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Utilizing Contingent Claims to Improve the Management of CAFOs AgEcon
Gramig, Benjamin M.; Skees, Jerry R.; Black, J. Roy.
We propose a market-based approach to reducing the environmental risk posed by concentrated animal feeding operations (CAFOs). The dual problems of hidden information and hidden action faced by policymakers are considered alongside the competing incentives faced by the CAFO manager in a multiple principal-agent setting. A new approach that uses insurance-like contracts is introduced by use of the specific example of a swine operation with a lagoon-based manure management system. Index-based contingent claims contracts in tandem with third-party auditing and waste hauling options are introduced as a complement to regulatory frameworks designed to reduce negative externalities from production.
Tipo: Journal Article Palavras-chave: Animal feeding operations; Asymmetric information; Environmental risk; Insurance; Public policy; Regulation; D82; G22; L51; Q18; Q25; Q28.
Ano: 2004 URL: http://purl.umn.edu/43346
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COST OF PUMPKIN PRODUCTION IN MACOMB COUNTY, MICHIGAN AgEcon
Dartt, Barbara; Black, J. Roy; Stevens, Hannah; Morrone, Vicki.
This bulletin represents a tool that can help producers, consultants, educators, and agribusinesses working with producers estimate costs of production and expected profit based on "typical" pumpkin management strategies found in Macomb County, Michigan. The budget included in this bulletin will allow users to revise inputs based on their management strategies and calculate their expected cost and procit. This flexibility provides a decision aid to search for systems that generate higher net returns to the farm's resource base.
Tipo: Working or Discussion Paper Palavras-chave: Crop Production/Industries.
Ano: 2002 URL: http://purl.umn.edu/11688
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Dairy Farm Revenue Insurance: Is the Application Viable? AgEcon
Wolf, Christopher A.; Black, J. Roy; Hadrich, Joleen C..
Tipo: Conference Paper or Presentation Palavras-chave: Risk and Uncertainty.
Ano: 2006 URL: http://purl.umn.edu/21286
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COST OF CABBAGE PRODUCTION IN MONROE COUNTY, MICHIGAN AgEcon
Dartt, Barbara; Black, J. Roy; Marks, Paul; Morrone, Vicki.
This bulletin represents a tool that can help producers, consultants, educators, and agribusinesses working with producers estimate costs of production and expected profit based on "typical" cabbage management strategies found in Monroe County, Michigan. The budget included in this bulletin will allow users to revise inputs based on their management strategies and calculate their expected cost and profit. This flexibility provides a decision aid to search for systems that generate higher net returns to the farm's resource base.
Tipo: Working or Discussion Paper Palavras-chave: Crop Production/Industries.
Ano: 2002 URL: http://purl.umn.edu/11607
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COST OF CHIP POTATO PRODUCTION IN CENTRAL MICHIGAN AgEcon
Dartt, Barbara; Black, J. Roy; Smucker, Don.
This bulletin represents a tool that can help producers, consultants, educators, and agribusinesses working with producers estimate costs of production and expected profit based on "typical" chip potato production management strategies found in Montcalm County, Michigan. The budget included in this bulletin will allow users to revise inputs based on their management strategies and calculate their expected cost and profit. This flexibility provides a decision aid to search for systems that generate higher net returns to the farm's resource base.
Tipo: Working or Discussion Paper Palavras-chave: Crop Production/Industries.
Ano: 2002 URL: http://purl.umn.edu/11765
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A TWO-SHOCK MODEL OF THE IMPACT OF CROP INSURANCE ON INPUT USE: ANALYTIC AND SIMULATION RESULTS AgEcon
Liu, Yanyan; Black, J. Roy.
By altering the probability distribution of farm income, crop insurance programs affect farmer's input use decision. Ramaswami's (1993) one-shock model analyzed the effect of the crop insurance on single input use by allowing the randomness of yield while keeping price constant in revenue determination. The total effect of actuarially fair insurance on input use was decomposed into risk reduction effect and moral hazard effect, and the directions of the two effects were examined. He showed that the total impact of actuarially fair crop insurance on input use was a) to reduce it if the input was risk decreasing and b) indeterminate if the input was risk increasing. However, the evidence from previous empirical work has been mixed. Horowitz and Lichtenberg...
