Master of Agribusiness / Department of Agricultural Economics / Robert O. Burton Jr / This thesis analyses the economics of reduced tillage farming compared to no-till on a western Kansas farm using elevated crop residue levels and higher intensity opportunity cropping strategies to overcome obstacles. Farming expenses are from the author’s farm. Crop yields and rainfall data come from the Tribune Unit of the KSU-Southwest Research-Extension Center. Price and crop insurance data are from USDA sources on the Internet. Crop enterprise budgets are used to determine per acre expenses, net revenue, and the risks of high cropping intensity no-till (NT), and reduced tillage (RT), eco-fallow and with and without opportunity cropping. Grain sorghum was added to the NT rotation, the RT opportunity cropping and the NT opportunity cropping to potentially increase revenues and compete against perennial grasses. However, grain sorghum revenues for various reasons did not cover average variable costs. Results indicate that NT opportunity cropping can be as or more profitable than RT eco-fallow using corn, however risks and expenses are greater. Over the 10-year study, the NT opportunity cropping averaged $3.97 more net revenue than the RT rotation. The NT rotation averaged $5.40 less net revenue than the RT rotation. The RT opportunity cropping averaged $3.83 less net revenue than the RT rotation. The NT opportunity cropping produced the highest net revenue, followed by the RT rotation. The RT opportunity produced the third highest net revenue and the NT rotation produce the lowest net revenue. The RT rotation showed relatively little risk in the ability to recover variable expenses. These results only apply to this farm and should be extrapolated to other regions only after study and analysis. This case study is not necessary applicable to other farms. However, the ideas and analytical techniques may be used to address similar issues on other farms. This analysis reveals that higher intensity no-till cropping can increase net revenues as long as intensity is decreased when soil moisture at planting is not adequate. This allows farmers to benefit from increases in soil organic matter and decreases in soil erosion from no-till farming.

Doctor of Philosophy / Department of Agricultural Economics / Andrew P. Barkley / Previous studies show that there has been a deceleration in world wheat yield growth, specifically in irrigated areas, which has led some to believe that the potential for genetic gains is slowing. Some reports claim that the Centro Internacional de Mejoramiento de Maiz y Trigo (CIMMYT) breeding program "reached a plateau" in the 1980s. Such a breeding plateau would have global ramifications, since it is often poor consumers who benefit the most from yield enhancement of staple crops including wheat. CIMMYT estimates that by 2020, the developing world will need 40% more wheat than it consumes today. Because of the lack of involvement by private breeders in most low-income countries, CIMMYT, whose germplasm is used extensively in the developing world, will need to ensure that modern varieties that they release are increasing in yield to meet the rising wheat demand in the developing world. CIMMYT, a non-profit organization, distributes improved germplasm to national agricultural research systems (NARS) for worldwide utilization. CIMMYT has consistently invested a large amount of public expenditures in wheat breeding research each year for several decades. Estimates of the impact of the wheat breeding program on increasing wheat yields provides information to scientists, administrators, and policy makers regarding the efficacy and return to these investments. Quantitative estimates of yield improvements due to the wheat breeding program provide important information for future funding decisions. Wheat lines released by CIMMYT during 1962-2002 were analyzed to estimate genetic yield increases associated with the CIMMYT breeding program using test plot data from the Yaqui Valley in Mexico from 1990-2002. Using several econometric techniques including a Just-Pope production function to account for multiplicative heteroscedasticity across the different varieties, results indicate that through the release of modern varieties CIMMYT has contributed 53.77 kg/ha to yield annually in Mexico’s Yaqui Valley during 1962-2002. Estimates of the gains attributed to CIMMYT’s breeding program on a global scale equal 481.47 million (2002) USD annually from 1990-2002. CIMMYT’s average total wheat breeding cost in from 1990-2002 was roughly 13.95 million USD making the average cost-benefit ratio approximately 1:34.

