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A GROUP INCENTIVE CONTRACT TO PROMOTE ADOPTION OF BEST MANAGEMENT PRACTICES AgEcon
DeVuyst, Eric A.; Ipe, Viju C..
The control of agricultural nonpoint source pollution is emerging as a priority of state and national pollution control programs. Best management practices (BMPs) are often proposed as a method of control. Many BMPs are perceived by farmers as having economic disadvantages when compared to conventional management systems. In the absence of tougher environmental restrictions on farmer behavior and complete observability of individual farmer actions, it may be necessary to provide economic incentives to encourage farmer adoption of BMPs within environmentally sensitive watersheds. This study investigates the use of a group incentive contract to encourage adoption of BMPs. The idea behind the group incentive contract is to compensate farmers for actual...
Tipo: Journal Article Palavras-chave: Environmental Economics and Policy.
Ano: 1999 URL: http://purl.umn.edu/30803
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A GROUP INCENTIVE PROGRAM FOR FARMER ADOPTION OF BEST MANAGEMENT PRACTICES: AN APPLICATION TO THE NITRATE POLLUTION PROBLEM IN CENTRAL ILLINOIS AgEcon
Ipe, Viju C.; DeVuyst, Eric A..
The paper demonstrates a group incentive program to encourage farmer adoption of best management practices. It is demonstrated that the best management practices may not actually reduce farm profits but may increase farm profits and reduce environmental pollution. This may bring about a win-win situation for sponsor, the farmer participating in the program, and the society as a whole. The results show that the farmers subjective beliefs about response of corn yields and profits to nitrogen application differ from the simulated responses which in turn results in the willingness-to-Accept for adoption best management practices significantly higher than the expected program payments. The program could be implemented as an educational effort to...
Tipo: Conference Paper or Presentation Palavras-chave: Group incentive; Adoption; Best management practices; Environmental Economics and Policy; Farm Management.
Ano: 1999 URL: http://purl.umn.edu/21704
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AN ECONOMIC ANALYSIS OF GENETIC INFORMATION: LEPTIN GENOTYPING IN FED CATTLE AgEcon
Bullinger, Jared R.; DeVuyst, Eric A.; Bauer, Marc L.; Berg, Paul T.; Larson, Daniel M..
The use of genetic knowledge is widespread in crop production but is just recently being utilized in livestock production. This study investigates the economic value to feedlots of a polymorphism in the bovine leptin gene. Previous studies indicate that this polymorphism is associated with fat deposition. Since fed cattle are often priced on a grid that considers both yield and quality grades, fat deposition is an important factor in the value and profitability of fed cattle. Using data from 590 crossbred steers and heifers, we estimate growth curves for relevant biological traits, both with and without genotypic information. Using the resulting functions, we then simulate carcass traits to various days-on-feed and compute the associated profit under three...
Tipo: Working or Discussion Paper Palavras-chave: Genetics; Leptin genotype; Beef cattle; Value of information; Livestock Production/Industries.
Ano: 2006 URL: http://purl.umn.edu/23599
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An Economic Analysis of Genetic Information: Leptin Genotyping in Fed Cattle AgEcon
DeVuyst, Eric A.; Bullinger, Jared R.; Bauer, Marc L.; Berg, Paul T.; Larson, Daniel M..
A polymorphism in the leptin gene is associated with fat deposition. Since fed cattle are often priced on a grid that considers yield and quality grades, fat deposition is an important factor in profitability. Using data from 590 crossbred steers and heifers, we simulate carcass traits to various days-on-feed and compute the associated profit under three price grids. Results indicate that leptin genotype does affect value by as much as $48 per head but has little impact on days-on-feed. Given current commercial testing fees of $40-$50 per sample, genotyping of feeder cattle appears to break even at best.
Tipo: Journal Article Palavras-chave: Beef cattle; Genetics; Leptin genotype; Value of information; Livestock Production/Industries.
Ano: 2007 URL: http://purl.umn.edu/8644
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Benefit-cost Analysis of the Waffle: Initial Assessment AgEcon
Bangsund, Dean A.; DeVuyst, Eric A.; Leistritz, F. Larry.
An option to mitigating flood damages in the Red River Basin is the concept of using hundreds or thousands of ‘micro-basin’ storage areas comprised of roads and adjacent lands to retain a sufficient volume of water over a reasonable period in the spring to lower the flood crest heights on streams and rivers throughout the basin. This concept has been referred to as the Waffle. The present value of costs and benefits of implementing, maintaining, and operating the Waffle were estimated for a 50-year period. Costs included land enrollment expenses, landowner payments, infrastructure modifications and installations, and maintenance and administrative overhead. Data relating river crest heights with probability of flood occurrence and expected damages to...
