In understanding decreases in demand after exposure to media-induced food scares, aggregate data are almost exclusively presented without taking into consideration potential confounding variables. However, a better approach may be to use an experimental design coupled with targeting homogeneous willingness-to-pay (WTP) subgroups based on similarities in behavioral, psychological, and demographic characteristics of those who are most vulnerable to food scare information. This is accomplished through experimental economics and an analysis strategy called a classification and regression tree (CART). A stigma framework—which guides conceptual understanding of effects of media-induced food scares—suggests controlling contextual variables to better approximate ceteris paribus. To this end, we conducted an experiment that exposed people to information about mad cow disease and then asked them to bid their willingness-to-pay for an actual hamburger. The CART found distinct homogeneous WTP subgroups of individuals that could be used by government and industry professionals to create interventions to reduce potential consumer concern and producer losses.

The method of computing wealth shares accruing to lowest and highest quintiles, along with the concepts of the Lorenz curve and the Gini coefficient, are used in conjunction with data from the 1996 and 1999 Agricultural Resource Management Study (ARMS) survey to measure the distribution of wealth among U.S. farm operator households. Findings show that the distribution of wealth in 1996 was slightly more concentrated than in 1999, with the farm wealth component contributing significantly more toward measured concentration in both years than the nonfarm wealth component. The robustness of the findings under varied value judgments concerning society's level of aversion to wealth concentration is also examined.

Lifestyle landowners value land for its amenities and ecological characteristics and could play an important role in managing and conserving native vegetation in multifunctional rural landscapes. We quantify values of ecosystem services captured by owners of rural lifestyle properties in Victoria, Australia, using a spatial hedonic property price model. The value of ecosystem services provided by native vegetation is maximized when that vegetation occupies about 40 percent of the area of a lifestyle property. Since the current median proportion of native vegetation is 15 percent, most lifestyle landowners could benefit from increasing the area of native vegetation on their properties.

The primary objective of this study was to assess the impact of catfish imports and tariffs on the U.S. catfish industry, with particular focus on the U.S. International Trade Commission ruling on Vietnam in 2003. Given the importance of Vietnam to the U.S. catfish market, it was assumed that catfish import prices would increase by 35 percent if the maximum tariff was imposed on catfish from Vietnam. With the tariff, domestic catfish prices at the wholesale level would increase by $0.06 per lb, and farm prices by $0.03 per lb. Processor sales would increase by 1.66 percent. Total welfare at the wholesale level would increase from $69.2 million to $71.7 million, an increase of about 3.63 percent, and processor and farm revenue would increase by 4.4 percent and 5.8 percent, respectively. These results represent the greatest possible benefit and suggest modest gains for the U.S. catfish industry.

This paper explores the emerging concept of place-based economic policy. It reviews recent literature on place-based economics policy, especially regional competitiveness policy, and explores the adoption and diffusion of this concept by economic development practitioners and social science researchers. It attempts to answer the question: Are place-based economic policy and the underlying conceptual foundations lasting innovations, or are they fads which economic development practitioners and social scientists will adopt until another fad emerges? The conclusion is that economic development practitioners and social scientists do tend to respond to fads. To ensure that regional economic development policy is not dominated by fads, social scientists must get out in front of economic development practitioners far enough to thoroughly develop and test regional competitiveness and other place-based economic theories.

A growing body of literature demonstrates that many behavioral anomalies observed in stated-preference elicitation methods such as the contingent valuation method are also observed in actual choices and vice versa. This presentation furthers the argument that such parallel behaviors should be viewed as a strength of stated-preference methods. Three well-known anomalies observed in both stated preferences and actual choices are first reviewed to lay the foundation for this argument. A number of lesser-known anomalies are then presented to demonstrate the wider prevalence of parallel anomalies in stated preferences and actual choices.

This study examines the market drivers of corn monocropping in the U.S. Midwest by empirically analyzing crop rotation responses to market fluctuation from 2005 to 2014 and the price shock induced by the recent biofuel mandate. We find that the expected market returns for crops have a significant impact on farmers' decisions about monocropping. We also find that corn monocropping is loosely associated with the presence of nearby ethanol plants. This study illustrates the emerging use of high-resolution land cover data to tackle critical agribusiness and agro-environmental policy questions that remain elusive with aggregate data.