Tipo: Conference Paper or Presentation Palavras-chave: Risk and Uncertainty.
Ano: 2004 URL: http://purl.umn.edu/19947
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COST OF FRESH MARKET SWEET CORN PRODUCTION IN MONROE COUNTY, MICHIGAN AgEcon
Dartt, Barbara; Black, J. Roy; Marks, Paul; Morrone, Vicki.
This bulletin represents a tool that can help producers, consultants, educators, and agribusinesses working with producers estimate costs of production and expected profit based on "typical" sweet corn management strategies found in Monroe County, Michigan. The budget included in this bulletin will allow users to revise inputs based on their management strategies and calculate their expected cost and profit. This flexibility provides a decision aid to search for systems that generate higher net returns to the farm's resource base.
Tipo: Working or Discussion Paper Palavras-chave: Crop Production/Industries.
Ano: 2002 URL: http://purl.umn.edu/11647
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2004 Business Analysis Summary Feeder Steers AgEcon
Black, J. Roy; Wittenberg, Eric.
This report summarizes the financial and production records of 8 Michigan feeder steer farms. To be included, the farms must have produced at least 50 percent of gross cash farm income from feeder steer sales. The records came from Michigan State University's TelFarm project and the Farm Credit Service system in Michigan. The values were pooled into averages for reporting purposes. Farm records were included if a farm financial summary was completed on 2004 data including beginning and ending balance sheets, plus income and expenses. The data were checked to verify that cash discrepancy was less than 10% of gross cash inflow and that debt discrepancy was less than $1,000. While considerable variation in the data exists, average values are reported in the...
Tipo: Working or Discussion Paper Palavras-chave: Livestock Production/Industries.
Ano: 2005 URL: http://purl.umn.edu/11815
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2003 Business Analysis Summary Feeder Steers AgEcon
Wittenberg, Eric; Black, J. Roy.
This report summarizes the financial and production records of 10 Michigan feeder steer farms. To be included, the farms must have produced at least 50 percent of gross cash farm income from feeder steer sales. The records came from Michigan State University's TelFarm/MicroTel project, the Farm Credit Service system, or by AgriSolutions in Michigan. The values were pooled into averages for reporting purposes. Farm records were included if a farm financial summary was completed on 2003 data including beginning and ending balance sheets, plus income and expenses. The data were checked to verify that cash discrepancy was less than 10% of gross cash inflow and that debt discrepancy was less than $1,000. While considerable variation in the data exists,...
Tipo: Working or Discussion Paper Palavras-chave: Livestock Production/Industries.
Ano: 2004 URL: http://purl.umn.edu/11619
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COST OF ASPARAGUS PRODUCTION IN WESTERN MICHIGAN AgEcon
Dartt, Barbara; Myers, Norm; Black, J. Roy; Bakker, John.
This bulletin was developed to help producers as well as educators and agribusinesses working with producers to estimate costs of production and expected profit based on "typical" asparagus management strategies found in northwestern Michigan. The budget included in this bulletin will allow users to revise inputs based on their management strategies and calculate their expected cost and profit. This flexibility provides a decision aid to search for systems that generate higher net returns to the farm's resource base. The brief outline of cultural and pest management practices included in this publication should be supplemented with publications from Michigan State University or from other Universities. See the References section for resources. Many are...
Tipo: Working or Discussion Paper Palavras-chave: Crop Production/Industries.
Ano: 2002 URL: http://purl.umn.edu/11644
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THE AGRICULTURAL RISK MANAGEMENT SIMULATOR MICROCOMPUTER PROGRAM AgEcon
King, Robert P.; Black, J. Roy; Benson, Fred J.; Pavkov, Patti A..
