Agricultural and Resource Economics Commons^™

Four Nebraska Public Power District (Nppd) Irrigation Electricity Purchase Options, Matt Stockton

Cornhusker Economics

Farm managers are destined to face a myriad of choices while looking for and seeking the right balance between methods and outcomes that satisfy their individual farm’s needs. Successful farms require productivity, profitability, and continuity. This holds true for the many production choices made throughout the year. One of these opportunities is the purchase of electricity for irrigation. Nebraska is a unique state in that its electric power is generated and delivered by public power companies. The largest single entity in that system is NPPD, which serves all or part of 84 of the 93 counties within the state. NPPD …

How Beliefs Shape What We Consider When Choosing What To Eat, Christopher Gustafson

Cornhusker Economics

What determines which foods we consider? One factor, certainly, is what we like to eat, and if liking what we eat were the sole relevant outcome of food consumption, there would be little to say about incomplete consideration. However, diet quality has important, well-documented effects on health outcomes (as well as other important considerations, such as differential environmental impact). Close to 75 percent of American adults are overweight or obese, which increases the likelihood that the individual will experience one or more serious non-communicable diseases. A food’s healthiness is an important consideration for many people when making food choices, but, …

North Central Extension Risk Management Education Center, Part Ii: Outcomes And Impacts: Empowering Farmers, Transforming Futures, Sheila Aikanathan Johnson, Christine Lockert, Bradley D. Lubben

Cornhusker Economics

The North Central Extension Risk Management Education Center remains dedicated to helping American farmers and ranchers manage the unique risks of producing food for a global market. To date, we have funded 545 projects totaling over $20 million, reaching more than 175,500 participants. Collaboratively, these efforts reflect a growing commitment to equipping producers with the tools, knowledge, and support needed to make informed decisions, strengthen resilience, and ensure the long-term sustainability of agriculture across our region and beyond.

North Central Extension Risk Management Education Center, Part I: Helps Producers Manage Risks, Christine Lockert, Sheila Aikanathan Johnson, Bradley D. Lubben

Cornhusker Economics

Educating producers to manage risk and position their farm or ranch for future growth and success is the fundamental purpose of the Extension Risk Management Education (ERME) program.

The ERME program, funded by United States Department of Aagriculture’s National Institute of Food and Agriculture, provides training to help producers learn new strategies to manage complex and growing agricultural risks.

Established in 2001 and located at the University of Nebraska-Lincoln Agricultural Economics Department, the North Central Extension Risk Management Education Center (NCERMEC) has a long history of supporting risk management education programs serving producers in the region. NCERMEC, in conjunction …

Small Beef-Packer Resilience During The Covid-19 Pandemic: Evidence And Policy Implications, Azzeddine Azzam, Sunil P. Dhoubadel, Binod Khanal

Cornhusker Economics

As part of a larger research project on the economics of beef supply chain resilience to natural disasters, financed in part by a grant from the USDA National Institute of Food and Agriculture, we obtained information from 289 processing plants across the United States about their operations during the peak COVID-19 period of March to June 2020 via a telephone survey. We collected data on plant type (slaughter, processing, both), the dominant livestock processed by the plant (predominantly beef, pork, poultry, and sheep/goat), plant capacity (maximum and typical capacity in slaughter head/day), age of establishment, and, whether the plant ceased, …

The Costs Of Ecosystem Disturbances, E. Wesley F. Peterson

Cornhusker Economics

Presents an illustration of the interdependencies inherent in natural ecosystems. An ecosystem may be defined as: “… a single environment and every living (biotic) organism and non-living (abiotic) factor that is contained within it or characterizes it. An ecosystem embodies every aspect of a single habitat, including all interactions between its different elements” (Knapp 2020). In such interdependent systems, removal of one or more of the essential “elements” can severely disrupt the functioning of the system and such disruptions can give rise to negative impacts on the environment and human health and well-being.