Master of Agribusiness / Department of Agricultural Economics / Rodney D. Jones / This thesis is the vehicle that I have used to outline a thorough small business plan for our personal business Big Sky Shires & Equine Services. While working toward my MAB Degree, I realized there were a lot of things that I could implement from the program into our business that would help us succeed in the equine industry. I was able to research the industry that we were in to gain a better understanding of how to market and plan for the future. In the back of my mind I started to ask a lot of questions and soon found that we needed a business plan that would answer many questions about the future of our business. The first part of the thesis is the history of the equine industry with a look at US history, outlook for the future and strategic issues affecting the industry. The second part of the thesis is a history of Big Sky Shires & Equine Services. This history tells where the business has come. The third portion, of the thesis is the small business plan that is the most thorough we could put together. A lot of thought and time went into the document that we plan to implement and update quarterly as needed. The final portion of the thesis is our conclusion followed by a detailed appendix of the corresponding documents for operating our business.

Master of Science / Department of Agricultural Economics / Michael R. Langemeier / The overall objective of this study was to examine the relative efficiency of farmers in various age groups. Nine Hundred sixty-four sole proprietors, who were members of the Kansas Farm Management Association (KFMA) with continuous data from 2002-2006, were split up into four groups based on age. Comparing the fourth age group (over 65 years of age) to the first age group (under or equal to 45 years of age) was of primary importance in this study. Comparisons were made utilizing variables pertaining to farm size and tenure, specialization, efficiency, liquidity, and solvency. In this study, there are four age groups; under or equal to 45 years, 46 to 55 years, 56 to 65 years, and greater than 65 years old. T-tests were used to compare variables among age groups. Nineteen variables were statistically different between age groups one and four. The fourth age group performed poorly in terms of cost efficiency. Based on the results, the fourth age group had a difficult time covering unpaid labor and capital expenses. Discriminant analysis was used to determine which variables discriminate the most between age groups. The top three variables in this discriminant analysis were the asset turnover ratio, the economic total expense ratio, and percent acres owned. The top three variables in the discriminant analysis involving groups one and four were the debt to asset ratio, asset turnover ratio, and net farm income.

Master of Agribusiness / Department of Agricultural Economics / Hikaru H. Peterson / Profitability is a primary economic motivator for a farm to remain in business. As conventional crop farming endures rising fertilizer and chemical costs, small farmers that raise grains must look towards innovative cropping practices that are economically affordable or depart the business. As small farmers evaluate other cropping prospects, organic cropping systems and the availability of organic price premiums should be considered as an alternative in meeting farm profitability goals. This study compared the economic return per acre of converting to an organic cropping system from a conventional system against the conventional crop enterprise of the same crop mix. A simulation model was created using assumed organic yield data, actual organic prices, historical conventional yield data and historical conventional prices to determine the economic return. An initial simulation was run, ignoring the three-year transitional period that farms must undergo with no synthetic inputs to become certified organic, to determine if organic cropping systems using organic price premiums on the 600-acre farm would be competitive with conventional production. The simulation showed that organic production is economically competitive with conventional production. Previous studies and personal interviews indicated that the three-year transitional period could easily cause the farm economic loss, since conventional inputs cannot be used and organic premiums cannot be obtained for crops sold. Therefore, three different conversion schemes were simulated to find which one would cause the farm the least economic damage: converting the entire farm to organic production at once, converting 20% of the farm's tillable acres to organic production annually and converting 10% of the farm's tillable acres to organic production annually. All three of the proposed transition schedules revealed economic loss to the farm at some point during their transition periods. The only scheme that showed no average loss was the existing conventional system. However, after complete transition, the three transition schemes showed higher profitability than the conventional cropping system. The downside was that this took a minimum of 13 years to accomplish. The only scheme that did not cause the farm's cumulative present value to drop into negative numbers was the 10% per year transition rate.

