Agricultural and Resource Economics Commons^™

Combining Causality Tests And Path Analysis To Model Agricultural Markets, Steven Blank, Brian Schmiesing

Economics Staff Paper Series (1969 - 2017)

Causality tests and path analysis are combined to create a new procedure for use in evaluating agricultural markets. The two complementary techniques combine to form a strong process for measuring the direction and strength of causal relationships within a structural equation model. An empirical example which evaluates midwestern corn market price relationships is presented.

Observations On Tax Policy And Education, Mark Edelman

Economics Staff Paper Series (1969 - 2017)

A short clarification of the current problems facing agriculture and tax policy options available.

Observations On The Future Of South Dakota Agriculture And Rural Communities, Mark Edelman

Economics Staff Paper Series (1969 - 2017)

A short clarification of the current problems facing agriculture and rural communities in South Dakota, the options faced by community leaders, and the policy alternatives faced by national decision-makers in assisting rural communities.

South Dakota Farmland Market Trends - Current And Future Research, Larry Janssen

Economics Staff Paper Series (1969 - 2017)

Agriculture land market trends are of considerable interest to many people - farm managers landowners, realtors, prospective buyers and sellers of farm real estate, loan officers, agribusiness managers, public officials and the general public. Interest and concern about farmland market trends intensifies during periods of rapid increases or decreases in land prices. Both of these events have occurred since 1971. For South Dakota, average per acre farmland values increased 345% from 1971 to 1982 ($85 to $291) . Since late 1981 and early 1982, farmland prices have steadily declined in most regions of South Dakota - reflecting sharply reduced profits …

The Property Rights Paradigm And The Protection Of Oak In California, B. Delworth Gardner

Faculty Publications

Once again our country is caught on the horns of a serious dilemma. Natural resources, such as land and water, are becoming increasingly scarce and therefore valuable. Concomitantly, and perhaps more importantly, these resources are recognized as having attributes or characteristics in the form of amenities that are coveted by non owners of these resources. A cheap and effective way of acquiring these amenities is to assert that the legal owners of the resources do not have the right to exclude those who want the amenities from consuming them. Or, almost equivalently, the resources must be used in certain ways …

Water Pricing And Rent Seeking In California Agricultre, B. Delworth Gardner

Faculty Publications

Without irrigation water, agriculture in California would be little more than limited livestock grazing and some dryland farming of cereal crops. With irrigation water, California produces over 200 crops and is the leading agricultural state with nearly $4 billion in sales in 1980. The state's gross cash receipts from farm sales have consistently approached 10 percent of the U.S. total every year since 1960.

The Influence Of Technological Change On Grain Elevator Pricing Efficiency, Brian Schmiesing, Steven Blank, Steven Gunn

Economics Staff Paper Series (1969 - 2017)

The introduction of unit train technology is found to increase the pricing efficiency of a case study elevator. Daily prices are found to be more correlated with destination market prices and nearby futures contract prices after the subterminal was introduced. The increased ability to physically arbitrage between markets integrated the elevator into the regional and national grain market. The subterminal technology altered the price behavior of the elevator beyond simply changing the level of prices received by producers.

Comparing Faculty And Alumni Expectations Of Future Agricultural Economics Curriculum Content, Steven Blank

Economics Staff Paper Series (1969 - 2017)

This paper assesses both faculty and alumni expectations of future agricultural economics programs by reviewing the results of two surveys, one completed by each group. In general, faculty and alumni agree about the areas of greatest curriculum and/or resource need, but there are some differences. In the future, departments will continue to be challenged to balance their curriculum between what students want (agribusiness) and what they need (basic education).

Accounts Receivable Management At Local Cooperatives: A Review Of Actual Practices And Strategies For Improvement, Brian Schmiesing, Julie Bleyhl

Economics Staff Paper Series (1969 - 2017)

Accounts receivable represent a major operating expense for local cooperatives. For example, the average local Minnesota cooperative affiliated with a major regional cooperative in 1983 had 35 percent of their total current assets being accounts receivable and credit costs associated with accounts receivable represented 2.5 percent of the credit sales revenue. In contrast, local net savings were only 1.2 percent of sales. Effective accounts receivable management is particularly important in a period of financial stress in agriculture, high interest rates on borrowed capital and narrow local cooperative margins. This paper will review the actual accounts receivable management practices of local …

Policy Interdependence, Causality And Supply Response In World Markets: The Case Of U.S. And Australian Tobacco, Steven Blank

Economics Staff Paper Series (1969 - 2017)

The economic impact of international policy interdependence is illustrated using the world tobacco market as an example. The price discovery process is assessed using U.S. and Australian data. It appears that world tobacco prices are set through an oligopolistic rule-of-thumb pricing system with the U.S. being the tacit price leader. As a result, there has been a causal relationship between U.S. and Australian tobacco prices . However, no direct supply response to U.S. prices was observed in Australian markets.

