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Commodity price volatility and the psychological well-being of farmers Am. J. Agric. Econ. (IF 4.2) Pub Date : 2024-03-04 Saurabh Singhal, Finn Tarp
We examine the effects of income uncertainty on mental health in Vietnam. We assess this issue using volatility in the price of coffee, a key export commodity, that exposes small coffee farmers to income uncertainty. Using household panel data collected over 2016–2020, we find an increase in volatility of the international coffee price to be positively associated with psychological distress among coffee
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Does temporary land retirement promote organic adoption? Evidence from the conservation reserve program Am. J. Agric. Econ. (IF 4.2) Pub Date : 2024-02-27 Hannah Wing, Daniel P. Bigelow, Kate Binzen Fuller
The Conservation Reserve Program (CRP) allows agricultural producers to temporarily remove environmentally sensitive farmland from production in exchange for a yearly rental payment. While enrolled in the CRP, land typically complies with standards for organic certification, which prohibit the use of synthetic pesticides and fertilizers for three years prior to harvest. In this paper, we study the
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Combatting forest fires in the drylands of Sub-Saharan Africa: Quasi-experimental evidence from Burkina Faso Am. J. Agric. Econ. (IF 4.2) Pub Date : 2024-02-27 Tung Nguyen Huy, Guigonan Serge Adjognon, Daan van Soest
Forest fires are among the main drivers of deforestation and forest degradation in the drylands of Sub-Saharan Africa. We use remote sensing data on forest fires and remaining tree cover to estimate the effectiveness of a project targeted at reducing fire incidences in 12 protected forests in arid Burkina Faso. The project consisted of two components that were implemented in the villages surrounding
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Land competition and welfare effects from Mexico's proposal to ban genetically engineered corn Am. J. Agric. Econ. (IF 4.2) Pub Date : 2024-02-22 Jayson Beckman, Noé J. Nava, Angelica S. Williams, Steven Zahniser
Since joining the North American Free Trade Agreement, Mexico has increased its meat production and exports and become more dependent on imported feedstuffs such as genetically engineered (GE) corn. Mexico recently banned the use of GE corn in corn-based foods and called for a gradual substitution away from the use of GE corn for other uses (e.g., feed). This paper considers how a complete ban on GE
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Testing the effectiveness of lottery incentives in online experiments Am. J. Agric. Econ. (IF 4.2) Pub Date : 2024-02-20 Amelia Ahles, Marco A. Palma, Andreas C. Drichoutis
This article investigates the effectiveness of lottery incentive schemes for eliciting consumer valuations in large-scale online experiments. We implement a fully incentivized condition within a geographically dispersed sample of consumers in which bids for a Criollo steak elicited by a Becker-DeGroot-Marschak mechanism are realized with certainty and the products are priority shipped in dry-ice coolers
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The role of geographic market definition in analysis of grocery retailing Am. J. Agric. Econ. (IF 4.2) Pub Date : 2024-02-20 Yanghao Wang, Metin Çakır, Timothy A. Park
We examine how estimates of household food demand elasticities and store profit margins vary with alternative geographic market extents using structural models of household store choice and retailer competition. Our consumer store choice model is novel, simultaneously accounting for the heterogeneity of store choice sets, households' travel distance to stores, and their store-specific shopping basket
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Understanding inequality in U.S. farm subsidies using large-scale administrative data Am. J. Agric. Econ. (IF 4.2) Pub Date : 2024-02-14 Jisang Yu, Sunghun Lim
Using a large-scale, individual-level administrative data set for 2008–2021, we document the inequality in farm program payments across all recipients in the U.S. By examining the relationship between within-county inequality and demographic characteristics of farmers in a county, we find that there is a positive association between the share of Black operators and within-county inequality. We also
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Heterogeneity, climate change, and crop yield distributions: Solvency implications for publicly subsidized crop insurance programs Am. J. Agric. Econ. (IF 4.2) Pub Date : 2024-02-07 Daniel Schuurman, Alan Ker
Climate change continues to fuel concern about the future cost of publicly subsidized crop insurance programs in developed nations. These changes in climate are expected to alter the upper and lower tails of crop yield distributions differently. This may best be captured by modeling the climate–yield relationship heterogeneously across different parts of the yield distribution. To this end, we consider
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Making a difference through trusted, high-quality research and statistics Am. J. Agric. Econ. (IF 4.2) Pub Date : 2024-01-30 Mary Bohman
As applied and agricultural economists, Agricultural & Applied Economics Association (AAEA) members work to provide high quality research and data to inform policy decisions. How do we ensure that decision makers see, and use, our research findings or data in the policy formulation process that includes many actors? The paper provides a framework for how information flows during the policy process
