Agricultural and Resource Economics Commons^™

Agricultural Subsidies And Overweight America, Glenn A. Helmers

Cornhusker Economics

In recent months there has been increased public attention directed to federal farm subsidies and their role in causing consumers to be overweight. The problems caused by an overweight population centers on health problems and increased health costs. Heart problems, diabetes and other health problems are associated with overweight individuals. Other difficulties arise from an overweight nation, such as those observed in air travel with increased fuel costs, less seat room and lift-off concerns. The issue is also apparent by observing the attention given to diets and new diet programs.

Visualizing Food And Farm, 2005 Joint Meetings Of The Agriculture, Food, And Human Values Society (Afhvs) And Association For The Study Of Food And Society (Asfs): Program And Abstracts, Jane Adams, Lorna Michael Butler, Richard P. Haynes, Laura B. Delind

United States Department of Agriculture, Forest Service / University of Nebraska-Lincoln: Faculty Publications

Visualizing Food and Farm

2005 Joint Meetings of the Agriculture, Food, and Human Values Society (AFHVS) and Association for the Study of Food and Society (ASFS)

Program and Abstracts

June 9-12, 2005, Portland, Oregon, United States

Symposium Paper: Economic And Tax Implications For Managing Beef Replacement Heifers, R. T. Clark, K. W. Creighton, H. H. Patterson, T. N. Barrett

Department of Agricultural Economics: Faculty Publications

Sustainable cowherds require replacement of cull cows either internally via raised heifers or externally with purchased females. Managing raised replacements begins with a weaned heifer calf and continues on through her second pregnancy and calving. Replacement costs were estimated from research conducted in Nebraska for spring-calving cowherds and included the opportunity cost of the heifer calf. The analysis, based on research data, showed that heifer development programs targeted to 50 to 55% of mature BW (MBW) at first breeding can be successful, challenging the traditional target of 65% of MBW at first breeding. The lower BW programs achieved …

Departmental Publications In Agricultural Economics 2004

Department of Agricultural Economics: News, Announcements, and Information

Includes a comprehensive listing of Articles in Professional Journals; Books and Book Chapters; Experiment Station Research Bulletins; Departmental Publications; Conference/Symposium Proceedings; Unpublished Papers/Speeches Presented; Popularized Magazine Articles; Published Abstracts and Book Reviews; Extension Publications, Other and Miscellaneous, & Theses

2004 Nebraska Farm Custom Rates — Part I, H. Douglas Jose, Lydee Jo Brown

Department of Agricultural Economics: News, Announcements, and Information

Every two years a survey of the custom operations is conducted to determine the current rates charged for specific machinery operations. The survey is divided into two parts: spring and summer operations, including planting and small grains harvest in Part I, and information about fall and miscellaneous operations in Part II. The responses are reported by the Agricultural Statistics Districts shown on the map below. 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.

2004 Nebraska Farm Custom Rates - Part Ii, H. Douglas Jose, Lydee Jo Brown

Department of Agricultural Economics: News, Announcements, and Information

Every two years a survey of the custom operations is conducted to determine the current rates charged for specific machinery operations. The survey is divided into two parts: spring and summer operations, including planting and small grains harvest in Part I, and information about fall and miscellaneous operations in Part II. The responses are reported by the Agricultural Statistics Districts shown on the map below. 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.

Science-Based Organic Farming 2005: Toward Local And Secure Food Systems, Charles A. Francis, Twyla Hansen, Peter Skelton

Publications from the Center for Applied Rural Innovation (CARI)

Organic farming includes growing food and fiber — animals, agronomic crops, horticultural fruits and vegetables, related products — as one dynamic and rapidly evolving component of our complex U.S. food system. Even as more farmers are moving toward organic certification and participation in an environmentally sound and economically lucrative market, questions arise about the long-term social impacts and sustainability of a set of practices that has gone from a movement to an industry. Consolidations in the organic trade have brought multinational corporations to the table, as they have observed a grassroots activity that has grown by 20% per year for …

Marketing Locally Produced Foods: Consumer And Farmer Opinions In Washington County, Nebraska, Mindi L. Schneider, Charles A. Francis

