Agricultural and Resource Economics Commons^™

Tax Consequences To Drought, Tina Barrett

Cornhusker Economics

It’s been a few years since we’ve had to deal with the drought related tax laws, but with the recent drought conditions across the Midwest, it’s a good time to review them.

Agricultural Disaster Assistance, Bradley D. Lubben

Cornhusker Economics

This issue is the second in a series addressing current drought conditions, economic impacts and resources for Nebraska agriculture.

Making Good Management Choices During A Time Of Crisis, Matthew Stockton

Cornhusker Economics

This issue is the third in a series addressing drought conditions, economic impacts and resources for Nebraska agriculture.

Nebraska’S Sandhill Crane Migration: Opportunities For Additional Economic Activity, Randolph L. Cantrell

Cornhusker Economics

Each year in March and April, thousands of visitors come to Nebraska’s Central Platte River Valley to witness a true wonder of the natural world: The annual migration of Sandhill cranes.

Several hundred thousand cranes gather annually along the Platte River to feed, court and gather energy before traveling further north to breed. Their numbers and fame are estimated to attract over 70,000 visitors, who spend on average 1.3 days in the region (Edwards and Thompson, 2010).

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Cornhusker Economics

4^th of July Holiday

Resolving Division Fence Disputes In Nebraska, J. David Aiken

Cornhusker Economics

Ideally, neighbors can agree between themselves on most fencing issues. If they cannot agree, Nebraska Division Fence Statutes provide a legal process for resolving fence disputes. A 2010 amendment establishes the requirements for splitting cost of a wire division fence equally (50-50) between neighbors. Mediation is probably the most cost-effective way to resolve fence disputes if the parties cannot settle the matter between themselves.

Rural Nebraskans’ Ties To Agriculture, Rebecca J. Vogt, Randolph L. Cantrell, Bradley D. Lubben

Cornhusker Economics

A recent report released by the University of Nebraska-Lincoln (UNL) Department of Agricultural Economics and the UNL Bureau of Business Research outlines the economic impact of agriculture to Nebraska. Using 2010 data, the report concludes that agriculture provides over 40 percent of the state’s total business receipts, 26.9 percent of the state’s gross state product and 24 percent of the state’s total workforce. In short, the report concludes that more than a fourth of Nebraska’s economy can be attributed to the agricultural production complex.

Nebraska Farm Real Estate Market Highlights 2011-2012, Bruce B. Johnson, Sara Van Newkirk

Nebraska Farm Real Estate Reports

Each year since 1978, the Department of Agricultural Economics, UNL, has conducted a state-wide survey and analysis of agricultural land markets. Considerable change has occurred during that time span, not only from decade to decade, but from year to year—reflecting a dynamic market pattern. The most recent year is certainly no exception. The February 2012 survey collected market information from a panel of some 130 reporters scattered across the state. Reporters are closely affiliated with the agricultural land markets in their areas, as agricultural real estate appraisers, professional farm managers, agricultural lenders, etc. In addition, the vast majority of panel …

2012 Nebraska Farm Custom Rates, Roger K. Wilson

Cornhusker Economics

The 2012 Nebraska Farm Custom Rates are now available. These publications are the result of surveys that have been repeated on even numbered years for some time. Those who are familiar with the past publications will find that the current ones are very similar. The following description is for those who may not be aware of these publications.

The surveys and publications are done in two parts. Part I contains the rates for the spring and summer custom operations. These include tillage, planting, haying, fertilizer application and spraying operations, as well as small grain harvest. Part II contains rates that …

National Agri-Marketing Association Membership Provides Professional Growth Opportunities For Nebraska Students, Alissa Doerr, Rosalee A. Swartz

Cornhusker Economics

The National Agri-Marketing Association (NAMA) is comprised of over 25 chapters in six regions nationwide, and has more than 3,500 professional and student members. Nebraska’s Midlands Chapter of about 70 professionals works closely with the University of Nebraska-Lincoln (UNL) student chapter to foster professional growth for student members.