In recent years, there has been significant growth in the sales of plant-based alternatives to meat and dairy products. However, it remains unclear whether these alternatives are actually reducing sales of livestock-derived products. This paper examines the relationship between the sales of one particular livestock-derived product – unflavored dairy milk – and its plant-based alternative – nondairy milk. Using data from a panel of US consumers between 2004 and 2018, I find that a 1-gallon increase in nondairy milk sales is associated with a 0.43–0.60 gallon reduction in dairy milk sales. The inverse relationship between dairy and nondairy milk purchases is strongest among households with high initial expenditure on dairy milk. Despite the inverse relationship between dairy and nondairy milk purchases, the rapid increase in nondairy milk sales between 2009 and 2018 explains little of the concomitant decline in dairy milk sales.

Prioritizing exotic or invasive pest threats in terms of agricultural, environmental, or human health damages is an important resource allocation issue for programs charged with preventing or responding to the entry of such organisms. Under extreme uncertainty, program managers may decide to research the severity of threats, develop prevention or control actions, and estimate cost-effectiveness in order to provide better information and more options when making decisions to choose strategies for specific pests. We examine decision rules based on the minimax and relative cost criteria in order to express a cautious approach for decisions regarding severe, irreversible consequences, discuss the strengths and weaknesses of these rules, examine the roles of simple rules and sophisticated analyses in decision making, and apply a simple rule to develop a list of priority plant pests.

Technical efficiency for cotton growers is examined using both stochastic (SFA) and nonstochastic (DEA) production function approaches. The empirical application uses farm-level data from four counties in west Texas. While efficiency scores for the individual farms differed between SFA and DEA, the mean efficiency scores are invariant of the method of estimation under the assumption of constant returns to scale. On average, irrigated farms are 80% and nonirrigated farms are 70% efficient. Findings show that in Texas, the irrigated farms, on average, could reduce their expenditures on other inputs by 10%, and the nonirrigated farms could reduce their expenditures on machinery and labor by 12% and 13%, respectively, while producing the same level of output.

“Substantial downzoning” is defined as the exercise of police power to significantly reduce the legally permitted density on undeveloped land in a community. This contentious practice is typically challenged by those who perceive the action to limit their market opportunities (e.g., farmers and developers), their sympathizers, and others who prefer the status quo. Supporters tend to be those who perceive positive benefits (e.g., environmentalists, conservationists, and homeowners) and those who see it as a supplement to other preservation techniques, based on concerns over such things as growing public costs of land acquisition, limited effectiveness of existing alternatives, or the perceived urgency to act to manage growth.

Given the complexity of the issue and the lack of previous research, this paper develops a conceptual model of the public choice to “substantially downzone” and presents specific hypotheses to be empirically tested, using New Jersey as a case study. The probability of implementing substantial downzoning is found to increase with (i) the amount of open space that remains to be protected, (ii) declining farm population, (iii) recent growth in non-farm population, (iv) recent growth in land values, and (v) the presence of alternative growth management tools. Results also suggest its use as a substitute for other preservation tools when the financial and/or political ability of communities to afford other approaches is limited. Hence, the likelihood of substantial downzoning may increase over time if alternatives become more difficult to implement.

Most of Southern California's wetlands have disappeared despite being critical ecosystems with many valuable attributes. Many of the wetlands that remain are in relatively urban areas, are severely degraded, and may not function properly. Using hedonic spatial error models, we measure the economic value of living near an urban multi-use wetland in Long Beach, California. Both sales prices and estimated values are used in the analysis. Results show that proximity to wetlands increases residential property values in the focus area. This analysis provides important information for policymakers to justify ongoing restoration projects and prevent further degradation of urbanized natural resources.

A conceptual model links agricultural profits, capital gains, interest rates, and property taxes to the sale of agricultural land by profit-maximizing owners. The model motivates an empirical analysis of New Jersey data from 1949 to 1990. Results suggest that nonagricultural considerations may overpower the economic incentives provided by such policies as farmland assessment. Consequently, alternative policies (e.g., purchase of development rights and land use zoning) may be needed to sustain agriculture in rapidly urbanizing areas.

