Economics Commons^™

Nebraska Monthly Economic Indicators: February 26, 2020, Eric Thompson

Leading Economic Indicator Reports

The Leading Economic Indicator – Nebraska (LEI-N) 1 fell by 0.15% during January of 2020. The modest decrease in the LEI-N, which is designed to predict economic activity six months into the future, followed a strong increase in December 2019. Taken together, the two monthly results indicate moderate economic growth in Nebraska through mid-2020. The leading indicator fell due to a drop in airline passenger enplanements and an increase in initial claims for unemployment insurance. However, business expectations remained positive during the month, with respondents to the January Survey of Nebraska Business reporting plans to increase sales and employment at …

2020 Nebraska Property Tax Issues, J. David Aiken

Cornhusker Economics

Nebraska property taxes are the ninth highest in the United States. Nebraska ranks 41st in terms of property taxes (a smaller number means lower property taxes, while a higher number means high- er property taxes). By comparison, Missouri ranks 7th, Colorado is 14th, Kansas is 20th, South Dako- ta is 22nd, Iowa is 35th, and Wyoming is 39th. So Nebraska property taxes are high both regionally and nationally.

Nebraska sales taxes are the ninth-lowest, and both state income taxes and total state taxes are in the middle. Property taxes account for 38% of total state and local tax collections in …

Three Profit Fundamentals Of Agricultural Production, Matthew Stockton

Cornhusker Economics

There is nothing magical or mythical about making a profit. Each ranch/farm business has unique challenges and complexities. This fact makes it easy for operators to become overwhelmed or distracted from the fundamental factors that drive profitability. Each decision made in the farm or ranch business has an impact on profitability through one of three fundamental paths- cost, revenue and their common link productivity. As a result of being involved in the University of Nebraska Testing Ag Performance Solutions (UNL-TAPS) competition in North Platte for the last several years, I have observed some very striking factors that have helped teams …

2020 Nebraska Crop Budgets Review, Glennis Mcclure

Cornhusker Economics

For the 2020 production year, 82 budgets for 15 crops including 2 cover crops are available from the University of Nebraska-Lincoln and the Department of Agricultural Economics. The budgets are published online in two formats including a printable pdf file version and an Excel file version. cropwatch.unl.edu/budgets

Information on crop budgeting procedures, machinery operation and ownership costs, material and service prices, and a crop budget production cost summary is included in the format of each budget. Two new irrigated corn budgets, Numbers 33 and 34, and two new soybean budgets, Numbers 64 and 65, were added for 2020, which reflect …

Nebraska Agricultural Machinery And Equipment Sales Tax Exemption, Austin Duerfeldt

Cornhusker Economics

Nebraska sales and use tax for farmers and ranchers can be a difficult subject. When purchasing or leasing depreciable agricultural machinery and equipment for commercial agricultural use those purchases are listed as exempt from Nebraska and local sales and use taxes. The purchase of a 200- horsepower tractor or a new 12-row planter often is the first to come to mind when thinking of assets that fall into that category. The question that often arises though is what about other items such as a seed tender, auger wagon, or skid steer? For that answer you have to do research on …

Value Added Fed And Feeder Cattle Practices: Are They Paying?, Elliott James Dennis

Extension Farm and Ranch Management News

Summary

Some value added management programs clearly pay more than others and some do not pay at all. However, just like with a breeding or forage management strategy where not every year the cow gets bred back or the grass has sufficient protein, a value added program strategies premiums vary year to year. Switching the way cattle are managed and raised, handled, and fed requires planning and an understanding of labor and management capabilities. Not every cattle producer could or even should switch management practices an animal health protocol – even if premiums do exist. Thus, careful planning and consideration …

Internships In Nebraska Agricultural Cooperatives, Greg Mckee

Cornhusker Economics

Agricultural cooperatives are prominent employers across Nebraska. Several have developed internship programs. Cooperatives recruit interns to attract fulltime position applicants, to expose interns to various aspects of the cooperative business model as well as addressing short term labor needs. Students participate in internships to develop skills for career planning.