Master of Science / Department of Agricultural Economics / Kevin C. Dhuyvetter / Risk is an inevitable part of production agriculture. Price risk is especially a concern for cattle producers in the Midwest. Producers can curtail profit volatility, to an extent, through the utilization of price risk management strategies such as forward contracting, hedging, using put and call options, Livestock Risk Protection Insurance (LRP), as well as Livestock Gross Insurance (LGM) for feedlot cattle. Learning about such price risk management tools can be a daunting task. Kansas State University Extension created a computer based simulation workshop to assist them in teaching cattle producers about price risk management strategies. The simulation paralleled a lecture where participants learned of the price risk management strategies that are available. The simulation allowed the workshop participants to practice using the management strategies as they assumed the role of a feedlot or ranch manager in charge of marketing the operation's calves. In a cooperative effort with Iowa State University, Kansas State University presented the Cattle Risk Management Workshops across the state of Iowa. Participants were given pre-and posttests to measure the effectiveness of the workshop. The overall post-test scores were 25 percentage points higher than the pre-test scores. This research also discusses the interest and perceptions of cattle producers regarding price risk management strategies. The effectiveness of simulations as a teaching tool in helping producers learn about price risk management strategies is also reviewed. In addition, the various price risk management strategies available to producers, as well as seasonality of prices and basis are analyzed. This research also explains and estimates the LRP Feeder Cattle Basis Model. The LRP Feeder Cattle Basis Model was developed with the objective of assisting producers in forecasting LRP basis. The model was developed using similar methodology applied in the creation of a CME basis forecasting model developed by Kansas State University Extension and Custom Ag Solutions, Inc. The LRP Feeder Cattle Basis Model automatically adjusts for the LRP price adjustment factor applied to beef steer calves weighing less than 600 pounds, and beef heifers weighing 600-900 pounds. The LRP Feeder Cattle Basis Model explains 71.37 percent of the variation of LRP basis.

Master of Agribusiness / Department of Agricultural Economics / Andrew P. Barkley / The impact of agricultural trade liberalization on welfare is a major concern to the Government of Morocco. Several agricultural sectors and sub-sectors that are suffering from severe inefficiencies have been protected by the Government mainly through prohibitive import tariffs as a mean to support the income of domestic producers. Although the rhetoric in Morocco is of trade liberalization, the farm sector, with few exceptions, has largely escaped the general tendency. The livestock sector in general and the bovine meat production in particular figure among the most protected goods in the country. Bovine meat imports are imposed a prohibitive tariff rate of 254 percent. In addition, several technical barriers to trade exist in the form of rigid sanitary regulations. It is strategically important for Morocco's trade partners and those that are planning to negotiate different forms of trade agreements to understand the economic argument behind Moroccan protectionist policy in agriculture. The bovine meat market in Morocco is of high interest to major exporters given the growing size in domestic and tourist populations, the high domestic prices, as well as the increase in consumer awareness. Given its good sanitary status, Australia is a strong candidate for negotiating an agreement that will include bovine meat within a general agricultural package. The objective of this study is to evaluate economic evidence and determine whether or not opening up trade of bovine meat will have a net positive impact on welfare. Such evidence can become a strong argument in the hands of trade negotiators for major exporting nations such as Australia. This study uses data from the United Nations Food and Agricultural Organization (FAO), the Ministry of Agriculture of Morocco and Meat and Livestock Australia (MLA) to construct a partial equilibrium model for the bovine meat market. The model simulates different trade policies: closed market, free trade, quota and TRQ. Using the theory of comparative advantage and the concepts of consumer and producer surpluses, gains and losses are assessed and the net impact on welfare is evaluated. The empirical analysis suggests that total free trade in the bovine meat market results in the highest gain in social welfare when compared to protectionism (USD 246.62 million), followed by the TRQ (USD 206.11 million) and quota policy (USD 4.92 million). As hypothesized, the protectionist policy results in large losses in consumers' surplus. The results of the analysis converge with the economic theory and are compelling evidence for the benefits brought by openness in the bovine meat trade.

Master of Agribusiness / Department of Agricultural Economics / Vincent R. Amanor-Boadu / The intent of this thesis is to conduct a case study on the optimization of blending soft red winter wheat, prior to processing into flour, in order to meet specific solvent retention capacity, SRC, specifications, based on predetermined customer specifications. The thesis will provide the company with a greater understanding of how to effectively manage the customer’s demands, and the costs associated with these activities in order to create greater customer value. If optimizing wheat blends is successful, the company will be able to provide similar SRC information to other customers as a value added service. (Solvent retention capacity) is a test that provides analytical data that measures three specific physical components within soft wheat flour. Traditionally, wheat flour is sold according to moisture, ash, protein content, and basic dough characteristic data; though this information is important, SRC provides specific flour functionality information that will aid customers. SRC examines the: glutenin characteristics of the flour, pentosan content and gliadin characteristics, and the starch damage from the milling process. These values describe the functionality of the flour and provide information regarding the flour’s ability to absorb water during the mixing process and the flour’s ability to release that water during the baking process. SRC quality endpoints include: reduced mixing and baking times, reduced levels of breakage after baking, and greater overall ingredient consistency throughout all the customer’s commercial bakeries. This thesis develops a process that the company may use to meet SRC quality specifications determined by the customer. The company gains customer loyalty by supply a consistent product to the customer. This product in turn yields savings for the customer in the areas of lower water use, shorter baking time and consequently lower energy use.

