This research aimed to illicit nonfarming absentee landowners’ and producers’ preferences for the benefits and characteristics derived from conservation practices during adoption decisions using maximum difference scaling, also called the best-worst method. Both groups are found to rank and value the attributes and reasons for adoption of conservation practices differently at the 95% significance level. This difference between the two groups reinforced the importance of land tenure in decision making. This indicated the need for new extension educational efforts, research efforts, and economic incentives to reduce negative externalities that could be ameliorated from adoption of soil and water conservation practices.

This article reviews literature on competitiveness of agricultural product and input markets. Although researchers in the United States and Europe emphasize different stages of the agricultural and food marketing system, their focus is similar: extent of buyer power, although both have largely ignored the sector supplying inputs to agriculture. The key conclusion is that there is little robust empirical evidence for food processing firms exerting buyer power, and there are limited data concerning vertical contracts between food processing and agriculture, but there is a small body of evidence concerning food retailer behavior and vertical coordination between food retailing and processing.

The use of surface water to replace groundwater for irrigation is often viewed as an effective approach for reducing groundwater overdraft on an agricultural landscape. However, the availability of surface water does not necessarily lead to groundwater conservation in practice. The expected increase in the aquifer volume in the presence of surface water does not occur unless the off-farm water price is low enough to generate a significant shift away from groundwater. There is a change in the crop pattern toward more irrigation-intensive crops, and the net effect can be a rise in groundwater extraction.

This study investigates which factors may influence producers’ use of irrigation technologies and/or water management practices (WMPs). One major finding is that Arkansas producers are more likely to rely on WMPs instead of sprinkler irrigation as a response to changes in depth to water and drought occurrences. This finding highlights the importance of expanding the existing literature that focuses mostly on more efficient irrigation technologies, especially in areas where WMPs are more prevalent. Climate factors also play a role. Sprinkler systems are more prevalent in regions with lower average temperature. WMPs are used to mitigate the impact of more frequent droughts.

In order to guarantee the success of the nascent cellulose-based biofuel industry, it is crucial to identify the most economically relevant components of the biofuel production path. To this aim, an original stochastic financial model is developed to estimate the impact that different feedstock production and biofuel conversion parameters have on the probability of economic success. Estimation of the model was carried out using Monte Carlo simulation techniques along with parametric maximum likelihood estimation procedures. Results indicate that operational efficiency strategies should concentrate on improving feedstock yields and extending the feedstock growing season.

We administered an online choice experiment to a sample of U.S. raw-oyster consumers to identify factors influencing preferences for Gulf of Mexico oysters, determined the extent of preference heterogeneity, and estimated marginal willingness to pay for specific varieties and other key attributes. Results indicate significant preference heterogeneity among select varieties, with non-Gulf respondents estimated to require a price discount on Gulf oyster varieties on the order of $3–$6/half dozen. Gulf respondents were found to be less sensitive to oyster variety, and estimated to be willing to pay a price premium only for select Gulf varieties on the order of $0–$3/half dozen.

No-till acreage has increased in recent years, but many farmers alternate no-till with other tillage practices, limiting public and private benefits from sustained no-till adoption. Revealed preference data are used in an ordered logit regression analysis to determine the effect of soil characteristics, climate, regions, farm characteristics, and producer demographics on producers’ choices to use continuous tillage, alternate no-till systems with tillage systems, or continuously use no-till. The model provides insight into the characteristics and conditions that are conducive to each tillage regime. The attributes found to significantly affect continuous no-till use are erodibility classification, drainage, farm size, and climate.

This article reviews the current debate on whether U.S. agricultural productivity growth is slowing. It also assesses recent research on how productivity is related to long-term investment in research and development (R&D). It describes significant changes taking place in the U.S. agricultural research system, including the growing role of private agribusiness as a main developer of new agricultural technologies and what this implies for agricultural science policy. The conclusion has suggestions for future research on these issues.

Livestock risk protection (LRP) insurance is a price risk management tool available to cattle producers; however, producers have been hesitant to adopt LRP. The objective of the study was to determine the monthly feeder cattle LRP contract coverage level and length maximizing the probability of the LRP net price being greater than the CME Feeder Cattle Index (CME FCI) price. The CME FCI prices were higher than the LRP net price for the majority of the contract lengths and coverage levels. Several coverage lengths and levels provided similar price protection, and there was no consistent preferred coverage length and level.

In two-tier price systems, yield uncertainty creates incentives to overproduce quantity-restricted outputs even when prices for surplus output are very low. These incentives arise from precautionary motives against expected losses from quota shortfalls. Using an approach augmented for multiple input applications, the likelihood of excess production and the relative importance of price changes in different markets are estimated for Icelandic dairy farms. The results indicate that the average farm plans to exceed its quota, and price changes in the surplus milk market are approximately three times more effective in generating supply response than price changes in the quota milk market.

