Abstract: This study examines media coverage of genetically modified (GM) crops in a risk communication framework. Content analysis is employed to investigate how specific environmental, food safety, and landmark events, such as the monarch butterfly and Pusztai controversies, and the cloning of Dolly-the-sheep, were reported by the media. Media coverage is from United Kingdom and United States newspapers over the period 1990 through 2001. On balance, findings show that the UK press has been more negative than the U.S. press in its coverage of GM crops. In addition, environmental and food safety events had a significant impact on the level and cycle of GM crop coverage.
Key Words: biosafety, content analysis, environment, GM crops, GMOs, media coverage
Contact Author:
Leonie A. Marks
Dept. of Ag. Economics
125D Mumford Hall
University of Missouri-Columbia
Columbia, MO 65211
Phone: (573) 882-4632
Fax: (573) 882-3958
Abstract: Precision farming technologies have been commercially available since the early 1990s, but the pace of adoption among U.S. farmers has been modest. This study examines the relationship between the adoption of diagnostic and application techniques of precision farming and sources of information available to farmers about precision farming. The model used in the analysis accounts for sources of self-selection in the adoption process that could bias the results. Results indicate interpersonal information sources have increased adoption relative to information from the mass media, and the private sector has been the driving force behind the diffusion of precision farming. Information from crop consultants and input suppliers has had the greatest impact on the adoption of precision farming technologies. These sources likely provide the greatest technical expertise about precision farming, and thus are better equipped to ease the significant human capital requirement of precision farming technologies.
Key Words: ainformation sources, logit analysis, precision farming, self-selection bias, technology adoption
Contact Author:
William D. McBride
U.S. Department of Agriculture
Economic Research Service
1800 M Street NW, Room N4102
Washington, DC 20036
Phone: (202) 694-5577
Fax: (202) 694-5756
Abstract: The theory of contrary opinion predicts price reversals following extremes in market sentiment. This research tests a survey-based sentiment index's usefulness as a contrary indicator across 28 U.S. futures markets. Using rigorous time-series tests, the sentiment index displays only a sporadic and marginal ability to predict returns, and in those instances the pattern is one of return continuation—not reversals. Therefore, futures traders who rely solely upon sentiment indices as contrary indicators may be misguided.
Key Words: bullish consensus, contrary opinion, market sentiment
Contact Author:
Dwight R. Sanders
Dept. of Agribusiness Economics
Mailcode 4410
Southern Illinois University
Carbondale, IL 62901-4410
Phone: (618) 453-1711
Fax: (618) 453-1708
Abstract: This research examines the potential basis behavior and hedging effectiveness for the Minneapolis Grain Exchange's (MGE's) cash settled corn contract. MGE futures cash settle to the National Corn Index (NCI) calculated by the Data Transmission Network (DTN). Focusing on seven regions in Illinois, the data suggest that NCI futures offer potential advantages over the existing Chicago Board of Trade (CBOT) corn futures. In particular, nearby basis variability could be reduced by 4¢ per bushel from 8.6¢ to 4.6¢ per bushel, and unconditional hedging effectiveness may increase from an average of 79% for the CBOT to 93% for the NCI. These results are statistically significant, and likely to be economically important given that agribusiness firms such as grain merchandisers and country elevators traditionally have very low margins.
Key Words: basis behavior, cash settlement, corn futures, new contracts
Contact Author:
Dwight R. Sanders
Dept. of Agribusiness Economics
Mailcode 4410
Southern Illinois University
Carbondale, IL 62901-4410
Phone: (618) 453-1711
Fax: (618) 453-1708
Abstract: The emergence of E-commerce in the 1990s heralded the arrival of the New Economy. However, the failure of numerous dotcoms since early 2001 has led to a debate regarding the future direction of E-commerce and its potential relevance for agribusiness. This study examines the economic implications of E-commerce for agribusiness within the framework of New Institutional Economics. The New Institutional Economics implies that E-commerce has the potential to reduce direct transactions costs in agricultural markets, but that it also may add additional indirect transactions costs. Depending upon the tradeoff between these costs, an institutional innovation which reduces the transactions costs may provide the impetus for an alternative marketing channel for agricultural output. Two models of institutional change are explored. The North model of changes in the rules of the game is found to be more consistent with the advent of E-commerce than the model of technological change suggested by Schumpeter.
Key Words: E-commerce, marketing channels, New Institutional Economics, Schumpeter
Contact Author:
Troy G. Schmitz
Morrison School of Agricultural Business & Resource Management
7001 E. Williams Field Road, Bldg. 20
Arizona State University
Mesa, AZ 85212
Phone: (480) 727-1566
Fax: (480) 727-1961
Abstract: This article summarizes a study of consumers' willingness to pay (WTP), in urban areas in Tennessee, Mississippi, and Michigan, for a powdery mildew resistant dogwood tree. Powdery mildew is a disease affecting flowering dogwoods that can limit growth, detract from the appearance, and may cause plant decline and death. Study objectives were to provide information about consumers' WTP and to identify potential marketing strategies for the introduction of the disease-resistant tree. On average, survey respondents indicated they are willing to pay a $13.35 premium for a flowering dogwood tree which is resistant to powdery mildew. Regression results led to inferences that the presence of dogwoods in a respondent's yard, presence of dogwoods infected with powdery mildew in a yard, landscape expenditures, presence of flower beds, landscape satisfaction, criteria for selecting plants and trees, retail outlets where respondents shop for landscape materials, geographic location, and income had significant effects on the WTP. Marketing implications include the need to provide information at the point of sale, to place the trees near flowering plants at outlets, and to interact with shoppers to determine characteristics of their yards.
Key Words: contingent valuation, disease resistance, dogwood, marketing, maximum likelihood, nursery, powdery mildew
Contact Author:
David B. Eastwood
Department of Agricultural Economics
302 Morgan Hall
University of Tennessee
Knoxville, TN 37996-4518
Phone: (865) 974-7461
Fax: (865) 974-7484
Abstract: Agricultural cooperatives have been restructuring, by way of mergers, acquisitions, joint-ventures, and strategic alliances, to increase efficiencies to remain competitive in a changing business environment. The research evaluating the reorganization of cooperatives has revealed that less than one-half of the restructured businesses are financially successful. There is the potential to significantly influence the future health of the cooperative business sector if, first, insights can be gained concerning the factors being considered by cooperative managers when making restructuring decisions and, second, extension education programs can be adapted to meet the greatest need. In this study we examine: (a) what methods of valuation cooperatives are using when evaluating new business opportunities, and (b) what factors influence the methods of valuation preferred by cooperatives when evaluating new business opportunities.
Key Words: capital budgeting methods, cooperatives, finance, restructuring
Contact Author:
Susan Hine
Department of Agricultural & Resource Economics
Clark Hall
Colorado State University
Fort Collins, CO 80523-1172
Phone: (970) 491-7370
Fax: (970) 491-2067
