Agricultural and Resource Economics Commons^™

The Economic Optimal Weight For The Replacement Beef Female, Matthew Stockton, Roger K. Wilson

Cornhusker Economics

Determining the optimal weight for breeding replacement heifers has been a goal of researchers for decades. It is an important question because replacing cows in the beef herd is expensive.

Finding the answer is a complex problem because of the inter-related nature of the economic and physiological variables. Patterson et al. (1992) may have expressed the nature of the problem best when he said, “Although puberty in the female and the events that precede its onset may be fixed from a physiological standpoint, the animal and management environment in which it is placed are in constant transition.” This indicates that …

Potential Economic Impact Of Drought On Rafting Activity, Prabhakar Shrestha, Karina Schoengold

Cornhusker Economics

As part of a research project with the National Drought Mitigation Center, we have been studying the impact of drought on the Colorado rafting industry. During our research we conducted personal interviews with seven outfitters operating in the Upper Arkansas River and Colorado Department of Natural Resources officials, represented by the Arkansas Headwaters Recreational Area (AHRA). The customer distribution for this river for the last twenty-year period is shown in Figure 1 (on next page). Compared to previous seasons, the 2002 season had a dramatic decrease in the total number of customers. This season was impacted due to several factors, …

The Return Of Stagflation?, Jeffrey S. Royer

Cornhusker Economics

Within the past few months, there has been a substantial increase in the news media’s use of the term “stagflation” in reference to the future of the U.S. economy. Economists use stagflation to refer to a prolonged period characterized by both stagnation, represented by slow economic growth and high unemployment, and inflation, which is an increase in the general price level.

Stagflation was an important economic problem for many countries during the 1970s. In the United States, stagflation is associated with the 1973 oil embargo, which brought skyrocketing energy prices. Although the embargo was lifted in 1974, its effects persisted …

2007 Nebraska Farm Income Averages, Tina N. Barrett

Cornhusker Economics

The Nebraska Farm Business, Inc. farm income averages for the 2007 year are just about finished, and to no one’s surprise, it was an excellent year. The average net farm income for 2007, reported by the participants of the program is $193,259 per operation. Since some of these operations are organized with more than one member, the per operator net farm income of $160,726 is also important.

Rejoinder, Alejandro Onofri, Lilyan Fulginiti

Department of Agricultural Economics: Faculty Publications

No abstract provided.

Public Inputs And Dynamic Producer Behavior: Endogenous Growth In U.S. Agriculture, Alejandro Onofri, Lilyan E. Fulginiti

Lilyan E. Fulginiti Publications

This paper is an attempt to understand the impact of public R&D and public infrastructure on the performance of the U.S. agricultural sector during the last part of the twentieth century. A neoclassical Solow growth model is not sufficient for this understanding given the sustained growth performance of the sector. We base our analysis on a well known endogenous growth model, the 'AK model' where nonconvexities are introduced through non-rival inputs. Based on these models and within the dynamic models that rationalize private and public decision making, we have identified three testable hypotheses regarding the aggregate agricultural production technology. They …

Rejoinder, Alejandro Onofri, Lilyan Fulginiti

Lilyan E. Fulginiti Publications

No abstract provided.

2008 Nebraska Farm Custom Rates - Part I, Doug Jose, Page Bek

Cornhusker Economics

Every two years a survey of custom operators is conducted to determine the current rates charged for specific machinery operations. The PRELIMINARY results reported here reflect only the statewide results for Part I, which includes the spring and summer operations such as planting and small grains harvest. This is not the full report for all operations.

Custom rates reported include charges for the use of necessary equipment, fuel and supplies such as baling wire or twine provided by the custom operator, and labor. Seed, fertilizer and chemical costs are not included.