Violent Conflict Drives World Hunger And Food Insecurity, E. Wesley F. Peterson

Cornhusker Economics

The World Food Program (WFP) with support from the United States and other countries works to provide food to those in need as a result of conflict, adverse climate effects, poverty, and government mismanagement. It is limited in what it can do, however, by budget constraints and rising food prices. On top of the financial issues, the delivery of food assistance is particularly complicated in areas of conflict where warring adversaries often hijack food supplies intended for the other side. While it is illegal under International Humanitarian Law to use starvation as a weapon of war, Dzerowicz (2023) has identified …

2022 Census Of Agriculture: Nebraska Highlights, Kathleen Brooks, Bradley D. Lubben

Cornhusker Economics

In February 2024, the United States Department of Agriculture National Agricultural Statistics Service published data from the 2022 Census of Agriculture. This data is collected every five years. The current article highlights a few of the Nebraska numbers. Two significant highlights from the data are the total number of farms and the total value of production. U.S. farm numbers declined modestly in the U.S. from 2.04 million in 2017 to 1.90 million in 2022. The total value of production for U.S. farms and ranches increased substantially from $388.5 billion in 2017 to $543.1 billion in 2022. Crop production accounted for …

Embracing Diversity In Agricultural Economics, Timothy Meyer

Cornhusker Economics

To steal an overused cliché, “There’s room in the tent for everyone.” Over the 2023 academic year, I have reiterated this message to all my students, with one addition. Not only is there room for everyone, but all are invited AND welcome. Food is something we all have in common, no matter the background. I think this is why producers in the state of Nebraska feel as strongly as they do about the food they produce; it is life-giving and should be taken seriously. Nebraska Agriculture is part of what makes our state great, and that is not a secret …

Program Requirements For Beef Cattle Certified As Usda Organic, Carsten Loseke, Elliott James Dennis

Cornhusker Economics

This document provides an overview of the use and production of the USDA Certified Organic program for the beef cattle industry, with an emphasis on the state of Nebraska. We detail what cattle qualify, feed requirements, medical and health standards of cattle, and premiums paid by consumers for USDA certified organic products. All information is taken from the Organic Foods Production Act Provisions available in the Federal Register.

Are Too Many Or Too Few Babies Being Born?, E. Wesley F. Peterson

Cornhusker Economics

An additional 1.8 billion people will be added to the world’s population by 2050. At the same time, average incomes are likely to rise. Data from the Groningen Growth and Development Center suggest that average real (inflation-adjusted) GDP per capita increased by a factor of fifteen between 1820 and 2018 and World Bank data indicate that real per capita GDP more than tripled over the past 62 years. It is likely that these trends will continue and there will be more people with higher average incomes in the future straining global food systems and natural resources. Slower population growth rates …

Agriculture And Community Well-Being: A Review Of Three Research Studies, Marilyn R. Schlake

Cornhusker Economics

Personal observations are often obscure to the facts. For instance, recently I worked at a booth at Husker Harvest Days. The booth focused on rural community development. My observations were that many of the agricultural producers decided to not stop at our booth or for those who did stop, conversations showed a disconnect of the importance of their local community to their farm operations. Similarly, when working with communities, I have observed the lack of understanding of the importance of the agricultural producers to the local community’s well-being. Why the disconnect between these two very important components of our rural …

Insurance, Policy, And Education For Livestock Producers, Milan Chauhan, Bradley D. Lubben

Cornhusker Economics

Federal crop insurance programs have existed since the 1930s, but for livestock producers, federal insurance programs were virtually nonexistent until the past 20 years. Livestock producers may not face exactly the same production risks that crop producers face, but they do face similar production risks related to grazing capacity and forage production and of course face price risks just like crop producers do.

Crop-Livestock Diversification And Efficiency In Agriculture, Jay Parsons, Maroua Afi

Cornhusker Economics

Diversification is a familiar strategy for managing risk in agriculture. It can take several forms including growing more than one crop or operating a farm with both crop and livestock enterprises. As with other strategies for managing risk, diversification comes with a unique set of costs. Managing a farm with multiple enterprises creates additional overhead as well as additional demands on management, labor, land, capital, and other resources. Diversification adds complexity to an operation and too much complexity can lead to inefficiencies.

Rural Development Hubs: A Possibility For Nebraska?, Marilyn R. Schlake

Cornhusker Economics

The Aspen Institute, Community Strategies Group conducted an analysis of 43 Rural Development Hubs from across the country to discover their strategies, organizational structures, regional roles, and practices. Their aim was to learn how rural regions can help investors, policymakers and other local and regional decision-makers better serve their regions. The following provides an overview of their findings detailed in the report: Rural Development Hubs: Strengthening America’s Rural Innovation Infrastructure. The report provides an opportunity for further discussion on the potential role of Rural Development Hubs in Nebraska. Rural Development Hubs are defined as a “place-rooted organization working hand-in -glove …

Producer Long-Term Marketing Opportunities With Ethanol Plants, Austin Harthoorn, Logan Lloyd, Cory Walters, Kate Brooks

Cornhusker Economics

Commodity marketing operates in a complex decision environment with constant information flow, which can conceal long-run financially profitable marketing opportunities for producers. In the corn marketing space, the competitive role of ethanol plants throughout the state may provide producers with long-run financial gains by strategically approaching marketing decisions. In this article, we characterize whether producers can gain financially from strategically marketing corn to ethanol plants. For example, do ethanol plants provide a better long-run return from pre-harvest hedging, spring sale, or harvest sale?

