Oral Capps, Jr. and Jaehong
Park
Author Affiliations: Oral Capps is professor and Jaehong Park is graduate research assistant, respectively, in the Department of Agricultural Economics, Texas A&M University. Senior authorship is not assigned. Funding for this research was provided by the National Pork Board.
Contact:
Oral Capps, Jr.
Department of Agricultural Economics
Texas A&M University
College Station, TX 77843-2124
Phone:
(979) 845-8491
Fax:
(979) 862-1563
Email: ocapps@tamu.edu
Abstract: Using data from the 1994-1996 CSFII/DHKS, we identify and assess factors affecting the decision to consume pork and conditional on consuming pork, the decision of the amount of pork intake. Branded and generic advertising of pork play a prominent role in both decisions. Beef advertising, however, does not significantly affect either the probability of consuming pork or the amount of pork intake. Key health, attitudinal and lifestyle factors are smoking status, dietary status, body mass index, the importance of nutrition in buying food, and trimming visible fat from meat. These factors however impact the probability of consuming pork rather than the amount of pork consumed. Region, urbanization, race, age, income, and seasonality also affect pork demand.
Key Words: branded advertising and promotion, CSFII/DHKS (1994-96), generic advertising and promotion, pork demand, pork checkoff.
JEL Classification: C2, C21, C24,
D1, D12
Restrictions on the Effects of Preference Variables in the Rotterdam Model
Mark G. Brown and Jonq-Ying
Lee
Author Affiliations: Mark G. Brown and Jonq-Ying Lee are research economists with the Economic and Market Research Department, Florida Department of Citrus, University of Florida, Gainesville.
Contact:
Mark
G. Brown
2129
McCarty Hall
P.O.
Box 110249
Gainesville,
Florida 32611-0249
Phone:
(352) 392-1874
Fax:
(352) 392-8634
Email:
MGBrown@mail.ifas.ufl.edu
Abstract: This study examines imposing and testing restrictions on preference variables in the Rotterdam model through the impacts of these variables on marginal utilities. An empirical analysis of the impact of a female labor force participation variable in a Rotterdam demand system for fresh fruit illustrates the methodology. This variable was modeled through its impact on marginal utilities via “adjusted” prices, following theoretical work by Basmann and Barten, among others. Results show that the female labor participation has negatively impacted the demands for citrus, while positively impacting the demands for other fresh fruit.
Key Words: demand, demographic, fresh fruit,
Rotterdam model.
Consumer Demand for Mandatory Labeling of Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn
Jayson L. Lusk and John A.
Fox
Author Affiliations: Jayson Lusk is assistant professor, Department of Agricultural Economics, Mississippi State University and John A. Fox is associate professor, Department of Agricultural Economics, Kansas State University, respectively.
Contact:
Jayson
Lusk
Box
5187
Mississippi
State, MS 39762
Phone:
(662) 325-3796
Fax:
(662) 325-8777
Email:
jlusk@agecon.msstate.edu
Abstract: This study estimates the value
of policies that would mandate labeling of beef from cattle produced with
growth hormones or fed genetically modified corn. At no cost, 85 percent
of respondents desired mandatory labeling of beef produced with growth hormones
and 64 percent of respondents preferred mandatory labeling of beef fed
genetically modified corn. Estimates suggest that consumers would be willing
to pay 17.0 percent and 10.6 percent higher prices for beef on average to
obtain information provided via mandatory labeling about whether the beef
is from cattle produced with growth hormones or fed genetically modified
corn, respectively.
Key Words: beef, contingent valuation, genetically modified foods, growth hormones, mandatory labeling.
JEL Classification: Q18, D11,
C42
Marginal Value of Quality Attributes for Natural and Organic Beef
Michael Boland and Ted
Schroeder
Author Affiliations: The authors are associate professor and professor of agricultural economics, respectively, at Kansas State University. The data collected in this research was supported in part by a grant from USDA Rural Business Cooperative Services under the Fund for Rural America. A previous version of this paper was presented at the annual meetings of Western Agricultural Economics Association in Vancouver, British Columbia, on July 1, 2000.
