Master of Agribusiness / Department of Agricultural Economics / Ted C. Schroeder / In the last few years the beef industry has rapidly begun to change. The beef industry during my lifetime will not look like the same industry as during my grandfather's. Input costs are rising dramatically, as well as land values. Weather events have impacted the industry and the supply cycle is beginning to change. Producers need to find ways to get higher prices for their cattle in order to remain profitable. One way to increase their profit is through branded beef and alliance programs. The problem is that cattlemen are good at raising quality products, but they are not the best marketers. Over the past several years though, several beef alliances have formed. There are so many options available today that it can be difficult for a producer to know where to start. This thesis focuses on developing a solution to that problem. Through this thesis, an online marketing tool was developed. Producers will visit this tool and fill out a simple questionnaire about their operation. They will be given results that will include branded beef programs for which they qualify, along with contact information to find out more. This tool gives producers access to 100 marketing programs, over twenty USDA Process Verified Programs, and close to thirty Quality Systems Assessment programs. This will be a beneficial tool for producers to take a commodity product and change it into a valuable branded product for the consumer.

Master of Agribusiness / Department of Agricultural Economics / Arlo Biere / Laundry bar soap has been produced commercially in Venezuela for over a century and is one of the most important products for beauty and personal care throughout the Venezuela. More than 10 Venezuelan companies produce and sell it, but two companies hold almost 85 percent of the market share, with the Las Llaves brand, alone, holding nearly 70 percent. Management for Las Llaves is concerned about how to remain competitive not only with quality and acceptance of its product (effectiveness) but also with how to produce the soap efficiently (at the lowest possible cost) to remain competitive in today's global economic environment. The objective of this thesis is to identify and analyze the sourcing costs of three raw ingredients used to produce laundry bar soap in the Las Llaves facility and to provide a model scenario to support the decision making analysis within the purchasing department.

Doctor of Philosophy / Department of Family Studies and Human Services / John E. Grable / Anthony Jurich / This study was designed to investigate the link between marital quality and financial management roles by gaining insight into the relationship processes of farm couples. Fifty-five married individuals who identified living in a rural or farm location comprised the sample. Each participant completed a paper-pencil survey that included assessment of demographic variables, financial management role involvement, satisfaction with financial management roles, financial satisfaction, and marital satisfaction. Results indicated that respondents of this study were more likely than their spouses to hold primary responsibility for financial management roles and were moderately satisfied with their role involvement. This finding indicated that couples may specialize in taking on the financial management roles they play, rather than working together jointly. Secondly, a new scale emerged, based on Gottman's Sound Relationship House Scales, and was entitled "Shared Goals & Values," utilizing a factor analysis. This scale assessed the meaning of money, financial goals, views about autonomy, and hopes and aspirations within the couple relationship. The Shared Goals & Values scale was found to be a factor influencing both marital satisfaction and financial satisfaction. This finding indicated that the way a couple views money does have impact on marital satisfaction and financial satisfaction. Finally, evidence was found that having shared views about roles within the relationship was more of a predicting factor for financial satisfaction than how a couple communicated during conflict. In regards to a couple's perceived financial satisfaction, having similar perceptions about relationship roles, shared views about money, financial management role satisfaction and increased household income were the important predicting factors. Sharing similar views about money and support for goals in one's life, and household income were significant in predicting increased marital satisfaction.

Master of Science / Department of Agricultural Economics / Kevin C. Dhuyvetter / A Microsoft Excel based budget was developed to find the cost of becoming National Animal Identification Systems (NAIS) compliant in the U.S for beef cow-calf producers. This budget was turned into a stochastic budget by using different distributions for five key variables. From these distributions 10,000 observations were simulated using Latin Hypercube sampling. From the comprehensive budget, a second, more simple budget was constructed for obtaining NAIS cost. This Microsoft Excel based model gives beef cow-calf producers an estimate and a prediction interval associated with the estimated cost of adopting a cattle ID system that is compliant with the National Animal Identification Systems quickly and conveniently, requiring only six inputs. Both the comprehensive and the quick budget are available online. An Ordinary Least Squares regression was estimated using the simulated observations to find marginal effects associated with key variables. The driving factor of total cost per head was eID tag price for operations that tag and eID tag price and chute costs for non-tagging operations. For producers with five or less animals, it was cheaper to hire third parties to tag animals. From the sample data generated, smaller operations pay significantly more than larger operations on a per head basis, as the minimum cost was $2.08 for the larger operations and the maximum cost to small operations was $17.56. The estimated overall average cost per head for the cow/calf industry was $6.26, with a standard deviation of $4.12. Costs were on a per breeding female basis. The Excel spreadsheet budget and model can be downloaded at http://www.agmanager.info/ for producers who wish to estimate NAIS costs specific to their operations.