We investigate three important contracting times--forward contract for harvest delivery (called pre-harvest hereafter), harvest delivery, and spring …

Things To Consider Before Co-Signing A Loan, J. David Aiken

Cornhusker Economics

In the context of family farms, includes some general points to consider before you sign a loan guarantee for a family member who is heavily in debt.

Conclusion: Having to consider whether to co-sign a child's loan is a very difficult situation-no one wants to be part of losing part of the family farm or ranch to loan foreclosure. But if the loan guarantee isn't part of a financial turnaround plan that has at least a fighting chance of success, don't sign the guarantee unless you absolutely don't need the money for your own retirement.

Deficit Irrigation Management For Irrigated Corn In Nebraska: Economically Viable?, Lia Nogueira, Cory Walters, Emily O'Donnell, E. Wesley F. Peterson, Suat Irmak

Cornhusker Economics

In this study we determine the economic value of deficit irrigation management using both technological and methodological advancements. The use of soil moisture probes represents the technological improvement. We provide improvements in the methodology as follows. Regarding data, we employ a field-size study, instead of plots, where the irrigation decision is determined by the moisture level in the soil measured through a soil moisture probe. Regarding the understanding of the yield response to water, although we examine the commonly used quadratic function, we improve upon this specification by also examining an alternative response function, the linear response stochastic plateau. Our …

2023 Nebraska Women In Agriculture Conference, Jessica Groskopf, Katie Hothem

Cornhusker Economics

Includes a recap of the 38th Nebraska Women in Agriculture Conference held in February 2023 in Kearney, Nebraska.

Nebraska Farmland Values And Cash Rental Rates In 2023, Jim Jansen, Jeffrey Stokes

Cornhusker Economics

The market value of agricultural land in Nebraska increased by 14% over the prior year to an average of US $3,835 per acre, according to the 2023 Nebraska Farm Real Estate Market Survey. This marks the second-largest increase in the market value of agricultural land in Nebraska since 2014 and the highest non-inflation-adjusted state-wide land value in the 45-year history of the survey.

The University of Nebraska-Lincoln’s Department of Agricultural Economics annually surveys land industry professionals across Nebraska, including appraisers, farm and ranch managers, agricultural bankers, and related industry professionals. Results from the survey are divided by land class and …

The Trade Impact Of Economic Integration Agreements, Byungyul Park, John C. Beghin

Cornhusker Economics

A year ago, Cornhusker Economics reported on the substantial trade integration that has been taking place globally in recent decades (see Beghin, 2022). With this proliferation of Economic Integration Agreements (EIAs) through regional and bilateral trade agreements and customs unions since the 1990s, many economists have investigated the effect of these agreements on merchandise trade. Early investigations struggled to find robust findings. They reached two opposite conclusions, with an eventual rejoinder on their limitations. Some investigations found statistically insignificant or negligible effects of EIAs on trade flows. Other investigations found significant effects, sometimes negative, of EIAs on trade. See Park …

The Impact Of Organized Activism On Technology Sharing, Ahmed Chennak, Amalia Yiannaka

Cornhusker Economics

What factors influence a firm's decision to share its technology with competitors? While patent licensing has received considerable attention in the literature, studies have typically focused on the optimal licensing contract for product and process innovations in various market settings. A key finding of this literature is that the optimal licensing strategy depends on the type of the patentee; that is, whether the patentee is a producer in the market (insider patentee) or not (outsider patentee). Little attention has been given, however, to the role the general public can play on firms' incentives to share their innovations through licensing contracts …

Role Of Social Network On Technology Adoption: Application To Nebraska Producers In The Face Of Undesirable Vegetation Transitions, Sabrina Gulab, Holly K. Nesbitt, Simanti Banerjee, Theresa Floyd, Karina A. Schoengold

