This paper explores the relationship between income and eating behavior. To do this we examine choice in two food categories: milk and soft drinks. These categories have varieties differing in health qualities but either no differences in cost or lower cost for the healthier types. By examining food choices when there are no measurable cost differences but clear health differences, we are able to isolate the association between income and healthy eating behavior. We find a negative association between income and dietary intake of higher-calorie types of milk and soft drinks. Our estimates are consistent across the five sets of the National Health and Nutrition Examination Survey and the Continuing Survey of Food Intakes by Individuals data that we study. For 2005 we estimate that an income increase of $10,000 is linked to a reduction in 377 calories from milk and 2,555 calories from soft drinks per year. Our results suggest that the cost of food may not be the only reason why low income people have less healthy diets.

Automatic, or robotic, milking systems have the potential to significantly change the way milk is produced on U.S. dairy farms. However, there is a high degree of uncertainty associated with adoption of this new technology. A real options approach is used to analyze the decision to replace an operational milking system with an automatic milking system. The most important source of uncertainty is shown to be the length of the technology's useful life. Under our assumptions, the automatic system is always an optimal investment if it is certain that it will last longer than the operational system being replaced.

This paper explores the role of managerial ability in determining efficiency in New York dairy farms. Using an unbalanced panel of farm data from 1993 through 2004, we estimate outputoriented technical efficiencies using stochastic distance frontier functions. We find that both lagged net farm income and farmers’ own estimates of the value of their labor and management as proxies for managerial ability impact measured efficiency. Efficiency increases with operator education, farm size, and extended participation in a farm management program, but decreases with operator age.

We investigate nutrient trading for point and non-point sources for the Bay Restoration Fund in Maryland. We demonstrate how to use the proceeds from the tax revenue to mimic a market by trading high-cost upgrades of sewage treatment plants for low-cost winter cover crops. Under an optimistic assumption about costs for non-point sources and naïve assumptions about the lag from planting cover crops to changes in nitrogen load, we calculate that 100 percent of abatement could be achieved at 56 percent of total costs, while in a pessimistic scenario, 100 percent of abatement could be could be achieved at 83 percent of total costs.

This study analyzes quantity impacts of imported crawfish tailmeat on Louisiana crawfish tailmeat prices, and demonstrates the statistical validity and proper interpretation of cross substitution within inverse demand systems. Among five inverse demand systems, the Differential Inverse National Bureau of Research (DINBR) model shows no violation of econometric assumptions for the data analyzed. By using Allais coefficients proposed by Barten and Bettendorf (1989), we show substitutability among the five fish species.

While many studies have estimated the impacts of air pollution on crop yields on experimental plots, few have estimated these impacts under actual farm production conditions. This study econometrically estimates the impact of air pollution on corn and soybean yields, controlling for weather, soil quality and management practices, using farm-level data for the eastern United States. Ozone pollution was found to reduce yields for both crops. The mean elasticity of yield with respect to ozone exposure was − 0.19 for corn and − 0.54 for soybeans. The benefits of ozone standards to protect crops, measured in terms of crop revenues, range from $17 to $82 million depending on the stringency of the standard. Over 85 percent of the revenue gains are captured by three states: Maryland, North Carolina, and Virginia.

A combination of conceptual analysis and empirical analysis—partial regression and residuals analysis—was used to derive an appropriate functional form hedonic price model. These procedures are illustrated in the derivation of a functional form hedonic model for an automated, econometric daily cotton price reporting system for the Texas-Oklahoma cotton market. Following conceptualization to deduce the general shapes of relationships, the appropriate specific functional form was found by testing particular attribute transformations identified from partial regression analysis. Minimizing structural errors across attribute levels and estimation accuracy were used in determining when an appropriate functional form for both implicit and explicit prices was found.

Direct-to-consumer (DTC) agricultural sales doubled in the United States between 1992 and 2007 and then plateaued between 2007 and 2012. It is not clear whether the plateau in sales was attributable to the recession, market saturation, an aging population, or other factors. We estimate the influence of socioeconomic factors in metropolitan areas on DTC agricultural sales between 1992 and 2012 in thirteen Northeast states using county-level panel data. We find that the income elasticity of DTC agricultural purchases ranged from 2.2 to 2.7 and that counties in metropolitan areas did not have higher DTC agricultural sales than other counties, ceteris paribus.

Despite a proliferation of articles focused on consumer willingness-to-pay for locally produced foods, few studies have systemically considered the role of food identity in the price premium of local foods. This article uses primary and secondary data to fill that gap. Using data from 9,329 U.S. households, we identify what foods each state considers a part of their collective food identity. We then compare each state's collective food identity to the actual production within the state. Finally, we utilize a discrete choice experiment (N = 484) focused on a state with one such collective food identity to test whether a consumer's preference for local foods is a function of the collective food identity within the state. Results from the open-ended survey suggest that each state connects with their food production in unique ways and that not all state identities are consistent with actual agricultural production. Results from the discrete choice experiment suggest that consumers are more willing to pay a premium for the local food that is a part of their local food identity than for a similar product that is not a part of their local food identity. Our findings imply that future research on consumer preferences for local food systems should consider the relationship between food culture and geography.

The industrialization of agriculture refers to the continued consolidation of farms and to the growing use of production and marketing contracts and vertical integration among input suppliers, lenders, agricultural producers, processors, and distributors of food and fiber products, domestically and globally. Industrialization is strongly affecting the structure and performance of farms and agribusiness firms; the distribution of risk, returns, and the ownership and control of resources in the food and fiber system; locations of production; competitiveness in international markets; the effectiveness of agricultural policy; business activity, income, family welfare and employment in rural communities; and environmental quality and control. Research is urgently needed to measure these effects, understand the complex underlying factors, and evaluate policy alternatives that influence and are influenced by the industrialization of agriculture.

