Master of Agribusiness / Agricultural Economics / Allen M. Featherstone / As the single largest asset class on the agriculture sector’s balance sheet, real estate is clearly a significant component of America’s farming community’s well-being and key to production agriculture. Purchasing farmland requires a significant commitment of capital, and one of the chief considerations for producers when contemplating purchasing a property is the return they can expect to receive from their investment over the course of its productive life. The traditional Net Present Value approach to investment valuation is difficult to implement since estimating cash flows over the life of the property is extremely difficult due to uncertainty in yields and commodity prices. By using historical price, yield, and cost data, this thesis develops a net present value spreadsheet model that uses simulation to determine an expected cash flow per acre. This expected cash flow can then be used to determine the gross cash flow from a particular farm over the term of the investment. While not explicitly accounting for non-direct expenses in the model such as returns to management, the techniques discussed provide a solid foundation for a more thorough enterprise analysis and give the producer an estimate of cash flows independent of short-term management decisions.

Doctor of Philosophy / Department of Agricultural Economics / Jeffery R. Williams / The two topics addressed in this dissertation are both related to surface water quality. Reservoir sedimentation and water quality trading are examined from economic and environmental perspectives. Each topic and the resulting policy implications are relevant to stakeholders at the local, state, and federal levels. Reservoir sedimentation has been recognized as a major environmental, social, and economic issue in much of the Midwestern US. There is an effort to focus public and private funds to achieve the greatest return on the investment from soil erosion and sediment reduction strategies. How can physiographical and economic relationships within the watershed be quantified in such a way to provide insights into the selection of alternative management strategies? This study focuses on answering that question by integrating a physically-based watershed model with an economic analysis of alternative sedimentation reduction strategies for the case of Tuttle Creek Lake located in northeastern Kansas. Several key finding of this study are that both physiographical and economic factors must be considered for cost-effective conservation to occur. Considering these factors and targeting BMP implementation from 8 to 23 times more cost-effective than random implementation. If targeting cannot be done effectively or if “intangible” costs of BMP implementation are too large, dredging is likely to be more cost-effective. While this research compares the cost-effectiveness of various BMP implementation approaches in Kansas with dredging, the benefits associated with each of these strategies is not addressed. While there is substantial evidence that nonpoint sources have lower nutrient reduction costs than point sources, experience with water quality trading (WQT) reveals a common theme: little or no trading activity. These outcomes suggest the presence of obstacles to trading that were not recognized in the design of existing programs. To examine the ways that various market imperfections may impact the performance of a WQT market, an agent-based model is constructed, which simulates a hypothetical point-nonpoint market. This study first presents an overview of the concepts and simulation modeling technique used and then analyzes the effects of two prominent market impediments identified in the WQT literature: information levels and trading ratios. The results imply that if market designers feel that only a limited number of trades will be consummated, creating an institution that provides accessible information about buyers’ prices is preferred to providing information about sellers’ prices. Overall, more information is always better, but it becomes less important with higher trading ratios.

Master of Agribusiness / Department of Agricultural Economics / Jason Bergtold / In the grain industry, producers have sold grain for a long time over the telephone. This thesis suggests significant changes in grain marketing strategies and why other methods of selling grain may help both producers and grain merchandisers be more effective with cash grain transactions. Specifically, the use of web-based applications that allow growers to make, manage and monitor grain offers and use mobile technology for grain marketing solutions. This thesis evaluates two key technology options for agricultural producers. First, the research evaluates factors that impact traded bushels on Farms Technology’s private internet technology trading platform, the Dynamic Pricing Platform (DPP). The second element of the research defines a model which examines likelihood of growers adopting mobile trading technology to increase grain marketing opportunities. A thorough understanding of these two marketing platforms will allow Farms Technology to increase the number of growers opting to use technology to execute cash grain sales, which is financially beneficial to the company. Results indicate that a number of online variables significantly impact online grain trade, in addition to factors that specifically influence the potential adoption of mobile technology by agricultural producers. Results help quantify many insights which Farms Technology has developed in relation to online grade trading and uncovered future possibilities in the online grade trading industry. Statically significant factors that impact grain traded on the DPP include: acres (farm size), on-farm storage, percent of grain sold over the phone, offered bushels, and whether or not farmers received text messages. With respect to mobile application adoption, results identified factors that significantly and positively impact the likelihood of mobile adoption, including: farmers with no cell phone, farmers that are currently receiving text messages, farmers owning a smart phone, and customer service rating for Farms Technology by the farmer. Variables that significantly and negatively impacted mobile adoption included: farmers currently selling on the DPP and farmers who believe the online DPP application is too difficult to use.

