This study investigates a number of factors influencing technical efficiency of Greek farms participating in the 1994 European Union (EU) farm credit program. Technical efficiency measures are obtained within the framework of a parametric stochastic frontier. Factors showing a positive effect on technical efficiency are value of liabilities, number of hours of mechanical operation, large land size, and rental land, whereas those showing a negative effect are value of EU product subsidies, value of off-farm family income, and hired labor. The value of investments incurred by farms because of their participation in the 1994 farm credit program does not show any significant effect on technical efficiency. The predicted levels of technical efficiency indicate that the average technical efficiency of farms 3 years after participating in the 1994 farm credit program is lower than the average technical efficiency of the same farms the year before participating in the program. Thus, the program has failed to increase the efficiency of farms.

Agro-biotechnology is evolving from a pre-commerical phase dominated by basic research science to a commercial phase oriented around marketing products. In pursuing innovation rents in the commercial phase, firms are reorienting their strategies around complementary marketing and distribution assets. This is impacting vertical and horizontal industry structure. Conversely, industry structure is also impacting firm strategies. Horizontal alliances and consolidation continue from the pre-commercial phase into the commercial phase, while vertical coordination and integration strategies are accelerating rapidly. Interplay between firm strategy and industry structure is too complex for firms to anticipate early in the pre-commercial phase for long-term strategy formulation.

The forest and agriculture sectors are linked by having a portion of their land bases suitable for use in either sector. A substantial part of the southern land base is suitable for either forestry or agriculture use, with most of forestation on U.S. agriculture land in the South. We examine how land exchanges between forestry and agriculture are influenced by specific federal conservation and farm support policies, including changes in the Conservation Reserve Program. Reallocation of land is a significant part of the sectors' responses to the policies, along with intensification of timber management on existing southern forests.

Initial ideas on risk management uses of precision agricultural technology focused on site-specific treatment of problem areas to reduce the probability of low yields and returns. Recent discussions deal with sensor and remote-sensing information to improve marketing and “as applied maps” as trace-back mechanisms to manage liability. A theoretical model is presented that suggests that there are plausible circumstances under which precision farming can reduce temporal yield variability. Empirical evidence from an on-farm trial of site-specific P&K management in the Eastern Cornbelt supports the hypothesis that precision farming can have risk-reducing benefits.

Using USDA's Agricultural Resource Management Survey data, factors leading to the adoption of technology, management practices, and production systems by U.S. beef cow-calf producers are analyzed. Binary logit regression models are used to determine impacts of vertical integration; region of the U.S.; farm size, diversification, and tenure; and demographics on adoption decisions. Significant differences were found in adoption rates by region of the U.S., degree of vertical integration, and size of operation, suggesting the presence of economies of size and vertical economies of scope. Results also indicate high degrees of complementarity among technologies, management practices, and production systems.

Data envelopment analysis is used to calculate technical, allocative, economic, and scale efficiencies for fields enrolled in the University of Arkansas Rice Research Verification Program. The results reveal most fields have high technical and scale efficiencies, implying inputs are used in minimum levels necessary to achieve given output levels and fields are close to optimal in size. However, most fields exhibit allocative and economic inefficiencies and do not use inputs in the right combinations necessary to achieve cost minimization. Tobit analysis indicated allocative and economic efficiencies could be improved with better variety selection and better irrigation management.

Recent high profile incidents and public debates in the United States have highlighted the increasing interest residents have regarding animal rearing and handling practices. This paper examines resident support for national legislation that mirrors Proposition 2, which in November 2008 passed in California. Results suggest perceptions regarding animal welfare information accuracy of livestock industry and consumer groups are particularly influential determinants of voting behavior and demand. The analysis also suggests residents may not fully appreciate price or tax implications when supporting additional animal welfare legislation. Implications for livestock industry and policy makers are provided along with suggestions for additional research.

This study investigates the determinants affecting producers' adoption of some Best Management Practices (BMPs). Priors about the signs of certain variables are explicitly accounted for by testing for inequality restrictions through importance sampling. Education, gender, age, and on-farm residence are found to have significant effects on the adoption of some BMPs. Farms with larger animal production are more apt to implement manure management practices, crop rotation, and riparian buffer strips. Also, farms with larger cultivated acres are more inclined to implement herbicide control practices, crop rotation, and riparian buffer strips. Belonging to an agro-environment club has a positive impact for most BMPs.

This study evaluates the economic competitiveness of a sample of Kansas farrow-to-finish operations by estimating relative firm efficiency using nonparametric mathematical programming techniques. Measures of technical, allocative, scale, economic, and overall efficiency are then related to farm characteristics to identify sources of efficiency. Results indicate that overall efficient farms produce a high quantity of pork per litter, produce a portion of their own feed grains, generate a large portion of their income from swine and other livestock enterprises, and have a lower debt-to-asset ratio.