A Primer On Federal Grazing Fees, Larry W. Van Tassell

Cornhusker Economics

The federal government owns nearly 30 percent of the land area in the United States. The vast majority of this land lies in the western U.S. For example, 81 percent of Nevada’s, 63 percent of Utah’s, 61 percent of Idaho’s and 48 percent of Wyoming’s land mass is owned by the federal government. In contrast, 1.10 percent of Nebraska’s land mass is under federal ownership.

Most of the public lands in the western U.S. are under the jurisdiction of the U.S. Forest Service (USFS) or Bureau of Land Management (BLM), and many are utilized for livestock grazing. Fees for grazing …

The Changing Composition Of United States Agricultural Trade, E. Wesley F. Peterson

Cornhusker Economics

International trade has been of great importance for United States agriculture since the founding of the nation. Today, about 20 percent of agricultural production in the United States is exported, and the revenue from these exports is an important source of farm income. According to the Economic Research Service over half of U.S. wheat production is exported, as is almost 80 percent of U.S. cotton production. While agricultural exports are always greater than agricultural imports, U.S. consumers depend on imports for many commodities, notably such tropical goods as coffee, cocoa, bananas and other tropical fruits. The real values of U.S. …

With Prices Like This, Who Needs To Know Cost Of Production?, Tina N. Barrett

Cornhusker Economics

A few months ago I was talking with a producer and I mentioned that I worked with farmers on calculating cost of production, among other things. He posed the question of why do farmers really need to know their cost of production? Sure, five or six years ago when margins were tight cost of production was important in marketing their crop, but what’s the point with the increase in crop prices and wide margins?

Be A Part Of The Plan - Engaging People - Linking The World, Charlotte Narjes, Rebecca J. Vogt, Connie Hancock, Jan Jackson Cejka

Cornhusker Economics

Exploring efforts to increase broadband adoption and utilization in Nebraska will increase community vitality and economic growth. The Nebraska Broadband Initiative, which is in its third year, is designed to increase adoption and utilization of broadband in communities/regions with an empasis on unserved and underserved regions. Following are a few highlights on current activities.

Calving Date And Wintering System Effects On Cow And Calf Performance, Leslie Aaron Stalker, Matthew Stockton

Cornhusker Economics

Profitability of beef cattle production is highly dependent upon cost of production. The largest variable cost associated with cow/calf production is feed cost. One strategy to reduce cost is to extend the grazing season. Knowledge of the cows’ nutritional requirements, and factors such as calving and weaning date and utilization of crop residue can be used to extend grazing. A second factor affecting profitability of beef cattle production is revenue. Cattle markets tend to have seasonal variation throughout the year and vary with respect to calf size and class, creating opportunities to match a production system with the markets. Determining …

Analysis Of Potential Groundwater Trading Programs For Nebraska, Karina A. Schoengold

Cornhusker Economics

The goals of a recently funded project to measure the potential benefits of developing a groundwater trading market in Nebraska is discussed in this Cornhusker Economics article. Groundwater is a major component of agricultural water use. In extensive regions of the Western United States, rural agricultural economies rely entirely on groundwater. At the same time as providing water for human needs, groundwater is also an input to streams, wetlands and riparian areas that provide important ecosystem services. Ongoing groundwater pumping will deplete flows in adjacent streams, leading to potential conflict between human and environmental uses of water. In the last …

North Central Extension Risk Management Education Center, Christine Lockert

Cornhusker Economics

The Extension Risk Management Education program, funded by the United States Department of Agriculture’s (USDA) National Institute of Food and Agriculture provides training to help producers learn new strategies to manage complex and growing agricultural risks. The goal of the program is simple - help farmers and ranchers manage risk. ERME strives to achieve this goal by encouraging and funding innovative programs across the country and helping programs focus on tangible results (ERME, 2012). Four ERME Centers are located across the country; the University of Delaware (Northeast), the University of Arkansas (Southern), Washington State University (Western), and the University of …