Master of Agribusiness / Department of Agricultural Economics / Vincent Amanor-Boadu / The literature shows that increases in incomes lead to changes in the allocation of income or expenditure shares to different food products. The purpose of this thesis is to identify the effect of income on expenditure share allocations among different food groups. The study was particularly interested in beans and how changes in incomes affect the share of bean expenditures. We used data from the 2010 Zambia Living Conditions Monitoring Survey (LCMS). The LCMS covers the whole country and provides segmentation of the respondents, across the region and rural versus urban. It also provides detailed information on the income and expenditure distributions of respondent households. This allowed for the achievement of the overall objective of this thesis: understanding how beans and other food products responded to income changes as well as other demographic and socio-economic variables. The food share is the proportion of total household income that was allocated to food. The results show that food averages about 40% of income but varied significantly across the four income groups. It was 92% for those earning less than ZMW300 per month and 37% for those earning between ZMW300 and ZMW750 per month. It was down to 22.6% for those earning between ZMW750 and ZMW2.1 million per month had a food share of total income of only 10.8%, similar to the average U.S. consumer. These averages were found to be statistically different across the income groups. We found that Zambians allocated about 40% of their food expenditure to cereals compared to 5% to pulses and 3.5% to beans. They allocated a higher proportion of their food expenditure to fruits and vegetables than to beans and/or to pulses. This shows that legumes are very low on the food hierarchy in Zambia. However, across income categories, it was found that consumers in the second income group (ZMW300 and ZMW750 per month) allocated the most of their food expenditure to beans, about 3.9%, while those in the highest income group (ZMW750 and ZMW2.1 million per month ) allocated the least, about 3%. The biggest influencing demographic factor for pulses and beans’ shares of food expenditure was locale, with urban consumers having about 1.1 and 0.8 percentage points higher share of food expenditures allocated to beans than rural consumers. The respective t-values were 15.58 and 16.96. All the demographic and socio-economic variables were statistically significant at or below the 5% level. There was no difference between the allocation of people in the highest income group and those in the lowest income group. The results suggest that if the long-term objective is to reap the nutritional benefits of beans, there may be value in focusing on two principal policy variables: education and income enhancement. However, because education is correlated with income, the benefits of undertaking this policy initiative would more than benefit the bean consumption. It should unleash across the economy a more productive workforce that understands the health benefits of its food choices.

Doctor of Philosophy / Department of Agricultural Economics / Jeffery R. Williams / Over the last few decades there has been a shift in electricity production in the U.S. Renewable energy sources are becoming more widely used. In addition, electric generation plants that use coal inputs are more heavily regulated than a couple decades ago. This shift in electricity production was brought on by changes in federal policy – a desire for electricity produced in the U.S. which led to policies being adopted that encourage the use of renewable energy. The change in production practices due to policies may have led to changes in the productivity of electric generation plants. Multiple studies have examined the most efficient electric generation plants using the data envelopment analysis (DEA) approach. This study builds on past research to answer three questions: 1) Does the level of aggregation of fuel input variables affect the plant efficiency scores and how does the efficiency of renewable energy input compare to nonrenewable energy inputs; 2) Are policies geared toward directly or indirectly reducing greenhouse gas emissions affecting the production efficiencies of greenhouse gas emitting electric generation plants; and 3) Do renewable energy policies and the use of intermittent energy sources (i.e. wind and solar) affect the productivity growth of electric generation plants. All three analysis, presented in three essays, use U.S. plant level data obtained from the Energy Information Administration to answer these questions. The first two essays use DEA to determine the pure technical, overall technical, and scale efficiencies of electric generation plants. The third essay uses DEA within the Malmquist index to assess the change in productivity over time. Results indicate that the level of aggregation does matter particularly for scale efficiency. This implies that valuable information is likely lost when fuel inputs are aggregated together. Policies directly focused on reducing greenhouse gas emissions may improve the production efficiencies of greenhouse gas emitting electric generation plants. However, renewable energy policies do not have an effect on productivity growth. Renewable energy inputs are found to be as efficient if not more efficient than traditional energy sources.