Contact:
Michael Boland
Department of Agricultural Economics
Kansas State University
342 Waters Hall
Manhattan, KS 66506
Phone:
(785) 532-4449
Fax: (785) 532-6925
Email:
mboland@agecon.ksu.edu
Abstract: The objective of this research is to determine the marginal value of attributes to consumers with respect to natural beef or beef produced with organic grains. A hedonic model is used to value attributes of 11 different primal cuts. Results suggest that producers under this particular natural/implant-free marketing alliance should market high-yielding animals rather than high-quality grading animals. Consumers of this beef value taste, as measured by dry aging, and leanness, as measured by USDA Select grade. The economic magnitudes of the variable under a producer’s control were small relative to those that could be controlled by a producer.
Key Words: beef, small farms,
hedonic.
Snack Peanuts Purchase Pattern: Effects of Nutritional Considerations and Household Characteristics
Arbindra P. Rimal and Stanley M.
Fletcher
Author Affiliations: Arbindra P. Rimal is assistant professor, Department of Agriculture-Agribusiness, Southwest Missouri State University, Springfield. Stanley M. Fletcher is professor, Department of Agricultural and Applied Economics, University of Georgia, Griffin.
Contact:
Arbindra P. Rimal
206 Karls Hall
Southwest Missouri State University
901 S. National Avenue
Springfield, MO 65804
Phone:
(417) 836-5094
Fax: (417) 836-6979
Email:
arr412f@smsu.edu
Abstract: This
study examines the effect of a meal planner’s nutritional awareness,
exercise habits, and household socioeconomic characteristics on market
participation and frequency of purchase of snack peanuts. Data are from a
household survey of 2880 U.S. households collected by Gallup in 1997. Statistical
tests showed that a double-hurdle or Cragg model best represented
consumers’ participation and purchase level decisions in the snack peanut
market. The results indicated that meal planner’s nutritional considerations
while making food purchase decisions had little effect on the participation
level decisions, but did affect purchase frequency of snack peanuts. Those
household meal planners who were overly concerned about undesirable nutritional
factors tended to decrease their purchase of snack peanuts. Promotion of
snack peanuts on the basis of nutritional benefits through health professional
and media is a useful tool to increase purchase
frequency.
Relative Importance Rankings for Pork Attributes by Asian-Origin Consumers in California: Applying an Ordered Probit Model to a Choice-Based Sample
Kevin Chen, Murad
Ali, Michele Veeman, Jim Unterschultz, and Theresa
Le
Author Affiliations: Kevin Chen, Murad Ali, Michele Veeman, and Jim Unterschultz are associate professor, graduate student, professor, and associate professor, respectively, Department of Rural Economy, University of Alberta, Edmonton, Alberta, T6G 2H1. Theresa Le is program manager, Pulse Canada, Winnipeg, Manitoba R3C 3Z3.
Contact:
Kevin Chen
Department of Rural Economy
University of Alberta
Edmonton, Alberta
T6G 2H1 Canada
Phone: (780) 492-4580
Fax: (780) 492-0268
Email: Kevin.chen@ualberta.ca
Abstract: This
paper reports on a study examining the ranking of selected attributes of
fresh pork by Asian-origin consumers in San Francisco, California. Freshness
is ranked as the most important attribute, followed by the attributes of
the color of meat, lowness in fat, and the whiteness of fat. The attributes
of price, freedom from chemicals, and being USDA labelled were also ranked
to be of importance. Empirical results from an ordered probit model, postulated
to explain respondents’ importance rankings of attributes, suggested
that particular demographic and socio-economic characteristics of Asian-origin
consumers influenced the importance rankings of selected pork attributes.
The findings suggest that Asian-origin consumers should not be treated as
a single homogenous niche group in marketing, since there are identifiable
sub-groups of these consumers with specific attitudes and
preferences.
Measuring Inefficiency in the Presence of an Export Tax, an Import Tariff, and a State Trading Enterprise
Troy G. Schmitz
Author Affiliations: Troy G. Schmitz is assistant professor in the Morrison School of Agribusiness and Resource Management at Arizona State University.
