Anaerobic digesters can provide renewable energy and reduce greenhouse gas emissions from manure management. Government policies that encourage digester adoption by livestock operations include construction cost-share grants, renewable electricity subsidies, and carbon pricing (offset) programs. However, the effectiveness and efficiency of these policies is not well understood. For the U.S. dairy sector, we compare predicted digester adoption rates, carbon emission reductions, renewable electricity generation and sales, and net returns and social benefits of several policies. We find that a carbon pricing policy provides the greatest net social benefit for a range of assumptions about the benefits of carbon reductions and renewable energy.

Agricultural production estimates have often differentiated and estimated different technologies within a sample of farms. The common approach is to use observable farm characteristics to split the sample into groups and subsequently estimate different functions for each group. Alternatively, unique technologies can be determined by econometric procedures such as latent class models. This paper compares the results of a latent class model with the use of a priori information to split the sample using dairy farm data. Latent class separation appears to be a superior method of separating heterogeneous technologies and suggests that technology differences are multifaceted.

This paper examines Chinese pesticide firms’ use and perceptions of various means of intellectual property (IP) protection in protecting their innovations, using a unique dataset from 97 pesticide firms surveyed in 2008. These firms rate Chinese patents as quite effective in protecting their IP from infringement, although 70 percent of them state that improved enforcement is needed. Those firms that have been granted patents and those that claim their patents have been infringed upon both give lower ratings to the perceived effectiveness of patents. Trademarks are rated as less effective than patents, but firms that have had experience with patenting and infringement of patents tend to rate trademarks as more effective than those firms that do not have direct experience with the patent system. General government policies to encourage increased privatization, more private R&D, and higher education are associated with more faith in IP, but policies to strengthen IP by promoting mandatory IP training and the development of specialized IP divisions in the firms do not influence perceptions of IP effectiveness. We conclude that if the Chinese government wants to encourage innovation using IP protection, it must focus on improving the enforcement of patents.

We analyze the impacts of agricultural subsidies on farm-level production decisions and input use under price, yield, and policy uncertainty for a risk-averse farmer. Using U.S. farm-level data and weighted ordinary least squares, we find that decoupled payments had little impact on agricultural chemical expenditures (our proxy for use) when the payments were first introduced in 1996. However, after 2004 there is a positive, significant relationship between decoupled payments and agricultural chemical expenditures. The results suggest that updating, introduced in 2002, and expectations of future updating caused decoupled payments to become coupled to current input use and, ultimately, production.

Quantitative analysis of food marketing policy has played a critical role in the evolution of empirical industrial organization and antitrust enforcement over the past 40 years. This article highlights the contributions of the author and other agricultural economists. The second half of this article explains why an economist might want to do, or perhaps avoid, public policy work. It gives several examples from antitrust cases where economic policy analysis is a front-line contact sport.

The U.S. Department of Agriculture proposed and adopted a new set of meal pattern requirements for the National School Lunch Program that will allow schools to claim 6 cents more in lunch reimbursement rates. This study analyzes the food costs of school menus in 2005 that met many of the proposed requirements. Overall, schools that served more, and more diverse, non-starchy vegetables had higher average food costs, and schools that served menus with lower calories had lower food costs. The food costs of school lunch menus that met the combined standards for dark green vegetables, orange vegetables, other vegetables, lowfat/fat-free milk, and fruit averaged 9 cents more per meal in 2005 dollars when other major factors that could affect food choices are taken into account. The main sources of higher costs appear to be related to the provisions for more vegetables.

Wind-borne diseases can spread rapidly and cause large losses. Producers may have little incentive to prevent disease spread because prevention may not be welfare-maximizing. This study proposes a market-based mitigation program that indemnifies producers against disease-related losses and provides an incentive to neighboring producers to take preventive action, which can substantially mitigate infestations, reduce the likelihood of catastrophic losses, and increase social welfare. An equilibrium displacement model simulates introduction of the program for U.S. soybeans. Simulations reveal that the market-based solution contributes to minor market distortions but also reduces social welfare losses and could succeed for other at-risk commodities.

We use nonparametric production function methods to decompose farm-level labor productivity growth into components attributable to efficiency change, technical change, and factor intensity. The estimation is accomplished using balanced panel data drawn from the Kansas Farm Management Association for the period 1993 to 2007. We find that labor productivity growth is primarily driven by factor intensity and technical change. Efficiency change is declining with increasing productivity growth, and technical change is not Hicks-neutral and occurs at high levels of factor intensity, suggesting that innovation is embodied in factor intensity.

The Supplemental Nutrition Assistance Program (SNAP) is the largest nutritional assistance program addressing food insecurity in the United States. Due to the program's reach, SNAP has been called upon to address other nutrition-related challenges facing low-income Americans, including childhood obesity. This study considers the effect of SNAP participation on child weight outcomes after controlling for household financial stress, an important determinant of child overweight status that disproportionately affects low-income households. Using data from the Survey of Household Finances and Childhood Obesity and instrumental variable methods, we find that SNAP participation is negatively associated with obesity among eligible children.

Using a national farm survey, this study estimates a logit model to identify factors affecting U.S. farmers' participation in agritourism. Of the dummy variables, public access to the farm for recreation has the greatest positive impact, followed by farms near central cities, farms in Rocky Mountain and Southern Plains regions, farmers with college education, farmers paying for farm advice, farms organized as partnerships/corporations, farms enrolled in conservation programs, and farmers with access to the internet. Continuous variables affecting participation include acres of owned land, percent of land unsuitable for crops, operator age, and distance to cities. Targeting farms and farmers with these traits can increase the success of agritourism promotion efforts.

