Agricultural and Resource Economics Commons^™

Nebraska Ethanol's Carbon Footprint, Richard K. Perrin, Diego Alvarez

Cornhusker Economics

If burning a gallon of ethanol emits less greenhouse gas or GHGs (CO₂, primarily), than the gasoline it replaces then it has a smaller carbon footprint than gasoline. Actually, it is the amount of fossil CO₂ emitted that matters, because CO₂ from fossil fuels represents "new" carbon in the atmosphere, whereas the CO₂ released by corn ethanol is recycled atmospheric carbon.

Trade Adjustment Assistance For Farmers Available 2010, David J. Goeller

Cornhusker Economics

The American Recovery and Reinvestment Act (ARRA) of 2009 has re-authorized and modified the Trade Adjustment Assistance for Farmers program. The statute authorizes an appropriation of not more than $90 million per year for the next three fiscal years. The TAA for Farmers program helps producers of raw agricultural commodities (farmers, ranchers or fishermen) who have experienced significant declines in price or production, adjust to the changing economic environment brought on by import competition. The program provides benefits to eligible producers in the form of educational assistance, as well as up to $12,000 per producer in cash benefits to help …

Variation Of Environmental Regulation Stringency Among The Top Ten U.S. Hog Producing States, Gibson Nene, Karina A, Schoengold

Cornhusker Economics

The U.S. hog industry, once primarily made up of small owner-operated crop-hog farms, has become dominated by large specialized operations characterized by low costs and improved technologies in livestock management. Such changes have triggered concerns over the dangers large Hog Feeding Operations (HFOs) are likely to pose to the environment. In 2007, the top ten states accounted for more than 85 percent of total U.S. hog production (Iowa (IA), North Carolina (NC), Minnesota (MN), Illinois (IL), Nebraska (NE), Indiana (IN), Missouri (MO), Oklahoma (OK), Ohio (OH), and Kansas (KS)). With such domination on production, these states are often the subject …

The U.S. Import Of Beef: Friend Or Foe To Domestic Beef Production?, Sunil P. Dhoubhadel, Matthew C. Stockton

Cornhusker Economics

Controversy surrounding the United States import of beef has been an issue since at least 1958, which marked the beginning of major imports from Australia (Edward, 1964). From the onset, U.S. beef producers have been concerned that beef imports would depress the prices they receive for their product. Consumer groups, on the other hand, have welcomed increased imports, expecting that increased competition would lower meat prices. As a result of these conflicting views, the past 50 years has seen the creation of various measures of legislation which control the volume of imports.

Landowner Wind Energy Associations, J. David Aiken

Cornhusker Economics

Many Nebraska farmers and rural landowners are receiving offers to purchase wind energy leases. However, landowners have little information regarding wind lease rates in Nebraska, and wind leases are relatively new in the state. Some rural advocates suggest that landowners pool their interests in what are called Landowner Wind Energy Associations (LWEAs). LWEA advantages include information pooling and the ability to solicit wind energy development proposals meeting LWEA specifications from wind energy developers. This newsletter takes a quick look at LWEA advantages, LWEA operating agreement provisions and LWEA wind energy development requests for proposal provisions.

Risk Management Challenges And Opportunities In 2010, H. Douglas Jose

Cornhusker Economics

In 2009, agriculture was impacted by significant volatility in commodity and input prices and major world economic events. The world economy continued to flounder, resulting in reduced demand for agricultural commodities, particularly livestock products. The H1N1 outbreak further exacerbated the situation as consumers around the world reduced their consumption of pork. In the last quarter of 2009, unemployment in the United States reached ten percent and continues to rise each month, albeit at a slower rate. In recent reports economic analysts contend the reported figures underestimate the actual unemployment, and that we will continue to face ten percent or more …

Empathy Conditioned Conservation: “Walking-In-The-Shoes-Of-Others” As A Conservation Farmer, Robert Sheeder, Gary D. Lynne

Cornhusker Economics

Since the destruction and despair caused by the dust bowl of the 1930’s, Americans and their government have taken a keen interest in natural resource conservation policy on agricultural land. The Soil Conservation and Domestic Allotment Act of 1936 was the first farm bill to include provisions that provided payments to farmers willing to employ soil conservation measures (Cain and Lovejoy, 2004). While the main purpose of this bill was to provide financial support to impoverished farmers, the fact remains that natural resource conservation was starting to become an important issue for the American public.