This article investigates the possible negative effects of bovine somatotropin (bST) and antibiotic use in cows on fluid-milk consumption in New York State. Based on data from a consumer survey, the potential change in milk consumption due to bST and antibiotic use is estimated. In addition, the current perceptions of consumers about bST and antibiotics are measured, and the significant socioeconomic, demographic, and attitudinal characteristics of consumers that are related to their milk-consumption response to bST are identified.

The rural public may not only be concerned with the consequences of land management; residents may also have systematic preferences for policy instruments applied to management goals. Preferences for outcomes do not necessarily imply matching support for the underlying policy process. This study assesses relationships among support for elements of the policy process and preferences for management outcomes. Preferences are examined within the context of alternative proposals to manage growth and conserve landscape attributes in southern New England. Results are based on (a) stated preferences estimated from a multi-attribute contingent choice survey of rural residents, and (b) Likert-scale assessment of strength of support for land use policy tools. Findings indicate general but not universal correlation among policy support indicators and preferences for associated land use outcomes, but also confirm the suspicion that policy support and land use preference may not always coincide.

Control of nonpoint sources of pollution has traditionally been within the domain of local decision makers in recognition of the critical importance of site-specific issues. More recently attention has turned to the issue of what can and should be done at the regional or national level, while recognizing the importance of site-specific attributes. This paper describes and illustrates an approach for analysis of nonpoint pollution problems that focuses jointly at the aggregate and disaggregate levels of the problem. The approach is based on linking two tools of analysis, the microparameter distribution model and the Geographical Information Systems (GIS). Although there are significant challenges to be overcome in implementing such an approach, linkage of these two policy tools has considerable promise in dealing with site-specific issues within an aggregate framework. Furthermore, GIS is potentially an important source of data for economists to exploit, given the momentum of GIS systems throughout the nation and given the relatively disaggregate nature of the data.

Environmental problems in agriculture have proven difficult to address due to the spatial heterogeneity and temporal variability intrinsic to agriculture. Agriculture is largely a struggle against nature; both its sustainability and the prospects for improving environmental performance and farm income simultaneously are thus inherently limited. Agriculture's high degree of variability makes direct regulation inefficient. Subsidies for improving environmental performance can have negative consequences and have proven ineffective in practice, due largely to bureaucratic culture. Pollution taxes should be the most effective and efficient form of policy. Interdisciplinary research is needed to provide models for performance evaluation.

The demand for functional foods has increased notably in recent years due to growing consumer interest in diet and health issues. Currently, the food industry is introducing many types of new food products with functional attributes. Consequently, cannibalization is a critical issue for firms that offer multiple products within a certain product category. The identification and assessment of cannibalization are integral factors when making strategic decisions about new product introductions. Using scanner data from Information Resources, Inc. (IRI), pertaining to a particular functional food, namely a phytosterol-enriched product for orange juice, we find that no cannibalization effects exist with respect to its introduction. We also provide estimates of own-price and cross-price elasticities of the orange juice category using a synthetic demand system.

A discrete choice model and site-specific data are used to analyze land use choices between crop production and pasture in the Corn Belt. The results show that conversion probabilities depend on relative returns, land quality, and government policy. In general it is found that landowners are less inclined to remove land from crop production than to convert land to crop production.

Nearly all applied research on arts activity has examined phenomena in metropolitan areas. Findings from this past research confirm an arts specialization in a limited number of cities. This paper finds a similar pattern in nonmetropolitan areas, where a limited number of counties maintain or develop a distinct specialization in the arts. We document the emergence of these “rural artistic havens” and identify county characteristics associated with the attraction of performing, fine, and applied artists. The implications of these findings for rural development strategies focusing on the arts are discussed.

“Buying local״ has become one of the most important trends in food marketing. Despite widespread public attention, the influence of the “local״ attribute on food prices is not well understood. We aim to begin to fill this gap in research by exploring the presence of a price premium for “local״ in actual market transactions. Using scanner data on fresh packaged lettuce in the Honolulu market and hedonic modeling, we investigate consumers’ revealed preferences for the attribute. Contrary to the positive willingness to pay for local food widely reported in previous studies, we find no local premium for fresh lettuce in the Honolulu market.

Farm milk prices tend to be volatile. Dairy farmers, industry pundits, and policymakers further tend to react to price volatility with alarm. One point of concern is the response of retail prices. This study investigates farm-to-retail price transmission in the 2000s for whole milk and Cheddar cheese. Results show that price shocks at the farm gate are transmitted with delay and asymmetry to retail. Differences in the nature of price transmission for whole milk and Cheddar cheese prices are also identified.

The search for engines to power rural economic growth has gone beyond the traditional boundaries of the food and fiber sector to industries such as tourism and to schemes such as attracting metropolitan workers to commuter communities with rural amenities. A group that has been somewhat overlooked is retirees, who may wish to trade in urban or suburban lifestyles for a more peaceful rural retirement. An industry that has been neglected is the health care industry, which is the most rapidly growing industry nationally and of particular interest to retirees and aging populations. This paper examines the importance of rural health care services in attracting migrants age 65+ to rural counties in Michigan. Results indicate that the number of health care workers has a positive effect on net in-migration, and that this effect is large and statistically significant for the 70+ age group. Implications for rural development strategies are discussed.