Use Of Cti Grinders For Sorghum Flour Production And Utilization: Final Report, Vilma Ruth Calderón De Zacatares, Lily Marisol López, Kris Emillee Duville, Carla Elizabeth Bermúdez

INTSORMIL Scientific Publications

The use of sorghum for human consumption to add value to the crop and increase its profitability, especially for small and medium producers, has contributed to food security and nutrition in El Salvador. CENTA is promoting the cultivation of sorghum as an alternative to food production in rural and urban areas. Since 2010 when wheat prices lower again, sorghum was no more an alternative to replace wheat in certain types of food, but is being used in more stable markets, as people allergic to gluten, people with diabetes and to correct nutritional deficiencies such as iron deficiency anemia because of …

Sorghum Flour Production Manual For Compatible Technology International (Cti) Burr Grinders, Kris Emillee Duville

INTSORMIL Scientific Publications

The importance of sorghum in human nutrition and food security

The grinders of Compatible Technology International (CTI) were brought to El Salvador in 2009, for a project of CENTA-INTSORMIL/USAID to promote the grinding of sorghum for human nutrition. In 2011, ten of these grinders had been installed in small bakers associations, individual bakers, or persons producing ethnic drinks based on roasted and ground cereals. These people had been trained in sorghum use for human nutrition at the food technology laboratory of CENTA. The grinders are being used in areas were the access to other foods is limited and were sorghum …

Nebraska’S Written Contracts Rule, J. David Aiken

Cornhusker Economics

Nebraska farmers and ranchers are used to doing business on a handshake. The culture is that if you ask someone to put the contract in writing, you are implying that you don’t trust them to keep their word. Doing business on a handshake is fine so long as no one breaks their promise, or if everyone’s recollection of what the deal is, is the same. But if one person wants out of the handshake deal the other person can be left holding the bag, even if they didn’t do anything wrong.

Community Images: What They Communicate To New Residents, Cheryl A. Burkhart-Kriesel

Cornhusker Economics

Images are undeniably powerful communication tools. When part of a rural community web page, images can help to quickly convey the desired message and showcase the community’s “brand,” the specific amenities the community has to offer to new residents. Using images to depict this brand can be much more effective than trying to describe it using facts or words. For example, instead of listing crime statistics to portray your community as safe, using a picture of unattended and unlocked bicycles in front of the community swimming pool can more effectively convey that message.

Census 2010: What We No Longer Know About Small And Rural Places, Randolph L. Cantrell

Cornhusker Economics

The release of data from the Decennial Census always creates a “buzz” for people interested in knowing what is happening in their communities. The 2010 Census was no exception, allowing residents of any state, county, community, zip code or neighborhood to know with confidence how many people reside in their area of interest; along with their age, gender, race, ethnicity, household and family size and composition, group quarters arrangements and home ownership status. These data reflect the characteristics of the population with relatively high reliability for the theoretical reporting date of April 1 of the Census year, and allow an …

Innovation For The Future! - 27Th Annual Nebraska Wia Conference, Cheryl Griffith

Cornhusker Economics

Innovation for the Future was the theme of the 27th Nebraska Women in Agriculture (WIA) Conference, February 23-24, 2012 in Kearney, Nebraska. Nearly 400 women participated in the event, hosted by the Department of Agricultural Economics, University Extension and the Institute of Agriculture and Natural Resources (IANR) at the University of Nebraska-Lincoln.

Most attendees were from all corners of Nebraska, with others making the trip from Kansas, Colorado, Wyoming, South Dakota, Iowa and California. Of the respondents, 13.7 percent were under age 30, 20.8 percent age 30-39, 13.6 percent age 40-49, 23.1 percent age 50-59 and 28.6 percent were age …

The Increasing Use Of Unallocated Retained Earnings By Farmer Cooperatives, Jeffrey S. Royer

