Cropping pattern and resource use

Farmland plays a dual role for farm business households; it can be both a production cost and an asset. As a production cost, farmland affects farm production decisions. As an asset, farmland comprises 80% of the total farm households assets. The total land available for farming is decreasing due to non-farming demand for land. The primary goal of this dissertation is to examine the impact of farm household income on farmland values. Specifically, I will assess the impact of off-farm income and government subsidies on farmland values in South Korean farm households. The majority of the studies on off-farm income, government agricultural subsidies, and farmland values have been conducted using either United States or other developed countries data. This dissertation contributes to the literature by investigating the impact of off-farm income and government subsidies in Korean agricultural households. Examining Koreas situation will improve the decision making of farm policymakers and researchers who are interested in reducing agricultural subsidies and increasing the economic well-being of Korean farm households.

The Agricultural Act of 2014, signed February 7, 2014, introduces a new era of federal support in the production of major agricultural commodities in the United States for the 2014 through 2018 crop years. The ultimate result of the Act was a 954-page piece of legislation that represented market-oriented policies such as the creation of an area-wide shallow loss revenue support program for covered commodities and a greater reliance on crop insurance products offered as a suite of risk management tools available to producers. The impact that this law has on agricultural producers in the Mississippi River delta region of the Mid-south is not yet fully known. Moving forward, the elimination of the direct payment program is likely to have an impact on farm income, as these payments were made annually and were decoupled from actual market prices. Various combinations of federal farm programs, chosen irrevocable, paired with multiple crop insurance products, that are purchased annually, will act to mitigate the risks of production. Simulation analysis provides a basis for evaluating the variability associated with production systems in the Mississippi River delta region. Three representative rice and soybean farms and six corn, cotton, and soybean farms were modeled as to determine the five year net returns resulting from price and yield risk as well as to evaluate alternative farm program and crop insurance selection. Financial performance of these farms is measured for varying levels of risk using a stochastic efficiency criteria. Results are presented for multiple combinations of the agriculture risk coverage and price loss coverage programs of the commodity title and revenue protection, supplemental coverage option endorsement, and the stacked income protection plan for producers of upland cotton contained in crop insurance title of the current farm law. For each farm at each location, an estimate to the net present value of the cumulative net returns above variable costs to the producer for the five year life of the farm bill is provided. Results from different farming operations suggest the preferred pairing of farm programs and crop insurance policies does vary across locale and crops.

This dissertation offers three independent studies that each contributes to the literature on trade facilitation. The papers are built on the gravity model framework where the relationship between trade facilitation variables and the volume of agricultural exports across the border are examined. To deal with the issue of endogeneity, instrumental variable regression is used. The study also corrects for sample-selection bias present in the trade data. The first paper examines the role of e-governance on bilateral agricultural trade. The study finds that better quality of e-governance promotes agricultural exports. Specifically, according to the findings of the paper, the quality of e-governance in the exporting country increases the volume of agricultural exports across the border. However, the quality of e-governance prevailing in the importing country does not influence agricultural exports significantly. The second paper deals with the effect of corruption on bilateral agricultural trade. Using different measures of corruption this paper examines the role of institutional quality on agricultural exports. The study finds both trade-enhancing and trade-taxing role of corruption on agricultural exports. Furthermore, according to the findings of the study, the effects are much more prominent for the degree of corruption in the exporting country than the importing country. The third paper studies the impact of Internet adoption on bilateral trade. This paper distinguishes between agricultural and non-agricultural commodities. According to the findings of the paper, Internet penetration encourages non-agricultural exports but it does not have any significant impact on agricultural trade.

