The effects of the Free Trade Area of the Americas (FTAA) agreement on the forest sectors and resources of member countries are investigated. A model of wood supply within the spatial partial-equilibrium Global Forest Products Model is developed to link international trade and deforestation. The direct effects of tariff changes and the indirect effects of income changes induced by trade liberalization are considered. The FTAA has a small positive impact on the region's forest resources. Higher harvests of industrial roundwood in most countries are offset by increased afforestation due to the income effect of trade liberalization (captured by the environmental Kuznets curve).

This paper examines the acquisition of wood stoves by New Hampshire households through use of a utility-maximizing discrete choice model. The analysis is based on the hypothesis that wood stoves are acquired to decrease the monetary costs of home-heating. Operating costs associated with heating with conventional fuel burning capital and with a combination of conventional and wood stove heating capital are estimated. These operating costs are used to estimate probabilities of 1979 wood stove acquisition for particular types of New Hampshire households.

An industry group has proposed a novel system for managing the Northeast Multispecies Fishery. Each harvester would be endowed with a budget of points, and each species would have a “point price,” or number of points that must be paid out of his budget when landing that species. By varying the point prices throughout the season, management could redirect effort across species. This paper presents a benchmarked experimental testbed of this management system, and shows that harvesters do respond to point prices, which can be chosen to support harvest of most of the allowable catch of each species without severely over-harvesting any of them.

Using life cycle assessment methodology, this analysis evaluates how two carbon reduction strategies affect cotton plantings regionally and methods used to produce cotton. Because cotton production emits large amounts of carbon, the design of a reduction policy as either excluding soil sequestration through cap-and-trade or including it through carbon offset is likely to affect the success of the policy. A cap-and-trade program that ignores the amount of carbon cotton would sequester in the soil during its life cycle could increase net emissions by rewarding producers whose crops emit limited carbon directly but also sequester little carbon in the ground.

This paper evaluates the economic and environmental tradeoffs at watershed scale by incorporating both economic and environmental risks in agricultural production. The Target MOTAD model is modified by imposing a probability-constrained objective function to capture the yield uncertainty caused by random allocation of farming systems to soil types and by introducing environmental targets to incorporate environmental risk due to random storm events. This framework is used to determine the tradeoff frontier between watershed net return and sediment yield and nitrogen concentration in runoff in Goodwater Creek watershed, Missouri. The frontier is significantly affected by environmental risk preference.

This paper jointly models a landowner's decision to develop a parcel and the option to enroll that parcel in a current use assessment program. The analytical results highlight different factors that influence the effectiveness of a current use program in delaying development. The results also underscore the difficulty a local government might have in influencing the behavior of the landowner. Except for altering eligibility rules, a local government employing current use assessment has but two policy tools: a penalty for development and the property tax rate.

There is growing interest in green payments subsidizing conservation measures on working farmland based on the premise that they have positive effects on the environment and agriculture simultaneously without causing international trade distortions. This paper uses a Ricardian land market equilibrium model to examine the impacts of green payments. The analysis shows green payments can worsen ambient pollution damage by subsidizing the expansion of more intensive crop cultivation. Some forms of green can increase cultivation intensity (and thus environmental damage) as well. These adverse effects can be avoided by careful targeting, but such targeting is likely to be quite difficult.

Several studies have tried to estimate the productivity and input use efficiency of cocoa farmers in Ghana, but they shed limited light on their chronic nature and other sources of low production. This study extends the literature by analyzing a unique nationally representative sample that constitutes 30 years of production. The results showed that pure farmer technical inefficiency is not only 8 percent points larger than the regional technology gap, but also consistently dominated the overall performance of farmers from 1987-2017. The policy implication of this finding at face value suggests that improving farmer managerial skills could increase output.

As U.S. lamb imports increased relative to domestic production, and the relative share of chilled to frozen lamb imports increased, importers of chilled lamb have become less responsive to domestic and import prices, while the direct opposite is the case for frozen lamb imports. From 1990 to 2003, chilled lamb imports from Australia and New Zealand became less and less responsive to U.S. prices, and frozen imports became more responsive. Unconditional own-price elasticities also show that, over time, imports of chilled lamb became less responsive to import prices while frozen imports became more responsive to import prices.

Cooperative extension has prided itself on being the outreach of the land grant university. However, with changes in the structure of the population, the economy, and agriculture in particular, extension has had to change as well. Increasingly, extension service providers are reminded that they cannot be all things to all people. There is also increasing competition from other campus units that feel they have an outreach mission. As traditional base funding sources decline, decisions must be made regarding the role and function of extension within the university system. This paper explores these issues using historical data, reports, and six case studies. The case studies provide insights into the ways different extension services have collaborated and partnered in university outreach. The case studies demonstrate that the role of extension reflects such things as past experiences, the level of support for extension, the administrative structure of extension and the university, and the vision of those within and without the extension system.

Although continued attention has been given to the general study of “community,” we still lack a consensus, operational definition. Such an absence impedes development in this area of study. Because authors have used different areal conceptualizations, knowledge is, at best, case specific. This paper reviews the problem most often associated with aggregation of data, namely, aggregation bias, and considers some additional problems not usually associated with aggregation. The review serves as a prelude to a discussion of community research methodology which, at present, is beset with potential aggregation problems. Interpretation and possible implications of these findings are advanced.

