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Analyzes the consequences of endogenizing commodity policies and social benefits from public agricultural research expenditures under three alternative decision-making models of government. Adjustment of commodity policy levels by governments when the research has important income distributional effects; Identification of the two examples of commodity policies used to analyze the consequences; Impact of the assumption of fixed commodity policies.

Examines factors affecting the determination of agricultural policies in the United States. Production subsidies; Research underinvestment; Production subsidies and research as complementary policy instruments.

Examines the role of extension education to macroeconomic policy formation. Importance to farmers in commodity policy; Vital educational programs to educate farmers, agribusiness, and policy makers on macroeconomic linkages to agriculture and rural communities; Readiness to strategically react to actual or anticipated changes in the macroeconomy; Active participation in policy formulation.

Comments on issues that have brought great changes to commodity policy in the United States (U.S.) from 1961 to 1981. Economic changes which restructured U.S. agricultural production; Evolution from national to international markets; Relation of the changes in the U.S. politics to different agricultural sector of the 1970s.

Reviews and assesses the relationship between agricultural policy and structure and between policy and control in the United States. Public policy areas influencing agriculture; Why agricultural cooperatives of marketing orders and agreements may be thought of as a form of commodity policy; Description of tax policy; Allocation of publicly owned or subsidized resources.

We estimate the effects of agricultural technological progress on cropland expansion at various geographical resolutions, from the country level to the world as a whole, while formally accounting for the international interdependence of national supply responses. Evidence for these effects has thus far been scant, contributing to polarized perceptions about the potential for improving agricultural technologies as a means to slow down deforestation. We find that, in most countries of the world, growth in total factor productivity (TFP) is either uncorrelated or is positively associated with cropland expansion. Yet worldwide TFP growth have been an important source of global land savings. The divergence between the country-level and the global results is explained by the changes in production patterns as countries interact in international markets. Our preferred point estimate of the elasticity of global cropland to global TFP growth is -0.34. Moreover, we estimate that satisfying food demand from 1991 to 2010 without observed TFP growth would have necessitated an additional 173 million hectares, or close to 10% of the area covered by tropical rain forests. [ABSTRACT FROM AUTHOR]

Agricultural economists have embodied the notions of applied economics for a long time. They have used economic principles to address real-world problems, integrating economics and scientific knowledge. Applied economics tends to be multidisciplinary and develop applied concepts, theories, and tools. Some, like human capital, diffusion of innovation, contingent valuation, and numerous numerical and econometric techniques have spread throughout economics. Agricultural economic research has been data intensive, and improved information technologies strengthen this tendency. Yet data without theory is of limited use and coevolution of theory and data are essential. Empirical analysis should incorporate quantitative information as well as narratives. We are challenged to understand the coevolution of business, supply chains, and technology, and how they are affected by policies and affect markets. Research should integrate agriculture, energy, and the environment and develop tools to analyze and regulate the emerging bio-economy integrating biotech and infotech. [ABSTRACT FROM AUTHOR]

Clarifies points in the 1990 Farm Bill and the 1990 Budget Reconciliation Act in the United States. Achieving budget reduction; Eliminating program payment eligibility; Commodity programs without direct payments.

Many commentators claim that farm subsidies have contributed significantly to the “obesity epidemic” by making fattening foods relatively cheap and abundant and, symmetrically, that taxing “unhealthy” commodities or subsidizing “healthy” commodities would contribute to reducing obesity rates. In this article we use an equilibrium displacement model to estimate and compare the economic welfare effects from a range of hypothetical farm commodity and retail food policies as alternative mechanisms for encouraging consumption of healthy food or discouraging consumption of unhealthy food, or both. We find that, compared with retail taxes on fat, sugar, or all food, or subsidies on fruits and vegetables at the farm or retail levels, a tax on calories would be the most efficient obesity policy. A tax on calories would have the lowest deadweight loss per pound of fat reduction in average adult weight, and would yield a net social gain once the impact on public health care expenditures is considered. [ABSTRACT FROM AUTHOR]

The article reports on a study that examines the role of trade barriers in contributing to food price surges. It highlights the problem associated with the use of export restrictions and trade policy changes as stabilization policies. It reports on an approach developed to assess the contribution of price insulating trade policy actions on international price changes for individual agricultural commodities.