Two And A Half Cheers For The Midwestern Bourgeoisie: Role Of The Virtues In Tempering Business Decisions, Marianna Khachaturyan, Gary D. Lynne

Cornhusker Economics

A recent book (The Bourgeois Virtues: Ethics for an Age of Commerce, D. N. McCloskey), raises the matter of the role of the virtues in business and economic choice, arguing that capitalism can indeed, be virtuous or at least better than the alternative(s). This argument is especially timely in light of the apparent excesses on Wall Street and in some banking/financial institutions. Excessive greed and often the lack of business ethics contributed in substantive ways to the financial crisis and near economic meltdown we have been experiencing. As McCloskey, (2006, pp. 1-2) argues (in setting the stage for …

Science And The Climate Change Debacle, Ray Supalla

Cornhusker Economics

As I write this on the first business day of 2010, I find myself thinking about the importance of respecting alternative views --- not only alternative political views, but also alternative scientific views. Good science requires that we understand the limits of knowledge and continuously seek the truth through respectful questioning, replication and review. In the climate change debate, which recently culminated in a disappointing and largely ineffective conference in Copenhagen, these salient principles of science were grossly violated. Well respected climate scientists proceeded well beyond the limits of their knowledge and became policy advocates. They demeaned anyone who dared …

Measuring Economic Impacts Of Drought: A Review And Discussion, Ya Ding, Michael J. Hayes, Melissa Widhalm

School of Natural Resources: Faculty Publications

A comprehensive assessment of drought economic impacts provides critical information to rational decisions supporting drought mitigation policies and programs. The objective of this paper is to increase the understanding of the full scope of drought economic impacts and the associated quantitative assessment methodologies. To accomplish this, the paper reviews the literature of drought economic impact studies in both agricultural and non-agricultural sectors, summarizes the methods and data employed, compares the various results, and investigates the problems and limitations of previous studies. The paper concludes with a discussion of the challenges and directions of future improvement on drought economic impact assessment.

Sustainability Through Profitability: The Triple Bottom Line, Connie I. Reimers-Hild

Kimmel Education and Research Center: Presentations and White Papers

Today’s highly competitive, globalized world requires organizations and businesses to think differently about how they are going to stay in business. Businesses can no longer afford to focus on profits as their sole purpose for existence. Organizations must instead think about the “Triple Bottom Line” and its implications for their ability to grow their brand, customer loyalty and profits.

Price Discovery In Nebraska Cattle Markets, Matthew C. Stockton, David A. Bessler, Roger K. Wilson

Department of Agricultural Economics: Faculty Publications

Monthly observations on prices from 10 weight/gender classifications of Nebraska beef cattle are studied in an error correction model (ECM) framework. This study attempts a replication of the 2003 paper on Texas prices by Bessler and Davis, where they find medium heifers (600–700 lb) at the center of price discovery. Using the ECM results Nebraska light steers are found to be weakly exogenous, with the innovation accounting results showing marked differences. Industry structure, production choices, and animal type and breeding herd differences between Texas and Nebraska are proposed as plausible reasons for partial (or incomplete) success at replication.

Input Price Risk And The Adoption Of Conservation Technology, Karina Schoengold

Cornhusker Economics

Energy price trends have shown increases in both the mean and variance in recent years. In addition, innovation activity continues to develop new technologies that can benefit consumers by providing the same services as traditional technology, but with higher input use efficiency. For example, technologies such as hybrid vehicles or compact fluorescent light bulbs provide consumers with benefits, while simultaneously reducing the demand for limited energy inputs. Examining the impact of increasing price variability on the adoption of conservation technologies is important to innovators and policy-makers. This is especially important when multiple technologies exist, and producers have an option to …

2010 Nebraska Wind Energy Legislation, J. David Aiken

Cornhusker Economics

In 2010 the Nebraska Unicameral enacted a major wind energy statute, LB1048, that will lead to significantly increased wind energy development in Nebraska. Nebraska has always had major wind energy development potential, but wind farm development has lagged far behind this potential. LB1048 changes this, and will allow Nebraska to increase wind energy development.

Identifying Profitable Characteristics Of Steer Calves To Be Retained, Matthew Stockton, Brian Williams

Cornhusker Economics

A recent study done by the Department of Agricultural Economics, University of Nebraska-Lincoln, investigates the predictive power of physical characteristics exhibited by steer calves, at and prior to weaning, on profits associated with weaned calf retention. Historically, retained ownership of beef cattle calves owned from birth through the finishing stage of production by a single owner, has been found to be a profitable endeavor for cow-calf producers. Despite these findings, observed evidence indicates many producers choose not to retain ownership. Three reasons that may explain this include tradition, cash flow needs of the business and risk. Producers who choose to …

Developing A Community Marketing Plan, Cheryl A. Burkhart-Kriesel

Cornhusker Economics

When you think of the word “marketing” what comes to mind? Do you think of advertising and promotional strategies in print, other forms of media or the internet? Maybe you think of direct marketing flyers, email blitzes or email newsletters?

