Data from a 1979 New York survey were analyzed to develop a systematic multivariate typology of small farmers (i.e., operators of small farm businesses) which would be useful in designing and targeting public programs. Farm business size, operator's age, and off-farm employment were the most important dimensions of variation. A typology was constructed by successive dichotomization of low and moderate sales volume farms; operators 49 years of age and under, and 50 and over; and families with and without off-farm income. Means for economic and social indicators were computed for each of the resulting eight categories. Low sales volume farm families with relatively old operators and without off-farm employment were found to experience very low total family incomes. Suggestions are made regarding how public extension and research programs may be developed and targeted with specific categories of the most needy small farmers in mind.

During the past decade, the significance of international trade for the United States’ economy has changed dramatically. In 1970, merchandise exports were $43 billion and accounted for five percent of the Gross National Product (GNP); merchandise imports amounted to $40 billion (U.S. Department of Commerce, Bureau of Economic Analysis). By 1977, such exports had increased to almost $120 billion and imports to $150 billion, in both cases a rate of increase almost double that for GNP over the same period.

Since the early 1960's, educators writing in the Journal of Farm Economics and its successor, the American Journal of Agricultural Economics, have recommended three major curricular changes in agricultural economics programs. First, the curricula should be broadened and diversified, that is, offering more choice of electives of a general nature as opposed to more technical required couses [Hess, Kellogg, Sparks, Sledge, Spitze]. Second, more emphasis should be directed in terms of required formal courses in the written and oral communication skills [Kellogg, Koch, Mather, Sledge, Spitze]. Third, in support of broader curricula, an increase in courses in social sciences and humanities should be required [Hess, Koch, Manderscheid, Sparks, Spitze].

In recent years there has been a noticeable trend toward a small number of large farms and declining output in the Connecticut, Massachusetts and New Hampshire egg industries. This is partly due to increases in the costs of feed grains and freight rates [Skinner]. A significant change in farm income and cost after 1973 is also observed by Hwang. The purpose of this paper is to examine the changes in the size distribution of egg farmers in this three-state region over time as a Markov process. Also, the occurrence of a marked structural change in the egg industry during the period 1967 to 1978 is statistically examined. We also seek answers to questions such as the following: how many years can different-size egg farms survive in the face of increasing feed and energy costs? What will be the size distribution of egg farms, total number of layers, and egg output in the next decade?

In recent studies of erosion control in agricultural production it has been standard practice to use timeless or static models of agricultural production processes. In this paper implications of a dynamic model of agricultural production for erosion control decision making are compared to those of a static model. On the basis of this comparison it is suggested that future research on the economics of erosion control and erosion control policy may benefit from the use of dynamic modeling methods.

A fixed-effects panel data demand model for five New York State markets is estimated to determine the differential impacts of generic fluid milk advertising by media type. Empirical results indicate that among the four media outlets, television advertising has the largest impact on per capita demand, followed by radio, outdoor, and print. Based on the estimated media-specific elasticities, media reallocation of advertising expenditures suggests that milk sales could increase significantly. The results indicate that cooperative media plan strategies developed between the New York regional advertising program and the national advertising programs would achieve the greatest benefits.

This research uses data from the 2005–2011 Agricultural Resource Management Survey and a two-part-model regression procedure to examine the impact of health insurance and other relevant socioeconomic factors on the distribution of health care expenditures among U.S. farm households. Findings show the importance of privately acquired health insurance coverage in explaining inequality in health care expenditures. The results also reveal, among other things, a statistical positive association between health care expenditures and farm operators who fall into the baby boomer age category. A similar statistical association is found for higher income levels but not for inequality of income.

In this study, moving average price stabilization schemes were analyzed under the assumption of rational expectations. It was shown that moving average price schemes may induce cyclical behaviour into market prices where no cyclical pattern previously existed. Moving average price stabilization schemes are important to Canadian agricultural policy analysis because they are a characteristic of stabilization programs in Canada. Indeed, the Agricultural Stabilization Act, introduced in 1975, and the Gross Revenue Insurance Program, introduced in 1991, use moving average prices to calculate returns to producers.

The comment indicated that landed wealth (acres owned) should be included as an explanatory variable in the zoning referendum estimation. Land can be construed as an indicator of wealth that may be impacted by land use controls. The reply focuses on study site issues as well as theoretic, empirical, and institutional/social considerations. Responses to land use control referenda depend on the land considered, attitudes toward land use planning and socio-demographic factors, including income. The amount of acres owned was not statistically significant in explaining preferences for land use controls in the case investigated by McLeod, Woirhaye and Menkhaus.

This study examines the effectiveness of price versus nonprice promotion programs for U.S. poultry exports. A comparative static simulation framework is specified for this purpose. The elasticities needed for the simulation model are estimated using seemingly unrelated regression and time-varying parameter regression techniques. Results from this study indicate that a price subsidy is more effective than nonprice market promotion programs in raising export demand for U.S. poultry.

The land grant system is a value-added infrastructure, designed to extend the boundaries of traditional colleges and universities to bring science to bear on the pressing needs and problems of underserved citizens and communities. With supplemental resources to support mission-oriented research and outreach, the system has addressed a market failure in higher education. It has been a key asset in achieving for the United States a vibrant agricultural economy, a prominent position in world trade, significant rural development, healthy families and communities, and the increasingly sustainable natural resource base that are characteristic of “the great American Society.” This paper explores some of the recent challenges facing the land grant system, provides a framework for examining these challenges, and stresses the need for a new cadre of “land grant economists” to provide leadership as land grants struggle to identify new visions, missions, programs, and innovations that would serve as the bedrock of a new system. Selected areas of emerging opportunities for land grant intervention are also identified.

