SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

Fausti, Scott W.; Qasmi, Bashir A.; Wittig, T..

Weekly grid premium and discount price date for fed cattle have been collected over a 3-year period. The grid price data are combined with carcass data (2590 South Dakota slaughter steers) to investigate the variability in the average weekly carcass premium is affected by changes in packer-determined grid premiums and discounts on a weekly basis. The three-stage recursive model is then estimated using an autoregressive procedure. The results of the empirical analysis indicated that among all grid premiums and discounts, it is the choice-select discount that plays the dominant role in determining weekly changes in the average weekly carcass premium (discount).

SEGREGATING TRANSGENIC GRAINS: RESULTS OF A SURVEY AMONG COUNTRY ELEVATORS IN SOUTH DAKOTA

Palavras-chave: Slaughter cattle; Grid pricing; Average pricing; Value-based-marketing; Marketing.

Ano: 2001

URL: http://purl.umn.edu/20615

Van der Sluis, Evert; Qasmi, Bashir A.; Wilhelm, Clayton J..

Using responses from a mail survey conducted among 203 South Dakota grain elevator managers in 2002, we analyzed the degree to which the elevators were prepared to segregate non-transgenic from commodity grains. Only 17 and two percent reported having buyers inquire about segregated non-transgenic or identity preserved corn, and such soybeans, respectively. Among those handling corn (soybeans), 53 (58) percent were willing to participate in non-transgenic corn (soybean) markets at an average premium of 28 (37) cents per bushel. It appears that one in five elevators are able to participate in segregating non-transgenic and commodity grains without additional capital outlays.

Soybean Hedge Ratios for Eastern South Dakota Producers Facing Production and Price Uncertainty

Palavras-chave: Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies.

Ano: 2004

URL: http://purl.umn.edu/36256

Brovold, Karen; Qasmi, Bashir A..

Review and Analysis of International and Budgetary Considerations for the 2007 U.S. Farm Bill

Palavras-chave: Crop Production/Industries; Marketing.

Ano: 1997

URL: http://purl.umn.edu/35920

Qasmi, Bashir A.; Van der Sluis, Evert.

We assess the extent to which national budget considerations, international trade negotiations, and domestic political deliberations affect the potential development of an omnibus farm bill, which may be signed into law in 2008. With no successful conclusion of the Doha Development Round of trade negotiations in sight, U.S. legislators appear unable to make politically unpopular decisions on domestic farm policy reform. However, the absence of an international trade agreement does not reduce the need for the U.S. to comply with previous agreements.

NAFTA INTRA INDUSTRY TRADE IN AGRICULTURAL FOOD PRODUCTS

Palavras-chave: Farm bill; Budget deficit; International trade agreements; Agricultural policy; Agricultural and Food Policy; International Relations/Trade; Public Economics.

Ano: 2008

URL: http://purl.umn.edu/6761

Qasmi, Bashir A.; Fausti, Scott W..

The paper focuses on NAFTA's impact on intra-industry and inter-industry trade in agricultural food products. Bilateral trade among U.S., Canada, and Mexico, as well as their trade with the rest of the world during 1990 and 1995 are investigated. U.S. trade patterns for agricultural food products are slowly changing.

Mandatory Livestock Price Reporting, Market Transparency and Grid Price Dispersion

Palavras-chave: International Relations/Trade.

Ano: 1999

URL: http://purl.umn.edu/35689

Fausti, Scott W.; Qasmi, Bashir A.; Li, Jing; Diersen, Matthew A..

Mandatory livestock price reporting (MPR) was implemented in April 2001. Empirical evidence indicates a significant change in the weekly variability of publicly reported fed cattle grid premiums and discounts occurred after MPR implementation. We evaluated the effect of increased market transparency resulting from implementation of MPR on grid premium and discount dispersion lelvels. Empirical results suggest that increased trransparency is compatible with either an increase or a decrease in dispersion. These results suggest that during the pre-MPR periods, the weekly premium and discount point estimators were derived from a non-representative sample.

Variance Risk Premiums and Predictive Power of Alternative Forward Variances in the Corn Market

Palavras-chave: Fed cattle; Grid pricing; Market transparency; Price dispersion; Demand and Price Analysis; Livestock Production/Industries.

