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Full-Text Articles in Social and Behavioral Sciences
Local Economic Impacts Of Ethanol Production, David J. Peters
Local Economic Impacts Of Ethanol Production, David J. Peters
Cornhusker Economics
The ethanol boom has generated an unprecedented amount of industrial investment in many rural communities. However, local governments and economic developers have little reliable information regarding the economic impact of these plants in the community. An assortment of consultants and government agencies, including some universities, has produced a wide range of positive impacts that stretch beyond sound economic theory or method. Communities using these optimistic estimates risk investing scarce tax dollars and resources into ethanol projects that may not produce the full expected economic benefits. Thus, it is worth discussing a reasonable estimate of the likely economic impact of a …
Newcomers To The Nebraska Panhandle: How Do We Keep Them Here?, Cheryl A. Burkhart-Kriesel
Newcomers To The Nebraska Panhandle: How Do We Keep Them Here?, Cheryl A. Burkhart-Kriesel
Cornhusker Economics
A lot of media attention over the years has been given to the steady decline of population in rural areas across Nebraska. However, there is another side to this story. Research using the 2000 U.S. Census shows that significant numbers of people do move in and out of rural regions within our state. Unfortunately, very little is really known about the new residents’ motivations for moving to the region, and reasons why they choose to remain or consider leaving their new community.
Have You Considered Culling Pairs?, Matt Stockton, Roger K. Wilson
Have You Considered Culling Pairs?, Matt Stockton, Roger K. Wilson
Cornhusker Economics
Cow-calf producers, like many agricultural producers, make many current decisions that ultimately affect subsequent seasons’ production and income. These decisions not only affect production quantity, but involve cash flow and resource allocation constraints. One of the most difficult and complicated choices ranchers face is the rate and timing of replacing and removing brood cows from the herd. This sentiment was reflected in the statement by B. E. Melton in his December, 1980 article in the Western Journal of Agricultural Economics, “Economics of Beef Cow Culling and Replacement Decisions Under Genetic Progress.” He wrote, “Probably no single aspect of modern beef …
Understanding Patenting Decisions: A Classroom Experiment, Amalia Yiannaka
Understanding Patenting Decisions: A Classroom Experiment, Amalia Yiannaka
Cornhusker Economics
Innovations are crucial to the future success of firms, with most products having only a limited life cycle. When innovations occur, the firm must decide the best way to protect their intellectual property; this essentially comes down to keeping the innovation a trade secret or filing for a patent. Teaching students the basics of intellectual property protection is not difficult. Most are familiar with the general concept of patent protection and have some understanding as to why patents are an important tool available to firms and individual innovators. However, an in-depth analysis of the patenting decision making process can be …
Understanding Ethanol Plant Economics: Will Boom Turn Bust?, David J. Peters
Understanding Ethanol Plant Economics: Will Boom Turn Bust?, David J. Peters
Cornhusker Economics
Nebraska, along with several other Midwestern states, is in the middle of an ethanol boom. In the past few years a combination of high oil prices, cheap corn and favorable government policy have driven expansion of the industry. In turn, this has generated an unprecedented amount of industrial investment in many rural communities. However, local governments and economic developers have little information regarding the long-term economic viability of these plants. This information gap limits the ability of local governments to make informed public policy decisions about ethanol plants in their community, especially in terms of local tax incentives and abatements.
Corn Stalk Grazing: A Matter Of Economics, Matt Stockton, Roger K. Wilson, Leslie Aaron Stalker
Corn Stalk Grazing: A Matter Of Economics, Matt Stockton, Roger K. Wilson, Leslie Aaron Stalker
Cornhusker Economics
The United States Department of Agriculture’s January 1, 2007 “Cattle Inventory” report indicated that there were 1,940,000 beef cows that have calved in Nebraska. In another USDA report titled “Crops Planted, Harvested, Yield, Production, Price (MYA), Value of Production” it was estimated that there will be 9,000,000 acres of corn harvested in 2007. These numbers indicate the potential opportunity to graze cattle on corn stalk residue in Nebraska is huge. With corn harvest nearing completion and weaning time for many producers happening this month, farmers and ranchers are likely to be negotiating the terms of agreements to graze these corn …
Crop Planting Decisions For 2008 – An Initial Analysis, Paige Bek, H. Douglas Jose
Crop Planting Decisions For 2008 – An Initial Analysis, Paige Bek, H. Douglas Jose
Cornhusker Economics
Prices tend to be the driving factor when considering which crops to plant and how many acres to plant. Deciding what to plant in 2008 could be even more complicated than this year, the decision being compounded by the fact that wheat is at record high price levels. To analyze breakeven prices for the three major commodities we can use crop budgets of expected costs.