Over the past three decades, the cereal subsector in Ghana has contributed immensely to food security in the country. However, limited evidence exists on the production performance of this subsector, particularly in terms of heterogeneities across agro-ecological zones. This paper analyzes the production technology and performance of the cereal subsector in Ghana using a nationally representative data set from 26,449 cereal farms and the meta-stochastic frontier approach. The empirical results suggest that the estimated factor inputs contribute substantially to cereal output, with land and seed exerting the highest impacts across all agro-ecological zones. The evidence further shows that the agro-ecology of cereal farms plays a crucial role in the performance of the subsector. The mean technical efficiency estimates strongly suggest that cereal farms in all agro-ecologies exhibit some degrees of production inefficiency. The findings further reveal total output from the meta-frontier to be much superior to those generated by cereal farms in all agro-ecologies of Ghana, indicating the existence of opportunities for cereal output gains in all agro-ecologies. We find heterogeneities in farm management practices and production technology across the various crops and agro-ecological zones to be relevant sources for cereal productivity growth in Ghana.

Climate change is one of the largest threats for biodiversity as changing climatic conditions often make existing habitat sites less suitable. This poses new challenges for species conservation, in particular in agricultural landscapes, where climate change may also induce modifications in agricultural land use. To conserve species in agricultural landscapes, agri-environment schemes (AES) which compensate farmers for implementing conservation measures are commonly used. However, current research on the cost-effective design of AES largely ignores necessary adaptations of conservation measures given climate change. We develop a climate-ecological-economic (CEE) model to examine how the cost-effective design of AES has to be modified under climate change. We apply the model to the conservation of eight meadow bird species in Northern Germany and determine the cost-effective conservation measures under recent and future climatic conditions. We find that the timing of conservation measures in the AES needs to be changed in the RCP8.5 scenario given the species’ phenological adaptations and the impact of extreme events (inundations) on costs. The novelty of the research lies in the development of a CEE model which considers both spatial and temporal changes in costs and benefits to develop recommendations for the cost-effective design of AES under climate change.

A conceptual model is formulated that shows that a downward sloping supply function may exist for a profit maximizing firm facing a cash-flow constraint. The necessary requirement is that at least one factor must be a non-cash input. The model is tested using analysis of variance on two groups of producers from farm record data, one group facing a binding budget constraint the other group not. The results indicate that farms facing a cash flow constraint increase output more than farms not restricted by a cash flow constraint in response to a price decrease.

A number of issues arise when considering the positive and normative implications of local environmental policy making. This paper provides an overview of some of the issues and implications. These vary depending on whether local jurisdictions are charged with determining the stringency of policies or instead stringency is determined at a higher level of government and the local role focuses on implementation and the design of cost-effective measures for achieving the required goals. Key issues include both physical and economic spillovers across jurisdictions, and the extent to which stringency can be differentiated based on local conditions or preferences.

A hedonic cost function is used to isolate the operation and maintenance costs for water treatments. For small systems, costs are substantial for some technologies, but not for others. When regional differences in input costs are accounted for, small systems located in rural areas may have a cost advantage over similar systems closer to urban centers; however, costs of water treatment to meet Safe Drinking Water Act amendments may still be substantial.

This study uses locally weighted regression to identify county-level characteristics that serve as drivers of creative employment throughout the southern United States. We found that higher per capita income, greater infrastructure investments, and the rural nature of a county tended to promote creative employment density, while higher scores on a natural amenity index had the opposite effect. We were also able to identify and map clusters of rural counties where the marginal effects of these variables on creative employment density were greatest. These findings should help rural communities to promote creative employment growth as a means of furthering rural economic development.

This paper examines grocery retailers' ability to influence prices charged to consumers and paid to suppliers. We discuss how retailer market power manifests itself in terms of pricing and marketing strategies by setting forth and offering evidence in support of eight “stylized facts” of retailer pricing and brand decisions. We argue that little, if any, of this behavior can be explained by a model of a competitive, price-taking retailer, but that most of the indicated behavior was also inconsistent with traditional models of market power. Finally, we discuss the impacts of aspects of this retailer behavior on the upstream farm sector.

In response to increasing customer attention to food attributes, agribusinesses are employing novel product differentiation strategies. As an example, we investigate the use of food safety claims on new packaged food products from the food manufacturers’ perspective. First, using two product innovation databases, we investigate claim use on labels in seven English-speaking countries over the period from 1980 to 2008. Then, based on manufacturer recommended selling prices and using U.S. data (from 2002 to 2008), we apply parametric and nonparametric hedonic methods to identify supply-side (agribusiness) valuations of chemical and microbiological claims in two food categories. We identify a significant 5 cent premium per ounce for a “preservative free” claim in spoonable yogurts. We do not find a statistically significant impact for “E. coli free” messages on meat and poultry products but find a significant price premium (19.3 cents and 25.7 cents per ounce in the two models) for “antibiotic free” claims in this category.

We explore the transfer of poultry litter among watersheds incorporating both economic characteristics (litter demand and supply) and environmental characteristics (vulnerability to phosphorus runoff, a major pollutant). A combination of techniques was employed: the Lemunyon-Gilbert P-Index model to determine watershed environmental vulnerability, GIS for land use coverages, and a goal focusing model (incorporating Saaty's eigen-value approach for penalty weight estimation) to identify optimal litter shipments among watersheds. Both primary and secondary data were used. The results should be useful to producers and policy makers in the study area and in other areas where poultry production is linked to water quality, and contribute to a more sustainable poultry sector.