This survey is not based on a random sample …

Public Inputs And Dynamic Producer Behavior: Endogenous Growth In U.S. Agriculture, Alejandro Onofri, Lilyan Fulginiti

Department of Agricultural Economics: Faculty Publications

This paper is an attempt to understand the impact of public R&D and public infrastructure on the performance of the U.S. agricultural sector during the last part of the twentieth century. A neoclassical Solow growth model is not sufficient for this understanding given the sustained growth performance of the sector. We base our analysis on a well known endogenous growth model, the 'AK model' where nonconvexities are introduced through non-rival inputs. Based on these models and within the dynamic models that rationalize private and public decision making, we have identified three testable hypotheses regarding the aggregate agricultural production technology. They …

Ethanol Byproduct Prices, Darrell R. Mark, Josie Waterbury

Cornhusker Economics

Ethanol production has been increasing exponentially in recent years. Production in 2007 was at approximately 7.5 billion gallons, and is projected to grow to over 11 billion gallons within the next couple of years (Renewable Fuels Association). Not only is this growing industry producing increasing amounts of ethanol fuel, but the quantity of ethanol byproducts is rapidly increasing as well. The Renewable Fuels Association estimates that more than 14.6 million metric tons of distillers grains were produced in 2007. As a byproduct of dry mill ethanol production, both dry distillers grains plus solubes (DDGS) and wet distillers grains plus solubes …

Switchgrass Cost Of Production: Data From On-Farm Trial, 2001–2005, Richard K. Perrin, Kenneth P. Vogel, Marty R. Schmer, Robert B. Mitchell

Department of Agricultural Economics: Faculty Publications

Switchgrass is considered a potential commercial biomass feedstock but field scale production and production cost data have been limited. The costs of production incurred on ten commercial-sized fields in the northern Great Plains, between 2000 and 2005 have been reported in a scientific journal paper4. This report provides the detailed information, in English metric units, that was used to conduct the economic analyses. The average annualized cost to produce and store switchgrass on these farms was $60 per ton of dry matter, which translates to an ethanol feedstock cost of about $0.66-0.75 per gallon of ethanol, depending upon the ultimate …

Nebraska Farmland Values And Cash Rents Rise Sharply, Bruce B. Johnson

Cornhusker Economics

The average value of Nebraska farmland rose 23 percent over the past 12 months, the steepest annual percentage gain ever recorded in the 30-year history of the University of Nebraska-Lincoln Nebraska Farm Real Estate Market Survey (Figure 1 and Table 1). Preliminary results place the state’s all-land average value at $1,425 per acre as of February 1, 2008. This gain, combined with the gains of the past four years, puts the current all-land average value more than 88 percent higher than the 2003 level. Today’s level represents a new historical peak value, not only in nominal terms but also in …

23rd Women In Agricultural Conference, Megan Voss

Cornhusker Economics

Over 300 women from across the state participated in the 23rd Women In Agriculture Conference held February 21-22, 2008. For some, it was their first time attending the conference, and for others it was their 23rd. Participants spent time listening to keynote speakers, participating in topic specific workshops and socializing. The women also had the opportunity to learn about new things happening in the agricultural industry by visiting with booth attendants and talking with the sponsors of the conference. “I enjoyed the positive attitude that rubbed from one person to another – such fun!” said a participant from Gosper County. …

The Outlook For Switchgrass As An Energy Crop, Richard K. Perrin, Brian Williams

Cornhusker Economics

Corn ethanol production has already had a big impact on Nebraska agriculture. What about switch-grass for ethanol? Will it become an important crop in the Great Plains, and if so, when? How much will it be worth?

These are important questions for Nebraska agriculture, and the future is murky. In this issue we summarize some of what is known at this point.

Farm Lease Termination, J. David Aiken

Cornhusker Economics

Rising crop prices have led many landlords to seek renegotiation of lease terms, particularly cash rents. Most Nebraska leases are unwritten, which means that notice of termination must be given six months in advance, usually by August 31. If the landlord cannot terminate the lease, the landlord cannot require the tenant to renegotiate the lease in order to avoid lease termination. However, smart tenants would renegotiate the lease with the landlord in order to keep the lease longer. If a tenant refuses to renegotiate, the tenant could lose the lease after the current crop year.