The forest owner's decision regarding when to harvest, based on forest's current worth, is analyzed using the real options approach for a representative Pacific Northwest Douglas-fir stand when the carbon price is stochastic and there is a fire risk. The problem is framed as a linear complementarity problem and solved using the fully implicit finite difference method combined with a penalty method. The fire risk results in lower option values and earlier critical harvesting times, whereas a wider carbon price range ($0–$100 versus $0–$10) produces contrary results and more responsiveness to the parameter changes.

This paper analyzes the effect of labeling information on U.S. farmers' herbicide choices. Herbicide choices reported by U.S. soybean farmers are used to estimate farmer preferences for different herbicide attributes using a mixed logit model. Our results indicate that statements displayed on pesticide labels regarding risks to human health and the environment are important components in herbicide selection. We find that farmers are willing to pay an average of $27 per acre to avoid using an herbicide labeled with the word “Warning” and $38 per acre to avoid using an herbicide labeled with the word “Danger.”

The organization of the Baton Rouge, Louisiana, retail food industry was analyzed to determine whether spatial competition influenced the cost and availability of food items. Using a spatial competition gravity variable, the costs of two separate market baskets were analyzed in January 2009, and the factors influencing spatial competition were determined. Store type (chain or supercenter) was found to be the most significant determinant of food costs, validating findings of past studies. Although food was not found to be more expensive in low-income areas, results suggest that residents in low-income and rural areas have disincentives to purchase affordable, available healthy food due to the spatial organization of their local food market.

A 2007 food-borne illness incident involving peanut butter is linked with structural change in consumer demand. Compensated and uncompensated own- and cross-price elasticities and expenditure elasticities were calculated for leading brands before and after the product recall using the Barten synthetic model and weekly time-series data from 2006 through 2008. Statistically significant differences in price elasticities for the affected brand, Peter Pan, were absent. After a period of 27 weeks, this brand essentially recovered from the food safety crisis. Significant differences in price elasticities were evident among non-affected brands. Hence, spillover effects and heightened competition are associated with the recall.

Recent studies examine the impact of the built environment on health outcomes such as obesity. Several studies find for certain populations that access to unhealthy food has a positive effect on obesity, whereas access to healthy choices has a negative effect. Given the growth and popularity of locally grown food, we examine how individual weight outcomes are affected by access to direct-to-consumer local food. After controlling for potential endogeneity, we find that greater access to local food has a negative association with individual weight outcomes. We also find a negative association with greater weight loss over a one-year period. These results provide evidence that local food access can have potential indirect benefits.

Using life cycle assessment methodology, this analysis evaluates how two carbon reduction strategies affect cotton plantings regionally and methods used to produce cotton. Because cotton production emits large amounts of carbon, the design of a reduction policy as either excluding soil sequestration through cap-and-trade or including it through carbon offset is likely to affect the success of the policy. A cap-and-trade program that ignores the amount of carbon cotton would sequester in the soil during its life cycle could increase net emissions by rewarding producers whose crops emit limited carbon directly but also sequester little carbon in the ground.

This study tests the causal direction between captive supply and cash market price in the U.S. cattle procurement market. Finding the correct causality should provide useful information to the decades-long debate on packers’ anti-competitive behavior in the U.S. cattle procurement market. It should also help researchers find better econometric specifications for the cash price-captive supply relationship. Two causality tests—the Granger test and the Modified Wald test—were conducted. Overall test results indicate that captive supply causes cash market price, and it favors the price-dependent model.

This paper examines the adaptation of dasymetric mapping methodologies to agricultural data, including their testing and transposition, in order to recover the underlying statistical surface (i.e., an approximation of the real distribution of data). A methodology based on the ideas of Gallego and Peedell (2001) and on the binary method is proposed. It has several steps: (i) the exclusion of target zones for which no observations exist (binary method), (ii) the application of an iterative process to define the most precise densities for data distribution, and (iii) the stratification/definition of sub-units with homogenous characteristics if the results of the previous step are not satisfactory, and the subsequent application of step two.

The methodology was applied in the Alentejo region of Portugal, using data from the 1999 Agricultural Census. Several counties are used as source zones. The aim was to generate a distribution of agro-forestry occupations as close as possible to reality. Two lines of analysis were followed: (i) application of the methodology simultaneously to all counties (definition of regional densities), and (ii) application of the methodology separately to the different subareas with similar characteristics (definition of sub-regional densities). For an easy application of the methodology, a computer tool was created, which allowed the easy optimization, validation, and exportation of the data into a Geographic Information System (GIS).

The results were validated using several error indicators at the county level, as well as in a sample of parishes. We show that the second variant of the methodology yielded more precise results, and is superior for the types of data available. This method yielded maps in which the distribution of the most relevant agro-forestry occupations is closest to reality.

This study estimates the impact of carbon offset payments on land use choices, net producer returns, and carbon sequestration. Loblolly pine is added to traditional cropping choices as a designated carbon-sequestering crop. With a carbon offset price of $15 per ton, pine enters land use on 10 percent of pasture acres. At $30, loblolly pine significantly increases in acreage in areas traditionally planted in row crops. The analysis suggests that the addition of pine as a carbon-sequestering crop can affect land use, add to producer returns, and sequester additional carbon relative to producer choice sets that exclude pine.