Following Weitzman (1974), there is ample theoretical literature indicating that choice of pollution control instruments under conditions of uncertainty will affect the expected net benefits that can be realized from environmental protection. However, there is little empirical research on the ex ante efficiency of alternative instruments for controlling water, or other types of pollution, under uncertainty about costs and benefits. Using a simulation model that incorporates various sources of uncertainty, the ex ante efficiency of price and quantity controls applied to two alternative policy targets, fertilizer application rates and estimated excess nitrogen applications, are examined under varying assumptions about agricultural income support policies. Results indicate price instruments outperform quantity instruments. A tax on excess nitrogen substantially outperforms a fertilizer tax in the scenario with support programs, while the ranking is reversed in the scenario without support programs.

The paper develops an adaptive model of perishable commodity dissipation based on the individual's price expectations and risk perception. A two-step, state-space procedure for modeling nonstationary time series is presented. The method combines an impulse response model for estimating deterministic components with an innovations model for the remaining stationary stochastic noise. Combined parameters are used to generate forecasts and to derive a measure of risk in a nonstationary price environment. Defined as the variance (covariance) of out-of-sample forecast error, the measure of risk is the difference between the historical estimate of the stationary noise auto-covariance and the variance (covariance) of out-of-sample forecasts. The optimal marketing strategy for a hypothetical salmon processor who sells to Japanese wholesalers is developed to illustrate the model. The solution is obtained using quadratic programming algorithm.

Prior tests of Hicks’ Induced Innovation Hypothesis (IIH) have been greatly hampered because the lack of supply-side data implicitly requires the untenable assumption that the marginal research cost is the same for different inputs. We document that, with appropriate model specification and panel data, a two-way fixed-effects estimator can account for much of the non-neutrality of the innovation function. Using a test procedure that is robust to a time-variant and non-neutral innovation function, we test the IIH in U.S. agriculture for the period 1960–2004. We use only readily available data for innovation demand and total public research expenditures.

In this article, we present a model of the electricity sector where generation technologies are intermittent. The economic value of an electricity generation technology is given by integrating its production profile with the market price of electricity. We use estimates of the consumer's intertemporal elasticity of substitution for electricity consumption while parameterizing the model empirically to numerically calculate the elasticity between renewables and fossil energy. We find that there is a non-constant elasticity of substitution between renewable and fossil energy that depends on prices and intermittency. This suggests that the efficacy and welfare effects of carbon taxes and renewable subsidies vary geographically. Subsidizing research into battery technology and tailoring policy for local energy markets can mitigate these distributional side effects while complementing traditional policies used to promote renewable energy.

This article explores the environmental and market determinants of irrigation management in a five-state Great Lakes region. We found evidence that corn, soybean, and potato irrigators respond to the cost of water at the intensive margin. Evidence of a water-cost effect at the extensive margin was mixed. This article is unique in its geographic focus and its consideration of various temperature effects. We found evidence of a long-run average temperature effect on crop acreage allocation decisions and a short-run extreme heat effect on water application rates.

Dairy farming in Europe faces profound environmental, social, and economic sustainability challenges, which are of significant policy interest. These challenges support the need for a transition toward the uptake of more sustainable dairy farming practices. This paper examines the effects of an advisory instrument “balanced sustainability information” on farmers’ preferences for more grass-based feeding systems using a between-subjects design and a discrete choice experiment among a sample of Swedish dairy farmers. Conceptually, we develop a state-dependent utility framework with Bayesian updating to motivate the impact pathway. Our results demonstrate that on average, balanced sustainability information has negligible effects on farmers’ feed choices, which could be a consequence of opposing responses to the information, among others. Considering farmer heterogeneity based on their identities and prior knowledge, we find support for some evidence of treatment effects. Our findings highlight important and policy-relevant critical reflections about overoptimistic expectations of information provision as an instrument to nudge behavioral change toward more sustainable farming practices.

This paper estimates the effect of environmental remediation on housing prices in the Milwaukee Estuary Area of Concern (AOC) using a hedonic analysis of individual arms-length sales before and after a major remediation action between 2011 and 2015. Our design leverages this before-after comparison as well as the proximity of homes to remediation and the AOC boundary. Measuring the effect of AOCs in the housing market has always been a difficult task, given that water in AOCs can provide a mix of amenities and disamenities. Indeed, we find little evidence of a negative proximity effect when applying hedonic analysis to cross-section data. However, when we apply the analysis to a repeated cross section in a quasi-experimental framework, we find statistically significant evidence that living near the affected part of the AOC became more desirable after cleanup.

Expert and peer reviews and popularity are freely available both on the Internet and in printed materials for a variety of food products. Using two experimental studies with non-hypothetical tastings and auctions, we explore the impact of peer tasting popularity, actual peer ratings, and expert ratings on demand for wines consumers can or have tasted. We find that higher own wine ratings are associated with higher willingness to pay (WTP). Morevoer, higher peer and expert rating scores increase consumer WTP for wine even after controlling for the impact of consumers’ own ratings. Observed peer popularity also increases WTP for preferred wines.