Many farm leases, especially those …

Dnr Study Narrows Republican Water Options, J. David Aiken

Cornhusker Economics

On December 19, 2007 the state of Kansas informed the state of Nebraska that we are out of compliance with the Republican River Compact settlement. Kansas wants us to immediately cut back Republican Basin water consumption by 27 percent. A June 2007 study by the Nebraska Department of Natural Resources (DNR) indicates that our supply from the Republican River will significantly decline over time. These two developments mean it is time to implement a permanent state/local funded irrigation rollback (i.e. reduction) in the Republican Basin.

The Corn Ethanol Boom And Food Prices, Richard K. Perrin, Luke Beckman

Cornhusker Economics

From January, 2006 to December, 2007 the Consumer Price Index (CPI) went up 6.5 percent. During this same period, ethanol production increased 75 percent, which helped grain prices to rise dramatically – corn price doubled, wheat went up even more, and soybeans a little less. Casual reading of the public press would suggest that there must be some connections here.

Developing A Fair Lease Arrangement For Farmland Leasing Arrangements Workshops, Bruce Johnson, Ben Blomendahl

Department of Agricultural Economics: Presentations, Working Papers, and Gray Literature

Topics Covered:

A.Cash Leasing
B.Flexible Cash Leasing
C.Crop share Leasing
D.Other Leasing Aspects

Managing Financial Risk Through Boom And Bust, David J. Goeller

Cornhusker Economics

We are again experiencing economic times in which one sector of the agricultural economy is experiencing prosperity while other sectors struggle. Ethanol has created an increase in demand for corn, while it has also increased the cost of feed for livestock producers. Agricultural profits have historically been cyclical. Some years produce high profits (boom), some years produce low profits and some years no profits (bust). Managing the risks associated with today’s farm and ranch operations is crucial. Market volatility, increased input costs and large capital requirements are among the factors contributing to the risk of potentially negative financial impacts associated …

Nebraska Agriculture Fact Card

Department of Agricultural Economics: News, Announcements, and Information

Cash receipts from farm marketings contributed over $12 billion to Nebraska’s economy in 2006, ranking 4th in the nation.

Nebraska’s six leading commodities (in order of importance) for cash receipts are cattle and calves, corn, soybeans, hogs, wheat, and dairy products, which represent 95 percent of the state's total farm receipts.

Nebraska's Top National Rankings

Nebraska Ag Facts

Nebraska's Natural Resources

Farm Real Estate Ownership Transfer Patterns In Nebraska’S Panhandle Region, Bruce Johnson, Dennis M. Conley, Gibson Nene, Patrick L. Krepel

Rural Initiative Program: Publications and Reports

The purpose of this study was to review and analyze the entire universe of recent agricultural real estate activity in the multi-county, Panhandle Region of Nebraska. This region was chosen because of the widely-held perception that a consider¬able number of acquisitions in recent years were by absentee owners. By investigating all recorded agricultural land trans¬fers (filed in public records) for the period 2003 through the first half of 2006, we were able to identify the true characteris¬tics of the market and analyze the associated implications.

Growing Crops For Better Biodiesel, Loren Isom, William L. Booker

Department of Agricultural Economics: Presentations, Working Papers, and Gray Literature

Identifying high oil yield, low water use crops suitable for biodiesel production is a key component of addressing feedstock availability that will support the development of biodiesel production facilities in Nebraska. Expanded oilseed production can develop new economic opportunities for agricultural producers and suppliers in Nebraska.

