Doctor of Philosophy / Department of Agricultural Economics / Andrew P. Barkley / Tariff rate quotas (TRQs) are one of the most widely used trade policy instruments in agricultural trade. The issue of whether TRQs are efficient trade policy instruments for improving market access has been widely debated. Some believe that TRQs impose an extra barrier to trade, circumvent the reforms sought under the General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO) and may not be as attractive as initially envisioned. Others believe that the TRQs are useful and facilitate trade and liberalization. Any expansion in quota, or decrease in tariffs, or combinations of the two, has the potential to liberalize trade in a specific industry. There is strong clamor for continued reforms in the conduct of agricultural trade – including the implementation of TRQs. The purpose of this study is to increase the understanding of TRQs, and determine the impact of their implementation on the Philippine corn market. Specifically, the study will estimate the quantities of supply, demand, imports, domestic equilibrium prices, and border prices under different TRQ liberalization regimes. In this study, an existing TRQ model was utilized to determine how effective TRQs are as a trade policy instrument for trade liberalization and increasing market access. The results reveal that the Philippine corn market was restricted by the out-quota tariff. De facto liberalization of the TRQ at the level of the out-quota rate (50%) or even at 35% (in-quota rate), does not completely liberalize the corn market. Progressively reducing both tariffs liberalizes the market and leads to increases in surpluses. The lower tariffs, however, lead to less government revenues. The smaller the gap between the in-quota and out-quota, the smaller the quota rents become. Increasing the quotas has no significant impact in liberalizing the corn market, and the increase in imports decrease producer surplus in all cases. The TRQ model of the Philippine corn sector reveals that changing the components of the TRQ would lead to different impacts on supply, demand, consumer, producer and net surplus, and government revenues. Knowledge of the regime in which the country is trading can determine which individual policy instrument of the TRQ, the in-quota and out-quota tariff and the quota, should be used to increase market access or address the concerns of stakeholders in the corn sector. It is thus important for policy makers to find a workable tariff level that would serve the interest of all stakeholders in the sector.

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.

Nobel laureate and economist Elinor Ostrom earned a Nobel prize in economic sciences in 2009 for her research on a community's ability to self-govern a common pool resource with the use of eight design principles. While Ostrom's accumulated efforts to analyze these principles and apply them to community resources have earned widespread recognition, these principles have yet to take off on a grand scale as a blueprint for self-governance systems globally. There is also a lack of empirical evidence that supports these principles as empirical investigations have yet to manipulate the principles individually or as an intervention package as independent variables. The purpose of the present study is to empirically test Ostrom's eight design principles in a tabletop game model of a community utilizing a common pool resource (CPR) by implementing as well as removing the principles within an adapted version of the board game Catan. In three groups, the CPR almost always fully crashed in baseline but not when Ostrom's principles were in place as game rules. Results indicated that Ostrom's design principles may organize participant responses and maintain resource levels over time more effectively than without Ostrom's rules applied.

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