Department of Agronomy and Horticulture: Faculty Publications

Local food system potentials were studied in Washington County, Nebraska, United States. As a departure from most studies of locally based systems, farmers were surveyed in addition to consumers for potential participation. Data about the current food system and opinions and preferences for local production, marketing, and purchasing of food were collected using self-administered mail questionnaires. The response rate was 35% for the farmer survey and 37% for the consumer survey. Results indicated that, on the farming side of the food system, conventional corn and soybean production and marketing predominated in Washington County, and farmer interest in producing for local …

Lake Mcconaughy: Who Gets The Water?*, J. David Aiken

Cornhusker Economics

Nebraska is in a drought of historic proportions. Because of this, water levels in Lake McConaughy near Ogallala are falling to near-record lows. This has led to an active debate regarding how water in McConaughy should be managed, and (in my opinion) unfair criticism of how the lake has been managed. This column takes a quick look at the water rights dimension of McConaughy water levels.

Community Capital: More Than Just Money, Cheryl A. Burkhart-Kriesel

Cornhusker Economics

When you think of the word, capital, dollars or money probably comes to mind. What if I told you there were at least six kinds of capital within every community? Capital is more than just... capital. Cornelia and Jan Flora, in their recent book, Rural Communities: Legacy and Change (2003), identify several kinds of capital that are present in varying degrees in all communities. You might think of it as layers on an onion, with each layer relying on the next (Figure 1). These layers of capital are the building blocks or assets within communities. These common elements can be …

Jefferson County Visitors Survey

Rural Initiative Program: Publications and Reports

Between the months of June and December, 2004, the Jefferson County Visitors Committee, with the assistance of the University of Nebraska’s Rural Initiative and Nebraska Cooperative Extension, conducted a survey of visitors to Fairbury and the Jefferson County area.

The survey was designed to provide information related to the activities and experiences of tourists and other visitors to the Jefferson County area, especially as related to the hospitality industry.

Understanding The Economic Factors Influencing Farm Policy Preferences, Keith H. Coble, Thomas O. Knight, George F. Patrick, Alan E. Baquet

Department of Agricultural Economics: Faculty Publications

A survey conducted in Mississippi, Texas, Indiana, and Nebraska elicited producers’ preferences for various farm policy changes. This permitted examination of the diversity of preferences that single-state studies have not allowed. Five policy choices, including deficiency payments, loan programs, crop insurance, export programs, and disaster payments were examined. Logit model results predicting producer preferences for each of the five dichotomous policy choices are reported. Explanatory variables based on expected utility theory such as risk aversion, price and yield variability, and price–yield correlation are significant in various models.

The Market And Consumer Welfare Effects Of The Introduction Of Second-Generation Gmps, Amalia Yiannaka

Cornhusker Economics

The introduction of genetically modified products (GMPs) into the food system and the significant growth of organic agriculture are among the most notable features of the increasingly industrialized agri-food sector. They have both received considerable attention in the agricultural economics literature, with the main focus being on the optimal regulatory responses as they relate to the introduction of standards for, and labeling of, GM and organic food products.

Women In Agriculture, Karrie Blake

Cornhusker Economics

Although farm numbers continue to decline, women in agriculture are increasing their responsibility in decision making and management on the farm. According to the 2002 U.S. Agricultural Census the number of farms in Nebraska was 49,355, down 10 percent from 1997. However, the number of female principle operators in Nebraska was up from 2,948 in 1997 to 3,005 in 2002 according to the census. T his is a small increase compared to the 13 percent jump of women operating farms in the nation (209,784 in 1997 to 237,819 in 2002). Of those principal female operators in Nebraska, 1,568 have farming …

Evaluating Multi-Peril Crop Insurance Coverage, Roger Selley

Cornhusker Economics

Past issues of this newsletter have addressed the assessment of crop insurance needs (March 11 and November 11, 1998). The approach suggested was to identify the cash flow commitments for the year and then to prioritize those commitments. The latter step was suggested recognizing that: 1) insurance coverage may not be available to cover all commitments, 2) even if sufficient coverage is available, premiums increase substantially as coverage is increased, and 3) the more insurance purchased the more risk transferred to the insurance company and the less profit potential retained by the farm operation. In a more recent issue the …

Crop Price Declines Could Trigger Revenue Insurance Indemnities, H. Douglas Jose

Cornhusker Economics

Two occurrences that could affect grain producers’ incomes this year have just come into play. The first is the establishment of the harvest price for the crop insurance revenue programs. The second is the counter cyclical payments for the farm commodity program.

