Increased government deficit has led the congress to reduce federal spending. Proposed budget cuts are intended to decrease government spending in several areas, including agriculture. Reductions in farm program spending could cause significant adverse effects on the financial situation of many farms, particularly to rice and cotton enterprises, due to their high reliance on farm program payments as a source of income. Representative rice and cotton operations of one, two, three, and four entities as single crop enterprises were considered and developed for use in this study. Farm enterprise sizes were determined by estimating the acreage level at which a one, two, three, and four entity operations would reach the most restrictive payment limit. Rice and cotton farms were considered to plant and harvest 85 percent of base acreage (100 percent of paid base acreage). For each enterprise evaluated, gross income, variable production costs, fixed equipment costs, and general farm overhead expenses are included in the analysis. Projections of income and expenses are made for a five-year period (2005-2009). For each year of simulation, random market prices and crop yields are generated to allow for inclusion of price and yield risk. Random domestic market prices, world market prices and crop yields per acre, for both rice and cotton, were generated. The analysis includes a comparison of a baseline simulation of projected income and expenses with six alternative program payment reduction scenarios. Continuation of current policy without reductions in farm program spending has shown to generate insufficient net farm income to both rice and cotton enterprises. One entity operations under the baseline scenario have resulted as being non-viable operations. Increasing reductions in program payments had a detrimental effect on the financial situation of both rice and cotton operations. The combination of 5 percent reduction in program payments along with a 10 percent decline in market prices resulted as the worse case scenario for all rice and cotton enterprises placing them in a higher risk of negative returns over variable and total costs. No program reductions below the baseline scenario are recommended for the viability of an already suffering agricultural sector.

Survey data collected from randomly selected participants within the four geographical regions of the U.S. were used to evaluate consumer attitudes towards functional foods and determine their willingness to pay for these foods. Contingent valuation using the payment card method was used to elicit premiums that consumers are willing to pay for a spread that maintains a healthy heart (spread A), a spread that is proven to significantly reduce cholesterol (spread B) and a loaf of bread that may reduce the risk of heart disease and certain cancers (bread A). Ordered probit regression analysis was used to evaluate the effect of different explanatory variables on the willingness to pay a premium for the three different functional food products. Overall, the following four factors significantly affected the respondents willingness to pay a premium for all the three products evaluated: beliefs about the link between nutrition and health, concern about different chronic diseases, current purchasing and consumption patterns, and attitude towards functional foods. These factors also seem to affect the decision of whether to pay a premium for functional foods more than the decision of how much to pay. The significance of demographic variables depended on the product being valued. Regarding the premiums, on average respondents are willing to pay the current grocery store premium for spread A. On average, respondents are not willing to pay even half of the current grocery store 500% premium for spread B, although the stated WTP results indicated that 9%, are willing to pay at least 400% premium. For bread A, respondents are on average willing to pay a 33% premium instead of the current grocery store 40% premium. Stated WTP indicated that about 42% of the respondents are willing to pay at least a 50% premium for the functional bread.

This study examines trade creation and trade diversion effects in the EUSAFTA using the standard gravity model of bilateral trade flows. The estimation of the gravity equation was carried out using the OLS analysis. In order to ascertain the overall trade creation and trade diversion effects explanatory variables such as GDP, distance and dummy variables were incorporated into the estimation equation to explain bilateral trade flows and exports respectively. The main focus was on the estimation of trade creation and trade diversion effects, resulting from participation in selected regional and preferential trade agreements like EU, COMESA, SACU and EUSAFTA. Additionally, the overall effects of regional and preferential trade agreements are positive and significant indicating that trade agreements, induce and generate huge trade volume among member countries. The trade creation effects of (SACU) were negative. This study demonstrates that participation in Regional and Preferential Trade Agreements stimulates trade between member countries. They also stimulate trade with non-member countries, perhaps as a result of an income effect.

In recent years, the US livestock industries have undergone structural changes that have led to larger livestock operations with their associated environmental problems. Louisiana is within one of the major cow-calf production areas in the US (the Southeast). Louisiana accounts for about 1.72% of the total US cattle operations. In an attempt to control degradation of the environment, conservation programs have been put in place, one of which is the Environmental Quality Incentives Program (EQIP). The EQIP was established in the 1996 Farm Bill, involving the payment of government subsidies to landowners willing to implement specific cost-intensive conservation practices. The aim of this study is to determine, using a sequential response model, the awareness of EQIP and subsequent adoption of best management practices (BMPs) by cattle farmers in Louisiana. Results indicate that of the 504 cattle farmers who completed the survey questionnaire, the probability of a farmer having no knowledge of EQIP (EQIP0) is 0.481; the probability of a farmer having knowledge of EQIP but not applying to the program (EQIP1) is 0.298; the probability of a farmer having knowledge of EQIP, applying to the program, but not receiving payment (EQIP2) is 0.152; the probability of a farmer having knowledge of EQIP, applying to the program, receiving payment, and not canceling the program later (EQIP3) is 0.003; and the probability of a farmer having knowledge of EQIP, applying to the program, receiving payment, and canceling the program later (EQIP4) is 0.066. Variables used in the analysis that influenced the awareness of EQIP and the subsequent adoption of BMPs were the number of times a farmer met with NRCS and/or extension agents in the year 2002, whether the farmers land had been declared highly erodible by NRCS, whether a stream flowed through or close to the farm, whether the farmer was diversified, the size of the cattle operation, and the percentage of household income coming from beef production.

