Stochastic simulation and generalized stochastic dominance are used to compare the risk-return properties of the Chicago Mercantile Exchange feeder cattle futures contract with those of the feeder cattle put option contract. Cash marketing, futures, and option strategies are analyzed for four backgrounding systems common to the mid-south region of the United States. The results show that at-the-money put option strategies dominate corresponding futures contract strategies according to generalized stochastic dominance. This implies that at-the-money put option contracts are superior to feeder cattle futures contracts for risk-averse backgrounders in the mid-south region of the United States.

Survey data from Southeastern Pennsylvania is used to estimate the costs of current mushroom pest management practices. Pest management costs represent a sizeable proportion of the variable costs of producing mushrooms. The practices found are highly variable with costs ranging from $.04 to $.58 per square foot. The frequency of outside applications and steam use before and after the crop are the most significant practices influencing production costs.

A highly disaggregated emissions factor model is presented. The model generates changes in emissions and resource use by state and 6-digit NAICS sector. Removal of all U.S. import restrictions is examined. Results for agriculture show that composition effects explain highly varied regional patterns of emission changes. Scale effects are also important for expanding sectors. Quantitative assessments such as this may prove useful in conducting full environmental reviews of U.S. trade agreements consistent with Executive Order 13141 and the Free Trade Act of 2002.

The small Indian mongoose is among the worst of invasive alien species, yet the implications of managing the species are poorly understood. To address concerns of interest to practitioners and policymakers, we analyze survey data to document the impacts of this species in Fiji and conduct a cost-benefit analysis of management approaches that are both culturally appropriate and readily implementable: live trapping, kill trapping, and hunting. We find that the monetized benefits of kill trapping exceed the benefits of live trapping and hunting. Still, all of these management options are preferred to the status quo of no management.

We use household scanner data, paired with rich demographics and merged with self-reported measures of obesity and body mass index (BMI), to investigate the potential effects of fruit and vegetable purchasing behavior on adult obesity and body weight. We find that increasing household fruit and vegetable expenditure shares by one percentage point decreases the multiyear incidence of adult obesity by approximately 9 percent and average adult BMI by 1.4 percent, controlling for a host of potential confounding factors and measures of lifestyle choices. The results are robust to specification choice, although estimated impacts differ by gender. Our findings help quantify the potential impacts of government efforts aimed at increasing fruit and vegetable intake.

New wheat-breeding techniques, such as hybridization and genetic modification, show increasing yield potential. This study involves estimating multi-output multi-input production technology by stochastic frontier techniques to evaluate the economic value of this yield potential. An input-oriented distance function is formulated and applied to European Farm Accountancy Data of 23 European countries. Based on the analysis, an average shadow value is derived for the increase in the marginal yield of wheat that corresponded to 18.87 €/ha. Further, technical change, technical efficiency, and returns to scale are measured for different European regions.

The negative effects of micronutrient deficiencies on human capital acquisition and economic productivity are well documented. A less well understood but potentially serious threat to human health in developing countries is the contamination of food crops by fungal toxins. This paper surveys what is known about the health and economic burdens attributable to insufficient micronutrients and toxic contamination of food in developing countries, discusses consumer demand for micronutrients and food safety, and describes some of the challenges to improving population nutrition, particularly in rural areas.

The case of reduction in ad valorem tariffs as a trade liberalization policy is considered in this article. It is shown that the reduction leads to a higher quality of imports, ceteris paribus. This hypothesis was tested on the case of Japanese beef imports from the United States and Australia. U. S. beef, according to the results of Gallup surveys, is considered by Japanese consumers to be a high quality product, while Australian beef is considered to be a low quality product. Empirical results support the hypothesis. Moreover, the recent domination of U. S. beef in the Japanese market is further explained by increasingly more efficient U. S. beef production relative to Australian production and a strong income effect, where an increase in per capita income leads to more demand for higher quality products.

The introduction of a centralized institution for trading production rights in quota-regulated agricultural sectors can dramatically improve the flow of information among market participants and increase efficiency. On the other hand, prevailing conditions in these small markets can provide sellers with a market advantage, yielding high quota prices that impose important financial costs on quota holders and limit the entry of new producers into the industry. In this paper, we modify the normal allocation rule of the k-double auction (kDA) to counter thin market conditions and to favor buyers who bid low prices. In laboratory experiments, we test the “truncated” kDA (T-kDA) against a regular kDA for its ability to affect buyer and seller behavior and decrease equilibrium prices, and assess how it impacts efficiency. The results show that the T-kDA significantly lowers the equilibrium price and results in moderate efficiency losses. Most importantly, the T-kDA effectively counters the market power of oligopolists when demand far outstrips supply.

The effect that selected characteristics of a Pennsylvania hay auction has on winning bids of loads of hay are presented in this paper. Survey data from 107 buyers over the period September 1982 to April 1983 were used. Hay type, perceived quality, and the intended use of the hay were found to be significant factors in explaining prices paid per ton. Sellers could increase their revenues by producing alfalfa hay, alfalfa and legume-grass hay of higher quality, and attending marketing days with a larger number of horse feed buyers.