Local food systems are frequently touted as economic development strategies for rural communities. In this study, we estimated the local economic impacts of local compared with conventionally produced and marketed food in two regions of Missouri and one region in Nebraska. We found that local food systems generated substantial increases in value added for their local economies.

Research has shown health concerns may motivate consumers to purchase foods sold at direct market outlets, yet connections between management of specific diseases and food purchase decisions remain unclear. We utilize a two-step decision framework to evaluate whether family incidences of six illnesses (cancer, heart disease, diabetes, obesity, back/joint pain, and Alzheimer's disease/dementia) affect decisions to buy food at farmers’ markets and farm stands. We find that cancer, diabetes, obesity, and back/joint pain influence the decision to purchase from farm stands. Disease incidences have varying directional effects on frequency of purchase for both farmers’ markets and farm stands.

This study estimates the dry bean yield increase in South Africa that is attributable to genetic improvements through the Agricultural Research Council's (ARC) bean breeding program. Using 32 test plots across South Africa from 1982 to 2014, results indicate that ARC breeding increased average yields by 11.65 kg/ha annually, for a cumulative 43.28% increase. These yield increases were not at the expense of yield variance, an important measure of food security. These findings indicate that the returns on investment are relatively high (an estimated 5.67:1 benefit-cost ratio) and can lead to greater food security though increased and stabilized bean yields.

We examine the relationship of product characteristics of ready-to-eat breakfast cereal and targeted television advertising to specific consumer segments. We compile a unique data set that includes brand-packaging characteristics, including on-box games, nutrition information, and cobranding. We find that the relationship of television advertising and a cereal's brand-packaging characteristics varies by target audience. Our results provide insight into understanding how manufacturers strategically utilize branding, packaging, and television advertising. This can help industry and policy makers develop food product advertising policy. This analysis extends to other product markets where extensive product differentiation and promotion are present as well.

This article examines the relationship between Federal Reserve monetary policy and other macroeconomic indicators to both a broad commodity price index and an agricultural commodity price index by employing a vector error correction model. Excessive liquidity and the recent long period of ultralow interest rates appear to have played a statistically significant role in affecting prices in the commodities markets. The responses of commodity prices to monetary policy that we estimate generally conform to earlier findings, but the sensitivity of the responses appears different in the face of the unprecedented scope of recent Fed activism.

The effect of animal characteristics and placement decisions on retained ownership profitability of Tennessee cattle from 2005 to 2015 was determined using a mixed model regression. Ex post simulation analysis examined retained ownership profitability by placement season under different animal characteristic and corn price scenarios. Regression results indicate that placement weight, placement season, days on feed, animal health, and animal sex affect retained ownership profitability. Simulation results indicate that winter placement of cattle in feedlots had the highest expected retained ownership profits. Results provide risk-averse producers information regarding the profitability of retained ownership.

Little research exists on the optimal temporal frequency between soil tests, given empirical data on potassium (K) carryover and its interaction with cotton yield. We evaluate how decreasing the temporal frequency between obtaining K soil test information affects the net present value (NPV) of cotton production. Monte Carlo simulation was used to determine NPV for cotton production using five soil test schedules ranging from soil testing annually to every fifth year. NPV of returns to K was maximized at $7,580/ac. when producers updated soil testing information every 2 years, which was $2/ac. per year greater than annual soil testing.

Past research shows that prices move in response to World Agricultural Supply and Demand Estimates (WASDE) reports immediately prior to and after a report. This research develops trading models based on knowing the next WASDE report in advance. This should help traders evaluate investments to predict information contained within the report and in determining how best to use such forecasts. The price-forecasting models use regressions against the ratios of ending stocks to use. Results show a steady increasing return to trading over the report month. The highest returns are produced by trading during the growing and harvest seasons.

The U.S. Department of Agriculture (USDA) releases crop condition reports detailing crop progress and growing conditions for various crops including corn, soybeans, and winter wheat. Previous research has investigated market impacts from various USDA reports, but crop condition reports have received little attention. This article investigates the impact of crop condition reports on winter wheat prices at the national level and for a local market. We employ both parametric and nonparametric tests. Results suggest that crop condition reports for winter wheat do not generally affect market prices. This contrasts with results found in corn and soybean markets.

Motivated by disease outbreaks and trade shocks, a dynamic equilibrium displacement model is calibrated for the U.S. pear industry to simulate welfare from various shocks compared to a baseline. Our contribution is assessing the impact to intermediary packers for fresh fruit and processors for processed fruit in addition to growers and consumers. The processed market is more sensitive than the fresh market generally, and supply shocks induce larger impacts on both markets than trade sanctions. Impacts to intermediaries are on par with growers, indicating that not considering them misstates the distribution of damages to the industry from a shock.