The Agricultural Risk Management Simulator (ARMS) is a microcomputer program designed to help users evaluate strategies for managing yield and price risk in crop farming operations. Risk management strategies are defined by choices regarding crop mix, the purchase of multiple peril crop insurance, and the use of forward contracting. Probabilistic budgeting is used to determine the net cash flow probability distribution for each strategy considered. Flexibility with regard to both sources of probabilistic information and the form of yield and price probability distributions is a noteworthy feature of the program.
Tipo: Journal Article Palavras-chave: Risk and Uncertainty.
Ano: 1988 URL: http://purl.umn.edu/29259
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COST OF PROCESSING CARROT PRODUCTION IN WEST CENTRAL MICHIGAN AgEcon
Dartt, Barbara; Black, J. Roy; Breinling, Jim; Morrone, Vicki.
This bulletin represents a tool that can help producers, consultants, educators, and agribusinesses working with producers estimate costs of production and expected profit based on "typical" carrot management strategies found in west central Michigan. The budget included in this bulletin will allow users to revise inputs based on their management strategies and calculate their expected cost and profit. This flexibility provides a decision aid to search for systems that generate higher net returns to the farm's resource base.
Tipo: Working or Discussion Paper Palavras-chave: Crop Production/Industries.
Ano: 2002 URL: http://purl.umn.edu/11687
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YIELD AND INCOME RISK REDUCTION UNDER ALTERNATIVE CROP INSURANCE AND DISASTER ASSISTANCE DESIGNS AgEcon
Carriker, Gordon L.; Williams, Jeffery R.; Barnaby, Glenn Arthur, Jr.; Black, J. Roy.
This study compares the effectiveness of five crop insurance/disaster assistance plans: an individual farm-yield insurance plan similar to the current Federal Crop Insurance Corporation multiperil program, two area-yield insurance plans, a farm-yield disaster assistance plan, and an area-yield disaster assistance plan. These methods are examined for reduction in yield and gross income variability with and without participation in the government deficiency payment program using farm-level yield data from 98 dryland wheat farms and 38 dryland corn farms in Kansas. Although individual farm-yield insurance is complex, suffers from moral hazard and adverse selection problems, and is likely to be the most expensive to administer, it provides more yield and gross...
Tipo: Journal Article Palavras-chave: Risk and Uncertainty.
Ano: 1991 URL: http://purl.umn.edu/32588
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CONSIDERING MARKET-BASED ALTERNATIVES TO IMPROVE THE MANAGEMENT OF CAFOs AgEcon
Skees, Jerry R.; Black, J. Roy; Gramig, Benjamin M..
This paper presents a proposal to utilize insurance as a market-based alternative to traditional command-and-control regulation of concentrated animal feeding operations in order to meet policy goals to curtail negative environmental externalities.
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy; Livestock Production/Industries.
Ano: 2003 URL: http://purl.umn.edu/22248
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ALERT: FARMERS NEED TO SIGN UP FOR ACRE! AgEcon
Hilker, James H.; Betz, Roger; Black, J. Roy.
Corn, soybean and wheat producers are facing serious financial challenges. And it is even worse for livestock producers, most of who are also crop producers and are therefore eligible for ACRE. Crops are behind in maturity, some areas of the state need rain, product prices have fallen substantially, and USDA Counter Cyclical payments do not start until $2.35 on corn, $5.36 soybeans and $3.40 on wheat. Chances of prices that low are around 10-15%, but at that point ACRE payments would be much, much bigger. Many producers do not understand ACRE and the benefits available; most of the reasons given for not participating are invalid.
Tipo: Report Palavras-chave: Crop Production/Industries; Farm Management.
Ano: 2009 URL: http://purl.umn.edu/52208
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MODELING OF AGRICULTURAL SYSTEMS AgEcon
Swinton, Scott M.; Black, J. Roy.
The authors present an overview of agricultural systems models. Beginning with why systems are modeled and for what purposes, the paper examines types of agricultural systems and associated model types. The broad categories range from pictorial (iconic) models to descriptive analogue models to symbolic (usually mathematical) models. The uses of optimization versus non-optimizing mechanistic models are reviewed, as are the scale and aggregation challenges associated with scaling up from the plant cell to the landscape or from a farm enterprise to a world market supply-demand equilibrium Recent modeling developments include the integration of formerly stand-alone biophysical simulation models, increasingly with a unifying spatial database and...