Tipo: Report Palavras-chave: Micro-basin storage; Waffle; Flood mitigation; Red River Basin; Land Economics/Use.
Ano: 2008 URL: http://purl.umn.edu/42216
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DEMAND ESTIMATION FOR AGRICULTURAL PROCESSING CO-PRODUCTS AgEcon
Novak, Patrick J.; Wachenheim, Cheryl J.; DeVuyst, Eric A.; Lambert, David K..
Co-products of processing agricultural commodities are often marketed through private transaction rather than through public markets or those in which public transaction information is recorded or available. The resulting lack of historical price information prohibits the use of positive time series techniques to estimate demand. Demand estimates for co-products are of value to both livestock producers, who obtain them for use in livestock rations, and processors, who must sell or otherwise dispose of them. Linear programming has long been used, first by researchers and later as a mainstream tool for nutritionists and producers, to formulate least cost livestock rations. Here it is used as a normative technique to estimate step function demand...
Tipo: Conference Paper or Presentation Palavras-chave: Agribusiness; Demand and Price Analysis.
Ano: 2001 URL: http://purl.umn.edu/36172
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DEMAND ESTIMATION FOR AGRICULTURAL PROCESSING CO-PRODUCTS AgEcon
Wachenheim, Cheryl J.; Novak, Patrick J.; DeVuyst, Eric A.; Lambert, David K..
Co-products of processing agricultural commodities are often marketed through private transaction rather than through public markets or those in which public transaction information is recorded or available. The resulting lack of historical price information prohibits the use of positive time series techniques to estimate demand. Demand estimates for co-products are of value to both livestock producers, who obtain them for use in livestock rations, and processors, who must sell or otherwise dispose of them. Linear programming has long been used, first by researchers and later as a mainstream tool for nutritionists and producers, to formulate least-cost livestock rations. Here it is used as a normative technique to estimate step function demand...
Tipo: Working or Discussion Paper Palavras-chave: Co-products; Demand estimation; Econometrics; Linear programming; Agribusiness.
Ano: 2001 URL: http://purl.umn.edu/23488
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Demographic Factors Affecting the Adoption of Multiple Value-Added Practices by Oklahoma Cow-Calf Producers AgEcon
Williams, Brian R.; Raper, Kellie Curry; DeVuyst, Eric A.; Peel, Derrell S.; Lalman, David L.; Richards, Chris; Doye, Damona G..
The utilization of marketing programs to enhance feeder calf value has been met with modest success in Oklahoma. Value-added programs are continually promoted as avenues for improving cow-calf profitability, but producer adoption of value-added practices lags in spite of research showing the value of these practices. Identifying producer characteristics that increase their likelihood to adopt value-added practices is critical to developing successful outreach efforts. Results from a survey of Oklahoma producers on value-added practice adoption indicate that multiple demographic variables influence a producer’s likelihood of practice adoption. For Extension specialists, results can help in targeting likely adopters and developing methods to overcome...
Tipo: Presentation Palavras-chave: Beef producers; Value-added practices; Practice adoption; Negative binomial regression; Poisson regression; Farm Management; Livestock Production/Industries; Q12; Q16.
Ano: 2012 URL: http://purl.umn.edu/119743
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Determinants of Price Differentials in Oklahoma Value-Added Feeder Cattle Auctions AgEcon
Williams, Galen S.; Raper, Kellie Curry; DeVuyst, Eric A.; Peel, Derrell S.; McKinney, Doug.
Many value-added practices cannot be observed by feeder cattle buyers. Third-party verification can decrease market inefficiency associated with this asymmetric information. We evaluate the effectiveness of a verification program, the Oklahoma Quality Beef Network, in increasing received prices. We estimate the value of verification, weaning, vaccinating, certification and phenotypic traits of feeder cattle at Oklahoma auctions. Results indicate that the OQBN program adds $2.39 to $5.74/cwt. Vaccinating calves adds $1.44/cwt, and weaning calves adds $2.05/cwt. Differential values for lot size, average weight, hide color, frame size, conditioning, Brahman influence, gender and other characteristics are also reported.
Tipo: Article Palavras-chave: Feeder cattle; Preconditioning; Value-added marketing; Agribusiness; Demand and Price Analysis; Livestock Production/Industries.
Ano: 2012 URL: http://purl.umn.edu/122309
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Evaluation of Breakeven Farm-gate Switchgrass Prices in South Central North Dakota AgEcon
Bangsund, Dean A.; DeVuyst, Eric A.; Leistritz, F. Larry.