Nebraska agricultural cooperatives offered approximately one 100 internships in 2019. The number of cooperatives offering internships is increasing; at least two offered internships for the first time last year. Others are looking to strengthen their existing programs.

Internship program design varies across cooperatives. Relatively small agricultural cooperatives provide an overall work …

Nebraska Monthly Economic Indicators: January 22, 2020, Eric Thompson

Leading Economic Indicator Reports

The Leading Economic Indicator – Nebraska (LEI-N) 1 rose by 1.10% during December of 2019. The increase in the LEI-N, which is designed to predict economic activity six months into the future, confirms expectations for moderate economic growth in Nebraska through mid-2020. The leading indicator primarily rose due to strong business expectations. Respondents to the December Survey of Nebraska Business reported plans to increase sales and employment at their businesses over the next six months. There also was a rebound in building permits for single-family homes during the month, suggesting an increase in construction activity mid-year.

Comparison Of 2018 And 2019 Market Facilitation Program Payments For Nebraska Producers, Anil Giri, E. Wesley F. Peterson, Sankalp Sharma

Cornhusker Economics

In a previous issue of Cornhusker Economics ( October 3, 2018, available at https://agecon.unl.edu/ cornhusker-economics/2018/market-facilitationprogram) we reviewed the sequence of events surrounding the trade war between the United States and China, and, in particular, the response of the Trump administration to the retaliatory tariffs imposed by China on soybeans and other agricultural commodities. The Market Facilitation Program (MFP) has been the main mechanism for compensating farmers for losses associated with the trade war. In the past year, there have been several important changes related to these events:

1. On January 15, 2020, the first phase of a trade deal between …

How Emotions Affect Farm And Ranch Succession, Allan Vyhnalek

Cornhusker Economics

Whenever a family has a discussion about agricultural estate planning, conversations can become emotionally charged. Stakes can be high and feelings can be hurt just by using the wrong words in a sentence. If things go south and parties are upset, they will likely withdraw from the dialogue or leave the gathering altogether.

When communications or negotiations break down, one way to help is to think about the five emotional blocks that need to be overcome if possible. They are: appreciation, affiliation, autonomy, status and role. Let's examine each to see how these blockages can interfere with a family moving …

Celebrating 25 Years Of The Nebraska Rural Poll, Rebecca J. Vogt

Cornhusker Economics

In 2020, the 25th annual Nebraska Rural Poll will arrive in mailboxes across the state. For 25 years, the Poll has examined many topics of concern to rural Nebraskans and accumulated a rich dataset for state and community leaders.

The Nebraska Rural Poll was first conducted by the University of Nebraska-Lincoln Department of Agricultural Economics in 1996 under the leadership of Dr. John Allen and Dr. Sam Cordes. Each year since, 7,000 surveys are mailed to randomly selected households located in the nonmetropolitan counties of the state. The goal of the poll is to give rural Nebraskans and their leaders …

Age Discrimination And Academic Labor Markets, Sam Allgood

Department of Economics: Faculty Publications

In a sample of Canadian Ph.D.’s, Warman and Worswick (2010) report that forty-two percent obtained their degree at thirty-four years of age or older. One implication is that those starting their academic career vary in age. As a result, academic labor markets provide a somewhat unique way to investigate the outcomes of workers of different age with similar work experience. This study uses a national sample of over 9,000 faculty to look at the relationship between age at the time a person earns their degree and income. Older individuals are less likely to attend graduate programs in Carnegie Research I …

Perceptions Of Production And Animal Agriculture In Nonmetropolitan Nebraska: 2020 Nebraska Rural Poll Results, Rebecca J. Vogt, Cheryl A. Burkhart-Kriesel, Bradley Lubben, L. J. Mcelravy, Timothy Meyer, Steven A. Schulz, Jason L. Weigle

Nebraska Rural Poll

Most rural Nebraskans have farming or ranching history in their family. In fact, one-half of rural Nebraskans are one generation or less removed from the farm or ranch. Rural Nebraskans’ connection to agriculture has not changed much in the last ten years.

