of the General Agreement on Tariffs and Trade (GATT), ran from 1986 to 1994. The final UR agreement brought agriculture under the full discipline of the GATT for the first time. It also established the World Trade Organization (WTO) which incorporates all of the earlier agreements included in the GATT as well as the Agreement on Agriculture and several other components. These agreements were officially signed in Marrakesh, Morocco in 1995 and entered into force that same year after they were ratified by national governments, including that of the …

Some Abcs On Commodity Loans And Ldps, Roger Selley

Cornhusker Economics

The objective of the loan rate has been to provide eligible producers the equivalent of a minimum price. When the market price remains below the loan rate a nonrecourse loan accomplishes this objective by allowing the producer (borrower) to forfeit the grain provided as security and cancel a loan that was made at the loan rate. The grain must be in storage under loan for 9 months before forfeiture is an option. The net result with forfeiture is the producer realizes the loan rate (accrued interest is forgiven) less storage costs. The marketing/promotion assessment is also deducted from the loan …

State’S Net Farm Income Levels Tell Quite A Story, Bruce B. Johnson, Jared Burkholder

Cornhusker Economics

Nebraska’s 1999 net farm income levels document what people in the industry already knew – 1999 was not a good year for the agricultural economy. According to the recently released 1999 USDA net farm income statistics, Nebraska’s 1999 aggregate net farm income was estimated at $1.66 billion. This total falls 10 percent below the 1998 figure and nearly 18 percent below the annual average of the 1990’s (Table 1).

Are There Opportunities To Enter Production Agriculture Today?, David J. Goeller

Cornhusker Economics

Most persons would not be surprised that the average age of Nebraska farmers is increasing. In 1982 there were approximately 1.5 farmers under age 35 for every farmer over age 65. In 1997 the relationship of younger farmers to older farmers had reversed. The latest Nebraska census of agriculture indicates there are about 2.5 farmers over age 65 for every farmer under 35. Approximately 41% of the land and farm machinery in Nebraska ($14 billion) is owned by those 55 years of age or older. That age group owns approximately 46% of Nebraska’s cow herds as well as about 27% …