Switchgrass, a warm-season perennial grass, native to the region, has received considerable interest for its potential role as a dedicated feedstock for cellulosic-based bio-fuels. This research examined the farm-gate price needed for switchgrass to provide per-acre net returns equal to those obtained from traditional crops in south central North Dakota. Future production costs for switchgrass and net returns from traditional crops were estimated for three soil productivity classes and also were developed to reflect the historical revenue and cost patterns associated with producers who are typically more or less profitable (i.e., average net return per acre) than regional averages. Prices were calculated using an annualized equivalent analysis of...
Tipo: Report Palavras-chave: Switchgrass; Production costs; Farm-gate price; North Dakota; Soil productivity; Agribusiness; Crop Production/Industries; Production Economics.
Ano: 2008 URL: http://purl.umn.edu/37845
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Evaluation of Breakeven Farm-gate Switchgrass Prices in South Central North Dakota-Summary AgEcon
Bangsund, Dean A.; DeVuyst, Eric A.; Leistritz, F. Larry.
Switchgrass, a warm-season perennial grass, native to the region, has received considerable interest for its potential role as a dedicated feedstock for cellulosic-based bio-fuels. This research examined the farm-gate price needed for switchgrass to provide per-acre net returns equal to those obtained from traditional crops in south central North Dakota. Future production costs for switchgrass and net returns from traditional crops were estimated for three soil productivity classes and also were developed to reflect the historical revenue and cost patterns associated with producers who are typically more or less profitable (i.e., average net return per acre) than regional averages. Prices were calculated using an annualized equivalent analysis of...
Tipo: Report Palavras-chave: Switchgrass; Production costs; Farm-gate price; North Dakota; Soil productivity; Agribusiness; Crop Production/Industries.
Ano: 2008 URL: http://purl.umn.edu/42253
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FLOOD EASEMENTS AgEcon
DeVuyst, Eric A.; Hirschi, Rick L.; Braden, John B..
We examine the efficiency of current flood risk allocation and the use of flood easements as a means of reallocating flood risk and reducing total flood damages in large river floodplains. Changes in agricultural floodplain land use and levels of crop insurance coverage as the risk of flooding changes are simulated using mathematical programming. The net benefits of flood easements to a portion of the Lagrange Reach of the Illinois River region are then simulated. Our results indicate that flood easements may provide positive net benefits. This positive result stems primarily from the decreased risk of flooding for non-inundated agricultural levee districts, rather than from reduced municipal flood damages. Our results are robust to changes in the...
Tipo: Conference Paper or Presentation Palavras-chave: Resource /Energy Economics and Policy.
Ano: 2000 URL: http://purl.umn.edu/36373
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Genotyping: What Applied Economists Should Know AgEcon
DeVuyst, Eric A.; Lambert, David K.; Bauer, Marc L..
Tipo: Journal Article Palavras-chave: Livestock Production/Industries.
Ano: 2007 URL: http://purl.umn.edu/92862
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Indemnifying Asset Value Losses Related to Livestock Disease Announcements AgEcon
DeVuyst, Cheryl Sinn; DeVuyst, Eric A..
Tipo: Journal Article Palavras-chave: Livestock Production/Industries.
Ano: 2005 URL: http://purl.umn.edu/27963
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LONGER-TERM FORECASTING OF GRAIN FLOWS AND DELAY COSTS ON THE MISSISSIPPI RIVER AgEcon
Wilson, William W.; DeVuyst, Eric A.; Taylor, Richard D.; Dahl, Bruce L.; Koo, Won W..
The purpose of this study was to forecast grain and oilseed shipments through the Mississippi River system and to analyze impacts of delay costs. The focus is on the world grain trade and expected changes in response to a multitude of evolving competitive pressures and structural changes. The model is a spatial optimization model of the world grain trade. Important parameters are forecasted and used to evaluate changes in flows through specific logistical channels. Projected import demands are based on consumption functions estimated using income and population and accounting for intercountry differences in consumption dependent on economic development. Each of the competing supply regions and countries were represented by yields, area potential that...
Tipo: Working or Discussion Paper Palavras-chave: Agribusiness.
Ano: 2007 URL: http://purl.umn.edu/9237
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MODELING INTERNATIONAL TRADE IMPACTS OF GENETICALLY MODIFIED WHEAT INTRODUCTIONS AgEcon
DeVuyst, Eric A.; Koo, Won W.; DeVuyst, Cheryl Sinn; Taylor, Richard D..