Most rural Nebraskans view their economic well-being as being dependent on both production agriculture in general and animal agriculture in particular. Furthermore, most rural Nebraskans say the economic well-being of their community or county is very much dependent on the economic success of both production agriculture and animal agriculture.

Most rural Nebraskans are supportive of new livestock development …

Well-Being In Nonmetropolitan Nebraska: 25 Years Of Trends, 2020 Nebraska Rural Poll Results, Rebecca J. Vogt, Cheryl A. Burkhart-Kriesel, Bradley Lubben, L. J. Mcelravy, Timothy Meyer, Steven A. Schulz, Jason L. Weigle

Nebraska Rural Poll

By many different measures, rural Nebraskans are positive about their community. Many rural Nebraskans rate their community favorably on its social dimensions. Most rural Nebraskans say it would be difficult to leave their community and have a positive attachment to their community. Most rural Nebraskans disagree that their community is powerless to control its future.

Rural Nebraskans’ views about the change in their community have generally been positive. The proportion believing their community has changed for the better during the past year has usually been greater than the proportion believing it has changed for the worse, especially during the past …

An Empirical Analysis Of Individual Events In Collegiate Forensics, Jordan Wong

UCARE: Research Products

Anecdotally, it is a widely accepted notion in the United States’ collegiate competitive speech and debate community that a competitor’s strong record of competitive performance in the activity at the high school level is a powerful predictor of similar success in the activity at the collegiate level. However, no evidence has been brought to bear supporting this claim. This paper uses the universe of American Forensic Association National Individual Events Tournament results from 2013 to 2018 and links collegiate competitors to their respective high school performance data. I demonstrate evidence that high school experience does, in fact, appear to play …

Homeownership Rate And Other House Price Determinants Impacts On New House Prices In Colombia, Hector A. Botello-Peñaloza

Journal for the Advancement of Developing Economies

Homeownership remains a preferred form of tenancy in different parts of the world. The attractions of security, stability, investment potential and a sense of pride outweigh the fear of price instability. For this reason, the Colombian government has encouraged in recent years, various demand policies that have sought to promote the increase in the number of homeowners. However, these ideas could have a severe impact on prices in the real estate market. Therefore, this study seeks to examine the effect of homeownership rate on new house prices in an emerging country with low real estate ownership, credit restrictions and average …

Corruption, Government Effectiveness And Human Development In Sub-Saharan Africa, Sakiru O. Akinbode, Jayeola Olabisi, Remilekun R. Adegbite, Timothy A. Aderemi, Abimbola M. Alawode

Journal for the Advancement of Developing Economies

Aside economic factors causing low human development which have been extensively studied in literature, the implications of high level of corruption and weak governance prevalent in sub- Saharan African (SSA) countries have not been explored. The study assessed the effects of corruption, government effectiveness and their joint effect on human development in SSA. Data collected on thirty-seven (37) countries within the period of 2005 to 2018 were analyzed using system Generalized Method of Moment which was most suitable for the dataset. Results indicated that lagged human development index (P<0.01), government effectiveness (P<0.05), economic growth rate (P<0.1) and government health spending (P<0.1) had significant positive effect on human development while corruption and its interaction with government effectiveness did not. The results of Arrelano-Bond test of first order autocorrelation and second order autocorrelation of error term as well as the Sargan test and Hansen J test for validity of instrumental variables confirmed the validity of the model. The robustness of the estimation was established as the coefficient of the lagged dependent variable fell between the values in the fixed effect and pooled ordinary least square regression. The study recommended retraining and reorientation of government employees towards the mindset of effective service delivery and strong political will to achieve it, diversification of SSA economies alongside other growth stimulating policies such as reduced lending interest rate on loans meant for the real sector, improvement in the ease of doing business, improved funding of the health sector and proper monitoring of activities in the public service by concerned agencies to curb corruption where it is present.