Price Dependence And Futures Price Theory, Steven Blank

Economics Staff Paper Series (1969 - 2017)

A new interpretation of commodity futures price theory is evaluated because, currently, many products exhibit price behavior which cannot be explained with existing theory. A method for classifying products according to the particular price theory relevant to them is provided. The classification method uses the futures price dependence enforced by arbitrage opportunities in spot markets as its base. The futures markets for beef cattle and corn are used as examples.

Determining An Effective Teaching/Research Composition For Agricultural Economics Faculty Positions, Steven Blank

Economics Staff Paper Series (1969 - 2017)

Making more efficient use of resources in agricultural economics departments is an important challenge of this period of budget stress (Stanton and Farrell). Beattie noted that during such periods “. . . something must be done to relieve the pressure lest our universities be forced to reduce the quantity and/or quality of their output" (p. 209). In suggesting a direction for necessary action, Beattie used an analogy from the theory of the firm to argue for a strategy of "revenue maximization" on the part of agricultural economics departments. To achieve an efficient resource allocation "a university department, like a multi-product …

Role-Playing, Case Studies And Simulation Games As Teaching Aids In Applied Economics Courses, Steven Blank

Economics Staff Paper Series (1969 - 2017)

This paper assesses the impact of introducing role-playing, case studies and simulation games into undergraduate courses in applied economics. An educational impact model is used in a qualitative evaluation of the teaching aids and to generate hypotheses. Quantitative results of two experiments are used to test the hypotheses. Results indicate that each aid can improve students' performance when used in appropriate situations. However, there is a definite trade-off between student contact time requirements and the effect of these aids.

Two Basic Option Strategies For Producers: Buying Puts And Shorting Calls, Brian Schmiesing

Economics Staff Paper Series (1969 - 2017)

Beginning in the Fall of 1984, agricultural producers and agribusinesses will be confronted with another dimension of the deregulation trend in American Industry. Options on domestically produced agricultural commodities once again can be traded. As the country debates the 1985 Farm Bill, producers and agribusinesses must be making every effort to be prepared for the possibility of greater dependence on the market oriented policies in agriculture. In a free market environment, options, and their associated strategies must be considered as part of producer and agribusiness market strategies. This paper describes the basic terms and types of options, examines two option …

Agricultural Economics In Multidiscipline Research And Extension: Leading, Following, Integrating, Thomas Dobbs

Economics Staff Paper Series (1969 - 2017)

Multidiscipline agricultural research and extension provide special challenges to natural and social scientists. Each discipline, including agricultural economics, has unique strengths which can contribute to the effectiveness of multidiscipline programs. Each also faces special challenges and difficulties in such endeavors. This paper is intended to convey some of the major roles and challenges concerning involvement of agricultural economics in multidiscipline research and extension. It ls hoped that a better understanding of these roles and challenges will enable agricultural economists and their col leagues in other agricultural disciplines to more effectively work together. Thus, the intended audience for this paper includes …

Changing Times In South Dakota Agriculture: Implications For Our Citizens, Larry Janssen

Economics Staff Paper Series (1969 - 2017)

We are living in times of rapid change in agriculture and in rural America. Hog and beef confinement systems, automated feeding systems, pesticides, four-wheel drive tractors and personal computers are innovations that did not exist or were seldom seen on farms 25 years ago. Interstate highways, factories in small cities, subterminal elevators and consolidated schools are examples of the changing landscape in rural America. In times of rapid change, many people are concerned about the future of agriculture, family farms and rural communities. In this paper, recent trends in South Dakota agriculture are presented and analyzed. Major implications of these …

Two Agricultural Economists Look At Rural Sociology, B. Delworth Gardner, Carole Frank Nuckton

Faculty Publications

At the invitation of the editor, we shall attempt to describe our perceptions as agricultural economists of what is known to us as rural sociology. We should say right off that we are complimented that this invitation has been extended to us. We think that a comparison of our two disciplines has been useful to us, if only to clarify our thinking about our own. We emphasize that our perceptions are based on limited contact, and we have made no systematic study of your discipline. Even to attempt the critique and analysis of the kind requested of us presumes an …

Political Vs. Economic Incentives, B. Delworth Gardner

Faculty Publications

H this paper is the best challenge that can be brought against the New Resource Economics (NRE) and its advocacy for privatization of the public lands, we are likely to see both around for a long time. If there is fallacy in the idea of privatization, it is not illuminated in the arguments of this article. The paper misrepresents what the NRE is, shows little comprehension of the basic concepts on which it rests, and completely reverses the basic nature of the privatization solution. I hope to demonstrate as much in this critique.

What Should Be The Farm Credit Policy: An Overview Of The Problem And Options Available, Mark Edelman

Economics Staff Paper Series (1969 - 2017)

Analysis of (1) the nature and scope of the current farm credit conditions, (2) the policy environment that led to current farm conditions, and (3) the probable consequences of the current policy options.

