We determine optimal stocker strategies based on calving season, herd size, and the number of days of retention before marketing weaned calves. We estimate a hedonic pricing model for feeder cattle and incorporate this into a simulation model that considers the variability of cattle prices and feed costs. The profit and utility-maximizing decision for fall calving herd would be to retain weaned calves for 150-day postweaning. The producer marketing spring-born calves would prefer to sell these calves at weaning. The results are being utilized by extension to aid cattle producers in reducing their feed costs and increasing their profits.

We estimate a hedonic pricing model to determine producers’ value for bull expected progeny differences (EPDs), genomic-enhanced EPDs, and phenotypic traits. Birth weight EPD, ribeye area EPD, sale weight, age, frame score, and other factors had a statistically significant impact on bull prices. GE-EPDs were not associated with a change in the bull sales prices expect for weaned calf value and birth weight EPDs. Including weaned calf value and GE-EPDs in a bull hedonic pricing model provides a unique contribution. The results from this work will inform educational programming for bull purchasers on using new economic selection indices and GE-EPDs.

The study applies parametric and nonparametric estimation methods to determine hedonic prices of rice quality attributes, and a partial equilibrium model to determine the payoff to investing in quality improvement in five countries in Sub-Saharan Africa. Results indicate that consumers are willing to pay price premiums for head rice, slender grains, peak viscosity, parboiled rice, and rice sold in urban markets. However, they strongly discount amylose content, rice with impurities and imported rice. Investing in quality improvement through amylose content reduction leads to net welfare gains with a benefit-cost ratio of 47.86 and internal rate of return of 90%.

A hedonic model was employed to examine factors impacting feeder cattle prices at a monthly video auction in Tennessee. Home-raised cattle were estimated to have a $2 per cwt. premium and cattle that have been tested for PI-BVDV (persistent infections with bovine viral diarrhea virus) sold for a premium of $1.19 per cwt. We also show how price varies across sale months for steers and heifers, suggesting opportune times to market gender-specific lots. Corn price was interacted with an average weight per head of the lot to show that lighter cattle were negatively affected, while heavier cattle prices were positively affected by increasing corn prices.

Latent class analysis is applied to a hedonic price model to examine the presence of heterogeneity in consumer valuation of quality attributes in the Beninese rice market. Three classes of consumers are found in proportions of 5, 56, and 39 percent. We employ a partial equilibrium model and find modest gains in consumer surplus from an increase in head rice and reduction in chalkiness. The results provide evidence of market sorting, which should be taken into consideration in upgrading rice value chains. Also, it is important to assess potential gains from quality improvement to determine priorities for research and development.

This article examines whether there are different hedonic price models for different German wines by grape variety, and identifies influential factors that focus on weather variables and direct and indirect quality measures for wine prices. A log linear regression model is first applied only for Riesling, and then machine learning is used to find hedonic price models for Riesling, Silvaner, Pinot Blanc, and Pinot Noir. Machine learning exhibits slightly greater explanatory power, suggests adding additional variables, and allows for a more detailed interpretation of results. Gault&Millau points are shown to have a significant positive impact on German wine prices. The log linear approach suggests a huge effect of different quality categories on the wine prices for Riesling with the highest price premiums for Auslese and “Beerenauslese/Trockenbeerenauslese/Eiswein (Batbaice),” while the machine learning model shows, that additionally the alcohol level has a positive effect on wines in the quality categories “QbA,” “Kabinett,” and “Spätlese,” and a mostly negative one in the categories “Auslese” and “Batbaice.” Weather variables exert different affects per grape variety, but all grape varieties have problems coping with rising maximum temperatures in the winter and with rising minimum and maximum temperatures in the harvest season. (JEL Classifications: C45, L11, Q11)

We specify a two-tier stochastic frontier model to estimate a price equation for U.S. Rieslings and determine overpricing and underpricing of specific wines. The data is for 2000–2016. Using tasting score and tasting score squared as sole independent variables, we found evidence of overpricing and underpricing of wines. When additional location variables were entered, empirical estimates for this two-tier model were infeasible, suggesting that both underpricing and overpricing did not occur simultaneously in this market. Separate one-sided stochastic frontier models were then specified and estimated to test for either under or overpricing in this market. Results showed that overpricing exists and not underpricing, but the extent of overpricing is minor, suggesting that wineries do an efficient job pricing their wines, given tasting scores, conditional on regional location premiums or discounts. We also investigated the effect of scale on pricing for a smaller set of wineries. (JEL Classifications: C4, D4, Q1)

We estimate the values of bull phenotypic traits, performance measurements, and expected progeny differences (EPDs) over time using bull sale data from an auction in Tennessee from 2006 to 2016. Moreover, we determine how a state partial-cost reimbursement program for bulls with certain EPDs affects bull sale price. Purebred seed stock producers in this region should focus on selling large, fast-growing, mature bulls that produce lighter calves for reduced calving stress. The state cost-share payment did not significantly increase bull prices in most years, meaning this payment was retained by cow-calf producers in most years.

Controlling for spatial heterogeneity and spatial dependence in farmland valuation models has gained substantial attention in recent literature. This paper proposes to derive the spatial structure of farmland values endogenously and semiparametrically based on the spatial competition theory. The paper assembles panel data of Pennsylvania county level farmland values between 1982 and 2012. A spatial autoregressive panel data model with spatial weights matrix endogenously incorporated is estimated. Out of sample predictions and non-nested statistical tests for model selection suggest that the fit and the predictability of hedonic farmland valuation models can be greatly improved.

Most of Southern California's wetlands have disappeared despite being critical ecosystems with many valuable attributes. Many of the wetlands that remain are in relatively urban areas, are severely degraded, and may not function properly. Using hedonic spatial error models, we measure the economic value of living near an urban multi-use wetland in Long Beach, California. Both sales prices and estimated values are used in the analysis. Results show that proximity to wetlands increases residential property values in the focus area. This analysis provides important information for policymakers to justify ongoing restoration projects and prevent further degradation of urbanized natural resources.

Quality discounts and premiums for rough rice in Texas rice bid/acceptance markets are analyzed. The most important quality factors determining the value of rough rice are head yield and peck. A one percentage point reduction in peck damage raises the price received per hundredweight of rough rice by $.13 to $.68 across markets and years. Since peck damage can be reduced by controlling the rice stinkbug, evaluation of alternative methods for better control of this pest in Texas rice fields is needed.

Farmland offered for its productive or consumptive value may be viewed as a class of goods characteristic of product differentiation. Using the generalized Box-Cox transformation, an unrestricted hedonic model was employed to derive implicit valuations of parcel attributes. Results suggest that the significance and level of importance of attributes on land pricing depends on the spatial extent of markets in Georgia. Differences in the productive or consumptive use of farmland may imply that different factors and functional forms are appropriate to different farmland markets.

We study a form of optimal transportation surplus functions which arise in hedonicpricing models. We derive a formula for the Ma–Trudinger–Wang curvature of thesefunctions, yielding necessary and sufficient conditions for them to satisfy(A3w). We use this to give explicit new examples of surplus functionssatisfying (A3w), of the formb(x,y) = H(x + y)where H is a convex function on ℝn. We alsoshow that the distribution of equilibrium contracts in this hedonic pricing model isabsolutely continuous with respect to Lebesgue measure, implying that buyers are fullyseparated by the contracts they sign, a result of potential economic interest.