Ano: 2008

URL: http://purl.umn.edu/37833

Wang, Zhiguang; Fausti, Scott W.; Qasmi, Bashir A..

We propose a fear index for corn using the variance swap rate synthesized from out-of-the-money call and put options as a measure of implied variance. Previous studies estimate implied variance based on Black (1976) model or forecast variance using the GARCH models. Our implied variance approach, based on variance swap rate, is model independent. We compute the daily 60-day variance risk premiums based on the difference between the realized variance and implied variance for the period from 1987 to 2009. We find negative and time-varying variance risk premiums in the corn market. Our results contrast with Egelkraut, Garcia, and Sherrick (2007), but are in line with the findings of Simon (2002). We conclude that our synthesized implied variance contains...

DOES THE PRODUCER HAVE AN INCENTIVE TO SELL FED CATTLE ON A GRID?

Palavras-chave: Variance Risk Premium; Variance Swap; Model-free Variance; Implied Variance; Realized Variance; Corn VIX; Risk and Uncertainty; Q13; Q14; G13; G14.

Ano: 2010

URL: http://purl.umn.edu/61683

Fausti, Scott W.; Qasmi, Bashir A..

Barriers to the adoption of grid pricing by fed cattle producers are investigated over a 206-week period (January 1997 to December 2000). The empirical findings document the following potential barriers to adoption: (1) when fed cattle are evaluated on a grid pricing system versus a dressed weight pricing system, a price differential per cwt. and a per-head revenue differential exists over time, (2) the price differential per cwt. is subject to seasonal variation, resulting in variability in the monetary incentive to market-fed cattle on a grid relative to selling cattle at an average price, and (3) the variability in per-head grid revenue is consistently higher than per-head dressed weight revenue variability over time. The marketing implications for...

Tipo: Journal Article

Palavras-chave: Livestock Production/Industries; Marketing.

Ano: 2002

URL: http://purl.umn.edu/34581

Grid Pricing: An Empirical Investigation of Market Signal Clarity

Fausti, Scott W.; Qasmi, Bashir A.; Li, Jing.

The ability of the grid marketing system for fed cattle to provide an efficient price transmission mechanism is investigated. Nerlove’s (1958) adaptive expectations approach is adopted to model the relationship between grid premiums (discounts) and the weekly relative supply of carcass quality attributes. Linear regression techniques are used to estimate Nerlove’s supply response function. Granger Causality tests are conducted to investigate the relationship between grid premiums (discounts) and the relative supply of carcass quality attributes. Regression estimates and the Granger Causality tests provide empirical support for the 2005 National Beef Quality Audit call for clearer market signals.

Public Price Reporting in the Cash Market for Live Cattle: A Spatial Market Approach

Palavras-chave: Grid pricing; Price transmission; Carcass quality; Supply response function; Marketing; Risk and Uncertainty; Q11; D40.

Ano: 2010

URL: http://purl.umn.edu/93253

Fausti, Scott W.; Diersen, Matthew A.; Qasmi, Bashir A..

Legislative authorization for the Livestock Mandatory Reporting Act of 1999 was renewed in October of 2006. One of the cited justifications for implementing mandatory reporting was that the voluntary reporting system for the slaughter cattle cash market was unable to provide accurate and timely market information. We extend the spatial market analysis literature by developing a methodology for detecting distortions in spatial relationships across related price series. Using spatially linked regional markets, we compare state-level mandatory price-reporting data to the U.S. Department of Agriculture voluntarily reported state data to determine if the spatial relationship between price-reporting mechanisms was disrupted by market distortions prior to...

Tipo: Journal Article

Palavras-chave: Public price reporting; Spatial markets; Market integration; Price transparency; Price discovery; Livestock markets; Livestock Production/Industries; Marketing.

Ano: 2007

URL: http://purl.umn.edu/44707

The Effect of the Livestock Mandatory Reporting Act on Market Transparency and Grid Price Dispersion

Fausti, Scott W.; Qasmi, Bashir A.; Li, Jing; Diersen, Matthew A..