A Welfare Analysis Of Production And Consumption Of Broadbeans In Egypt, B. Gardner Delworth, Adel N. Moustafa, Dyaa Abdou

Faculty Publications

The broadbean is one of the most important food items in Egypt and is both heavily subsidized and rationed, although the per family entitlement depends on quantities available. It is the basic staple for breakfast for most Egyptians in both rural and urban areas. The governmental policies that determine the production, marketing, and distribution of broadbeans affect consumers and producers. The government budget is also affected by the subsidy and trade policies. Thus, virtually every Egyptian is touched by policies affecting this crop and consumption commodity.

Food Consumption An Distribution: An Overview, Dyaa Abdou, B. Gardner Delworth

Faculty Publications

Nearly everyone concedes that Egypt is faced with a serious food problem. The Egyptian agricultural sector is unable to feed the increasing and more affluent population. In 1980, agricultural output was estimated to be increasing by about 2.0 percent annually, whereas the country's annual population growth rate was estimated at about 2.3 percent. If the difference in these growth rates continues, Egypt must increase imports each year just to maintain per capita consumption at the present level [3].

Economic Implications Of The Policy For Pricing And Allocating Rice In Egypt, Sonia Mohamed Ali, B. Gardner Delworth

Faculty Publications

Rice is both heavily subsidized and rationed in Egypt. This policy has significant distributive effects and especially benefits low income consumers in both urban and rural areas of the country. In addition, the policy has important allocative effects in shifting scarce resources to inefficient uses. This paper attempts to measure the economic inefficiency associated with this policy in order that the policy makers may judge better whether or not the distributive benefits are worth the efficiency costs.

The Role Of Economic Analysis In Public Range Management, B. Delworth Gardner

Faculty Publications

Economic analysis has a vital, if not indispensable, role to play in the management decisions of the Bureau of Land Management (BLM} if the national welfare is to be served effectively. This rather sweeping conclusion is justified by the nature of the management problems faced by the BLM and by the unique view of the world provided by the field of economics.

Water Use In Agriculture Now And For The Future, B. Gardner Delworth

Faculty Publications

Water is the primary limiting factor in agriculture in the United States and the world. The western states have gained importance in agricultural production only through extensive use of irrigation from surface and groundwater sources. With the increase in population, these water supplies are facing new pressures for reallocation. Accurate scientific information concerning water availability, behavior, management, and value is essential in optimizing water allocation on farms, in agriculture, and among agriculture and the various other uses. This report is an overview of the physical, institutional, economic, and sociological aspects of the water issue from the standpoint of agriculture. It …

Economic Issues Of Groundwater Management, B. Gardner Delworth

Faculty Publications

This is a coaceptual rather than an empirical paper with the primary focus on raising a set of economic issues faced by any authority charged with managing a groundwater aquifer. I will utilize the technique of making simplifying, albeit unrealistic, assumptions in order to establish easily and clearly the relevant economic principles. Some of the assumptions will be relaxed later to achieve greater realism. It is assumed that the hydrologic dimensions of the groundwater system are known and that the management authority has the power to enforce whatever rules it deems appropriate. There are a host of problems associated with …

Issues Affecting The Availability And Price Of Land For Agriculture, B. Delworth Gardner

Faculty Publications

This paper first reviews some data relating to agricultural land use nationally and then discusses the huge increases in land prices that have occurred in recent years and some of the implications for agriculture. The final section evaluates the need for public policy to preserve prime lands for agricultural use.

Some Issues In Teaching Agricultural Economics To Foreign Graduate Students, B. Gardner Delworth

Faculty Publications

Several words in the title help set the scope of the paper. My concern is with the training of students from foreign countries, generally those best characterized as less developed countries (LCD's). These students come to the United States to be trained as professional economists and I assume will spend a career researching problems related to agriculture.

Benchmarks For Various Industry Classes In Counties, B. Delworth Gardner

Faculty Publications

In a recent study, the impact of federal employment on the distribution of economics activity and population among counties and multi-county planning regions in Utah was investigated.A by-product of this study are some data which reveal basic characteristics of the industrial structure of counties and multi-county planning regions in Utah.

A Theoretical Framework For Analyzing Residence Shifts Of Farm Families, B. Delworth Gardner

Faculty Publications

The ever-changing composition of the American rural population is an established fact and has been the subject of much research. Urban families are moving o the ''country" to escape the noise and congestion of the city, While the migration of people from the farm to urban centers continues . The net result is a decrease in rural population relative to that classified as urban, although in absolute terms the rural population is increasing also. In 1969 less than 30 per cent of all American were classed as rural residents compared to 60 percent in 1900 and 95 percent in 1790.

Cost And Net Return From The Milking Enterprise On Selected D.H.I.A. Farms In Northern Utah, 1965, Charles J. Palmer

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

A study was made of cost and net return of the milking enterprise of selected D.H.I.A. members of Northern Utah.

Production cost for market milk ranged from $6.37 to $3.74 per 100 pounds of milk with the weighted average for all enterprises being $4.71 per 100 pounds of milk. Production cost amounted to an average of $538.24 per cow. Total receipts amounted to $4.64 per 100 pounds of milk or $531.18 per cow per year. Net return was calculated by deducting total cost from total receipts and amounted to minus $335 per enterprise or minus $7.23 per cow per year. …