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Explaining the source of racial disparities in market facilitation program payments Am. J. Agric. Econ. (IF 4.2) Pub Date : 2024-01-29 Nathan P. Hendricks, Ashling M. Murphy, Stephen N. Morgan, Samantha L. Padilla, Nigel Key
This paper provides new insights on the distribution of agricultural government payments by farm operator race and the sources of disparities. We use farm-level data from the Census of Agriculture to estimate the payments each farm was eligible to receive from the 2018 and 2019 Market Facilitation Program. We find that farms with a White operator were eligible to receive significantly more payments
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The looming demographic cliff: A wake-up call for the agricultural and applied economics profession Am. J. Agric. Econ. (IF 4.2) Pub Date : 2024-01-28 Rodolfo M. Nayga, Jianhui Liu, Bachir Kassas
The looming demographic cliff, characterized by a projected decline in college student enrollment, can have important impacts for the agricultural and applied economics profession, academic departments, and universities more broadly across the US. This decline will not only affect the financial stability and sustainability of many agricultural economics departments but also the number of high-skilled
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The end of an era: Who paid the price when the livestock futures pits closed? Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-12-30 Eleni Gousgounis, Esen Onur
This paper evaluates the impact of the Chicago Mercantile Exchange's (CME) decision to close the livestock futures pits on the execution quality of customer orders. Our findings suggest that, prior to its closure, the livestock futures pit offers high immediacy execution and attracts large orders. Because such high immediacy orders generally execute faster and cost more, their migration to the electronic
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Agricultural shocks, coping policies and deforestation: Evidence from the coffee leaf rust epidemic in Mexico Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-12-11 Isabelle Chort, Berk Öktem
Deforestation in the tropics is a critical issue that interacts with global environmental changes, and the mediating role of negative agricultural shocks is ambiguous. We investigate the impact of the massive epidemic of coffee leaf rust (CLR) that affected Mexico from 2012 on deforestation. CLR is a fungal disease that negatively affects coffee production. We exploit the gradual spread of the epidemic
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Identifying farmers' response to changes in marginal and average subsidies using deep learning Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-12-11 Hugo Storm, Thomas Heckelei, Kathy Baylis, Klaus Mittenzwei
Much of the developed world has adopted substantial, complex agricultural subsidy schemes in an attempt to produce desired rural livelihood and environmental outcomes. Understanding how farmers adjust their production activity in response to farm subsidies is crucial for setting optimal agricultural policy. Whereas standard economic theory suggests that farmers largely adjust production levels in response
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Farm size, spatial externalities, and wind energy development Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-11-07 Justin B. Winikoff, Dominic P. Parker
The global push for renewable energy must overcome the local challenge of convincing neighboring landowners to lease their properties for wind power. Is this challenge more or less pronounced in rural landscapes with small landholdings? Our theoretical model combines ideas from literatures on the commons, anticommons, and spatial externalities to explain conditions when small landholdings could promote
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Air pollution, weather, and agricultural worker productivity Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-11-03 Alexandra E. Hill, Jesse Burkhardt, Jude Bayham, Katelyn O'Dell, Bonne Ford, Emily V. Fischer, Jeffrey R. Pierce
Outdoor agricultural workers often work in harsh environmental conditions, including high temperatures and poor air quality. This paper studies how these factors impact worker productivity, which can have implications for worker health, well-being, and income as well as farm payroll, production, and profitability. Our analysis uses 6 years of payroll records of harvesters on two large farms combined
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Food security dynamics in the United States, 2001–2017 Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-10-26 Seungmin Lee, Christopher B. Barrett, John F. Hoddinott
We study household food security dynamics in the United States from 2001 to 2017 using a new measure, the probability of food security (PFS), the estimated probability that a household's food expenditures equal or exceed the minimum cost of a healthful diet. We use PFS to analyze household-level and subpopulation-scale dynamics by investigating the conditional distribution of estimated food insecurity
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Market power in California's water market Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-10-28 Françeska Tomori, Erik Ansink, Harold Houba, Nick Hagerty, Charles Bos