Contact:
Troy G. Schmitz
Morrison School of Agribus & Res Mngt
Campus Code 0180
7001 E Williams Field Rd, Bldg 20
Mesa, AZ 85212
Phone:
(480) 727-1566
Fax: (480) 727-1961
Email:
tschmitz@asu.edu
Abstract: Agricultural sales cooperative unions (ASCUs) in Turkey are heavily influenced by both domestic and international government policies. Both export taxes and import tariffs are used as policy tools to regulate cotton markets. Domestic price support programs, water subsidies, fertilizer subsidies, and credit subsidies have also been used as domestic policy tools. These types of subsidies are not uncommon among developing countries. This paper provides empirical estimates of the degree of economic inefficiency associated with government intervention in Turkish cotton markets. A two-region partial equilibrium model of cotton exports and imports is developed under the “small country assumption” to obtain empirical estimates of the deadweight welfare loss associated with these government subsidies. Although government intervention results in significant income distribution among the various cotton sectors within Turkey, the overall economic inefficiency of the redistribution is very low.
Key Words:
export tax, tariff, agricultural policy, Turkey, cotton, agricultural
cooperatives, welfare, state trading
enterprises.
Overshooting of Agricultural Prices In Four Asian Economies
Sayed H. Saghaian,
Mohamad F. Hasan, and Michael R. Reed
Author Affiliations: Sayed H. Saghaian is research scholar, Mohamad F. Hasan is postgraduate researcher, and Michael R. Reed is professor, all in the Department of Agricultural Economics at the University of Kentucky, Lexington.
Contact:
Michael Reed
Department of Agricultural Economics
400 Ag. Eng. Building
University of Kentucky
Lexington, KY 40546-0276
Phone: (606) 257-5762
Fax: (606) 323-1913
Email:
mrreed@pop.uky.edu
Abstract: This article examines the impacts of monetary policy on agricultural prices in four Asian economies using time series analysis and graph theory. The estimations clearly show that agricultural prices overshoot their long-run equilibrium values for Korea, Philippines, and Thailand, and the overshooting for agricultural prices is larger than for manufactured prices. Impulse-response functions and variance-decomposition analysis based on directed graphs and causal structures highlight the complex interplay among the variables in the model and how those relationships differ by country. Money supply changes clearly affect real variables and relative prices for all countries either through overshooting or non-neutrality of money.
Key Words:
agricultural prices, Asian economies, directed graphs, impulse-response
functions, manufacturing prices, monetary policy, overshooting,
variance-decompositions.
Variable Rate Nitrogen Application on Corn Fields: The Role of Spatial Variability and Weather
Roland K. Roberts,
S.B. Mahajanashetti, Burton C. English, James A. Larson, and Donald D.
Tyler
Author Affiliations: Roland K. Roberts and Burton C. English are professors, James A. Larson is associate professor, S.B. Mahajanashetti is a former graduate research assistant of the Department of Agricultural Economics and Donald D. Tyler is a professor of the Department of Plant and Soil Sciences, The University of Tennessee, Knoxville, TN.
Contact:
Burton C. English
Department of Agricultural Economics
308C Morgan Hall
2621 Morgan Circle
The University of Tennessee
Knoxville, TN 37996-4500
Phone: (865) 974-7486
Fax: (865) 974-4829
Email:
benglish@utk.edu
Abstract: Meta-response functions for corn yields and nitrogen losses were estimated from EPIC-generated data for three soil types and three weather scenarios. These metamodels were used to evaluate variable rate (VRT) versus uniform rate (URT) nitrogen application technologies for alternative weather scenarios and policy options. Except under very dry conditions, returns per acre for VRT were higher than for URT and the economic advantage of VRT increased as realized rainfall decreased from expected average rainfall. Nitrogen losses to the environment from VRT were lower for all situations examined, except on fields with little spatial variability.
Key Words:
Corn, environment, meta-response functions, nitrogen restriction, precision
farming, site-specific management, spatial variability, weather
variability.
Using Insurance to Enhance Nitrogen Fertilizer Application Timing to Reduce Nitrogen Losses
Wen-Yuan
Huang
Author Affiliations: The author is an agricultural economist with the USDA, Economic Research Service, 1800 M Street NW, Washington D.C. 20036.
Contact:
Wen-Yuan Huang
U.S. Department of Agriculture-Economic Research Service
Room S4036
1800 M Street NW
Washington, DC 20036-5831
Phone: (202) 694-5542
Fax: (202) 694-5774
Email:
whuang@ers.usda.gov
Abstract: Nitrogen applied before planting is more vulnerable to loss to the environment than nitrogen applied during the growing season, but the growing season application can increase the risk of lower yields caused by adverse weather that prohibits farmers to complete N application. An expected utility framework is used to illustrate the potential economic benefit of insurance for a farmer to reduce this risk cost. An expected-value variance analysis is used to illustrate the potential benefit of insurance to Iowa corn growers who apply N fertilizer only during the growing season.