Louisiana faces a tremendous crisis of coastal wetland loss, where an estimated 1,900 square miles of coastal land has been lost in the past century. The Coastal Wetlands Planning, Protection, and Restoration Act (CWPPRA) has been the largest single source of restoration funding, providing approximately $560 million for more than 155 restoration projects since 1991. Recently reauthorized by Congress to the year 2019, current spending under CWPPRA constitutes less than 10% of the funding required to sustain coastal Louisiana as it exists today. A descriptive analysis of selected projects (n=109) was conducted to analyze the economic efficiency associated with various project attributes by location, technology, and sponsor. Barrier Island and Shoreline Protection projects were shown to be highly expensive, costing an average of $9,461 and $10,416 per AAHU, respectively. Although slight economies of scale appeared to be present in the aggregated data, those efficiencies do not hold up over time. In the past 14 years of CWPPRA, average costs per unit have been steadily increasing, ranging from a low of $700 in 1993 to more than $15,000 in 2004. To account for the effects of other possible factors contributing to this increase, a two stage statistical assessment was conducted using data collected from candidate projects (n=299) between 1991 through 2004. The first stage uses multiple linear regression analysis to examine various factors influencing cost-effectiveness. The significant, directional relationships of particular region and sponsor variables is consistent with the expensive "protection" projects predominately sponsored by EPA, and located in Regions 2 and 3. The second stage is a binary logit analysis used to examine how stage 1 attributes affected project selection in CWPPRA. As expected, cost per AAHU was found to be negatively related to project selection for PPL1-14. However, costs between 1999 and 2004 were positively related to project selection. Furthermore, the most expensive project types - barrier island and shoreline protection projects - were positively related to selection. The findings and recommendations of this project could prove useful in ensuring that benefits of Louisiana's coastal restoration and preservation efforts are maximized given the limited amount of funding available.

Previous studies on market power hypothesis strictly assumed that the data used in the analysis were a stationary process. This assumption has been argued that not all time series exhibit a stationary process such that conventional asymptotic theory cannot be applied. This study adopts the New Empirical Industrial Organization (NEIO) approach developed by Bresnahan (1982) and Lau (1982) to measure the degree of market power in the export market for soybean complex. The non-stationary properties of the data were accommodated by formulating the model in an error correction framework (ECM) developed by Bårdsen (1989) and applied by Steen and Salvanes (1999). The results can be summarized as follows. First, tests for stationarity on all the data used in this study show that each series exhibit unit root processes and variables under consideration are co-integrated with one co-integrating vector. Second, estimates of market power indices and the hypothesis tests of market power suggest that both soybean and soybean meal export markets are deemed competitive rather than behaving as a Cournot or any other forms of non competitive behavior. Third, estimates of own-price elasticities indicate that export markets for soybean and soybean meal are price elastic with the magnitudes fall in the range of previous estimates. The income elasticity of export demand is found to be inelastic in both markets. Bårdsens model results are compared to estimates from Johansens maximum likelihood and Engle Granger procedures.

This study investigates the effects of risk/benefit beliefs on consumer purchase intentions for genetically modified (GM) foods. A random, national, mail survey is conducted. Three main problems are addressed in the study. The first problem addressed is to analyze the relationship between consumers risk/ benefit beliefs regarding GM foods, and their willingness to buy GM crop and meat products. The second problem deals with linkages between a consumers risk/benefit beliefs about GM foods and willingness to pay (WTP) for GM foods with a benefit disclosure. The third problem addressed is to test a causal relationship between knowledge and trust toward GM institutions, and consumers purchase behavior toward GM foods. The cognitive factors associated with risk/benefit tradeoffs turn out to have significant impacts on consumer acceptance of GM foods. Results indicate that when consumers decide whether to buy GM crops and meat, the most crucial factor is food safety. Other important factors affecting consumer purchase intentions are ethical issues and concerns regarding the environment and wildlife. Depending upon product types, consumers show different levels of risk perceptions for GM foods. Results indicate that consumers have higher risk sensitivity for GM meats than GM crops, as expected. Consumers living in the Northeast region of the U.S. show a negative attitude about willingness to buy GM meat products. Benefits of GM foods on health and the environment have positive, significant impacts on the premium levels for GM potatoes. Similarly, benefits of GM foods, a positive evaluation of GM foods, and trust in GM institutions such as, government, food companies, consumer environmental groups, and scientists, are significant factors that affect consumers participation in the market for GM beef. Unexpectedly, however, health and environmental risk perceptions of GM foods and morality concerns stemming from unnatural way to produce them do not significantly affect either the decision to participate in the market or the premium level. The study found that consumer risk/benefit beliefs depend on their level of knowledge and credibility in GM institutions. Results also indicate that consumers perceive more risks than benefits for GM foods.