We estimate market power in California's surface water market. Market power may distort the potential welfare gains from water marketing. We use a Nash-Cournot model and derive a closed-form solution for the extent of market power in a water market setting. We then use this solution to estimate market power in a newly assembled dataset on California's water economy. We show that, under the assumptions
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Commodity storage and the cost of capital: Evidence from Illinois grain farms Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-10-21 Joseph P. Janzen, Nicholas D. Paulson, Juo-Han Tsay
Commodity inventories are the key state variable determining the magnitude of commodity price responses to supply and demand shocks. Many firms in commodity supply chains use storage, but we know little about which firms and why. The economic theory of storage asserts that firms in a competitive market for inventories will store based on current and expected market prices and the per-unit cost of storing
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Striving to revive pulses in India with extension, input subsidies, and output price supports† Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-10-18 Travis J. Lybbert, Ashish Shenoy, Tomoé Bourdier, Caitlin Kieran
Pulse production in India has stagnated relative to staple grains and cash crops, raising concerns about rural protein consumption. We experimentally evaluate an effort to increase local pulse production in Bihar. This intervention consisted of 2 years of input subsidies and extension to facilitate learning, followed by the creation of marketing organizations and a year of output price support to raise
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Cover crops, crop insurance losses, and resilience to extreme weather events Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-10-12 Serkan Aglasan, Roderick M. Rejesus, Stephen Hagen, William Salas
This study investigates whether cover crop adoption reduces extreme-weather-related crop insurance losses. To achieve this objective, we utilize a county-level panel data set with information on cover crop adoption acres, crop insurance losses (i.e., specifically due to drought, excess heat, or excess moisture), and a number of weather variables. The data cover the main row crop production region in
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Intrahousehold preference heterogeneity and demand for labor-saving agricultural technology Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-10-03 Kajal Gulati, Patrick S. Ward, Travis J. Lybbert, David J. Spielman
Evaluations of agricultural technologies rarely consider the implications of how adoption may alter the labor allocation of different individuals within a household. We examine intrahousehold decision-making dynamics that shape smallholder households' decision to use mechanical rice transplanting (MRT), a technology that disproportionately influences demand for women's labor. To study the adoption
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A reference-price-informed experiment to assess consumer demand for beef with a reduced carbon footprint Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-09-25 Valerie Kilders, Vincenzina Caputo
Accurately reflecting expected prices in stated preference designs can be challenging for foods like ribeye steak, which exhibit stark fluctuations in prices across time and space. To address this issue, we introduce a novel price vector design, the reference-price-informed (RP-informed) design, which directly incorporates individual's reference prices into discrete choice experiments. By presenting
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Social networks and technology adoption: Evidence from church mergers in the U.S. Midwest Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-09-18 Fiona Burlig, Andrew W. Stevens
How do social networks impact technology adoption? Exploiting a natural experiment in the mid-20th century U.S. Upper Midwest, we find that social network expansions, in the form of mergers between congregations of the American Lutheran Church, led to increased rates of agricultural technology adoption among farmers. In counties that experienced a merger, the number of farms using chemical fertilizer
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Consumer preferences for food away from home: Dine in versus delivery Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-09-13 Valerie Kilders, Vincenzina Caputo, Jayson L. Lusk
Food away from home (FAFH) is an integral part of U.S. consumer diets, with food delivery orders becoming more popular in recent years. However, little research has been done on whether choice patterns vary across dining settings and how this might affect the impact food policies such as a red meat tax would have on consumer welfare. We target this gap by implementing a food menu basket-based experiment
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Food stamps and America's poorest Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-09-06 Dean Jolliffe, Juan Margitic, Martin Ravallion, Laura Tiehen
This paper assesses the extent to which Supplemental Nutrition Assistance Program (SNAP)—one of America's largest antipoverty programs—has reached the poorest. We compute a novel measure of the floor of income, an estimated income level of the poorest individuals in society. We measure the floor with and without SNAP benefits included in family income using 29 years of Current Population Survey (CPS)