Economic Effects Of Gmos On Small Developing Countries, Alejandro Plastina, Konstantinos Giannakas
Economic Effects Of Gmos On Small Developing Countries, Alejandro Plastina, Konstantinos Giannakas
Cornhusker Economics
The advent of “Gene Revolution” has sparked a significant research effort aimed at identifying the market and welfare effects of the introduction of genetically modified (GM) crops into the food system. Due to the producer orientation of the first generation of GM products, particular emphasis has been placed on the agronomic benefits of the new technology and the potential for a productivity boost in developing countries.
How Much Ethanol, Ultimately?, Richard K. Perrin, Juan Pablo Sesmero
How Much Ethanol, Ultimately?, Richard K. Perrin, Juan Pablo Sesmero
Cornhusker Economics
Ethanol prices are low in the Midwest, prompting suggestions that the boom is over. It is perhaps slowing down for the next couple of years, but is likely to resume after that. Today’s gross processing margin (ethanol price minus net corn feedstock cost) is in the range of $.80/gal – high by historical standards – but low relative to 2006 (see Figure 1 on next page). Also, the low ethanol price appears to be partly due to transportation and distribution bottlenecks, and those are not permanent.
Priority, Preferences And Irrigator-Power Disputes On The Niobrara River, J. David Aiken
Priority, Preferences And Irrigator-Power Disputes On The Niobrara River, J. David Aiken
Cornhusker Economics
Irrigators, the Nebraska Public Power District (NPPD) and the Nebraska Department of Natural Resources (DNR) are involved in conflicts between irrigators and NPPD over Niobrara River water use. This newsletter will discuss the role of priority and preferences in Nebraska surface water law, DNR priority administration, loss of appropriations and how similar power-irrigation priority disputes have been resolved in the Loup River Basin.
Barriers To Farm/Ranch Business Succession, David J. Goeller
Barriers To Farm/Ranch Business Succession, David J. Goeller
Cornhusker Economics
Data from the United States Department of Agriculture (USDA) suggests a trend of fewer people entering farming and ranching as their chosen occupation. This trend has been occurring for many years, as the average age of farm operators continues to increase. Many have asked “Why is this happening?” and “What are the factors that create barriers to a career in agricultural production?”
Gains And Losses To Cattle Feeders From The Bse-Related Bans On Canadian Cattle Imports And Beef Exports, Dimitrios Panagiotou, Azzeddine Azzam
Gains And Losses To Cattle Feeders From The Bse-Related Bans On Canadian Cattle Imports And Beef Exports, Dimitrios Panagiotou, Azzeddine Azzam
Cornhusker Economics
The discovery in December 2003 of a Bovine Spongiform Encephalopathy (BSE) case in the state of Washington led to an import-ban on U.S. beef by more than forty countries, including Japan, South Korea, Mexico and Canada. These four countries are the most lucrative destinations for U.S. beef exports, accounting for more than 90 percent of the total value. In 2004, U.S. beef exports were at 17 percent of their level in 2003, with Japan and South Korea imposing a virtually total ban, while, except for a brief time, Canada and Mexico leaving their borders partially open. Three years and several …
Republican River Challenges, J. David Aiken
Republican River Challenges, J. David Aiken
Cornhusker Economics
The amount of water that can be used for irrigation in the Republican River Basin is controlled by the Republican River Compact. On June 22, 2007 the Nebraska Department of Natural Resources (DNR) presented to officials of the Republican River Basin Natural Resource District (NRD), DNR projections of future Republican River Basin water allocations to Nebraska. The DNR model (which is the official model established in the Republican River Basin Compact litigation settlement) indicates that streamflows will decrease over the next 40 years, due primarily to the impact of past and current ground water pumping. The DNR also calculated ground …
Cropland Leasing Decisions For 2008, Bruce Johnson, Ben Blomendahl
Cropland Leasing Decisions For 2008, Bruce Johnson, Ben Blomendahl
Cornhusker Economics
With more than 40 percent of Nebraska’s agricultural land being leased, thousands of landowners and tenants face important lease decisions each year. Currently, the economic magnitude of these decisions is even greater, given the circumstances for 2008 crop prospects.