2004 Ballot Proposals, J. David Aiken

Cornhusker Economics

The November 2, 2004 general election ballot has eight ballot questions. Amendments 1-4 (all proposed amendments to the Nebraska Constitution) were adopted by the Nebraska Unicameral. Initiatives 417-420 (two constitutional amendments and two citizen-initiated statutes) are a four-part citizen initiative petition package supported by a gambling coalition. The eight proposals are briefly discussed in the order they will appear on the ballot.

Poverty In Nebraska, Richard K. Perrin, Lilyan E. Fulginiti, Avinash Alok

Cornhusker Economics

“Five Nebraska counties are among the nation's poorest 12 counties" (Lincoln Journal Star, July 18, 2004) Y" 'Some of the bigger ranchers here, they didn't like it at all being called the poorest,' said Van Diest, 68, (Loup County Commissioner, Wade) adding that he's been puzzled by how Loup County got the No.1 ranking." (Omaha World Herald, July 17, 2004). These comments were typical of those in response to a federal report released in July, 2004. Some people are indignant, others are puzzled. Which areas of Nebraska really are the poorest, how poor are they, and why? A clear understanding …

2004 Hog Prices - The “Perfect Storm”?, Al Prosch

Cornhusker Economics

In 2004 we’ve had the highest hog prices since 1997 (Figure 1). At the same time, we have had record hog slaughter. Perhaps the most telling comment for this year was made by Glen Grimes at the National Pork Board Educators Seminar in September. Glen stated that in all his years he has never seen anything like this. Supply has been up and price has been up more.

Start-Up Strategies For Beginning Farmers, David J. Goeller

Cornhusker Economics

Preliminary information from the U.S. 2002 Agricultural Census has recently been released. The chart groups U.S. census data for Nebraska farmers into three categories: under 34 years of age, 35 to 64 and over 65. The data indicates a 20 year trend of fewer farmers, older farmers and very few beginning farmers. A farmer is defined, for purposes of this census, as anyone producing or selling at least $1,000 of agricultural commodities annually. The average age of Nebraska farmers continues to rise. The average age in 1982 was 48.5 compared to 53.9 in 2002. The increase in average age is …

Public Universities And Private Industry: A Case Study, Jeffrey S. Royer

Cornhusker Economics

A report recently released by an external review panel evaluates a controversial five-year contract between the University of California, Berkeley, and Novartis, the Swiss pharmaceutical and agrochemical company now known as Syngenta. The report, which was written by a team of consultants from Michigan State University and released in early August, addresses a number of issues related to the increasingly complex relationship between public universities and private industry. Given the size of the agreement and that it involved an entire academic department, the Berkeley-Novartis contract quickly became a focus for concerns relating to the basic mission of land-grant universities and …

Cattle Market Outlook: Fall 2004 And Beyond, Dillon Feuz

Cornhusker Economics

This past year has certainly seen some ups and downs in the cattle market. One confirmed case of a BSE positive cow in Washington State last December, following an earlier discovery of a BSE cow in Canada in May of 2003 has changed the North American beef industry. Trade flows have been dramatically altered and producers have become frustrated with how political this issue has become. Other issues in the beef industry: animal identification, packer ownership of cattle, country of origin labeling and environmental regulations have generated considerable debate. Some of these issues have a more direct impact on markets …

Nebraska Farm Income A Near-Record High In 2003, Bruce B. Johnson

Cornhusker Economics

Fueled by large value increases of both crop and livestock production, Nebraska’s net farm income surged in 2003 to $3.233 billion. Based on recently-released state estimates by Economic Research Service, USDA, this 2003 aggregate income level was the second largest on record for Nebraska; and was within only $150 million of surpassing the historical high-income year of 1996 (Table 1). Nebraska’s 2003 net farm income level was about 1.8 times its average of the preceding 10 years. This level for 2003 placed Nebraska third among the 50 states (only California with $8.4 billion and Texas with $5.9 billion had higher …