The Livestock Mandatory Reporting Act (MPR) of 1999 was implemented in April 2001. Empirical evidence indicates a significant change in intra-week price dispersion associated with publicly reported fed cattle grid premiums and discounts occurring after MPR implementation. The research objective is to evaluate the effect of increased market transparency resulting from implementation of MPR, on grid intra-week premium and discount dispersion levels. Empirical results suggest that increased transparency is compatible with intra-week dispersion levels increasing. Increased dispersion suggests that during the pre-MPR period weekly premium and discount data may have been drawn from a non-representative sample. From the empirical evidence, it is concluded...

Tipo: Journal Article

Palavras-chave: Fed cattle; Grid pricing; Market transparency; Price dispersion; Price volatility; Mandatory livestock price reporting; Agricultural and Food Policy; Demand and Price Analysis; Livestock Production/Industries.

Ano: 2010

URL: http://purl.umn.edu/95609

COST OF SEGREGATING NON-TRANSGENIC GRAINS AT COUNTRY ELEVATORS IN SOUTH DAKOTA

Qasmi, Bashir A.; Van der Sluis, Evert; Wilhelm, Clayton J..

Genetically modified grains have rapidly become popular among producers across U.S. Some consumers, particularly in the EU, South Korea, and Japan, are unwilling to purchase products containing ingredients from genetically modified or transgenic crops. This paper develops a model to represent costs of segregating non-transgenic grains at country elevators and simulates these costs at representative elevators in South Dakota under alternative scenarios employing a case study approach. The overall cost of segregating non-transgenic grains under a zero rejection rate ranged from 1.5 to 21.7, 1.2 to 11.3, and 1.3 to 16.4 cents per bushel, for corn, soybeans, and wheat, respectively.

GRAIN PRODUCTION AND HANDLING TRENDS IN SOUTH DAKOTA AND THEIR IMPLICATIONS

Palavras-chave: Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies.

Ano: 2004

URL: http://purl.umn.edu/36262

Qasmi, Bashir A.; Wilhelm, Clayton J..

Over the last three decades, producers in South Dakota have planted increasingly more acres under corn and soybeans and have moved away from producing oats and barley. The wheat production in the state has also increased during this period. The grain handling industry in South Dakota has also changed over time. The number of commercial elevators has significantly decreased during the past 30 years, and the operating capacities of the remaining ones are much larger. Genetically modified(GM) of transgenic corn and soybeans were introduced in 1996. Presently, South Dakota is leading the nation in adoption of corn and soybeans. Despite some consumers' reluctance to buy food products containing ingredients from biotech crops, the market demand for...

Pricing Fed Cattle on a Grid: An Analysis of the Incentive Mechanism over Time

Palavras-chave: Crop Production/Industries.

Ano: 2002

URL: http://purl.umn.edu/32020

Fausti, Scott W.; Wang, Gerald; Diersen, Matthew A.; Qasmi, Bashir A..

Empirical results suggest that the grid premium and discount structure is slowly adjusting carcass quality incentive/disincentive market signals to encourage marketing on a grid and discourage marketing by the pen. If this trend continues, grid market share of steer and heifer slaughter volume should increase in the future.

Tipo: Presentation

Palavras-chave: Fed cattle; Grid; Marketing; Market share; Livestock production; Livestock Production/Industries; Marketing; Research Methods/ Statistical Methods; Q13.

Ano: 2012

URL: http://purl.umn.edu/119670

Price Transparency in the Voluntary Price Reporting System for Live Cattle: Theory and Empirical Evidence

Fausti, Scott W.; Diersen, Matthew A.; Qasmi, Bashir A..

Interregional spatial linkages between South Dakota and Nebraska cash markets for slaughter cattle are investigated. Econometric procedures are used to test whether a thinning market effect or strategic price reporting behavior by packers has degraded market transparency under the voluntary price reporting system. Empirical evidence suggests transparency was not degraded.

GRID PRICING VERSUS AVERAGE PRICING FOR FED CATTLE: AN EMPIRICAL ANALYSIS

Palavras-chave: Demand and Price Analysis.

Ano: 2005

URL: http://purl.umn.edu/35463

Fausti, Scott W.; Qasmi, Bashir A..