Typically, individuals equate marketing with specific promotional tools, but in reality it is a much broader process. It traditionally starts with identifying consumer wants and needs and developing products or services to meet those needs. The next step for the business owner is to match up their product or service benefits with potential customers groups. Then one tries to find …

A Quick Look At Nebraska’S Youth Population Data From Recent Census Estimates, Randolph L. Cantrell

Cornhusker Economics

According to population estimates released by the Bureau of the Census, Nebraska’s population under 18 years of age grew between the years 2000 and 2009, but at a rate much below that of the general population and in a geographically very uneven fashion.

Overall, it is estimated that Nebraska’s population under 18 years of age grew by 0.31 percent between 2000 and 2009 (from 450,242 to 451,641), while the total population grew by 4.98 percent. However, young Nebraskans increased in number in only ten of the state’s 93 counties. Of the 83 counties that saw their youth decline in number, …

Economic Effects Of The Consumer-Oriented Gm Products In Markets With A Labeling Regime, Rim Lassoued, Konstantinos Giannakas

Cornhusker Economics

One of the most intriguing attributes of modern industrial society is its approach to nutrition. Humanity has moved from subsistence economies, where eating was a matter of survival, to economies characterized by the existence of an ever increasing variety of food products. An important recent addition to the types of food products included in our diet has been that of genetically modified (GM) products.

Despite their important agronomic benefits to agricultural producers (e.g., increased yields and/or reduced input costs), GM products have been facing a rather strong consumer opposition. Fears related to potential health and environmental effects of genetic modification, …

Sustainability Through Profitability: The Triple Bottom Line, Connie I. Reimers-Hild

Cornhusker Economics

Today’s highly competitive, globalized world requires organizations and businesses to think differently about how they are going to stay in business. Businesses can no longer afford to focus on profits as their sole purpose for existence. Organizations must instead think about the “Triple Bottom Line” and its implications for their ability to grow their brand, customer loyalty and profits.

The three components of the Triple Bottom Line are: people and community (social responsibility), planet (environmental sustainability) and profit (the bottom line). Successful 21st century organizations must consider how they are going to actively engage in each of the Triple Bottom …

The Nebraska Citizen Initiative Process, J. David Aiken

Cornhusker Economics

Nebraska is one of about half of the states that allow its citizens to initiate new statutes (legislative laws) or constitutional provisions by way of the citizen initiative petition process. Since 1992, over 30 constitutional amendments have been voted on under these provisions. In Nebraska, citizen initiatives have dealt with corporate farming restrictions, term limits, gambling, government spending limits and antiaffirmative action requirements. There is a chance that an animal welfare provision may be on the November 6, 2012 general election ballot. This newsletter takes a quick look at the initiative process. For more detailed information, consult an attorney.

Understanding The Value Of Water In Nebraska: Future Expectations And Considerations, Christopher L. Thompson, Ray Supalla

Cornhusker Economics

Nebraska’s water resources are cost-effective insurance for harnessing the productive potential of cropland. During the last 30 years, intensive irrigation development in Western Nebraska has led to regulations to prevent or reduce the over-use of Nebraska’s share of both surface and groundwater. Despite regulations affecting the amount of available water, farmers have been able to manage water in ways that lead to an acceptable net return, with little impact on land values. However, as stricter regulations are put in place to limit the amount of water that can be withdrawn each year per irrigated acre, it is quite possible that …

Toward Sustainability In Business, Industry And Community: Empathy Tempered Choices, Prabhakar Shrestha, Gary D. Lynne

Cornhusker Economics

In today’s world of 24-hour news service on the internet, youtube, facebook, twitter, electronic newspapers, etc., there are many sources of information constantly seeking our attention, triggering our response and affecting our psyche. Where are such habits of tuning into internet services, mobile services, etc., leading us? Jeremy Rifkin in his new book, The Empathic Civilization talks about the dawn of a new Third Industrial Civilization. The main feature is the sharing of information among millions of people, which is shaping the spatial and temporal orientation of human civilization. This also leads to greater differentiation of skills, greater connectivity, extension …