Master of Agribusiness / Department of Agricultural Economics / Arlo Biere / The objective of this thesis is to examine the factors that a producer will want to consider when choosing the milk cooling and storage system for the dairy farm. The two systems studied are the traditional, on-farm, bulk tank system and the more recently developed, direct tanker loading system that uses glycol chilling plates. As a long-term investment, the choice of the refrigeration and storage system will have an impact on at least four dimensions of the dairy business. The capital cost of the milk cooling/storage system can range from 2% to 5% of the total capital investment in the farm. Milk cooling costs can also account for as much as 25% of the farm’s total electric costs. The system selected can also have an impact on the hauling charges and the hauling charges can account for as much as 10% of the dairy’s gross revenue. Lastly, the storage system selected may influence the range of markets available to the producer as not all processors accept milk from farms using direct tanker loading. Using an economic engineering approach, three hypothetical farm sizes were considered: milking 700, milking 1,400, and milking 2,100 cows. Capital and operating cost data were collected from three major dairy equipment manufacturers that service the Upper Midwest. Capital expenses for each size farm were priced for conventional bulk tanks and then also priced for glycol plate chiller systems that load directly into tanker trailers. The comparison of annualized costs of ownership for all three farm sizes shows only minor differences in the two systems. For the 700 cow farm, a direct tanker loading system saved 0.24% over the total capital investment; for the 1,400 cow farm, a direct tanker loading system saved 0.97%; and for the 2,100 cow farm, a direct tanker loading system saved 1.19%. Thus, differences in hauling charges, which will vary with each situation, become critical to the choice. Because the overall cost of the two systems are so close, one can expect that the peripheral and non-economic issues may be much more influential on each producer’s decision. Given the known differences in hauling charges, one can conclude that for the 700 cow farm, conventional tanks would be the preferred choice. For the 1,400 cow farm and the 2,100 cow farm, the determining factors come down to the differences in hauling charges and long-term goals for the farm business.

Master of Agribusiness / Department of Agricultural Economics / Ted C. Schroeder / During the last 20 years important changes have taken place in the Uruguayan beef chain. Production of grain finished cattle has become a common practice, supply agreements between packers and groups of farmers have increased and packers have begun to own feedyards. Consequently, the number of cattle pre-committed for procurement by a packer has increased significantly. Three sourcing methods are commonly used by packers to ensure captive supply of grain finished fed cattle: marketing agreements, custom feeding and owning a feedyard. The objective of this thesis is to determine the method or combination of methods that result in improved Uruguayan packer profitability through enhanced packer plant management and utilization. To achieve this objective, a quantitative and qualitative analysis using the different sourcing methods was carried out. The analysis looked to identify the drivers that determine why packers resort to one method of procurement rather than other, or a combination of them; and to determine the methods that result in better packer economic results and plant management. The results show that there is no difference between using marketing agreements and custom feedyards, and that resorting to owned feedyards entails higher costs, using current values for feedyard feed and yardage and 2005-2009 average cattle prices. When different scenarios are assessed, custom feeding emerges as the most cost effective option, followed by marketing agreements. However, when qualitative analysis is included, some doubts arise regarding the quantitative advantage of custom feedyards over the alternatives, and a combination of marketing agreements and owned feedyards may be the best option.