An eight-equation partially-recursive econometric model is specified to indicate the effects of catfish advertising on product awareness, beliefs, attitude and consumption. Results indicate the ad campaign in its first year (i) increased consumers' awareness of farm-raised catfish 15 percent, (ii) improved consumers' perceptions of and attitude toward catfish 3 to 6 percent, and (iii) increased at-home and restaurant purchases of catfish 12 to 13 percent. The response to the ad campaign is broken down into an “attitude effect” and a “reminder effect” to determine the relative behavioral importance of the affective and cognitive components of the ad copy. Model simulations suggest primacy of the reminder effect, implying the factual content of the ads had less impact on behavior than the mere presence of the ads.

The objective of this study was to estimate the economic impact of the sugarcane aphid (SCA) outbreak in the Rio Grande Valley (RGV), Texas. Local producers were surveyed to gather detailed information about crop production and pest control practices. Collected data were used to estimate the reduction in profit associated with the SCA infestation, as well as the monetary value of the prevented loss attributed to control efforts. Sorghum industry losses were then used to assess the overall economic impact of the SCA outbreak in the RGV economy.

Regional water scarcity has motivated the South Central Texas Regional Water Planning Group to actively develop water management plans to address long-/short-term regional water needs. This study, therefore, develops an integrated Edwards Aquifer groundwater and river system simulation model to determine the “best” choice of regional water management plans using mixed-integer linear programming. The economic, hydrologic, and environmental consequences of the “best” choice of regional and other water management plans and options are evaluated and compared. Results indicate a tradeoff between the economic and environmental benefits. A slight decrease in economic benefit results in a substantial increase in environmental benefit.

Systematic approaches to validation of linear programming models are discussed for prescriptive and predictive applications to economic problems. Specific references are made to a general linear programming formulation, however, the approaches are applicable to mathematical programming applications in general. Detailed procedures are outlined for validating various aspects of model performance given complete or partial sets of observed, real world values of variables. Alternative evaluation criteria are presented along with procedures for correcting validation problems.

This study uses a hedonic property price method to estimate how wetlandsaffect residential property values in a rural area. The study utilizeswetland inventory data coupled with extensive property sales records betweenJanuary 2000 and September 2004 from Carteret County, NC. Our resultsindicate that i) a higher wetland percentage within a quarter mile of aproperty, ii) closer proximity to the nearest wetland, and iii) larger sizeof the nearest wetland are associated with lower residential propertyvalues. These results contrast with previous hedonic studies that use datafrom urban areas, which found positive associations between wetlands andproperty values. The amenity value of wetlands appears to depend at least asmuch on the characteristics of the area being considered as it does on thecharacteristics of the wetlands.

Farm level risk analyses have used price and yield variability almost exclusively to represent risk. Results from a survey of 149 agricultural producers in 12 states indicate that producers consider a broader range of sources of variability in their operations. Significant differences exist among categories with respect to the importance of the sources of variability in crop and livestock production. Producers also used a variety of management responses to variability. There were significant difference among categories in the importance given to particular responses and their use of them. These results have implications for research, extension, and policy programs.

Three hog genotypes are simulated to determine how producer profits, economically optimal slaughter weights, and carcass component weights change under three pricing models. Live weight pricing pays more for the fatter barrows whereas a three component (separate payments for fat, lean, and byproducts) and six component (separate payments for major primal cuts, other lean, fat, and byproducts) pricing system pay more for the leaner gilts. Implications for selection of genetic stock and pricing system are presented.

Forecast users and market analysts need quality forecast information to improve their decision-making abilities. When more than one forecast is available, the analyst can improve forecast accuracy by using a composite forecast. One of several approaches to forming composite forecasts is a Bayesian approach using matrix beta priors. This paper explains the matrix beta approach and applies it to three individual forecasts of U.S. hog prices. The Bayesian composite forecast is evaluated relative to composites made from simple averages, restricted least squares, and an adaptive weighting technique.

This paper examines two interrelated issues in commodity markets, namely,the cyclical relationship between stocks and commodities and the function ofcommodity and agribusiness indexes in portfolios. A high negativecorrelation has existed between stock and commodity prices over the past 140years. Moreover, the two markets have alternated in price leadership with29-32-year cycles. The recent price dominance in agricultural commoditiesstarted in 2000, a result supported by the empirical results of theportfolio allocation analysis. For a risk-averse investor, irrespective ofthe period analyzed, placing funds in agribusiness and/or agriculturalcommodity indexes was sound investing.

Retail sales of fluid cow’s milk are decreasing while those of plant-based milk analogues are increasing. In this study, we model the relationship between households’ purchases of both types of products and perform simulations. Results show that growing consumer demand for plant-based products is causing cow’s milk sales to decline somewhat faster than otherwise. However, plant-based products are not a primary driver of sales trends for cow’s milk. The decline in cow’s milk sales is substantially greater than the rise in sales of plant-based analogues.

Despite the contention that risk and uncertainty play an important role in agriculture in North Florida and South Alabama, very little is known about producers' perceptions of risk. This paper describes the procedures used and the results obtained from a statistically random survey of farmers' perceptions of the importance of various sources of risk and alternative risk management practices. Initially, farmers were asked to define risk and then to rank various sources of risk and management responses to risk based on the relative importance of each to their operation. Summary statistics, Chi-square analyses, and logistic regression techniques were used to analyze the data.