Existing empirical evidence on the impact of macroeconomic variables on agriculture remains mixed and inconclusive. This paper re-examines the dynamic relationship between monetary policy variables and agricultural prices using alternative vector autoregression (VAR) type model specifications. Directed acyclic graph theory is proposed as an alternative modeling approach to supplement existing modeling methods. Similar to results in other studies, this study's findings show that over the time period analyzed (1975–2000), changes to money supply as a monetary policy tool had little or no impact on agricultural prices. The primary macroeconomic policy instrument that affects agricultural prices is the exchange rate, which is shown to be directly linked to interest rate, a source of monetary policy shock.

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.

Food security in many developing countries has been threatened by several factors such as unequal land distribution, ineffective land reform policies, inefficient agricultural value chains, and an increasing number of climate disasters. In Nigeria, these threats are exacerbated by rapid population growth and extreme weather events, which have resulted in farmer-herder conflicts in most agrarian communities. This paper examines the differential impacts of the incidence and severity of farmer-herder resource use conflicts on food insecurity of rural households in Nigeria. We employ a two-stage predictor substitution model to estimate survey data collected from 401 rural households in Nigeria. The empirical results show that both the incidence and the severity of farmer-herder conflicts significantly increase food insecurity, and the severity of these conflicts has a larger impact than their incidence. The estimates of the conditional mixed process models confirm the robustness of our results. Additional analysis reveals that the incidence and severity of farmer-herder conflicts positively and significantly affect food insecurity, measured by the number of days with limited varieties of food eaten. Our findings highlight the importance of policy interventions that address ongoing farmer-herder conflicts in affected countries like Nigeria to enhance food security from a sustainable development perspective.

Arkansas ranks first in broiler production in the USA with more than a billion broilers and 1.5 million tons of litter produced in 1993. Transporting litter from western to eastern Arkansas can accomplish two goals: 1) avoid potential threat to clean water in western Arkansas and 2) can increase productivity of graded lands in the Delta. This paper examines the feasibility of litter transport from areas of high poultry concentrations to the Delta for use as a soil amendment. We establish the conditions for economical litter transport from source to destinations and determine the optimal rates of litter applications. The results suggest that it is economical to transport significant portions of litter.

This study examines the impact of publicly supported insurance on agricultural land values. The analysis employs confidential, nationally representative panel data on field-level pastureland values and exploits a natural experiment provided by gradual introduction of the Pasture, Rangeland, and Forage Insurance Pilot Program. We use a field-level fixed-effects model that controls for several time-variant factors. We find that insurance availability is associated with an increase of at least 4 percent in pastureland values. This increase is comparable with increases generated by other government programs but is much smaller than total farmland value increases experienced in recent years.

We examine how changes in yield variability affect the welfare of cereal grain and oilseed buyers and producers around the world. We simulate trade patterns and welfare for 21 countries with a Ricardian trade model that incorporates bilateral trade costs and crop yield distributions. The model shows that world trade volumes would need to increase substantially if crop yield variability were to rise. Net welfare effects, however, are moderate so long as countries do not resort to policies that inhibit trade, such as export restrictions or measures to promote self-sufficiency in crops. Low-income countries suffer the most from increases in yield variability, due to higher bilateral trade costs and lower-than-average productivity.

This study examines the factors that determine the likelihood of submitting a potentially fraudulent prevented planting claim. A theoretical model is developed and the theoretical predictions are empirically verified by utilizing a binary choice model and crop insurance data from the southern United States. The empirical results show that insured producers with higher prevented planting coverage, lower dollar value of expected yield, and a history of submitting prevented planting claims are more likely to submit an anomalous prevented planting claim. The empirical model also suggests revenue insurance plans may be more vulnerable to prevented planting fraud than the traditional yield-based insurance plan. Results of this study can be valuable to compliance offices in their efforts to find “indicators” of fraudulent behavior in crop insurance, especially with regard to prevented planting.