The Desire For Luxury In Emerging Markets: An Interactional Perspective On Consumer Motivations In Tunisia, Pranjal Gupta,, Mouna Zaghdoudi

Journal for the Advancement of Developing Economies

The motivations underlying the desire for luxury products and services have long been the subject of academic inquiry. An understanding of these motivations is useful for the luxury market industry to help managers formulate better marketing strategies. Further, such knowledge would also be useful to public policy makers to help them mitigate societal problems that may occur as a result of such consumption. Of particular interest is the growth of the luxury market in emerging economies. This study spotlights the luxury market in Tunisia. Previous work has demonstrated that age has a significant impact both on willingness to buy luxury …

Nebraska Farm Real Estate Market Highlights 2019-2020, Jim Jansen, Jeffrey Stokes

Extension Farm and Ranch Management News

Introduction

The Nebraska Farm Real Estate Market Highlights 2019-20 report represents the 42nd edition to the annual series. These reports provide an important insight on agricultural land market dynamics for stakeholders across Nebraska. In today’s market, where market transactions exceeding $1 million dollars are the norm, objective market information and analysis is more critical than ever. The focus of the report continues to be on providing unbiased information for agricultural land values and rental rates so industry participants can make educated and informed decisions.

This year, the February 2020 survey of nearly 120 expert panel members from across the state …

Supplementary Materials For "Integration Of And Deliveries Among The World Zionist Organization, Israel, And Diaspora Countries: System Articulation With The Social Fabric Matrix", F. Gregory Hayden

Department of Economics: Faculty Publications

No abstract provided.

Representative Economic Budgets For Nebraska Cow Herds, Glennis Mcclure, Jay Parsons

Cornhusker Economics

In 2017, the University of Nebraska-Lincoln Institute of Agricultural and Natural Resources (IANR) and Nebraska Extension made a commitment to implement a multidisciplinary Beef Systems Initiative (BSI). BSI is administered by the Center for Grassland Studies and is comprised of six projects designed to develop and support implementation of beef production systems that optimize feed resource use, natural resource conservation, and producer success in Nebraska through improved management of perennial grasslands and systems of integrated crop-beef cattle production. In addition to BSI, a parallel project funded by the Foundation for Food and Agriculture Research (FFAR) is studying the best practices …

Consumers Support A Slowing Economy, Eric Thompson

Business in Nebraska

Nebraska will record moderate economic growth during the forecast period but will lag U.S. growth. Like the national economy, growth Nebraska’s goods producing sector will struggle. Farm incomes will be flat from 2020 to 2022 after improving this year. Manufacturing employment also is expected to drop. However, most other sectors will expand, including services, finance and construction. Projected growth rates for 2020 to 2022 are presented in Table 1.

Employment will grow by 0.6% to 0.8% per year, below the national rate. Non-farm income will grow between 3.7% and 3.8% each year. This growth readily exceeds inflation and population growth, …

Accrual Accounting And The Farm Business, Part Ii, Timothy Meyer

Cornhusker Economics

My last Cornhusker Economics article, Accounting Assumptions and the Farm Business (October 16, 2019) set the foundation for a specific evaluation of the conceptual framework accrual accounting offers the farm or ranch manager. The article addressed cash accounting and hinted at its shortfalls which were rectified by accrual accounting. This article will explain conceptual frameworks, and two accrual accounting principles; namely the revenue recognition principle and the matching principle.

During one of my graduate school experiences, I encountered a professor who seemed to be in love with conceptual frameworks. I chose a framework and tried to use it as instructed, …

The Impact Of Veterans Treatment Courts On The Community, Daniela Mettos, Amanda Leingang

Cornhusker Economics

With the United States’ ongoing presence in the Middle East and the ever-present possibility of future conflict, the commitment to tend to the unique needs of veterans returning from combat is an essential one. The number of veterans suffering from mental health issues, substance abuse disorders, and physical trauma continues to rise. With this comes an increased risk of Intimate Partner Violence (IPV), drug and alcohol abuse, and repeating criminal behavior, all of which increase the likelihood that veterans will find themselves involved in the criminal justice system at some point following their combat service.