Planned introductions of genetically modified crop varieties can be troublesome to model. Estimation of demand and supply equations is not feasible due to lack of data. Further, specifying demand and supply equations requires calibration to a presumed equilibrium. Depending on the point chosen, highly questionable results may be obtained. We propose a model that uses existing supply, demand, and elasticity estimates. The approach relies on composite supply and demand functions. These composite functions are linear combinations of GM and non-GM varieties. We then employ this approach in a model of world wheat trade to analyze the impact of several plausible GM wheat adoption and consumer acceptability scenarios.
Tipo: Working or Discussion Paper Palavras-chave: International trade; Genetically modified organisms; Producer surplus; Consumer surplus; Welfare; Transportation cost; International Relations/Trade; Research and Development/Tech Change/Emerging Technologies.
Ano: 2001 URL: http://purl.umn.edu/23550
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POTENTIAL IMPACTS OF GM WHEAT ON UNITED STATES AND NORTHERN PLAINS WHEAT TRADE AgEcon
Taylor, Richard D.; DeVuyst, Eric A.; Koo, Won W..
The potential introduction of genetically modified (GM) wheat has both supporters and opponents waging battle in the popular press and scholarly research. Supporters highlight the benefits to producers, while the opponents highlight the unknown safety factors for consumers. The topic is very important to the United States, as a large portion of the wheat production is exported overseas. Consumer groups in some countries are resisting GM wheat. This study utilizes a spatial equilibrium model to evaluate the trade impacts associated with GM wheat introduction along with several assumed post-GM adoption scenarios. Wheat is converted into protein equivalents to allow for substitution between wheat classes. The importance of the U.S....
Tipo: Working or Discussion Paper Palavras-chave: Genetically modified wheat; Spatial equilibrium model; Trade flows; Protein equivalents; Externalities; Crop Production/Industries; International Relations/Trade.
Ano: 2003 URL: http://purl.umn.edu/23546
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Price Signals as Indicators of Profitability at Various Stages of Production in Oklahoma Beef AgEcon
Williams, Brian R.; DeVuyst, Eric A..
Cow-calf producers face an annual decision on when to sell their calves. They can sell them at any point between weaning and slaughter, with the objective of finding the profit maximizing selling point. This paper investigates the use of price signals to determine profit maximizing selling points/retention strategies. Three retention strategies, one for fall calving and two for spring calving, are considered. Producers can sell their calves at weaning, after preconditioning, after grass pasture, after wheat pasture, or after the feedlot depending on the retention strategy. These price signals indicate the optimal selling point based on an observable price ratio at weaning. This paper also considers factors such as the level of preconditioning premiums and...
Tipo: Conference Paper or Presentation Palavras-chave: Beef; Producer Profitability; Price Signals; Farm Management; Livestock Production/Industries; Production Economics; Q13; Q10.
Ano: 2011 URL: http://purl.umn.edu/98769
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REPRESENTATIONS OF MULTI-ATTRIBUTE GRAIN QUALITY AgEcon
DeVuyst, Eric A.; Johnson, D. Demcey; Nganje, William E..
Grain quality is typically measured via several attributes. As these attributes vary across shipments and time, grain quality can be described using multivariate probability or frequency distributions. These distributions are important in modeling blending opportunities inherent in various grain shipments. For computational reasons, it is usually necessary to represent these distributions with a small set of discrete points and probabilities. In this analysis, we suggest a representation method based on Gaussian quadrature. This approach maintains the blending opportunities available by preserving moments of the distribution. The Gaussian quadrature method is compared to a more commonly used representation in a barley blending model.
Tipo: Journal Article Palavras-chave: Crop Production/Industries.
Ano: 2001 URL: http://purl.umn.edu/31149
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SIMULATION OF A GROUP INCENTIVE PROGRAM FOR FARMER ADOPTION OF BEST MANAGEMENT PRACTICES AgEcon
Ipe, Viju C.; DeVuyst, Eric A.; Braden, John B.; White, David C..
A group incentive program to encourage farmer adoption of best management practices is simulated for a typical watershed in central Illinois. The incentive payments, program costs and environmental impacts of the program are simulated. The results show that the best management practices may not actually reduce farm profits but may increase farm profits and reduce environmental pollution. The sponsor in most cases may not have to pay anything under the incentive contract. This may bring about a win-win situation for the sponsor, the farmer participating in the program, and society as a whole. The program could be implemented as an educational effort to demonstrate the benefits of sound management practices.
Tipo: Journal Article Palavras-chave: Agribusiness.
Ano: 2001 URL: http://purl.umn.edu/31433
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