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Publications + Working Papers

Publications + Working Papers

 
 
 
 
 
 
 

Working paper (in review)

Voting for Mandatory Agricultural Producer Organizations: New Evidence from California

Co-authors: Rachael E. Goodhue and Jeffrey Williams

Most recent version: 2019

Mandatory agricultural producer organizations (MAPOs) provide a mechanism by which farmers in the United States can fund industry-wide services that may be difficult to provide through a voluntary approach. In this article, we explore what factors influence farmer support for these organizations. We consider two industries in California with very different MAPOs--the fresh peach and nectarine industry and the rice industry. Using survey data we collected and referendum ballot data from the US Department of Agriculture, we identify significant factors associated with referendum votes in the two industries. We find the quantity of production of the crop to be an important factor for farms in both industries, but in different ways. Other significant factors differ, suggesting institutional and industry specifics determine farmer support.

Outreach publication

The Economic Contribution of Agricultural and Food Production to the Ohio Economy [link]

Format: Peer-reviewed department-published research report

Co-authors: Janice DiCarolis, Tim Haab, Ian Sheldon, Brent Sohngen, and Kelli Trinoskey

Publication year: 2017

This report discusses recent trends in value-added by the various segments of Ohio’s agricultural and food production cluster, and the contribution of the cluster to Ohio’s Gross State Product (GSP) and employment. The central analysis was conducted using methods input-analysis in IMPLAN. The report’s key finding is that Ohio’s agricultural and food production cluster plus restaurants and bars account for $1 in every $13 of Ohio’s GSP and 1 in 8 jobs in Ohio.

Outreach publication

Growers’ Assessments of Challenges Facing the California Rice Industry: Past and Present [link]

Journal: ARE Update

Co-author: Rachael E. Goodhue

Publication year: 2016

Rice growers in California face significant challenges. This piece considers challenges cited by growers in 2016 and their relationship to past challenges in the industry. The most common cited challenges were: (1) water availability, (2) low or unstable output price, and (3) environmental regulations. Nearly 99% of growers cited at least one of these as among the top three challenges facing their operation, and 16% of growers cited all three.

Peer-reviewed journal article 

Producer Heterogeneity and Voting Power in Mandatory US Agricultural Marketing Organisations [link]

Journal: European Review of Agricultural Economics

Co-authors: Rachael E. Goodhue

Publication year: 2015

We consider how cost heterogeneity and market power affect voting power in producer referenda for mandatory agricultural marketing organizations with generic promotion programs in the United States. We measure voting power using the Banzhaf Power Index and propose a new version of this index that provides an improved estimate of voting power based on the profit-maximizing theory of the firm. Examining several types of demand shifts and voting rules, we find that both Banzhaf Power and our new measure vary considerably depending on the market structure and level of cost heterogeneity.

Working paper

The Mexican PROCAMPO Farmland Subsidy and Its Effectiveness as a Rural Anti-Poverty Program

Co-authors: Ariadna Martínez González (first author) and Mark Partridge

Most recent version: 2019

This research examines the incidence (or capitalization) of the most important agricultural subsidy program in Mexico—Program of Direct Supports to the Farmland (PROCAMPO)—on farmland rental rates. Through the incidence, we explore the distribution of the PROCAMPO subsidy among tenants and their landlords, as well as whether this distribution differs across the tenant farmer income distribution. In our analysis, we use survey data collected by the Food and Agriculture Organization of the United Nations (FAO) in collaboration with Mexico’s Ministry of Agriculture (SAGARPA) for the agricultural year 2008/2009, as well as data from INEGI (Instituto Nacional de Estadística, Geografía e Informática, Mexico’s National Institute of Statistics). We employ a basic Ricardian theoretical model and use the standard hedonic approach to econometrically estimate the incidence of the PROCAMPO subsidy. To further assess the program’s distributional effects, quantile regression analysis of the rental rate distribution is used to investigate the incidence across 1 the income distribution of tenant farmers. Our results suggest that the PROCAMPO subsidy is not passed through to landlord farmers, indicating that the program is successfully supporting the income of tenant farmers. This study makes three main contributions. First, to our knowledge we are the only authors thus far to study the incidence of PROCAMPO on farmland rental rates, as well as to explore the incidence of an agricultural subsidy in a developing country. Second, the dataset we employ has not been used before outside of the FAO. And third, we are the first to use quantile regression analysis to assess the distributional effects of farmland subsidies

 

Peer-reviewed journal article

Direct Marketing Channel Choices Among U.S. Farmers: Evidence from the Local Food Marketing Practices Survey

Journal: Renewable Agriculture and Food Systems

Co-authors: Iryna Demko and Ani L. Katchova

Publication year: Forthcoming in 2019

Due to strong interest in local foods by U.S. consumers, farmers are now marketing not only to traditional wholesale outlets but also via short supply chains to consumers, grocers, restaurants, schools and other local intermediaries. Our research questions are: (1) what farm and farmer characteristics predict farmers’ participation in various direct marketing channels, and (2) what farm and farmer characteristics predict farmers’ choice of a particular combination of direct marketing channels? This work is important because prior research suggests that while total direct sales via short supply chains continue to grow, direct-to-consumer sales (e.g., via farmers’ markets and CSAs) are plateauing. Our work highlights key relationships and implies potential barriers and opportunities for farmers in this maturing local foods landscape. To answer our research questions empirically, we employ the 2015 Local Food Marketing Practices Survey, collected by USDA in 2016, and binomial and multinomial logit regressions. Our research yields a number of useful results. For example, we find evidence suggesting the existence of product-specific barriers to participation in certain channels; livestock producers are less likely than other farmers to sell directly to retailers, whereas vegetable farmers are less likely to sell to intermediaries. We also find that beginning farmers are more likely to sell directly to retailers, but less likely to sell to intermediaries than more established farmers, suggesting potential barriers and opportunities for entry into this channel for less experienced farmers. These insights suggest potential areas of attention for policymakers and other decisionmakers, as well as areas for future study.

Universities continue to expand their local food sourcing, but the impacts of these sourcing changes are ambiguous. Some academics have measured these impacts using input-output analysis to track economic indicators that may be of interest to local communities. However, these studies do not answer the broader question of whether local sourcing benefits society as a whole. This papers seek to answer that question using the process of cost-benefit analysis and a sourcing change by The Ohio State University as a case study. In doing so, it complements recent theoretical literature on the welfare impacts of local food sourcing.

Working paper (in review)

Tradeoffs in Farm to School Implementation: Larger Foodsheds and Longer Supply Chains Drive More Local Food Expenditures

Co-authors: H. Allen Klaiber and Brian E. Roe

Most recent version: 2018

Local food offerings differ substantially across school districts with farm to school (FTS) programs. Using national panel data, we estimate the causal impacts of local foodshed size and length of local food supply chain on districts’ local food expenditures. We find that widening a district’s foodshed radius by 10 miles increases local food expenditure as a percentage of total food expenditure by 1% and sourcing local food through longer, indirect supply chains increases local food expenditure by 42%. These actions may increase student access to local foods, but they could undermine program goals of supporting farmers and the immediate community.

Working paper

Measuring the Welfare Impacts of Local Food Sourcing by Institutions: A Cost-Benefit Analysis Approach

Co-authors: none

Most recent version: 2018

Outreach publication

Old Dog, New Tricks: The Changing Role of California’s Agricultural Marketing Organizations [link]

Journal: ARE Update

Co-authors: none

Publication year: 2013

Agricultural marketing institutions in California and around the U.S. are evolving to meet changing grower needs. This article highlights some of the more recent changes in California marketing organizations and the economic concepts and industry factors that may be leading to these changes.