Master of Science / Department of Agricultural Economics / Timothy J. Dalton / Given the changing climate paradigm, food and poverty are likely to become more severe in Africa. Farmers can adapt to climate change, especially through conservation agriculture. This study relies on a minimum data approach developed by Antle and Valvidia (2006) to estimate the spatial distribution of opportunity cost for farmers in switching to conservation practices in Wa, Ghana. It assesses the economic feasibility of several scenarios that rely on production techniques currently studied by the CRSP SANREM project. We also explore the possibility that these practices can provide income from carbon sequestration payments implemented by the Kyoto protocol’s Clean Development Mechanisms. The methodology uses data from both a recent survey and information from secondary sources to assess simulated management practices. Results indicate that all the simulated management practices would theoretically benefit farmers. In fact, adoption rates for the four scenarios range from 52% to 65%, even without any carbon payment. Adding a proportional payment to the amount of carbon sequestered with these practices does not seem enough to influence farmers switch to switch to alternative scenarios. The analysis shows that these results hold even when additional fixed costs to adopt these practices are included. This case study demonstrates the usefulness of the minimum data approach in estimating the economic potential of conservation practices in Ghana. These production techniques may represent environmentally-friendly alternatives that are more profitable for farmers than current practices. The next step in assessing implementation of such practices would require studying farmers’ willingness to adopt these production systems, given their ex-ante economic returns.

Master of Agribusiness / Department of Agricultural Economics / Allen M. Featherstone / Crop insurance, in recent years, has displaced U.S. federal farm program payments as the most important safety net for net farm income. The business climate that crop insurance purchasers and providers face in the future is one of increasing premiums for producers and decreasing commissions for crop insurance companies and agents. The primary objective of this thesis is to assess the desirability of crop insurance agency acquisitions to increase market share for Farm Credit Services of America, considering the significant uncertainties in the future subsidy levels and commission levels for these products. Financial analysis and modeling crop insurance agency acquisitions is completed under a wide range of future economic and political scenarios. The wide range of assumptions, however, does contribute to a wide range of potential purchase prices and rates of return on crop insurance agency acquisitions. The crop insurance industry faces uncertainty in the future and general industry profitability will likely decline. However, an expansion strategy in a period of reduced commissions can be profitable if acquisitions are priced appropriately and can be made in locations where existing support services can be leveraged to support the acquisition.

Master of Agribusiness / Department of Agricultural Economics / Allen M. Featherstone / Land is a fundamental input in agricultural production and the factors affecting land prices are an important topic in agricultural economics research. The farmland market has several unique characteristics. Land price volatility can be a source of problems for farmers and investors, especially in periods of falling prices in locations far from markets where the impact of land price reductions is higher than in other locations. This study analyzes land price volatility in different geographical regions of Brazil. The hypothesis is that variation in land price increases with the distance to the market, indicating that land price changes will be more pronounced in areas far from markets and the effects of price cycles in land markets will increase as distance from the market increases. The results obtained in this research support the hypothesis that areas far from end markets are exposed to greater changes in land prices and those same areas are more susceptible to price cycles. The effect on price volatility was also stronger in periods of land price declines. These regions have greater incentives for expansion and investment in periods of land price increase and greater risks of disinvestment and failure in periods of land price contraction. It is difficult to predict when a cycle of expansion or crisis will start or finish, but the present study helps to understand the effects of increases or decreases in land prices when such an event occurs.

Master of Agribusiness / Department of Agricultural Economics / Arlo Biere / The investors I am representing would like to know if they can be successful in the seed industry. They have certain skills and abilities along with industry experience that provides them with certain advantages that would allow them to succeed in the industry. The thesis or study will provide them with a detailed study of the possibilities and the challenges that are before them. To gain insight into positioning a firm in the industry, one must find a tool to help us to discover the answers to the question. I will use "Strategic Visioning in Cascade", this model outlines area of interest such as; a strategic overview, a value proposition, a market analysis, a functional analysis, financial projection and exit strategy in its total. The focus of the study will provide insight into the value proposition and market analysis. The value proposition will follow Michael Porter's Competitive Strategy analogy of cost leadership, differentiation and focus strategies. The market analysis will follow Thompson and Strickland's seven questions that lead to understanding of the selected industry.