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Increasing production diversity and diet quality: Evidence from Bangladesh Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-08-25 Akhter Ahmed, Fiona Coleman, Julie Ghostlaw, John Hoddinott, Purnima Menon, Aklima Parvin, Audrey Pereira, Agnes Quisumbing, Shalini Roy, Masuma Younus
In the context of rural Bangladesh, we assess whether agriculture training alone, nutrition behavior communication change (BCC) alone, combined agriculture training and nutrition BCC, or agriculture training and nutrition BCC combined with gender sensitization improve: (a) production diversity, either on household fields or through crop, livestock, or aquaculture activities carried out near the family
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State-contingent production technology formulation: Identifying states of nature using reduced-form econometric models of crop yield Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-08-16 Raushan Bokusheva, Lajos Baráth
Conducting experiments can be time consuming and expensive, and may not always be reasonable. Therefore, empirical research often derives structural parameters based on observational data and reduced-form econometric models. The state-contingent approach presents a consistent conceptual framework for analyzing producer decisions under uncertainty. However, application of this structural modeling approach
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Estimating habit-forming and variety-seeking behavior: Valuation of recreational birdwatching Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-08-08 Todd Guilfoos, Priya Thomas, Sonja Kolstoe
Past experiences influence choices, and people's preferences for more similar (habit-forming) or different (variety-seeking) experiences are reflected in these choices. We develop a structural estimation framework to capture whether people are habit forming or variety seeking and apply it to the choice of recreation site. This research contributes to the revealed preference literature by demonstrating
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Quantifying co-benefits of water quality policies: An integrated assessment model of land and nitrogen management Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-08-08 Weizhe Weng, Kelly M. Cobourn, Armen R. Kemanian, Kevin J. Boyle, Yuning Shi, Jemma Stachelek, Charles White
Due to the nature of nitrogen cycling, policies designed to address water quality concerns have the potential to provide benefits beyond the targeted water quality improvements. For example, actions to protect water quality by reducing nitrate leaching from agriculture also reduce emissions of nitrous oxide, a potent greenhouse gas. These positive effects, which are incidental to the regulation's intended
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Land use impacts of the Conservation Reserve Program: An analysis of rejected offers Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-08-06 Andrew B. Rosenberg, Bryan Pratt
The Conservation Reserve Program is the largest agricultural land retirement program in the United States, with more enrolled acreage entering the program through a competitive auction called the General Signup than any other component. In this study, we assess the land use impacts of the Conservation Reserve Program by observing the land use decisions of parcels following the 2016 General Signup.
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Farm-level responses to weather trends: A structural model Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-07-19 Stefan Wimmer, Christian Stetter, Jonas Schmitt, Robert Finger
Assessing the effects of weather and climate on agricultural production is crucial for designing policies related to climate change adaptation and mitigation. A large body of literature has identified the detrimental effects of climate change on crop yields worldwide, and farm-level adaptation has been shown to mitigate the adverse effects on agricultural production. In this study, we employ a structural
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Structural identification of weather impacts on crop yields: Disentangling agronomic from adaptation effects Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-07-10 François Bareille, Raja Chakir
A large literature has assessed the impacts of climate change on agricultural production by estimating reduced-form models of crop yields conditionally on weather and individual fixed effects. The estimates obtained are usually interpreted as the weather impacts on yields once farmers have adapted. Yet, few attempts have documented that farmers do adapt to weather, and none have verified that these
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Revisiting the size–productivity relationship with imperfect measures of production and plot size Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-07-12 Hailemariam Ayalew, Jordan Chamberlin, Carol Newman, Kibrom A. Abay, Frederic Kosmowski, Tesfaye Sida
Monitoring smallholder agricultural productivity growth, one of the targets of the Sustainable Development Goals, rests on accurate measures of crop production and land area. Existing methods and protocols for measuring smallholder production and plot size are prone to various sources and forms of mismeasurement. Inaccuracies in production and land area measurement are likely to distort descriptive