Master of Science / Department of Agricultural Economics / Xianghong Li / Hikaru H. Peterson / The organic food market in the United States expanded rapidly at annual rates between 12% and 21% from 1997 to 2008, yet the adoption rate of organic farming remained stagnant. Industry sources suggest that the degree of outsourcing organic inputs has been increasing during the most recent years. Organic foods are available at traditional supermarkets and mass merchandisers. Many retailers now offer organic food products in their private labels. This study focuses on organic soymilk, which illustrates these recent trends. China, a major low income country which supplies organic agricultural ingredients to the U.S. , has raised food safety concerns fueled by recent incidents. Organic foods have been marketed in China as eco-products in an effort to promote safer foods to meet domestic needs. While organic soybean is one of China’s primary organic exports, China has been the leading importer of conventional soybeans with U.S. as its largest source, but most U.S. production is transgenic. China has a labeling policy on GM (genetically modified) products, which has been more tightly enforced in recent years. This thesis examines U.S. and Chinese consumers’ valuations of attributes of processed organic products, with an emphasis on eliciting their preferences of organic ingredients from different origins, in the case of soymilk. A survey was designed for each country. The U.S. survey was administered online nationwide. An enumerated survey was administered at three types of food retail channels in Beijing, Shanghai and Guangzhou in China. Respectively, 316 and 300 responses were collected from the U.S. and China. Choice experiment was used to elicit consumer values for various attributes of soymilk in both markets. The results show that consumers in both countries are willing to pay premiums for processed foods such as soymilk with organic and non-GMO ingredients. The premium for organic soybeans is significantly higher than that for non-GMO beans. The results also indicate that U.S. consumers hold strong preferences for organic soymilk produced with domestically produced soybeans. In terms of brand preferences, U.S. respondents are willing to pay more for national brands relative to store brands, with taste as a major differentiating factor. In contrast, Chinese consumers’ valuations depend greatly on nationalities of certifying agencies. U.S. certified organic product was perceived higher than EU or Chinese certified organic products, but Chinese-certified non-GMO products were preferred over those certified by U.S. agencies. Chinese consumers’ values varied by cities and retail types where respondents were surveyed.

Master of Science / Department of Agricultural Economics / Vincent R. Amanor-Boadu / This study focuses on determining what key differences predispose a consumer to regularly purchase and be willing to pay a premium for sustainably-produced fruits and vegetables. Organic, local, and small farm are the three cases used in the study. The research used a structured questionnaire to conduct an online survey of U.S. internet users with email addresses in the spring of 2011 with logit and ordered logit regression used as the analytical tools. Cost was the most important factor for consumers who did not purchase organic and local products more frequently while unavailability was the principal reason for not consuming produces from small farms. The study showed consumers of small farm products often (98.5 percent of the time) consume local fruits and vegetables also but not the other way around. The relevant socio-economic factors for determining organic purchasing frequency were gender, household size, and education. For small farm they were the ability to influence local change and the respondents’ frequency of purchase of local products. Socio-economic characteristics did not prove to be a factor in local purchasing decisions. Regular purchasers of organic fruits and vegetables provided a consistent perception of organic products with the USDA certified organic definition. Local consumers reported that taste and freshness are the most defining characteristics of local products while small farm consumers could not provide a clear picture of the definitional statements defining fruits and vegetables produced by a small farm. This implied that there is need for more work by small farm producers to differentiate themselves in the market. On the contrary, both local and organic producers have a clear point of differentiation to reach their customers. Industry marketing efforts can be greatly improved by focusing on the characteristics of the consumers they are trying to reach. Our results can be further investigated by completing the following recommendations. First, to conduct more targeted studies such as interviews or focus groups, second, to gain a deeper understanding of how consumers perceive these attributes and third to conduct a comprehensive study on the similarities and differences between small farm and local consumers.