This paper uses the concept of the Gini Coefficient and data from the 1991 Farm Costs and Returns Survey (FCRS) to measure the role of off-farm income and that of other income sources in the size distribution of farm operator households' total personal income. Disaggregated FCRS data by region and by level of participation in off-farm employment show that nonparticipating farm operator households have, as a group, higher income inequality than participating households. The results also indicate that, irrespective of the off-farm work status of the farm operator household, the distribution of income among households in the North Central region is least unequal and that in the West is most unequal.

This article considers the political, economic, and environmental factors associated with the allocation of federal LISA (Low Input/Sustainable Agriculture) funds among states. A tobit model is estimated with LISA allocations as the dependent variable. Results indicate that pressure groups are important. LISA funding depends positively on membership in environmental organizations, the number of farms, and the size of the rural-nonfarm population, while it depends negatively on the size of the urban population. States with host LISA institutions receive significantly more funding, as do states with Senators in leadership positions on key congressional agricultural committees.

The use of alternative probability density functions to specify risk in farm programming models is explored and compared to a traditional specification using historical data. A method is described that compares risk efficient crop mixes using stochastic dominance techniques to examine impacts of different risk specifications on farm plans. Results indicate that a traditional method using historical farm data is as efficient for risk averse producers as two other methods of incorporating risk in farm programming models when evaluated using second degree stochastic dominance. Stochastic dominance with respect to a function further discriminates among the distributions, indicating that a density function based on the historic forecasting accuracy of the futures market results in a more risk-efficient crop mix for highly risk averse producers. Results also illustrate the need to validate alternative risk specifications perceived as improvements to traditional methods.

In this study it is argued that conflicting empirical results on the relationship between technical efficiency and education may be in part attributable to difficulties in the measurement of key variables. Calculation of technical efficiency with three alternative frontier methods for a sample of Guatemalan corn farms resulted in significant differences both in the average technical efficiency of the sample and the efficiency rankings of individual farms. Furthermore, following two-step procedures where technical efficiency is regressed against a set of explanatory variables, it is shown that the choice of efficiency measurement technique can alter the importance of education as a contributing factor to increased technical efficiency. An alternative approach is presented for investigating the relationship between education and efficiency while accounting for difficulties in the measurement of conceptual variables and measurement errors.

A heteroscedastic double-hurdle model is used to investigate household butter consumption in the United States. Results suggest that failure to incorporate heteroscedastic errors may lead to unreliable elasticity estimates. Decomposition of the effects of variables leads to insightful information and makes the double-hurdle model a more useful tool in micro demand analysis. Larger and higher-income households are more likely to consume butter than others and also consume more, but income elasticity is very small. Age, region, and seasonality are among the other significant determinants of household butter consumption.

Despite the many important uses (and potential abuses) of focus groups in survey design, the CV literature presents few guidelines to aid moderators in their interaction with focus group participants. This paper draws on the theory and practice of ethnographic interviewing to introduce general guidelines that can improve focus groups as an aid to CV research. The proposed guidelines illustrate types of questions that should reduce speculation and moderator-introduced bias in focus group responses, and improve the correspondence between focus group responses and actual behavior. The paper illustrates these ethnographic guidelines through a CV application concerning watershed resources.

We show how to solve the stochastic spatial-temporal price equilibrium model numerically using the Chebychev collocation method. We then use the model to analyze the joint and interactive stabilizing effects of competitive storage and trade.

Water pollution control policies generally direct sources (i.e., industry, agriculture) to reduce loadings of certain pollutants. Thus, evaluating the relative net recreation benefits of policies to improve water quality requires establishing a linkage between the sources, the resultant water quality degradation at the affected water bodies, and, ultimately, the effect on recreation behavior. This linkage is rarely present in the empirical literature which is, thus, deficient for water pollution control policy assessment purposes. In this paper, we estimate the relative recreational swimming benefits that may result from controlling point and nonpoint sources of pollution, respectively, in New Hampshire's lakes. We use a repeated discrete choice framework to model swimming behavior as a function of each lake's level of eutrophication, bacteria, and oil and grease. For each pollutant, at each affected lake, we identify which source is responsible for the pollution, and we conduct scenarios controlling each pollution source independently, and then, taken together. Seasonal benefit estimates are presented for each scenario. Coupled with information on the most cost effective means of generating the scenarios, these estimates provide a useful starting point for a quantitative assessment of the net recreation benefits of policies to improve the quality of New Hampshire lakes.

This study evaluated the impacts of bST on the profitability of representative Pennsylvania dairy farms using a stochastic simulation model under two initial milk yield-per-cow levels, three levels of milk response to bST, and three milk price forecast scenarios. Results showed that farm profitability was improved with bST, but the magnitude of the benefits from bST depended on the farm's initial milk output per cow and the level of milk response to bST, both of which are related to quality of management. However, modest price declines due to bST-induced increases in the milk supply would have an offsetting effect on farm profitability.

Arkansas ranks first in broiler production in the USA with more than a billion broilers and 1.5 million tons of litter produced in 1993. Transporting litter from western to eastern Arkansas can accomplish two goals: 1) avoid potential threat to clean water in western Arkansas and 2) can increase productivity of graded lands in the Delta. This paper examines the feasibility of litter transport from areas of high poultry concentrations to the Delta for use as a soil amendment. We establish the conditions for economical litter transport from source to destinations and determine the optimal rates of litter applications. The results suggest that it is economical to transport significant portions of litter.

Market structure has implications for research policies. The public sector reduced its support for technological change for poultry relative to beef and pork after poultry became integrated. However, market integration causes private sector research to be below the optimal level from society's perspective. In order to get the appropriate response from the private sector, the public sector should not reduce its support for technological change after market integration. Instead, the public sector should increase its support for research such as basic science that complements private sector research.

Primary food producers are permitted to bargain as a group for higher prices. Supply response, however, is critical to the long-run success of producer cartels. This article presents a model that elucidates that role of supply response in agricultural price bargaining when no overt action is taken to limit quantity and participation in the cartel is voluntary. Free-riding, for example, is seen as having a dual nature: it undermines the cartel's influence at the negotiating table but it enhances the cartel's ability to sustain a negotiated price increase by attenuating supply response. That price bargaining can result in significant transfers from processors to producers when demand is inelastic and supply is uncontrolled is highlighted in the empirical application.

The industrialization of agriculture refers to the continued consolidation of farms and to the growing use of production and marketing contracts and vertical integration among input suppliers, lenders, agricultural producers, processors, and distributors of food and fiber products, domestically and globally. Industrialization is strongly affecting the structure and performance of farms and agribusiness firms; the distribution of risk, returns, and the ownership and control of resources in the food and fiber system; locations of production; competitiveness in international markets; the effectiveness of agricultural policy; business activity, income, family welfare and employment in rural communities; and environmental quality and control. Research is urgently needed to measure these effects, understand the complex underlying factors, and evaluate policy alternatives that influence and are influenced by the industrialization of agriculture.

A long term whole farm analysis comparing conventional and low-input farming systems is reviewed. A computational error led to the mistaken conclusion that conventional farming with government programs is less preferred by risk-averse farmers than the low input alternative. The greater income variance of conventional agriculture need not make it less preferred provided a higher mean income sufficiently offsets the higher variance.

The authors are correct in identifying the mistakes in our article published in October, 1990 issue of the Northeastern Journal of Agricultural and Resource Economics. In the following, I will provide the correct numbers, note changes that should be made in the article's observations, and offer a recommendation given my experience in sustainable agriculture since 1990.