Essays On Industrial Organization And Environmental Economics, Gibson Nene

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

This dissertation studies environmental regulation issues in the hog production industry as well as forces behind the reorganization of the industry during the past two decades. Federal and State-level environmental regulations imposed on U.S. hog production during the year 2003 are examined in Chapter 1. Based on the number of regulations passed by the Federal government and states, the 2003 regulatory index is constructed. The regulatory stringency index suggests that state-level regulations vary across states and have increased over the years. In addition, state-level regulations are more stringent than federal regulations. Chapter 2 develops an empirically implementable theoretical model which …

2010 Federal Estate Tax Issues, J. David Aiken

Cornhusker Economics

Estate planning is a very important topic for farm families. In 2001, President Bush signed legislation that reduced the Federal Estate Taxes until 2010, when it was reduced to zero. However, in 2011 the Federal Estate Tax will be reinstated, as indicated in the table on the next page. President Obama has proposed a permanent Federal Estate Tax exemption at the 2009 level, but that has not been acted upon by Congress. Other proposals range from a $2 million exemption with a 55 percent top estate tax rate, to a $5 million exemption with a 35 percent top rate.

A Thin Real Estate Market Becomes Even Leaner, Bruce B. Johnson

Cornhusker Economics

The market for agricultural real estate has historically been what observers call a “thin market,” in that very little is marketed and changes ownership at any given point in time. In fact, even when there is spirited buying interest and willingness to bid aggressively, the supply side of the market for agricultural land tends to be inelastic - in that the percentage change in quantity put on the market is much less that the percentage increase in bid prices.

Of course, this partially explains upward value trends to agricultural real estate over time. If potential buyers realize there is only …

If Irrigation Needs To Be Reduced, How Should We Do It?, Raymond J. Supalla

Cornhusker Economics

Nebraska’s obligations under the terms of the Republican Basin Compact and the Cooperative Agreement for the Platte River, as well as our continuing commitment to future generations, require reductions in the consumptive use of water in irrigation. Reducing irrigation in a cost effective and equitable way is perhaps the most important water policy challenge which Nebraska must address. Determining how to meet this challenge involves the following questions: how will irrigators be affected by irrigation reduction programs such as allocation or forced reductions in irrigated acres; how will the Nebraska economy and local communities be affected; what is the least …

Status Of U.S. Initiatives To Limit Ghg Emissions, Diego R. Alvarez, Federico Trindade

Cornhusker Economics

The status of the United States initiatives to limit green house gas (GHG) emissions is the topic of this article. Although there are uncertainties associated with the science of climate change, some aspects of the science are known with virtual certainty (they have a greater than 99% chance of being true). Scientists know with virtual certainty that levels of greenhouse gases, like carbon dioxide in the atmosphere have been increasing since pre-industrial times; that the atmospheric buildup of CO2 and other greenhouse gases is largely the result of human activities such as the burning of fossil fuels; and that increasing …

The Demand For Citizen Leadership In Non-Metropolitan Nebraska, Randolph L. Cantrell

Cornhusker Economics

Those who work with rural communities know this issue well: Population losses have left many rural communities with a shortage of residents willing and able to take on the public and volunteer leadership roles required to keep their communities running smoothly. As a result, individuals are often asked not just to participate in local government and voluntary organizations, but also to accept positions of authority and responsibility in their operation. The outcome, according to conventional wisdom, is that capable and involved citizens can be “burned out” by the demands made on their time, with local leadership often being left in …

“The E-Harmony Of Farm Succession”, David J. Goeller

Cornhusker Economics

The age of Nebraska’s farm and ranch operators continues to trend older. Statistics from the National Census of Agriculture indicates that in 1982 there were 13,436 operators of Nebraska farms or ranches under the age of 35. In the most recent Census of Agriculture taken in 2007, those Nebraska operators under age 35 have declined to 3,353. The 1982 Census indicated the number of operators age 65 and over was 8,777, while in 2007 the Nebraska operators age 65 and over increased to 13,062. Nebraska currently has only 25 percent as many operators under 35 years of age as it …

The Status Of International Negotiations On Climate Change, Federico Trindade, Diego R. Alvarez

Cornhusker Economics

In the October 20, 2010 issue of this newsletter we talked about the status of United States initiatives in limiting greenhouse gas (GHG) emissions. Although there are uncertainties associated with the science of climate change, some aspects of the science are known with virtual certainty (they have a greater than 99 percent chance of being true). Scientists know with virtual certainty that levels of greenhouse gases, like carbon dioxide in the atmosphere, have been increasing since pre-industrial times; that the atmospheric buildup of CO2 and other greenhouse gases is largely the result of human activities such as the burning of …