Tipo: Working or Discussion Paper Palavras-chave: Farm Management.
Ano: 2000 URL: http://purl.umn.edu/11581
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Incorporating Environmentally Compliant Manure Nutrient Disposal Costs into Least-Cost Livestock Ration Formulation AgEcon
Hadrich, Joleen C.; Wolf, Christopher A.; Black, J. Roy; Harsh, Stephen B..
Livestock rations are formulated to minimize feed cost subject to nutritional requirements for a target performance level, which ignores the potentially substantial cost of disposing of nutrients fed in excess of nutritional requirements. We incorporate nutrient disposal costs into a modified least-cost ration formulation model to arrive at a joint least-cost decision that minimizes the sum of feed and net nutrient disposal costs. The method is demonstrated with phosphorus disposal costs on a representative dairy farm. Herd size, land availability and proximity, crop rotation, and initial soil phosphorus content are shown to be important in determining phosphorus disposal costs.
Tipo: Journal Article Palavras-chave: Environmental compliance; Linear programming; Livestock rations; Manure disposal; Agribusiness; Environmental Economics and Policy; Livestock Production/Industries; C61; Q12; Q52.
Ano: 2008 URL: http://purl.umn.edu/45525
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2002 MICHIGAN FEEDER STEER BUSINESS ANALYSIS SUMMARY AgEcon
Wittenberg, Eric; Black, J. Roy.
This report summarizes the financial and production records of 10 Michigan feeder steer farms. To be included, the farms must have produced at least 50 percent of gross cash farm income from feeder steer sales. The records came from Michigan State University's TelFarm/MicroTel project, the Farm Credit Service system, or by AgriSolutions in Michigan. The values were pooled into averages for reporting purposes. Farm records were included if a farm financial summary was completed on 2002 data including beginning and ending balance sheets, plus income and expenses. The data were checked to verify that cash discrepancy was less than 10% of gross cash inflow and that debt discrepancy was less than $1,000. While considerable variation in the data exists,...
Tipo: Working or Discussion Paper Palavras-chave: Livestock Production/Industries.
Ano: 2003 URL: http://purl.umn.edu/11763
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An Examination of US Consumer Pet and Veterinary Expenditures, 1980-1999 AgEcon
Wolf, Christopher A.; Lloyd, James W.; Black, J. Roy.
The veterinary medical profession touches nearly everyone's life, either directly or indirectly. An estimated 58.3% of US households own pets (AVMA, 2002), and most people consume livestock products in the form of meat, dairy products, wool, or leather. The health and well being of all these animals depend heavily on relationships with veterinarians. Veterinarians also contribute to public health through the FDA, CDC, USDA, and numerous other government agencies at the federal, state, and local levels. Issues of primary concern include food safety, biosecurity, and the numerous emerging (and re-emerging) infectious diseases that are zoonotic in nature. Finally, veterinarians have an additional impact through their research contributions. Virtually...
Tipo: Working or Discussion Paper Palavras-chave: Health Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/7430
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Factors Influencing the Profitability of Fertilizer Use on Maize in Zambia AgEcon
Xu, Z.; Guan, Zhengfei; Jayne, Thomas S.; Black, J. Roy.
Major Findings: The additional maize produced from a given amount of fertilizer applied varied widely across households even after largely controlling for soil and rainfall conditions. The median estimated response rate was 15.9kgs of maize per kg nitrogen applied; Under the range of conditions and smallholder management practices, average maize fertilizer response rates declined as the application rate increased beyond 2 bags of urea and 2 bags of D compound; Factors raising the response rate and profitability of fertilizer use included timely availability, application rates less than the MOA 4x4 recommendation, use of animal draft power in land preparation, and use of hybrid seed. In remote areas, and given current management practices, fertilizer use...
Tipo: Report Palavras-chave: Agriculture; Africa; Zambia; Fertilizer; Crop Production/Industries; Q12.
Ano: 2009 URL: http://purl.umn.edu/54639
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