Sales Of Livestock Insurance Scheduled To Resume, Darrell R. Mark

Cornhusker Economics

USDAs Risk Management Agency (RMA) offered livestock producers in selected pilot states, including Nebraska, a new insurance product in 2003 called Livestock Risk Protection (LRP). It provided down-side price risk protection while allowing producers to take advantage of higher prices, similar to creating a floor price by purchasing put options. Premiums for LRP insurance changed daily and depended on current market prices and market volatility. Unlike put option premiums that change based on the current day’s futures trade, LRP premiums were determined using the previous days futures and options prices. Since LRP could be purchased until 8:00 p.m. based on …

Nebraska’S Retailing Patterns And Trends, Bruce B. Johnson

Cornhusker Economics

Retail trade activity is a significant sector in the state’s economy. Per capita net taxable sales (not including motor vehicle sales) exceed $10,000 annually; and nearly one quarter (24 percent) of Nebraska’s non-farm workforce is employed in the wholesale/retail sector. Therefore, the patterns and trends of retailing over time are important economic indicators. We have followed Nebraska’s retailing activity for many years, and have compiled a comprehensive web page of tables and charts (accessible through the Departmental web site at http://agecon.unl.edu). The following are some highlights of the retail trade data and analysis.

Another Bumper Crop On The Way, Now What Do We Do?, Lynn Lutgen

Cornhusker Economics

The USDA recently released its August Crop Production Report. All indications are that we will have a huge, almost record breaking crop this year. As we try to develop marketing plans there are certain things that must be taken into consideration: those things that are pretty much fact and those things that may change production numbers.

Land Valuation And The Income Capitalization Model, Glenn A. Helmers

Cornhusker Economics

Early work in agricultural land appraisal emphasized several factors contributing to the value of agricultural land. These included productivity, building quality, location, adjoining road quality and other factors. Irrigation potential also came to be important and more recently, recreational factors and urban development have become important in explaining land values. Productivity gained in importance over time as the underlying force, although the remaining factors still are considered in explaining value differences among tracts. The reliance on productivity is the focus of this article, and other influences on land values such as urban development potential are not considered, even though they …

Tax Planning Update For 2004, Tina N. Barrett

Cornhusker Economics

Although there have not been many changes to the tax law this year, there are a few things to keep in mind with tax planning this fall. In the past couple of years we have seen major law changes with short-term lives. The major change affecting farmers this year is the end of the bonus depreciation allowances.

Kyoto, Global Warming And Greenhouse Gases - Missing From The Political Table?, Gary D. Lynne

Cornhusker Economics

A recent research report from the Woods Hole Research Laboratory shows that the burning of fossil fuels is substantively raising the carbon dioxide content of both the oceans and the atmosphere, as shown in the chart from the Boston Globe on the next page. The concern is that both the atmosphere and the ocean will eventually become overburdened with this greenhouse gas, leading to unpredictable climate and environmental changes. The gamble is substantial. It remains unclear, however, how U.S. politicians are going to interact with this problem. We can only look at indicators, such as the Boston Carbon Corporation donating …

Farm Income Variability And The Supply Of Off-Farm Labor By Limited-Resource Farmers, Oscar Vergara, Keith H. Coble, George F. Patrick, Thomas O. Knight, Alan Baquet

Department of Agricultural Economics: Faculty Publications

We study the relationship between the off-farm labor decision and the limited-resource farmers' and spouses' off-farm wages, experience, education, and sources of income. We found that farmers' and spouses' off-farm experience and wages are significant factors in explaining the off-farm labor supply decision. Contrary to expectations, farm income variability is not significant in the farmers' and spouses' decision to seek off-farm work. The off-farm labor supply of farmers and their spouses is negatively correlated with income transfers from the government. It was also found that the spouse is a residual supplier of on-farm and off-farm labor.