Key Words:
insurance, nitrogen fertilizer, and application
timings.
Farm-Level Effects of Adopting Herbicide-Tolerant Soybeans in the U.S.A.
Jorge Fernandez-Cornejo,
Cassandra Klotz-Ingram, and Sharon Jans
Author Affiliations: The authors are with the Economic Research Service, U.S. Department of Agricultural, 1800 M Street, Room 4052, Washington, DC 20036-5831.
Contact:
Jorge Fernandez-Cornejo
U.S. Department of Agriculture-Economic Research Service
1800 M Street NW, Room 4052
Washington, DC 20036-5831
Phone: (202) 694-5537
Fax: (202) 694-5775
Email:
jorgef@ers.usda.gov
Abstract: This paper estimates on-farm impacts of adopting herbicide-tolerant soybean on herbicide use, yields, and farm profits, using an econometric model that corrects for self-selection and simultaneity and is consistent with profit maximization. The model is estimated using nationwide farm-level survey data for 1997. Given that the use of herbicide-tolerant soybeans involves the substitution of a particular herbicide-primarily glyphosate- for other herbicides, we explicitly consider this substitution process in the model.
Key Words:
Genetically engineered soybeans, herbicide tolerance, herbicide use, farm
profits, technology adoption, yields.
The Impact of HACCP on Costs and Product Exit
Neal H. Hooker, Rodolfo
M. Nayga Jr., and John W. Siebert
Author Affiliations: Neal Hooker is assistant professor, Department of Agricultural, Environmental and Development Economics, The Ohio State University. Rodolfo Nayga and John Siebert are associate professors, Department of Agricultural Economics, Texas A&M University. Senior authorship is shared.
Contact:
Neal Hooker
Department of Agricultural, Environmental,
and Development Economics
2120 Fyffe Road
The Ohio State University
Columbus, OH 43210-1067
Phone: (614) 292-3549
Fax: (614) 247-7066
Email:
hooker.27@osu.edu
Abstract: Detailed information on firm level food safety costs is reported. Survey data for small and very small meat processors are modeled. Economies of scale in implementing Hazard Analysis Critical Control Point (HACCP) systems are investigated. Results indicate that even after controlling for scale, very small plants incur higher compliance costs. Diseconomies of scope are assessed using the probability and number of products discontinued due to HACCP. Such “partial exit” is positively related to the current range of items produced and the need for facility modification. However, no evidence is found for higher levels of partial exit in very small plants.
Key Words:
HACCP, economies of scale, firm and product exit, food safety strategies,
meat processing.
Impacts of the Adoption of Genetically Engineered Crops on Farm Financial Performance
William D. McBride
and Hisham S. El-Osta
Author Affiliations: The authors are economists with the USDA, Economic Research Service, Washington, D.C.
Contact:
William D. McBride
USDA - ERS
Room N4102
1800 M Street NW
Washington, DC 20036-5831
Phone: (202) 694-5577
Fax: (202) 694-5756
Email:
wmcbride@ers.usda.gov
Abstract: The rapid adoption of genetically engineered (GE) crops by U.S. farmers suggests that these technologies have been perceived to improve farm financial performance. This study develops and applies an econometric model to data from corn and soybean producers in order to evaluate the financial impacts of the adoption of GE crops. Results indicate that the adoption of GE crops has had a limited impact on financial performance that varies by crop, type of technology, type of farm, and region of the nation. Factors other than the financial impacts appear to be important reasons for the rapid adoption of GE crops.
Key Words:
Bt, corn, farm financial performance, genetically engineered crops,
herbicide-tolerant, soybeans, technology
adoption.
Payoffs to Farm Management: How Important is Crop Marketing?
Heather D. Nivens,
Terry L. Kastens, and Kevin C. Dhuyvetter
Author Affiliations: The authors are graduate student, associate professor, and professor, respectively, Department of Agricultural Economics, Kansas State University, Manhattan, Kansas.