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Do obese and nonobese consumers respond differently to price changes? Implications of preference heterogeneity for obesity-oriented food taxes and subsidies Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-06-29 Chen Zhen, Yu Chen, Biing-Hwan Lin, Shawn Karns, Lisa Mancino, Michele Ver Ploeg
Preference heterogeneity in food demand has important health and equity implications for targeted and broad-based taxes and subsidies intended to enhance diet quality and reduce obesity. We study the role of obesity in the purchases of food at home and food away from home using data from the nationally representative National Household Food Acquisition and Purchase Survey. We develop a method for incorporating
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Conservation intensification under risk: An assessment of adoption, additionality, and farmer preferences Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-06-25 Elizabeth Canales, Jason S. Bergtold, Jeffery R. Williams
Conservation practices used on agricultural cropland can provide important ecosystem services. The United States relies largely on voluntary programs to incentivize adoption of conservation practices, but the success of these efforts relies on good program design. We use a choice experiment to evaluate farmers' willingness to adopt more intensive in-field conservation practices (continuous no-till
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Social comparisons and groundwater use: Evidence from Colorado and Kansas Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-06-22 R. Aaron Hrozencik, Jordan F. Suter, Paul J. Ferraro, Nathan Hendricks
In the United States, agriculture is responsible for the majority of consumptive water use. To reduce consumptive use in water scarce regions, policymakers have implemented a number of costly interventions. These interventions range from land retirement to subsidies that encourage the adoption of efficient irrigation technologies. In nonagricultural contexts, costly policy interventions have been complemented
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Rainfall shocks and risk aversion: Evidence from Southeast Asia Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-06-20 Sabine Liebenehm, Ingmar Schumacher, Eric Strobl
We analyze how individual risk aversion changes in response to shocks in an agrarian setting, and the role of changes in yields and prices as two potential channels. To do so we specify a theoretical model that describes temporal alterations in risk aversion. Empirically, we test the model's proposition by combining individual-level panel data with historical rainfall data for rural Thailand and Vietnam
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Taxing sugar-sweetened beverages: A nonlinear pricing approach Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-06-19 José G. Nuño-Ledesma, Steven Y. Wu, Joseph V. Balagtas
Taxation is frequently implemented to discourage the consumption of sugary beverages. Despite their popularity, little is known about the impacts of taxes when sellers practice price discrimination. To address this issue, we use a standard nonlinear pricing model with one product and two buyer types to study the effects of taxation on (i) consumption, (ii) consumer and producer surpluses, and (iii)
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Aging out of WIC and child nutrition: Evidence from a regression discontinuity design Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-05-31 Travis A. Smith, Pourya Valizadeh
The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is the third largest food assistance program in the United States. Child participants lose WIC in the month following their fifth birthday. We use this exogenous program rule for identification and find diet quality declines nearly 20%, on average, for those who have yet to transition into kindergarten. Decreases are
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Dynamic model of entry: Dollar stores Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-05-30 Lauren Chenarides, Metin Çakır, Timothy J. Richards
Dollar stores have become the fastest-growing retail format in the United States. However, there is considerable controversy regarding their entry, particularly into markets without grocery stores, and concerns that dollar-store entry decisions are motivated by preemptive incentives. In this paper, we aim to study the market entry of dollar stores as an equilibrium phenomenon and to examine their impact
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Hazardous human–wildlife encounters, risk attitudes, and the value of shark nets for coastal recreation Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-05-28 Tobias Börger, Kolobe Mmonwa, Danny Campbell
Shark incidents are rare and graphic events, and their consequences can influence the behavior of beach users, including bathers, to a great extent. These incidents can be thought of as a fearsome risk that may lead decision makers to overreact or respond with inaction. This paper examines the reaction of recreational beach users, including bathers, to changes in the risk of shark incidents. In addition
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Price-endogenous technology, producer welfare, and ex ante impact assessment: The case of industrial hemp Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-05-18 Seojin Cho, John M. Antle