This study used 30 years of continuous data for 135 farms in Kansas to explore changes in productivity using Malmquist productivity indices (MPI). The indices were used to determine whether there was productivity convergence or divergence in Kansas farms. The results showed there was significant divergence among the farms. The average annual productivity growth was 0.50 percent; the top farms based on MPI were larger in terms of value of farm production, crop farm income, and livestock farm income and received a larger percentage of their income from oilseeds, feed grains, and swine than the other farms on average.

The Maine Department of Inland Fisheries and Wildlife is currently in the throes of a budgetary crisis. Negotiated employee salary increases and the general inflationary trend of the 1970's have resulted in significant increases in operating costs. The Department, like many of its counterpart agencies in other states, is funded primarily from dedicated revenues collected from the sale of hunting and fishing licenses. Since there are no built-in adjustments for inflation in license fees, as there are in sales taxes or even income taxes. Department revenues have not kept pace with costs. As a result, the Department is projecting a budget deficit of around one million dollars for FY 1980–81.

Over-application of manure on cropland can cause water quality degradation. This paper reports a modeling approach for assessing tradeoffs among manure storage and handling systems as they relate to the nutrient loadings in cropland runoff, including nitrate losses to groundwater. The CREAMS simulation model provided estimates of nutrient losses. A linear optimization model was used to determine the income-nutrient loss tradeoffs. Six-month storage was profitable for farmers with average-size dairy herds, but compared to daily spreading caused increased nitrate leaching through the soil to groundwater resources. Twelve-month storage systems decreased farm profitability while decreasing the total nitrogen losses from farm fields.

Using data collected from a combination of on-site and on-line surveys, this study examines recreational demand for equestrian trail-riding in Kentucky. A truncated, negative binomial regression is applied to analyze individuals’ visitation behavior consistent with a travel cost model. Results suggest that distance is the most significant determinant of average annual visits to a particular site. Various trail site characteristics, such as trail length, scenic overlooks, and trail markers, affect the number of visits an individual takes. Geographic information system (GIS) analysis permits the identification of equestrian population centers. Information obtained from this study offers a decision base for policymakers to use to manage existing equestrian trails and locate new ones.

There is a substantial controversy in the economics literature over the magnitude of the expenditure elasticity for food grain in China that is caused, to a large extent, by whether time-series or cross-section data are used in the analysis. A set of reasonable elasticities for a complete demand system is estimated by using a panel of county level data in Guangdong Province for the last ten years. The results show that food grain has a small positive income elasticity, implying that food grain is not an inferior good in China. The reason that consumption per capita has not increased during a period of rapid economic growth in income is that the relative prices of the food and non-food substitutes for food grain have decreased.

Supply functions, elasticity estimates, and nonjointness test results consistently indicated that few commodities compete economically in the production of six major Texas vegetables (cabbage, cantaloupes, carrots, onions, potatoes, and watermelons). Significant bias effects caused by government-supported commodities, fixed inputs, and technological change were observed and measured. Nonnested test results for the hypothesis of sequential decision making by vegetable producers were inconclusive, but they gave greater likelihood support to sequential than to contemporaneous decision making.

The idea of green infrastructure (GI) has generated great interest and creativity in addressing a range of challenging and expensive environmental problems, from coastal resilience to control of combined sewer overflows (CSOs). The appeal of GI stems from its cost savings compared to traditional “gray” infrastructure and the multiple benefits it provides, including biodiversity, aesthetics, and carbon sequestration. For example, a “green” approach to controlling CSOs in New York City saved $1.5 billion compared to a “gray” approach. Despite these advantages, GI still does not have detailed design and reliability specifications as compared to engineered gray infrastructure, potentially hindering its adoption. In this paper, we review some of the potential applications of GI in modern environmental science and discuss how reliability and associated (un)certainty in net benefits need to be addressed to realize the potential of this new approach.

Due to expanding trade and increasing concentration of production during the past few decades, small local farms have faced ever-growing competitive pressures. We investigate the impacts of this globalization on production of local food by examining Hawai‘i's open island economy and econometrically evaluating impacts of import competition on the growth and survival of individual fruit and vegetable farms. We find evidence that rising levels of imports significantly hinder farm growth in Hawai'i and have a smaller impact on farm survival. Increased foreign competition increases the likelihood of exit for commercial farms but has little effect on small noncommercial farms.

Expenditure patterns for whole milk and lowfat milk in the Northeast region were examined by applying the Tobit maximum likelihood procedure to the 1977–78 USDA NFCS data.

Results suggest that differing expenditure patterns exist between whole milk and lowfat milk. Household income estimates indicate significant positive effects on expenditure for lowfat milk but negative on expenditure for whole milk. Whole milk expenditure was estimated to be strongly related to the family life cycle stages through the child-raising years.

This paper examines the forces that affected the Northeastern fresh tomato supply in the post-WWII period. A simultaneous equation model is developed which incorporates a composite price expectation model, supply response, and factors affecting regional price. Findings reveal that data are consistent with the Rational Expectation Hypothesis. Urban pressure played a major role in shifting supply response while shipments from competing areas had a modest impact on regional production or price. The positive elasticity of producers' revenue with respect to local production highlights the aggregate benefits of increasing yields.