Contacts:
Terry Kastens
304F Waters Hall
Manhattan, KS 66506
Phone:(785) 532-5866
Fax: (785) 532-6925
Email: tkastens@agecon.ksu.edu
Abstract: In production agriculture, good management is demonstrated by profits that are persistently greater than those of similar neighboring farms. This research examined the effects of management practices on risk-adjusted profit per acre for Kansas farms over 1990-1999. The management practices were price, cost, yield, planting intensity, and technology adoption (less-tillage). Cost management, planting intensity, and technology adoption had the greatest effect on profit per acre, and cash price management was found to have the smallest impact. If producers wish to have continuously high profits, their efforts are best spent in management practices over which they have the most control.
Key Words:
farm management, marketing, risk, technology
adoption.
Lags in Real Property Revaluations and Estimates of Shortfalls in Property Tax Collections in North Carolina
Michael L. Walden
and Zulal Denaux
Author Affiliations: Michael L. Walden is William Neal Reynolds Distinguished Professor, Dept. of Agricultural and Resource Economics, North Carolina State University, Raleigh. Zulal Denaux is assistant professor, Meredith College, Raleigh.
Contact:
Michael L. Walden
Box 8109
North Carolina State University
Raleigh, NC 27695
Phone: (919) 515-4671
Fax: (919) 515-1824
Email:
michael_walden@ncsu.edu
Abstract: Financing local public goods is a major issue in many communities, especially those that have experienced rapid growth. This paper analyzes problems associated with locally collected real property taxes where the real property tax base is only revaluated at long time intervals. Using counties in North Carolina as the subject of the analysis, we find that effective real property tax rates fall between revaluations. We calculate that a system of taxing market values of real property at a constant legislated tax rate would have yielded additional annual revenues of $320 million for North Carolina counties over 1980 to 1995.
Key Words:
local public finance, property taxation, real property
revaluation.
Applying a Method of Paired Comparisons to Measure Economic Values for Multiple Goods Sets
Randall S. Rosenberger,
George L. Peterson, and John B. Loomis
Author Affiliations: Randall S. Rosenberger is assistant professor, West Virginia University, Morgantown, and holds a co-appointment in the Regional Research Institute and Division of Resource Management. George L. Peterson is project leader, Rocky Mountain Research Station, Forest Service, US Department of Agriculture, Fort Collins, CO. John B. Loomis is professor, Department of Agricultural and Resource Economics, Colorado State University, Fort Collins.
Contact:
Randall S. Rosenberger
West Virginia University
Department of Resource Management
2032 Agricultural Sciences Building
PO Box 6108
Morgantown, WV 26506
Phone: (304) 293-4832 x4468
Fax: (304) 293-3752
Email:
rrosenbe@wvu.edu
Abstract: A method of paired comparison is adapted for use in estimating economic measures of value. The method elicits multiple binary choices for paired items in a choice set. Probability distributions and economic values are estimated nonparametrically and parametrically. The method is applied in an experimental context with a choice set composed of four private goods and several sums of money. The sample’s median value estimates for the goods are generally not different than the market prices for these goods. People who are in the market for a good value the good higher than those not in the market for the good.
Key Words: alternative gains, economic valuation, hypothetical market, paired comparisons, stated choice method.
JEL Classification:
C51, C80, D12, Q26
BOOK REVIEW: Schmitz, Andrew and Hartley Furtan. Canadian Wheat Board: Marketing in the New Millennium. Regina, Saskatchewan: Canadian Plains, Research Center, 2000, 328 pp., $29.95 paper. ISBN 0-88977-134-0
Contact:
Won W. Koo
Department of Agricultural Economics
Morrill Hall, Room 209B
North Dakota State University
Fargo, ND 58105-5167
Phone: (701) 231-7448
Fax: (701) 231-7400
Email:
wkoo@ndsuext.nodak.edu
BOOK REVIEW: Spriggs, John and Grant Isaac. Food Safety and International Competitiveness: The Case of Beef. Oxon UK: CABI Publishing, 2001, 208 pp. $75.00. ISBN 0-85199-518-7.
Contact:
Suzanne Thornsbury
University of Florida
Indian River Research and Education Center
2199 South Rock Road
Fort Pierce, FL 34945-3138
Phone: (561) 468-3922
Fax: (561) 468-5668
Email:
thornsbs@mail.ifas.ufl.edu
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