How much decoupled payments, such as direct payments in the U.S., affect agricultural production remains an open empirical question with implications for policy. Using data from multiple years of the Census of Agriculture, we exploit a provision of the 2002 Farm Act that departed from previous policy by making oilseeds eligible for direct payments, thus increasing payments to areas that historically produced more oilseeds. Our instrumental variable estimates, in contrast to OLS estimates, suggest that changes in payments over the period 2002 to 2007 had little effect on aggregate production at the ZIP-code level. [ABSTRACT FROM AUTHOR]

Agricultural economists helped develop farm programs to respond to the dire economic situation of the 1920s and 1930s. Some early authors appreciated that such policies created problems in markets for commodities and inputs. Over time, our understanding of agricultural issues and policies has deepened. Through the application of improved models and tools of analysis to more extensive data, we have developed better answers to old questions, and have responded to changing policy instruments, market contexts, and policy concerns. This article traces the evolution of our deepening economic understanding of the causes and consequences of agricultural policy. [ABSTRACT FROM AUTHOR]

Research by agricultural economists on natural resources has been distinguished by an interdisciplinary emphasis and a dynamic perspective. It has recognized technological and institutional constraints, has been oriented toward solving concrete resource management and policy problems, and has emphasized empirical and quantitative analysis. Agricultural economists have introduced methods for evaluating natural resource conservation efforts, for predicting adoption of resource conservation technologies, and for designing efficient and sustainable resource management policies. They have identified ways of improving land management and preventing land degradation, proposed reforms of institutions governing water allocation and water quality, and introduced policies for balancing environmental and efficiency considerations in the management of pests, biodiversity, and livestock diseases. Their research has had substantial impacts on the formulation of resource conservation policies. [ABSTRACT FROM AUTHOR]

The study of international trade in agricultural products has developed rapidly over the past fifty years. In the 1960s the disarray in world agriculture caused by domestic price support policies became the focus of analytical studies. There followed attempts to measure the distortions caused by policies also in developing countries and to model their impact on world agricultural markets. Tools were advanced to explain the trends and variations in world prices and the implications of market imperfections. Challenges for the future include analyzing trade based on consumer preferences for certain production methods and understanding the impact of climate change mitigation and adaptation on trade. [ABSTRACT FROM AUTHOR]

The article discusses the recent agricultural commodity prices in the U.S. in an historical context and explores what one can learn from the existing situation. It observes that the patterns of corn and wheat prices have differed in some decades and that the two crops have shared major price fluctuations. It further compares the agricultural prices in 2006 through 2008 with prices in 1970s. It also explores current farm commodity price prospects and policy measures.

A framework is developed to analyze the effects of a biofuel consumer tax exemption and the interaction effects with a price contingent farm subsidy. Ethanol prices rise above the gasoline price by the amount of the tax credit. Corn farmers gain directly while gasoline consumers only gain from any reduction in world oil prices due to the extra ethanol production. Domestic oil producers lose. Historically, the intercept of the ethanol supply curve is above the gasoline price. Hence, part of the tax credit is redundant and represents “rectangular” deadweight costs that dwarf triangular deadweight cost measures of traditional farm subsidies. [ABSTRACT FROM AUTHOR]

A general equilibrium approach is used to evaluate the welfare impacts of alternative policies for reducing agricultural pollution in an open economy with preexisting distortions caused by income taxes and agricultural subsidies. The policies examined here include the removal of distortionary agricultural subsidies. We find that even though these distortions are small compared to others in the economy, removing them and imposing nitrogen reduction subsidies and/or output taxes can enhance welfare and reduce nitrogen pollution; thereby leading to a substantial double dividend. The relative efficiency of the alternative policies examined here depends on the level of the nitrogen reduction target. [ABSTRACT FROM AUTHOR]

An issue when seeking to identify rotation choice is persistence in yield-enhancement and input-saving carry-over effects. Focusing on carry-over length and the monoculture decision, we use quasi-convexity of choice functions to develop price-independent and price-dependent principles concerning rotation structure. Iowa corn-soybean rotation data suggest corn has one-year memory. For corn, soybeans in the prior year is yield increasing (16.5 bu./ac.) and nitrogen saving (51 lb./ac.). The hypothesis that soybean has two-year memory cannot be rejected. Corn in the prior year (two years) increases yield by 7 bu./ac. (11.6 bu./ac.). We simulate to find price and practice subsidy levels that support different rotations. [ABSTRACT FROM AUTHOR]

Examines the global impacts of farm policy reforms in organization for economic cooperation and development countries. Farm support polices of the Organization for Economic Cooperation and Development (OECD) countries; Modeling the effects of domestic subsidies on agricultural supply; EU sectoral export subsidy rates in response to policy reforms in OECD countries.

Evaluates the effects of alternative agricultural policy reforms on transfer efficiency and trade in the Organization for Economic Cooperation and Development (OECD) countries. Analysis of differences in policy impacts among three main categories of support provided to crop producers in OECD countries; Ranking of production, trade and farm income effects of direct payments relative to market price support.

Examines market responses to climate information and how trade policy affects commodity market responses and the value of climate information. Value of climate forecasts; Market effects of a climate forecast; Effects of trade.

Discusses the relationship between food security, world trade in food and the domestic policies that govern access to international markets for food. Developments in world food supplies during the last half of the twentieth century; Prospective growth of food supply and demand; Prospects for trade.