This study evaluated the economic impacts of future climate change (2010-2039) on representative cash crop farms at selected sites in Québec using Reference and Improved Cultivar Mixed Integer Dynamic Linear Programming models and yield data simulated with the Decision Support System for Agrotechnology Transfer (DSSAT) cropping systems models. Four future climate scenarios (WarmlDry, Median, ColdIHumid, and the Canadian Regional Climate Model (CRCM) direct 201O~2039), and four combinations of conditions (with and without atmospheric carbon dioxide (C02) enhancement and water limitation) were selected. The results indicate that optimal net farm returns, output, resource allocation, economic vulnerability and adaptation varied depending on climate scenario and condition, and type of cultivar (reference or improved) of the four crops (grain corn, feed wheat, soybean and barley) that were considered. They also differed by region (northem, southem), and between sites, within regions. The direction and magnitude of the impacts were emphasized by C02 enhancement and water availability conditions, varied between crops, thereby affecting regional crop mix. Under the worst conditions ofwater-limited yields in the absence of C02 fertilisation effects, the only site that had a relative economic advantage was, the most northem, Normandin. / Cette étude a évalué les impacts économiques du changement climatique futur (2010-2039) sur des fermes représentatives dans la production de grandes cultures au Québec à l'aide de modèles de Programmation Linéaire Dynamique Mixte en Nombres Entiers, de Cultivar Référence et Amélioré, et des données de rendements simulés par les modèles de cultures Decision Support System for Agrotechnology Transfer (DSSAT). Quatre scénarios climatiques futurs (Chaud/Sec, Froid/Humide, Médian et le Modèle Régional de Climat Canadien (MRCC) direct 2010-2039), et quatre combinaisons de conditions (avec et sans augmentation de dioxyde de carbone (C02) atmosphérique et limitation en eau) ont été sélectionnés. Les résultats indiquent que les revenus nets des fermes, la production, l'allocation des ressources, la vulnérabilité économique et l'adaptation variaient selon le scénario climatique et la condition, et le type de cultivar (référence ou amélioré) des cultures (mais-grain, blé fourrager, soya et orge) qui ont été considérées. Ils étaient également différents entre les régions (nord, sud) et entre les municipalités d'une même région. La direction et l'importance des impacts étaient amplifiées par les conditions d'augmentation de C02 et la disponibilité de l'eau, et variaient selon les cultures, affectant ainsi la composition des cultures régionales.

Reference to published research in Agricultural Economics will quickly show a distinct pattern of subject emphasis over time. There are perhaps several reasons why this should be so, but two can be cited as generally important. In the first place, government policy for agriculture in any country will provide an effective stimulus to certain lines of inquiry. For instance, price supports in United States agriculture since World War II have led to studies of resource adjustment and surplus problems. [...]

In the development of economic thought, and particularly since the construction of Quesnay's "Tableau Economic", concern for an understanding of the processes of the economy has exerted a major influence on economic thinking. With advances in technology, expansion of industrialization, accumulation of capital, growth of population and extension of the division of labour, agriculture and the rest of the economy have become increasingly dependent upon one another. [...]

In this study the demand relations for meat in South Africa are estimated and interpreted. Two demand model specifications, namely the Rotterdam and Linearized Almost Ideal Demand System (LA/AIDS), were estimated and tested in order to determine which model provide the best fit for South African meat data. Tests for separability included an F and Likelihood ratio version. Both tests rejected the null hypothesis of weak separability between meat, eggs and milk as protein sources, indicating that the demand model for meat products should be estimated separately from eggs and milk. Consequently, separability tests between the four meat products fail to reject the null hypothesis, confirming that the four meat products should be modelled together. According to the Hausman exogeneity test, the expenditure term is exogenous. As a result, a Restricted Seemingly Unrelated Regression (RSUR) was used to estimate both models. Annual time series data from 1970 to 2000 were used. Both models were estimated in first differenced format, whereafter the estimated parameters were used to calculate compensated, uncompensated and expenditure elasticities. In a non-nested test, the Saraganâs and Vuongâs likelihood criterion, selected the LA/AIDS model. In terms of expected sign and statistical significance of the elasticities, the LA/AIDS also proved to be more suitable for South African meat data. Although the magnitudes of most own price and cross-price elasticities were significantly lower than previous estimates of demand relations for meat in South Africa, several reasons, including estimation techniques and time gaps, were offered as explanations for these differences. The uncompensated own price elasticity for beef (-0.7504) is the largest in absolute terms, followed by mutton (-0.4678), pork (-0.36972) and chicken (-0.3502). In terms of the compensated own price elasticities, which contain only the pure price effect, pork (-0.30592) was the most elastic, followed by mutton (-0.27713), chicken (-0.1939) and beef (-0.16111). The expenditure elasticities of beef (1.243) and mutton (1.181) are greater than one, indicating that beef and mutton are luxury goods in South Africa. The expenditure elasticity for beef is the most elastic; indicating that South African consumers as a whole, will increase their beef consumption as the total expenditure on meat products increase.

