Herbicide-resistant (HR) rice varieties offer U.S. rice producers a powerful tool for control of red rice infestations. However, improved weed control can shorten crop rotations and boost yields, resulting in expanded rice production and lower domestic market prices. Declining market returns diminish the benefits of HR rice adoption and substantially reduce net returns for nonadopters. More competitive prices increase U.S. rice exports, causing a slight decline in world rice prices. The dependence of the rice marketing loan program on world prices prevents loan deficiency payments from adequately offsetting producers' market revenue losses. U.S. consumers gain from lower rice prices.

This paper examines trends in the socioeconomic well-being in rural counties where Black residents represent one third or more of the population. These racially diverse rural counties (RDRCs) are located exclusively in the rural South and generally have low levels of economic well-being. On a positive note, college education levels in RDRCs are found to have increased rapidly between 1990 and 2000. Regression analysis suggests that these increases were in part due to the concentration of Historically Black Colleges and Universities in the region. Local investments in K-12 education are also found to be linked to county education levels.

Price discovery is a frequent topic of research, but many times is not clearly defined and thus purported to cover a myriad of topics. This article provides two alternative theories as the basis for one line of price discovery research. Empirical models consistent with the two theories are estimated using a common data set. Empirical results differ as expected. This article evidences why the theoretical basis for an empirical model depends on clearly defining the objective(s) of the research.

In 1991, the Intermodal Surface Transportation Efficiency Act (ISTEA) changed the federal-state transportation relationship by devolving decision making to the states. In turn, states were required to work with local officials on transportation improvements. ISTEA was authorized for 1992–1997, and the Transportation Equity Act for the 21st Century continued ISTEA policies through 2003. Changes in road and bridge conditions in the rural south are examined under these new transportation policies. Federal funding trends are detailed with state funding. Overall condition of roads and bridges eligible for federal funding improved, traffic increased on all roads, but condition disparities between local roads and federally funded roads grew.

South Africa is emerging as a major player in the world agricultural products market. This study investigates aggregate food demand patterns in South Africa using a linear approximate almost ideal demand system (LA/AIDS) modeling framework. Data from a 1993 integrated national household survey are employed in the analysis. Empirical results show that demand for meat and fish, grains, dairy products, fruits, vegetables, and other foods are generally price elastic. The expenditure elasticities imply that meat and fish and grains are luxury products, whereas dairy products, fruits, vegetables, and other foods are necessities in the household diet. The results also indicate that if income of households increases food expenditure on meat and fish and grains would increase, whereas that on dairy products, fruits, vegetables, and other foods would decrease. Race, age, and gender of household head, urbanization, and family size affect food demand in South Africa.

U.S. growers filed an antidumping case against Canadian growers of greenhouse-grown tomatoes, alleging that U.S. growers were being injured, or threatened with material injury, by imports from Canada. The U.S. Department of Commerce determined that imports of greenhouse-grown tomatoes were being sold in U.S. markets at less than fair market value. The U.S. International Trade Commission determined the “like product” to be all fresh market tomatoes, concluding the domestic industry was not materially injured. Anecdotal evidence used by the Commission Department in determining like product ignores the wealth of knowledge that economics can add. An economic model is proposed for purposes of determining like product.

A dynamic-stochastic model is developed to evaluate preferences among alternative countercyclical payment programs for representative farms producing corn or soybeans in Iowa and cotton or soybeans in Mississippi. Countercyclical payment programs are found to not necessarily be preferred to fixed payment programs.

Produce growers in Kentucky, North Carolina, and Tennessee were surveyed in 2002 to gather information about their decision making in the areas of planting, postharvest handling, marketing, and expected changes. North Carolina has proportionately more respondents with large operations, and Kentucky and Tennessee were more similar and concentrated in smaller farms. Tennessee and Kentucky respondents were less likely to have engaged in activities that were associated with the commercial distribution system. Greater reliance on the commercial distribution system on the part of North Carolina growers is consistent with more produce export activity.

Genetically modified cotton varieties have the potential for increasing returns and/or decreasing labor requirements. A nonlinear optimization model is applied to a whole farm analysis for evaluating cotton production technologies. This model maximizes farm utility, composed of expected returns and their variability, at various risk aversion levels in order to evaluate cotton production technologies. Results show that while conventional cotton maximizes utility in a risk-neutral situation, transgenic cotton varieties entered into the optimal solution as higher levels of risk aversion were considered.

This paper develops a framework for competitiveness that incorporates path dependency within production regions. Patterns of technological innovation, product development, institutions, and market orientation follow a certain local path. This evolution creates regional economies that emerge with unexpected competitive advantage. The model draws on previous work looking at, among other things, induced innovation. The framework is applied here to the major regional tomato producers in North America. The paper examines the role of various institutions (grower associations, governments, research institutions, and support industry) in influencing the path along which a regional sector evolves.

The demand for a variety of fresh fruits and vegetables, including fresh market tomatoes, has increased significantly over the past decade because of greater convenience in use, improved selection, and rising health and diet concerns. As U.S. demand for tomatoes and other horticultural crops strengthens, inexperienced domestic and international suppliers believe they can compete effectively within U.S. markets. Free trade agreements have reduced monetary barriers to trade, but remaining impediments, such as institutional and competitive market constraints, represent significant challenges for southern U.S. growers. This paper discusses points addressed by VanSickle, Eastwood, and Woods concerning trade and horticultural market development.

Results are presented from a Web-based survey of instructors in agricultural economics and related departments about their use of, and attitudes about, classroom economic experiments.

The roots and uses of economic experiments in problem solving and hypothesis testing are explored in the present article. The literature suggests that the primary advantage of economics experiments is the ability to use controlled stimuli to test economic hypotheses. Other literature also suggests that experiments are useful in problem solving settings. The advantages and disadvantages of experiments are discussed.

The present article discusses general issues associated with experimental auctions and their relative advantages and disadvantages over other marketing research techniques. Experimental auctions create an active market environment with feedback where subjects exchange real goods and real money, which is not generally the case with other methods. The article also discusses four experimental design issues associated with experimental auctions: auction mechanism, market feedback and bidder affiliation, demand reduction and wealth effects, and multiple attribute valuation. Each of these experimental design issues, if not properly controlled, have the potential to create serious flaws in marketing recommendations.

This series of papers is an excellent opportunity to reacquaint agricultural economists in the Southern region with the exciting field of experimental economics and is indeed opportune in light of the recent awarding of the Nobel Prize in Economics to Vernon Smith, considered by many to be the father of experimental economics. Rather than try to share the limelight with the authors on their far-reaching and comprehensive topics, we plan to take this opportunity to share some of our views of the role of experimental economics in the research laboratory and classroom.