Benefits Of The New Tax Law Changes For Farmers, Tina N. Barrett
Benefits Of The New Tax Law Changes For Farmers, Tina N. Barrett
Cornhusker Economics
The Jobs and Growth Tax Relief Reconciliation Act of 2003 was signed into law on May 28, 2003 and contains many reductions in taxes that farmers can take advantage of this year.
The Impact Of Weather Extremes On Agricultural Production Methods: Do Extreme Weather Events Increase Adoption Of Conservation Tillage Practices?, Karina Schoengold
The Impact Of Weather Extremes On Agricultural Production Methods: Do Extreme Weather Events Increase Adoption Of Conservation Tillage Practices?, Karina Schoengold
Cornhusker Economics
A better understanding of how farmers adjust their production practices to cope with extremely wet or dry conditions is essential for developing effective drought mitigation policies and reducing the impact of other natural disasters. Reducing the risk associated with drought and flood in the long-run may be more cost effective than smoothing short-term income losses through disaster relief money. Most existing assistance programs focus on diversifying and stabilizing income risks through crop insurance and direct payments, however there are fewer efforts designed to reduce the long-term agricultural risk. Climate change makes this particularly important, as expected impacts include more droughts …
Offsetting The Oil Addiction: Farmers Motivated To Sequester Carbon, Robert Sheeder, Gary D. Lynne
Offsetting The Oil Addiction: Farmers Motivated To Sequester Carbon, Robert Sheeder, Gary D. Lynne
Cornhusker Economics
President Bush has noted that the U.S. is “addicted” to oil and other fossil fuels. This observation is well-founded: In 2006, the traditional fossil fuels of coal, natural gas and petroleum accounted for nearly 86 percent of all energy usage in the country, with petroleum alone accounting for nearly half of the fossil fuel use (see: http://www.eia.doe.gov). Unfortunately, it doesn’t appear that this country’s thirst for fossil fuels will be quenched anytime soon, as projected total energy consumption in the U.S. is expected to increase 1.3 percent annually through the year 2030. This expected rise in consumption will lead to …
Livestock Insurance Website Launched, Josie Waterbury, Darrell R. Mark
Livestock Insurance Website Launched, Josie Waterbury, Darrell R. Mark
Cornhusker Economics
In the last several years, cattle feeders and swine finishers have experienced increased volatility in both their output selling price and their major commodity input costs. For cattle feeders, these main risks include changes in fed cattle, feeder cattle and corn prices. Figure 1 on the next page shows that the spreads between these three key markets have had significant changes during the last several years. The same also holds true for swine as lean hog, corn and soybean meal markets have been more variable in recent years, and the spread between these prices continuously changes. Because these spreads influence …
Shifting From A Price Safety Net To A Revenue Safety Net, Bradley Lubben
Shifting From A Price Safety Net To A Revenue Safety Net, Bradley Lubben
Cornhusker Economics
In late July, the U.S. House of Representatives passed the Farm, Nutrition, and Bioenergy Act of 2007, or the “2007 Farm Bill,” to re-authorize farm, food and other agricultural programs for 2008 through 2012. This culminated more than two months of discussion in the House Agriculture Committee and subcommittees and reflected much of the policy direction championed by committee chair Collin Peterson of Minnesota.