Cornhusker Economics

Conclusion

Producers need to have access to information regarding new conservation practices and technologies to ensure land management in the face of ecological threats in general and vegetation transitions (VTs) in the context of our study. This study investigates the role of an individual producer's social network on the willingness to seek information about technologies and management practices and the likelihood of new technology adoption with special attention to risk attitudes and producer spillover effects. Our results provide evidence that network composition and information obtained through a producer's social network don't influence an individual's willingness to seek information about new …

Importance Of Good Communications For Generational Ag Business Transfers, Allan Vyhnalek

Cornhusker Economics

Adapted from Right Risk, volume 10, Issue 10, October 2022.

Effective communication within a farm or ranch family, especially when multiple generations are operating and managing the business, is the underpinning of all other decisions made in a family business. It is critical that farm and ranch families identify areas of contention and develop communication skills that will allow them to negotiate satisfying outcomes. This may involve basic skills training, including communication, problem solving, and decision making.

Setting The Stage For The Next Farm Bill Debate, Bradley D. Lubben

Cornhusker Economics

The 2018 Farm Bill is set to expire in September 2023. New farm bill legislation will be needed by then if authority is to be extended for a wide range of programs from farm support to conservation, nutrition assistance, credit, trade promotion, rural development, research and education, and more.

The agricultural committees in Congress have already held initial hearings and many agricultural and other interest groups have noted their policy priorities. However, formal debate on a new farm bill is not expected to begin in earnest until early 2023 when a new session of Congress convenes.

While the formal debate …

Active Consideration Of Health And Nutritional Quality Of Food Choices, Christopher R. Gustafson

Cornhusker Economics

Everyone can be positively influenced by effective interventions promoting healthier food choices. A handful of recent papers have documented positive impacts on dietary quality resulting from interventions that remind people to consider health through prompt messages or subtle priming in supermarkets and in controlled, online experiments. These studies have focused on the impact of reminders on nutritional quality rather than explaining how reminders work. An exception, Arslain, Gustafson, and Rose (2021), collected data on multiple elements of individuals' choice processes to trace the impact of reminders on decisions, showing that reminder messages led people to consider a healthier set of …

The Coming Global Food Crisis, E. Wesley F. Peterson

Cornhusker Economics

Inflation driven by rising prices for food, energy, and other consumer goods has become a major concern in the United States and other high-income countries. A far more serious issue is the effect of rising food prices on low-income households in many developing countries in Africa, Asia, and Latin America. Global food prices had been rising in 2020 and 2021 as a result of supply shortages caused by adverse weather conditions exacerbated by climate change, war and civil strife in various countries, and economic shocks in the aftermath of the Covid-19 pandemic and the consequent disruption of global supply chains …

Expanding Cooperatives In Nebraska, Charlotte Narjes, Cythia Houlden

Cornhusker Economics

Nebraska has a history of cooperatives in agriculture. The most common types are agricultural marketing and supply cooperatives. The Nebraska Cooperative Council map highlights that there are over 400 cooperative locations in Nebraska. In addition to agricultural cooperatives, such as Ag Processing, Inc. and Producers Livestock Marketing Association, there are also cooperative credit unions and the Nebraska Rural Radio Association.

Buy Fresh, Buy Local: Nebraska Working Together For Local Food, Margaret Milligan

Cornhusker Economics

Direct market farms in Nebraska are made up of people passionate about raising good food for their fellow Nebraskans. They grow vegetables, fruits, meat, grains, and value-added products to sell directly to consumers in their communities.

During the pandemic, these small farms have experienced restaurant sales vanishing, farmers’ market attendance de-creasing, and slots filling up at the small meat processors where they take their livestock. At the same time, there has been a renewed interest from consumers seeking reliable, transparent food produced close to home. It’s been a volatile year, and it has required quick pivoting, group coordination and action …

International Migration, E. Wesley F. Peterson

Cornhusker Economics

Labor is the world’s most valuable commodity—yet thanks to strict immigration regulation, most of it goes to waste. (Caplan and Naik, 2015) World economic output (currently about $75 trillion) could double if people were allowed to move freely in response to economic opportunities in other countries (Caplan and Naik, 2015). Workers in developing countries have very low productivity because they lack the capital and technology available in high-income countries. In addition, they live in countries in which the rule of law is often absent. Moving to high-income countries would increase their productivity substantially leading to much greater world economic output. …