Master of Science / Agricultural Economics / John A. Fox / This study examines consumer acceptance of omega-3 enhanced beef using data from a choice experiment and a retail trial. The retail trial was conducted in collaboration with La Vaca Meat Company, Littleton, CO which offered omega-3 enhanced beef products for sale both online and in-store. Prices were adjusted periodically, and online customers were surveyed to gather information about their purchase decisions. The choice experiment was included in an online survey conducted with a nationally representative sample of consumers. One version of the survey focused on ground beef and another focused on steak. Within each version separate treatments examined the impact of providing information about how levels of the most beneficial omega-3s could be enhanced in beef. The choice experiment evaluated how variation in meat attributes such as omega-3 content, safety, and tenderness influenced purchase decisions. Data from the choice experiment were analyzed using multinomial logit models. Results indicate that overall acceptance and willingness to pay for omega-3 enhanced beef was below that of grass-fed beef. Additional information about omega-3s increased willingness-to-pay for enhanced omega ground beef, but had no impact on willingness-to-pay for enhanced omega steak. The analysis showed significant heterogeneity in preferences, and, in particular, females had significantly higher willingness-to-pay for grass-fed ground beef than males. Average willingness-to-pay for grass-fed steak was estimated at $3.69/lb above conventionally raised product, compared to an estimated premium of $1.86/lb for enhanced omega steak. For ground beef the average premium for grass-fed product was estimated to be $1.27/lb compared to $0.79/lb for the enhanced omega product.

Master of Agribusiness / Department of Agricultural Economics / Allen Featherstone / Land values have a fascinating history after the first settlers started moving west in the 19th century. Much research has been done in agricultural economics with regards to land values and this subject will continue to be watched closely as we move further into the 21st century. The goal of this thesis is to understand the effect that ethanol plants have on the price of land around the ethanol plant. More specifically, the thesis addresses the question of “What impact do ethanol plants have on Kansas Land values?” The thesis also answers the question of “Are land values directly correlated to the proximity of an ethanol plant and if they are directly correlated, to what extent or how much more valuable is a parcel of land that is 30 miles to an ethanol plant compared to a parcel of land that is 70 miles?” As we move into the 21st century, the nation continues to look for alternative fuel sources. Ethanol produced from corn has played a key role in that search for an alternative fuel. In 2007, the state of Kansas proposed to have 29 ethanol plants built and/or operational in the near future. The majority of the ethanol plants were built in 2006 and 2007 with only 16 of those plants becoming operational. This thesis uses those 16 ethanol plants as the basis of this study. The study determines if land sale values from 2010 to 2013 were directly impacted based on the proximity to the closest ethanol plant. Corn is the main crop used in this study with regards to the production of ethanol. While other crops can be used to produce ethanol, the study only focused on the corn crops from 2010 to 2013. The trend in cash corn prices and basis data reflects the advent of the development of ethanol plants with a cash corn high of $8.05 in 2012 and a basis high of $1.84 above futures prices in 2013. In addition to cash corn prices and basis data, the study also collected land parcel sales from the years 2010 to 2013 with 9,279 total observations. Utilizing regression, an equation was estimated taking into account land price, size of land parcel sold in acres, quarter of year for sale, a year binary variable, the minimum distance of an ethanol plant to each parcel sale, the percent pasture acres, percent irrigation acres, rainfall, cropland productivity, and population density. Results indicated that land closer to an ethanol plant is priced at a premium compared to land further away. Land values will continue to be closely studied as we move into the 21st century. This study was able to provide a price point per mile of how much more valuable a land parcel is the closer it is located to an ethanol plant. While this study only factored in the closest ethanol plant to that land parcel sale, other factors such as including multiple ethanol plants located in the same town or ethanol plants that are close in proximity to each other could be further analyzed to continue research on this topic.