Republican Water Issues Difficult To Resolve, J. David Aiken
Republican Water Issues Difficult To Resolve, J. David Aiken
Cornhusker Economics
In 2002 Nebraska, Kansas and Colorado settled the 1998 lawsuit over alleged violations of the Republican River Compact by Nebraska and Colorado. Nebraska was over its water allocation under the settlement for 2005, and likely was also over for 2006. The July 25, 2007 Cornhusker Economics newsletter discussed how new legislation would help the state of Nebraska and Republican Basin Natural Resource Districts (NRDs) deal with Republican River Compact settlement compliance issues. However, there was one incorrect statement in last week’s newsletter that accidentally understated the difficulty of settlement compliance. This week’s newsletter will examine the incorrect statement, and explore …
2007 Republican Basin Water Legislation, J. David Aiken
2007 Republican Basin Water Legislation, J. David Aiken
Cornhusker Economics
Under the 2002 Republican River Compact settlement, Nebraska has agreed to significantly reduce water use in the Republican Basin in “water short years.” This newsletter discusses how LB701 affects water policy choices for dealing with water short years.
Livestock Gross Margin Insurance For Swine, Josie A. Waterbury, Rebecca M. Small, Darrell R. Mark
Livestock Gross Margin Insurance For Swine, Josie A. Waterbury, Rebecca M. Small, Darrell R. Mark
Cornhusker Economics
Livestock Gross Margin (LGM) Insurance for Swine is an insurance policy first offered in 2002 in Iowa through the United States Department of Agriculture’s Risk Management Agency (RMA). The program was expanded to include several more states for the 2008 crop year which begins July 30, 2007. Prior to the release of LGM, Livestock Risk Protection (LRP) Insurance was also offered to producers as a livestock insurance product (see NebGuide G1723). Unlike LRP which offers single-peril price risk protection for the future selling price of the insured swine, LGM for Swine provides protection against declines in the hog finishing margin. …
2007 Legislature Repeals Estate Tax And Reduces Inheritance Tax, J. David Aiken
2007 Legislature Repeals Estate Tax And Reduces Inheritance Tax, J. David Aiken
Cornhusker Economics
Agricultural and business groups have for several years sought the repeal of state and federal estate taxes. The 2007 Nebraska Legislature repealed the Nebraska estate tax altogether, retroactive to January 1, 2007, and reduced inheritance taxes for close relatives. This newsletter explains these changes.
The Department Of Agricultural Economics: Relevant, Responsive, Respected, Alan E. Baquet
The Department Of Agricultural Economics: Relevant, Responsive, Respected, Alan E. Baquet
Cornhusker Economics
The Department of Agricultural Economics is committed to being relevant and responsive to the needs of Nebraskans. These basic principles guide our teaching, research and extension/outreach programs.
Market Journal: Television For Ag Business Decisions, H. Douglas Jose
Market Journal: Television For Ag Business Decisions, H. Douglas Jose
Cornhusker Economics
I have been asked a number of times recently, how long Market Journal has existed. We are pleased that the program has become part of the ag business economy and people are interested in how long the program has been bringing information to the farm community.
The Nebraska Net Farm Income: Patterns And Trends, Bruce Johnson
The Nebraska Net Farm Income: Patterns And Trends, Bruce Johnson
Cornhusker Economics
Historical Perspective: The past decade of net farm income is one of considerable year-to-year volatility. According to recently revised United States Department of Agriculture (USDA) estimates, Nebraska’s aggregate income levels have ranged from $814 million in 2002, to a historical record high of over $3.5 billion in 2004 (Table 1 on next page). However, for the past four years, the annual totals have been considerably above the decade average, largely the result of a considerable surge in the dollar value of crop and livestock output.
Agricultural Disaster Assistance On The Way For 2005-2007, Bradley Lubben
Agricultural Disaster Assistance On The Way For 2005-2007, Bradley Lubben
Cornhusker Economics
After a long and contentious political battle, Congress passed, and the President signed agricultural disaster assistance, as part of a supplemental spending bill in late May. The assistance provides support to crop and livestock producers for losses over the 2005-2007 period and was estimated to be worth approximately $3 billion nationwide.
Small Business Security Issues, Marilyn R. Schlake
Small Business Security Issues, Marilyn R. Schlake
Cornhusker Economics
Consumers nationally, and even globally, continue to embrace e-commerce technology. Since 2001, ecommerce retail sales climbed from $8.3 billion to $31.5 billion in the first quarter of 2007, which is an annual growth rate of more than 27 percent. Although this figure accounts for only 3.1 percent of all 2007 first quarter retail sales, the e-commerce rate is on a continuous rise (U.S. Census Bureau News, May 16, 2007). Additionally, projections see an annual growth rate of at least 19 percent in the near future.