Grain Ethanol: Why Consider Food For Fuel?, Richard K. Perrin

Department of Agricultural Economics: Faculty Publications

Current U.S. energy policy encourages additional ethanol production through a combination of subsidies and mandates. Grain ethanol production converts a potential food into fuel. Concerns have been expressed that this drives up the price of food, and could contributed to world hunger problems. Other objections to grain ethanol have been raised: it might not reduce greenhouse gases much if at all; intensified cropping could deteriorate environmental resources, and it might increase smog in cities. Why, then, do proponents favor increased grain ethanol production? It is possible that it will educe greenhouse gas emissions; it can reduce petroleum imports, it can …

Green To Gold: Business And Industry Moving Onto The Eco-Path, Gary D. Lynne

Cornhusker Economics

The question of “How Smart Companies Use Environmental Strategy to Innovate, Create Value and Build Competitive Advantage” is the subtitle to a new book titled Green to Gold, by Esty and Winston (E&W, 2006). They point to how companies are finding ways to make money on the “green” path… more accurately, on the ecopath, the sustainable path for their business and industry. We might liken the shift in thinking and business trends documented in this book to a kind of tsunami; as E&W refer to it, a huge Green Wave on which the leading companies are the WaveRiders. These companies …

Updating Custom Rates For 2008, H. Douglas Jose

Cornhusker Economics

A survey of custom rates is conducted every two years to determine the current rates charged for specific field and other machinery operations. The two parts of the 2006 survey were conducted in the January to May period in 2006. We appreciate the cooperation of the respondents who share their information on the rates they charge. This information is widely used. We are always a little leery about the process. Is the information we collect representative of what is being charged? And the big question: Are we reporting the rates charged or setting the rates? That is a risk, but …

Community Recruitment And Retention Of New Residents, Bruce Johnson

Cornhusker Economics

Traditionally, RECRUITMENT in community development circles has implied recruiting businesses and jobs. As for people, the idea was: “build it (provide jobs) and they (the people) will come.”

Net Energy Of Cellulosic Ethanol From Switchgrass, Marty R. Schmer, Kenneth P. Vogel, Robert B. Mitchell, Richard K. Perrin

Department of Agricultural Economics: Faculty Publications

Perennial herbaceous plants such as switchgrass (Panicum virgatum L.) are being evaluated as cellulosic bioenergy crops. Two major concerns have been the net energy efficiency and economic feasibility of switchgrass and similar crops. All previous energy analyses have been based on data from research plots (<5m²) and estimated inputs. We managed switchgrass as a biomass energy crop in field trials of 3–9 ha (1 ha = 10,000m²) on marginal cropland on 10 farms across a wide precipitation and temperature gradient in the midcontinental U.S. to determine net energy and economic costs based on known farm …

Water Trading Can Reduce The Cost And Increase The Effectiveness Of Groundwater Allocation, Christopher L. Thompson, Ray Supalla

Cornhusker Economics

In the September 5, 2007 issue of the Cornhusker Economics we argued that cap and trade water markets could significantly reduce the cost of groundwater allocation. Capping the total amount of water pumped with an allocation, and then permitting allocating rights to be traded, reduces control costs because water can move to where it is most valuable. Irrigators with inefficient irrigation systems or relatively unproductive land sell all or part of their allocation rights to irrigators with more productive operations at a mutually agreed upon price that makes both parties better off with no change in total pumping. Subsequent work …

Market Reports

Cornhusker Economics

No abstract provided.

Evaluation Des Technologies De Production Et De Commercialisation Du Soghio Et Du Mil Dans Le Cadre Du Projet Ier-Intsormil/Mali Campagne Agricole 2008-2009, Jeanne Coulibaly, Intsormil

USAID Mali Mission Awards

Introduction

Ce rapport présente les résultats de l’évaluation de la campagne agricole 2008 de la composante Production-Marketing du projet INTSORMIL réalisé au Mali. Cette composante a trois volets majeurs qui sont.

Un volet transfert de technologie qui consiste à l’amélioration de la production grâce à l’utilisation d’un paquet technique qui comporte la semence améliorée de sorgho ou de mil, de l’engrais chimique et des nouvelles techniques culturales.

Un volet commercialisation qui consiste à stocker les productions au moment des récoltes pour les revendre plus tard dans l’année lorsque l’offre est faible et les prix sont élevés sur les marchés. Cette …