The emerging hemp industry is an example of an important class of agricultural products where the market extent is limited, in hemp's case by laws and regulations, causing technology adoption to interact through prices with market-level equilibrium. In this paper, we show that the equilibrium adoption rate and producer welfare impact of new technology, such as improved hemp genetics and management
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Corrigendum Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-05-17
Corrigendum to “Modeling Corners, Kinks, and Jumps in Crop Acreage Choices: Impacts of the EU Support to Protein Crops”. Koutchadé, Obafèmi P., Carpentier, Alain, and Fabienne Femenia (2021). Modeling Corners, Kinks, and Jumps in Crop Acreage Choices: Impacts of the EU Support to Protein Crops. American Journal of Agricultural Economics 103(4): 1502–1524. https://doi.org/10.1111/ajae.12152 The below
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Moving policies toward racial and ethnic equality: The case of the supplemental nutrition assistance program* Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-05-04 Alfonso Flores-Lagunes, Hugo B. Jales, Judith Liu, Norbert L. Wilson
We analyze the role played by the Supplemental Nutrition Assistance Program (SNAP) in alleviating or exacerbating inequality across racial and ethnic groups in food expenditures and in the resources needed to meet basic food needs (the “food resource gap”). To do this, we propose a simple framework that decomposes differences across groups in SNAP benefit transfer levels into three components: eligibility
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Impacts of U.S. countervailing duties on phosphate fertilizers Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-04-26 Ashley Beeler, K. Aleks Schaefer, Jacob Sestak, Glenn Conover
Countervailing duties are a trade policy instrument by which importing governments tax imports that are found to benefit from foreign subsidies. Thus, in effect, these duties attempt to remedy market distortions generated by foreign subsidies by further distorting market mechanisms. On March 11, 2021, the U.S. International Trade Commission issued duties ranging between 19.97% and 47.05% on Moroccan
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Estimating SNAP purchasing power and its effect on participation Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-04-12 Qingxiao Li, Metin Çakır
The Supplemental Nutrition Assistance Program (SNAP) aims to improve food security among low-income households and is one of the largest safety net programs in the United States. SNAP benefits are legislated at the federal level and fixed across the contiguous United States. Hence, due to regional food price differences, the real value of SNAP benefits is unequal and could have consequential impacts
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Estimating the effect of time-invariant characteristics in panel data: wheat adoption in Western Canada Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-04-04 Jennifer Syme, Henry An, Mohammad Torshizi
A growing global population and the challenges of climate change have made the need to develop new and improved wheat varieties increasingly important. Creating varieties that are more disease resistant and tolerant to changing environmental conditions such that they will be widely adopted requires breeders to understand the needs of producers. Existing literature suggests that time-invariant traits
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Multi-plant coordination in the U.S. beef packing industry Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-03-23 Christopher C. Pudenz, Lee L. Schulz
Most U.S. beef packers with multiple plants now openly employ multi-plant coordination. Using a Salop Circular City framework that includes negotiated and formula pricing, we demonstrate that multi-plant coordination leads to wider spreads between downstream beef prices and upstream fed cattle prices if multi-plant coordination markdowns outweigh multi-plant coordination efficiencies. Taken together
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Diversification and resilience of firms in the agrifood supply chain Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-03-22 Andrew W. Stevens, Jim Teal
Are diversified firms more resilient to negative market shocks than specialized firms? We answer this question in the context of the COVID-19 pandemic by analyzing data from small- and medium-sized firms in the U.S. agrifood supply chain. We first develop revenue-based measures of firms' vertical (across supply-chain segment) and horizontal (within supply-chain segment) diversification. We then compare
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The role of animal breeding in productivity growth: Evidence from Wisconsin dairy farms Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-02-27 Jared Hutchins, Yating Gong, Xiaodong Du
We examine the relationship between investments in animal breeding and productivity growth on Wisconsin dairy farms using a control function approach. We incorporate farm-level annual investment in breeding and genetics into the law of motion of productivity as in De Loecker (2013) to test the relationship between these investments and realized productivity. Our unique dataset also allows us to look
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Market structure and resilience of food supply chains under extreme events Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-02-27 Jeffrey Hadachek, Meilin Ma, Richard J. Sexton