Cornhusker Economics

In the past, the primary source of equity capital in U.S. farmer cooperatives has been retained patronage refunds. Typically, a cooperative would allocate its net earnings to individual members on the basis of patronage and retain a share of those allocations to provide equity until eventually redeeming it in cash. Over time, however, unallocated retained earnings have become an increasingly important source of equity. In fact, in 2008, cooperatives kept a greater proportion of their net earnings as unallocated retained earnings than as retained patronage refunds, according to the most recent U.S. Department of Agriculture (USDA) financial profile of farmer …

Don’T Forget The Supply Side Of Agricultural Land Markets, Bruce B. Johnson

Cornhusker Economics

In today's bullish agricultural land markets across the nation's heartland, it is easy to attribute the climb in values to strong demand on the part of buyers wanting to invest in land to capture good returns of recent years. While true, that may be only half the story underlying the land market dynamics. Just as "it takes two to tango," it takes the supply side of the market as well as demand to create the land market dance.

We have been following the market for many years, observing the amount of land being offered for sale in …

Nebraska Farmland Values Soar, Bruce B. Johnson

Cornhusker Economics

The 2012 UNL Nebraska Farm Real Estate Survey confirms what most people close to agriculture already knew – agricultural land values across the state have shot upward in recent months. Preliminary survey results show the state’s all-land average value as of February 1, 2012 to be at $2,410 per acre, 31 percent above the year-earlier level (Figure 1 and Table 1, on following pages). The annual gain, in both dollar amount and percentage, is the largest ever recorded in the 34-year history of the UNL land market survey series.

Cropland, particularly, showed pronounced value gains in every region of the …

The Economics Of Bunk Feeding Distillers Grains To Feeder Steers On Pasture, Matthew C. Stockton, Leslie Aaron Stalker

Cornhusker Economics

Growth of the ethanol industry in Nebraska and surrounding states has increased the availability of distillers co-products as feed for livestock. The increased availability of distillers grains with solubles (DGS) together with its high protein, energy and phosphorous content, make it a natural fit as a supplement in many grazing situations (2008 Nebraska Beef Report, pg. 25-27, 2009 Nebraska Beef Report, pg. 37-39). DGS generally comes in the form of a wet (WDGS) or dry (DDGS) product. How to feed this relatively new product to cattle in a pasture is an important economic question. Several recent studies …

Nebraska Leads The Way To Help Beginning Farmers And Ranchers, David J. Goeller

Cornhusker Economics

Nebraska continues to lead the nation with efforts to provide an incentive for owners of agricultural assets to rent those agricultural assets to beginning farmers and ranchers. The Nebraska Beginning Farmers Tax Credit program provides owners of Nebraska agricultural assets such as land, livestock, machinery, grain storage, livestock facilities or irrigation equipment a state income tax credit incentive to rent to a beginning farmer/rancher, rather than someone that is more established. Owners of Nebraska agricultural assets can earn a ten percent state income tax credit for providing a beginner a three-year cash lease, or a fifteen percent state income tax …

From Farm Income Support To Risk Management, Bradley D. Lubben

Cornhusker Economics

The debate over the next farm bill fired up in late 2011 when it looked like a closed-door-negotiated agreement could become part of a grand budget-cutting plan put together by the so-called “Super Committee.” But then, the Super Committee failed to reach an agreement on how to cut the federal budget deficit and the whole farm bill package failed to advance as well.

Now, the work has restarted on the farm bill in 2012, with even greater challenges. Questions remain about how big the spending cuts will be, what direction the farm programs will go, and even what the political …

Nebraska Restrictions On Foreign Land Ownership, J. David Aiken

Cornhusker Economics

Nebraska is one of eight states that restrict the ownership of agricultural land by aliens (i.e., noncitizens). The other states are Iowa, Minnesota, Missouri, North Dakota, Oklahoma, South Dakota and Wisconsin. Foreign land ownership is generally unrestricted in the remaining states. Federal law does not restrict alien land ownership, but does require alien land owners to report ownership to the United States Department of Agriculture (USDA). This newsletter will (1) examine the extent of foreign land ownership within the United States and Nebraska, and (2) summarize Nebraska’s laws restricting alien land ownership.