Utilizing effective, reliable, and focused …

Further Thoughts On The Brazilian Grain Market, Its Competitiveness And Its Challenges, Fabio Mattos

Cornhusker Economics

In previous articles in this space (on 6/20/2018 and 6/19/2019), I talked about recent developments and challenges for Brazilian grain markets. We discussed that one of the main obstacles for Brazilian competitiveness is the country’s logistics system. In those articles, we focused more on transportation and how higher marketing costs are explained by the poor infrastructure in Brazil and the modes of transportation used to haul grain to export ports. Today we will talk a bit more about this point, and then address another dimension of the logistics challenge in Brazil.

As previously discussed, the major agricultural area in Brazil …

Effects Of Irrigation And Climate On The High Plains Aquifer, Richard K. Perrin, Felipe Silva, Lilyan E. Fulginiti, Karina A. Schoengold

Cornhusker Economics

The High Plains Aquifer (HPA), sometimes known in Nebraska as the Ogallala Aquifer, is an enormous resource underlying 112 million acres across parts of eight states, from South Dakota to Texas.

Our research has previously estimated that irrigation water drawn from the HPA adds at least $2 billion worth of additional crops per year in Nebraska alone, and $3.5 billion across the entire HPA1.

In the years ahead, world population growth will surely increase the pressure for irrigation from the stock of water in the HPA. But pumping that water from the aquifer can increase the depth to groundwater which …

Appraisal Or Evaluation? The Impact Of Cap Rates On Financing, Jeff Stokes

Cornhusker Economics

Loan underwriting has long been a crucial function of financial institutions. The C’s of credit (character, capacity, capital, conditions and collateral) are taught in many college-level finance and banking courses and the process is even mentioned in popular movies such as “It’s a Wonderful Life.” The process is also recognized as being costly in terms of time and money. Regulations are promulgated and enforced to assure the safety and soundness of lending institutions. Nevertheless, there are situations when the risk to safety and soundness are so small that less extensive underwriting procedures may be appropriate. Benefits to lenders and borrowers …

Informing The (Willfully) Uninformed, Syed Imran Ali Meerza, Emie Yiannaka, Christopher Rand Gustafson, Kate Brooks

Cornhusker Economics

Antimicrobial Resistance: The Role of Food and Agriculture or Nature White Noise -- which would you rather watch?

A recent study by researchers in the Department of Agricultural Economics at the University of Nebraska- Lincoln gave participants that choice. Nearly 40 percent of respondents avoided learning about antimicrobial resistance and chose the white noise video. The goal of the study was to shed light on the role that certain individual characteristics, such as knowledge, perceptions and attitudes, play on information avoidance behavior. In the study, information avoidance behavior is examined in the context of antimicrobial resistance.

The standard view in …

Purchasing Products To Make A Difference: A Study Of Corporate Social Responsibility, Gender, And Cosmetic Purchasing Behavior By College Students, Allegra Blomenberg

Honors Program: Senior Projects (Public)

The purpose of this study was to investigate gender differences that exist in the way corporate social responsibility (CSR) is perceived by college students and how this affects cosmetic purchasing behavior. Two other objectives included finding what drives millennial cosmetic purchasing behavior as a whole and the ways in which millennials are informed of companies’ corporate social responsibilities. Through analyses of interview data from fourteen college-age millennials, the study showed that non-binary participants more positively perceived CSR and actively bought from responsible brands. The male participant perceived CSR positively but had never been sure to purchase products from a brand …

An Illustration Of Farm Program Decisions And Impacts, Bradley D. Lubben

Cornhusker Economics

When the 2018 Farm Bill was signed last December, producers could look ahead to implementation and the coming decision between enrollment under the Agricultural Risk Coverage (ARC) program or the Price Loss Coverage (PLC) program. While the ARC and PLC programs carried over from the 2014 Farm Bill with relatively modest changes, the substantial drop in market prices and outlook since 2014 pointed toward a widespread shift in enrollment away from ARC and toward PLC due to the increased relevance of the price safety net.

However, with this year’s extreme weather events, concerns over crop production, and hopes for improved …