Recent extreme events and the disruptions they caused have made food supply chain resilience a key topic for researchers and policymakers. This paper provides input into these discussions by evaluating the efficiency and resilience properties of the leading policy proposals. We develop a conceptual model of a prototype agricultural supply chain, parameterize the model based on the empirical literature
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Gravity trade model with firm heterogeneity and horizontal foreign direct investment Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-02-26 Jeff Luckstead, Stephen Devadoss, Xin Zhao
We develop a gravity trade model based on a theoretical analysis of heterogeneous firms that engage in horizontal Foreign Direct Investment (FDI) or exporting. The model allows firms' endogenous choice between exporting or FDI to impact the proportion of exporting firms and subsequently bilateral trade. Based on the theoretical results, we propose a three-stage estimation procedure: First, estimate
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Understanding the effect of cover crop use on prevented planting losses Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-02-26 Sunjae Won, Roderick M. Rejesus, Barry K. Goodwin, Serkan Aglasan
Cover cropping has the potential to improve resilience of agriculture to climate-change-induced extreme weather events. However, rigorous quantitative evidence on the resilience effect of cover crops is still lacking. Using a novel data set that combines satellite-based cover crop information and county-level crop insurance data, we examine the impact of planting cover crops on prevented-planting-related
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A call for justice work in agricultural and applied economics Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-02-20 Norbert Lance Weston Wilson
This presidential address calls the membership to explore ways of doing justice work in their research, teaching, extension, and outreach activities. By sharing my story and developing a content analysis of presidential addresses and invited papers published in the Agricultural and Applied Economics Association journals, I demonstrate how race has shaped my work and the need for additional work in
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Information rigidities in USDA crop production forecasts Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-02-23 Raghav Goyal, Michael K. Adjemian
USDA invests significant public resources into developing its crop projection reports. These publications inform decisions across the supply chain. Several previous studies find that revisions to the department's production and yield forecasts for major agricultural commodities are positively correlated and conclude that they deviate from what would be observed under rational expectations, possibly
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Evaluating the tradeoff between cost effectiveness and participation in agricultural conservation programs Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-02-22 Gregory Howard, Wendong Zhang, Adriana Valcu-Lisman, Philip W. Gassman
Using a survey of 430 farmer respondents in the Boone and North Raccoon River watersheds in Iowa, we examine the impacts of three program innovations—reverse auctions, spatially targeted payments, and higher offered payments—on agricultural conservation program cost effectiveness and participation by farmers. We combine farmer responses to a discrete choice experiment offering voluntary conservation
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Incentive mechanisms to exploit intraseasonal price arbitrage opportunities for smallholder farmers: Experimental evidence from Malawi Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-02-15 Tabitha Nindi, Jacob Ricker-Gilbert, Jonathan Bauchet
Seasonal commodity price fluctuations can potentially offer farmers arbitrage opportunities to increase their income. However, smallholder farmers in most of sub-Saharan Africa often do not exploit these opportunities to the fullest extent possible. To inform this issue, we conducted a randomized controlled trial among 1739 smallholder farmers in Malawi to estimate the impact of two key post-harvest
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SNAP enrollment cycles: New insights from heterogeneous panel models with cross-sectional dependence Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-02-14 Pourya Valizadeh, Bart L. Fischer, Henry L. Bryant
The Supplemental Nutrition Assistance Program (SNAP) has grown rapidly over the past 2 decades. A large literature relies on state-level panel data on SNAP enrollment and implements traditional two-way fixed effects estimators to identify the impact of economic conditions on SNAP enrollment. This empirical strategy implicitly assumes slope parameter homogeneity and ignores the possibility of cross-sectional
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Equity preferences and abatement cost sharing in international environmental agreements Am. J. Agric. Econ. (IF 4.2) Pub Date : 2023-02-14 Tobias Börger, Nick Hanley, Robert J. Johnston, Keila Meginnis, Tom Ndebele, Ghamz E. Ali Siyal, Frans de Vries
This paper examines empirically the importance of equity preferences for the formation of international environmental agreements (IEA) for transboundary pollution control. Although it has been shown theoretically that the existence of equity preferences among countries considering an IEA increases the chances for formation and stability of a coalition, empirical assessments of such preferences have