Alejandro Plastina

Market and Welfare Effects of Mandatory Country-of-Origin Labeling in the U.S. Specialty Crops Sector: An Application to Fresh Market Apples

This study provides a new framework of analysis of the market and welfare effects of mandatory country-of-origin labeling (MCOOL) for fruits and vegetables that accounts for heterogeneous consumer preferences, differences in producer agronomic characteristics, and retailer market power. The market and welfare effects of MCOOL are shown to be case-specific and dependent on the labeling costs at the farm and retail levels, the strength of consumer preference for domestic products, the market power of retailers, the marketing margin along the supply chain, and the relative costs of imported and domestic products. Simulation results for the U.S. market of fresh apples indicate that domestic producers are the most likely beneficiaries of MCOOL, followed by domestic consumers. Being unable to exercise market power on consumers or suppliers of fresh apples, retailers will lose if the implementation of MCOOL entails fixed costs. Imports of fresh apples decline after MCOOL introduction.

A Parametric Estimation of Total Factor Productivity and Its Components in U.S. Agriculture

&NA; The present study aims at improving our understanding of the individual contribution of the components of total factor productivity (TFP) change to U.S. agricultural productivity. A novel sequential primal‐dual estimation routine to calculate TFP change is proposed, using a multi‐output input distance function in the first stage, followed by a cost minimization routine in the second stage. TFP change is estimated as the direct sum of the estimates of technical change, technical efficiency change, allocative efficiency change, input price effects, changes in output markup, and changes in returns to scale in each state. The validity of the proposed methodology is supported by the remarkable overlap and high correlation of our annual estimates of TFP change with the USDAs measures of change in TFP by state. Although technical change tends to be the largest contributor to productivity change, it bears a low and statistically insignificant correlation with TFP change on an annual basis, whereas annual changes in the markup effect and returns to scale are highly and significantly correlated with TFP changes. This is the first study to find a slowdown of technical progress in the U.S. farm sector in the 1990s and 2000s, and technical regress during the farm crisis of the 1980s. While technical efficiency shows a positive overall trend, allocative efficiency shows a negative overall trend, and their combined effect (i.e., the overall cost efficiency) slows down TFP growth. The policy recommendations from previous studies on the drivers of TFP should be revised in light of these findings.

Where can switchgrass production be more profitable than corn and soybean? An integrated subfield assessment in Iowa, USA

Perennial bioenergy crops are considered an important feedstock for a growing bioeconomy. However, in the USA, production of biofuel from these dedicated, nonfood crops is lagging behind federal mandates and markets have yet to develop. Most studies on the economic potential of perennial biofuel crops have concluded that even high‐yielding bioenergy grasses are unprofitable compared to corn/soybeans, the prevailing crops in the United States Corn Belt. However, they did not account for opportunities precision agriculture presents to integrate perennials into agronomically and economically underperforming parts of corn/soybean fields. Using publicly available subfield data and market projections, we identified an upper bound to the areas in Iowa, United States, where the conversion from corn/soybean cropland to an herbaceous bioenergy crop, switchgrass, could be economically viable under different price, land tenancy, and yield scenarios. Assuming owned land, medium crop prices, and a biomass price of US

INTERNATIONAL COTTON ADVISORY COMMITTEE

55 Mg−1, we showed that 4.3% of corn/soybean cropland could break even when converted to switchgrass yielding up to 10.08 Mg ha−1. The annualized change in net present value on each converted subfield patch ranged from just above US

Rates of return to public agricultural research in 48 US states

0 ha−1 to 692 ha−1. In the three counties of highest economic opportunity, total annualized producer benefits from converting corn/soybean to switchgrass summed to US

Market Disintermediation and Producer Value Capture: The Case of Fair Trade Coffee in Nicaragua, Peru, and Guatemala

2.6 million, 3.4 million, and 7.6 million, respectively. This is the first study to quantify an upper bound to the potential private economic benefits from targeted conversion of unfavorable corn/soybean cropland to switchgrass, leaving arable land already under perennial cover unchanged. Broadly, we conclude that areas with high within‐field yield variation provide highest economic opportunities for switchgrass conversion. Our results are relevant for policy design intended to improve the sustainability of agricultural production. While focused on Iowa, this approach is applicable to other intensively farmed regions globally with similar data availability.