In this study demand relations for primary oilseeds in South Africa is estimated and interpreted with the use of econometric models. Two different models, namely the Linear Approximate Almost Ideal Demand System (LA/AIDS) and the two-step Error Correction Model (ECM), were applied to annual oilseed data for the years 1971-2002. The F ratio test for separability failed to reject the null hyp othesis of weak separability in most cases, indicating that sunflower seed, soybeans, groundnuts and cotton could be included in the same system and modeled together. The Hausman test for exogeneity was conducted and proved that the expenditure variable included in the estimated equations is indeed exogenous. The exogeneity of the expenditure variable provides assurance that the Restricted Seemingly Unrelated Regression (RSUR) method of estimation will provide efficient parameter estimates. Both the short run models are estimated in differenced form, from where the parameter estimates obtained were used to calculate compensated, uncompensated and expenditure elasticities of demand. The compensated own price elasticity of soybeans is the largest in absolute terms, with coefficients ranging from -0.579 in the LA/AIDS to -0.666 in the ECM. Seed cotton has the second largest compensated own price elasticity with -0.399 and -0.542 respectively in the two models. The compensated cross product elasticities indicate a predominantly substituting relationship between these oilseeds, even though not all of them are significant. According to the calculated uncompensated own price elasticities, seed cotton is the most price responsive i.e. (-0.745) in the ECM and soybeans (-0.617), in the LA/AIDS. According to the expenditure elasticities sunflower seed (1.105) and cotton (1.064) can be regarded as luxury oilseeds in South Africa. Soybeans, with expenditure elasticities of between 0.454 and 0.493 in the two respective models, can be regarded as a normal good. Groundnuts can also be regarded as a luxury commodity even though it has an expenditure elasticity of just below one. The fact that the compensated own price elasticity of groundnuts is smaller in absolute terms than the expenditure elasticity is also an indication of a luxury product, as proved by Hicks and Juréen (1962).

This study is one of several investigations undertaken over the years to determine the Comparative Economic Advantage of agricultural production in selected Southern African countries. The specific purpose of the Lesotho study was to generate information required to guide decision-makers in agriculture towards productive allocation of resources and identify feasible infrastructure investment options to take advantage of available trade opportunities within and beyond the region. It was also required to analyse the factors involved in the structure and development of inter- and intra-industrial trade (Gini and IIT) for the SACU region of which Lesotho is a part. The inter-industry analysis shows that there is concentration in the market of apples, asparagus, cherries and peaches. On the other hand, the intra-industry analysis with respect to apples, asparagus, cherries and peaches suggests that the SACU countries exported more than they imported during the period 1994-1998. The study also evaluated the comparative economic advantage of irrigated longterm crops in the four agro-ecological zones of Lesotho based on analyses of profitability coefficients and domestic resource costs. For these, the analysis was carried out using the net present value (NPV) approach. Further, economic efficiency and policy distortions were examined by the use of such a measure as the nominal protection ratio (NPR), effective policy ratio (EPR), and net policy effect (NPE). The CEA analysis based on the NPV approach yielded higher private returns relative to economic returns for the measures of economic efficiency and policy distortions in the Lowlands, Foothills, the Senqu River Valley and the Mountains of Lesotho for all the crops examined. It was revealed that apples were dominant and were more profitable in all zones. These results suggest that in the presence of government intervention, Lesotho could exploit comparative advantage in contracting production of apples and peaches in the Lowlands and Foothills so that other activities can expand. In the Mountains, the protection policies have raised the price of apples by 61 per cent above the social price for importing the commodity, i.e. Mountain farmers received 61 per cent more than the export parity prices. In the Senqu River Valley and Mountains, only apples could be contracted. Thus, should economic values of inputs prevail; farmers would receive lower returns, meaning that they may not compete effectively in the world market. The results of DRC based on the returns to land when NPV was employed, indicate that apples, asparagus, cherries and peaches for the Lowlands have comparative economic advantage, with asparagus production being the highest followed by peaches. However, in the Foothills apples are more efficient than peaches although the dominance is weak. However as the majority of farmers lack easy access to land in Lesotho, it is doubtful if results based on the prevailing land prices can have much predictive value. The absence of a clear policy and law enforcement also leads to lack of land price market, which in turn affects the impact of capital gains and losses. In this case, it may be necessary to conduct detailed studies to determine the economic prices of land in Lesotho on the basis of which reliable CEA analysis can be conducted. The study concludes that in the short-term, the commodities examined could contribute to the attainment of food security in Lesotho. For the future, Lesotho producers would benefit to a greater extent from expanding production for the international markets. It must be noted however that the coefficients of the CEA analyses do not provide sufficient information to guide future decisions for investment. For more long-term investment decisions, it is recommended that detailed cost-benefit analyses be carried out for each agro-ecological zone and location identified for any future project aimed at expanding the production of longterm crops in Lesotho.