Weekly grid premium and discount price data for fed cattle have been collected over a 26 month period. The grid price data are combined with carcass data (2590 South Dakota slaughter steers) in order to investigate the variability in the price differential per cwt. when marketing fed cattle on a grid versus selling cattle at an average price (dressed weight). A three-stage recursive information structure is postulated. The theoretical model describes how the price differential is affected by changes in packer determined gird premiums and discounts on a weekly basis. The three-stage recursive model is then estimated using ordinary least squares. The results of the empirical analysis indicate that among all grid premiums and discounts, it is the...

The 2005/06 South Dakota Grain Marketing Patterns Study: A Grain Elevator Survey Report

Palavras-chave: Agricultural Finance.

Ano: 1999

URL: http://purl.umn.edu/32029

Qasmi, Bashir A.; Hamda, Yonas; Fausti, Scott W..

This study reports the results of a survey of grain elevators in South Dakota completed in 2007 and focuses on the marketing patterns for spring wheat, winter wheat, oats, barley, corn, soybeans and sunflower seeds for the marketing year 2005/06. During the year, elevators’ market share in South Dakota was 54%, 83%, 91% and 83% for corn, soybeans, spring wheat, and winter wheat, respectively. Contrary to reports for Iowa and Indiana, the increase in ethanol production in the state did not have an adverse impact on elevators’ market share for corn in South Dakota. In terms of volume, cash purchase, delayed pricing, cash forward contracts, and hedge to arrive contracts, collectively, accounted for more than 95% of each of the grain and oilseed purchased by...

Tipo: Report

Palavras-chave: South Dakota; Corn; Soybeans; Spring wheat; Winter wheat; Grain elevators; Market share; Methods of purchase; Methods of sale; Transportation modes; Agribusiness; Q1.

Ano: 2010

URL: http://purl.umn.edu/60463

Public Reporting of Fed Cattle Grid Prices: Policy Reform Consequences

Fausti, Scott W.; Qasmi, Bashir A.; Diersen, Matthew A..

Mandatory livestock price reporting was implemented in April 2001. Empirical evidence indicates a significant change in volatility occurred in publicly reported fed cattle grid premiums and discounts after its policy reform was implementationed. Empirical analysis of grid premiums and discounts across the pre- and post -reform periods indicates that increased transparency is compatible with either an increase or a decrease in price volatility in the post- MPR period. Furthermore, it appears that the public price reporting system for weekly grid premiums and discounts failed to provide an adequate level of transparency prior to the implementation of price reporting policy reforms. Our methodology extends the literature on the use of volatility measures for...

Impacts of Dramatic Increase in Corn Based Ethanol Production on Grain Production and Marketing Patterns in South Dakota

Palavras-chave: Livestock Production/Industries; Marketing.

Ano: 2007

URL: http://purl.umn.edu/7297

Qasmi, Bashir A.; Hamda, Yonas; Fausti, Scott W..

Between 1995 and 2005, a drastic increase in ethanol production in the United States led to increased production of corn and substantially increased shares of corn destined for ethanol plants. The objectives of this paper are to investigate/identify: 1) the changes in the volume of grain handled by the elevators in South Dakota, 2) the changes in the destinations and the type of buyers for South Dakota grains, 3) the impacts of the ethanol plants on corn and other grain handled by the elevators which are located close to ethanol plants. The results presented in this paper are mostly from a survey of grain elevators in South Dakota, completed in early 2008. The results from the survey are also compared to the results from a similar survey completed in 1996.

The Affect of Animal Gender on Fed Cattle Producer Marketing Behavior

Palavras-chave: Ethanol; Corn; Corn production; Marketing patterns; Corn based ethanol; Production Economics; Q13; Q18.

Ano: 2009

URL: http://purl.umn.edu/113045

Fausti, Scott W.; Qasmi, Bashir A.; Diersen, Matthew A.; Li, Jing; Lange, Brent.

Weekly grid market share by volume for slaughter steers is compared to slaughter heifers. Summary statistics indicate average grid market share for steers (42%) is 27% higher than slaughter heifers (33%). The literature indicates that pregnancy and increased dark cutter incidence associated with heifers relative to steers creates additional financial risk when heifers are sold on a grid. Econometric analysis suggests grid market share is less sensitive to change in market conditions for heifers relative to steers. The empirical evidence is consistent with the supposition that marketing heifers is riskier than marketing steers on a grid. Thus sellers need stronger economic incentives to market heifers on a grid relative to steers.