Presents summaries of papers relating to agricultural economics. Details on the paper `Wetland Conversion for Agriculture after the FAIR Act,' by Roger Claassen, Ralph Heimlich and Robert House; Information on the paper `Farm Operations' Sources of Capital Financial Performance Measures,' by James Ryan; Presentation paper `Price Linkages and Asymmetry in Pork Markets,' by Ted Schroeder and James Mintert.

Examines the changes in agricultural policy and agricultural institutions in Canada, with reference to the role of public policy in Canadian agriculture. Details on the three dominant aspects of public policy for agriculture; Information on price instability and inflationary pressures in agricultural markets; Factors affecting agriculture; Reference made to the report `Canadian Agriculture in the 1970's'.

Highlights a study which compared the efficiency of redistribution of government-provided revenue insurance programs to the efficiency of the 1990 farm program in the United States. Impact of the demand for revenue insurance products; Previous research on revenue insurance; Comparison of revenue insurance to other types of insurance; Results of the study; Conclusion arrived at based on the results.

Analyzes water conservation policy in the United States. Multistage, multi-output, primal-dual production modelling framework; Normalized restricted-profit function model; Economic cost function; Emperical analysis for water demand in the Pacific Northwest; Evaluation of agricultural water conservation; Economic impacts of water price policy reform; Conclusions and policy implications.

Presents a trade model which can be used to help quantify the magnitude and distribution of costs associated with change in input regulations. Application of the model for levels of policies required to offset or redistribute costs associated with regulations which reduce international competitiveness; Reasons for the reduction of trade protectionism.

Introduces a conceptual framework for analysis of exhaustible resource use that is consistent with H. Hotelling's exhaustible resource model. Extension of the model by incorporating a technology diffusion process; Drip irrigation used with groundwater; Heterogeneity among producers and discrete choices associated with technological change.

Combines various threads of literature to provide a general set of conditions under which technical change in agriculture can lead to a fall in national welfare. Partial equilibrium models of research benefits; Synthesis of ideas in a general equilibrium approach; Negative rates of return to research.

Considers the market-level impacts of factor-augmenting innovations designed to reduce the use of fertilizers and pesticides within the context of a simple two-factor model and through a simulation model of the American corn market. Dependence of impact on output demand elasticity and input substitution elasticities; Limitations of techniques in the reduction of the use of agricultural chemicals.

Presents abstracts of symposia of interest to agricultural economists. Includes `Sustainable agriculture: Conceptual and Methodological Issues' organized by Surendra P. Singh; `Rural Development Policy Analysis' organized by David S. Kraybill and David Holland; `Acceleration of China's Economic Reform: What Do They Mean for Agriculture and Trade?' organized by Shwu-Eng Webb.

Reviews current problems involving both trade and environmental issues. Environmental impact of trade liberalization; Environmental measures as nontariff trade barriers; International trade agreements and effects on the environment; Empirical researches; future research needs.

Analyzes the linkages between environmental and price support policies in European Community (EC) agriculture. Extent of agriculture policy reform effects on environmental objectives, focusing on the reduction of nitration pollution; Effect of environmental policies on farm income.

Examines the motivations underlying the choice of agricultural policy mechanisms in the United States using developments on mechanism design under asymmetric information. Explanation of the model; Discussion of the principles of mechanism design.

Replies to a critique on the importance for policy analysis of the link between choice of agricultural policy and the welfare results of such policy in the United States. Rationale for the trade-off between national welfare enhancing and national welfare reducing policies; Effects on elasticities of demand.

Compares the theoretical and empirical implications of a static and dynamic logistic diffusion model of semi-dwarf wheat varieties in the United States. Basic diffusion model; Dynamic diffusion models; Modeling the diffusion of semi-dwarf wheat; Analysis of the value of wheat relative to total fram production.

Presents abstracts of selected papers on agricultural economics. `The Managerial Economics of Agribusiness Firms,' by Bryan W. Schurle; `Comparative Performances of Food-Processing Cooperatives and Investor-Owned Firms,' by Claudia Parliament and Zvi Lerman; `Industry and Size Effects in Agricultural Cooperatives,' by Zvi Lerman and Claudia Parliament.

Focuses on the relationship of economic welfare analyses of farm programs in the United States with direct social opportunity cost of subsidy payments. Efficient commodity policies for a closed economy; Efficient commodity policies for a small open economy; Net social costs of farm programs; Factors considered in decisions about farm programs.

Information about the conference regarding the regulation and economic analysis in the U.S. Department of Agriculture (USDA) sponsored by the USDA, the American Agricultural Economics Association, and the Food System Research Group in the U.S. is presented. It discussed the recognition of the legal and political aspects of policy decision making to shape the regulatory process. It emphasized the assessment of increased costs associated with environmental protection and worker safety.