Master of Agribusiness / Department of Agricultural Economics / Vincent Amanor-Boadu / Most corporations seem geared to buy assets, not sell them. Estimates suggest corporations acquire three businesses for every one they divest (Mankins 2008). A corporation with a disciplined approach to divestiture seems more likely to sharpen strategic focus and deliver value to shareholders. This thesis defines and explores the concept of an orphan product as an opportunity for divestiture from a parent company and subsequent acquisition for a startup company. Orphan product is defined by reviewing literature and selecting the following criteria for a given product; the product has a lack of marketing support/focus, the product is not considered core to the parent company, product sales trend over a 5-year time frame is decreasing, cash flows are uncertain, market growth for the category the product competes in is smaller than the industry average, the product life cycle position is mature, and portfolio synergy is low due to the parent company having other products that deliver similar benefits. A scorecard is developed and used to score orphan characteristics of four products in the animal health industry. Two of the four products analyzed are classified as orphan products and therefore potential candidates for purchase by the startup company. A Strategy Canvas is developed and value curves are assigned per product to show how the startup company can market an acquired product relative to the critical success factors in the animal health industry (Kim and Mauborgne, 2005). A framework of critical questions is posed to each product resulting in recommendations for the startup on critical success factors to eliminate, reduce, raise, or create. For the orphan products, a recommendations include: raise price, increase marketing support, and/or create new factors to differentiate such as to offer additional services or to develop pricing models that are simple and clear. Application of this research can be applied to companies seeking to acquire animal health products that would like to better understand how to improve their chances for success.

Master of Science / Department of Agricultural Economics / Ted C. Schroeder / Electronic animal identification systems are becoming more common in livestock auction markets because of increased numbers of cattle being electronically identified. More cattle are being individually identified because of increasing enrollment in marketing alliances and verification programs. Also, the National Animal Identification System (NAIS) has increased awareness and perhaps use of electronic identification. In this study, individual characteristics of livestock markets were analyzed to determine how they relate to a livestock market operator's views, concerns, and knowledge of the NAIS as well as adoption of RFID reading equipment. Investments in RFID tagging services and RFID reading equipment by livestock markets were estimated and price premiums associated with RFID tagged and preconditioned cattle were estimated. Data were from a national survey of livestock auction markets and cattle transaction data were obtained from three Kansas livestock markets. Auction markets that indicated they currently plan to add a RFID tagging service are likely to have more knowledge of the NAIS program standards, how to adopt the NAIS practices, and the probable costs involved. Managers of facilities that sell a large volume of livestock annually tend to have a higher level of understanding of how to adopt the NAIS practices and be more knowledgeable of the NAIS standards than operators of smallvolume facilities. Managers of markets that have operating RFID reader systems tend to be more understanding of how to adopt the NAIS practices and of costs associated with adopting the NAIS. Livestock market managers tend to be highly concerned that adoption of individual animal identification systems will adversely impact sale speed and tend to view the NAIS as a threat to their business. Large volume facilities, facilities that have registered their premises, and facilities that plan to add a RFID tagging service are more likely to adopt RFID reader systems. Economies of scale exist in RFID system adoption and RFID tagging services for auction markets. Preconditioned and RFID tagged cattle brought a significant premium at only one of three facilities where data were collected.

Master of Science / Department of Educational Leadership / Sarah Jane Fishback / This study was influenced by the desire to better understand the factors that influence the salary County Extension Agents in Kansas who are employed by K-State Research and Extension. The purpose of the study was to determine factors or the correlation among factors that influence salary compensation. Information was retrieved regarding the 241 County Extension Agents employed in Kansas. Demographic data was compiled on the Extension Agents as well as the ten factors that could influence their salary compensation. The factors are as follows: 1. area within the state; 2. county population; 3. number of agents in the county; 4. director responsibilities; 5. gender; 6. months of Extension employment; 7. years of equivalent service outside of Kansas Extension; 8. change of county employment within Kansas Extension; 9. position type; and 10. level of education. Variable selection through backward elimination was performed identifying area, population, the number of Extension Agents in a county/district, whether the Extension Agent was a director, previous years of experience in an equivalent position outside of K-State Research and Extension, whether an Extension Agent was employed by K-State Research and Extension prior to their current position, months of experience in their current position with K-State Research and Extension, and whether an Extension Agent has a Master's degree and if that Master's degree was obtained prior to the start of their current position to be the most significant influences on salary. Multiple regressions of the data were then performed to determine the significant relationships among certain variables. The population-position-gender correlation was found to be significant as well as the correlation among position types and genders. Recommendations for further research were given including studying the affect of performance evaluations and cost of living on salary compensation. In addition, recommendations for further practices include an annual review of the salary gap among position types and gender to ensure equity of salary compensation. Furthermore, recommendations were given regarding the dispersion of the level of education and timeliness of completing a Master's degree salary compensation data.