This study contributes to the literature on the export-led growth (ELG) hypothesis by adopting a semiparametric approach under two levels of temporal aggregation to investigate the ELG hypothesis in the Philippines. To assess the impact of model specification on the ELG hypothesis, parametric and semiparametric ECMs are estimated using Philippine annual and quarterly data on GDP, exports, exchange rates and gross fixed-capital formation, focusing on the role of exchange rates. The causal relationship between exports and economic growth is examined using the Granger-causality procedure. It can be concluded that for the Philippines, the ELG hypothesis is (a) sensitive to model specification, (b) affected by different levels of temporal aggregation, and (c) by the inclusion or exclusion of exchange rates. Under short-run and total causality tests, parametric and semiparametric analyses using annual data support export-led growth and bidirectional causality, respectively, and no causal relation between exports and output in the long run. Quarterly data analysis revealed that, in the long run, parametric and semiparametric procedures support bidirectional causality and growth-led exports, respectively, and that there is bidirectional causality between exports and economic growth for short-run and total causality tests. Using annual data, total causality tests support export-led growth and no causality, with the inclusion and exclusion of exchange rates, respectively. No change in results is evident for short-run and long-run causality tests. Using quarterly data, no change in results is shown in all Granger causality tests. The general results on bidirectional causality between exports and economic growth suggest that the Philippines could enjoy economic prosperity by strengthening their trade and investment policy and gearing it towards opening up the economy. Previous studies have argued that differences in outcomes of the ELG hypothesis tests may be due to different levels of temporal aggregation, methodologies, model misspecification, and omitted variables. This analysis introduces empirical evidence on these issues.

The objective of this thesis was to examine the validity of the Export-Led Growth (ELG) hypothesis in nine Southern African countries using annual data for the period 1980-2002. The thesis used time series econometric techniques to test for the causal linkage between exports and economic growth in Southern Africa. Dynamic econometric models were estimated to test for time series properties: unit root (ADF and PP tests), cointegration (Johansens procedure), and Granger-causality (Likelihood Ratio test-LR). The results of the unit root tests show that most of the series are stationary in first differences (series in levels have unit rootI(1)). Co-integration and causality between exports and economic growth were tested and compared using two types of bi-variate vector autoregressive models: models without exogenous variables VAR (p), and models with exogenous variables VARX (p, b). The results of the co-integration tests on both types of bi-variate models show that all three Granger-causality alternative models fit the ELG study for Southern Africa (stationary models; integrated but not co-integrated models; and Error Correction Models). In both types of models, the direction of causation (unidirectional or bidirectional) between GDP and exports was tested using a SUR system of equations by computing the LR test. Without exogenous variables, the ELG hypothesis is found to be valid in Lesotho and Swaziland, and, with exogenous variables, it is valid in Botswana, Lesotho, and Swaziland, implying that expanding exports can contribute to economic growth, poverty reduction, and job creation in all three countries. This research reveals that, even though most countries have adopted export-friendly policies, the long-term impact of such policies is yet to be observed for most countries.

With the recent proliferation of Regional Trade Agreements (RTAs) the tendency world-wide has been seemingly toward trade liberalization. This thesis is primarily concerned with the impacts RTAs have had in the Western Hemisphere regarding agricultural trade flows. Utilizing the framework of the Gravity Model, agricultural trade flows for 24 Western Hemisphere Nations were examined. In the course of the study it was expected that if RTAs were to have an effect it would be a positive Trade Creation Effect and a negative Trade Diversion Effect with positive effects for GDP of importer/exporter and population size of importer/exporter and a negative effect for that of distance. Of the five agreements examined (NAFTA, AC, MERCO, LAIA, and CACM), NAFTA and LAIA were the only positive (but non-significant) as to Trade Creation effects while AC, MERCO, and CACM were all negative (but non-significant). It was also interesting to note that of the agreements, NAFTA, had both a positive and significant (p=0.023) diversionary effect with the remaining agreements all being negative (as expected) and significant regarding trade diversion. It was also concluded that GDP (importer) and distance also had the expected signs (+, respectively) with distance also being significant (p=0.0001). It was concluded that RTAs had a more pronounced effect on inter-industry trade versus intra-industry trade and that with the passage of more time, further analysis may substantiate the claim of a positive RTA effect on agricultural bilateral trade flows.