Bryan W. Schurle

A Nonparametric Efficiency Analysis For A Sample Of Kansas Swine Operations

This study evaluates the economic competitiveness of a sample of Kansas farrow-to-finish operations by estimating relative firm efficiency using nonparametric mathematical programming techniques. Measures of technical, allocative, scale, economic, and overall efficiency are then related to farm characteristics to identify sources of efficiency. Results indicate that overall efficient farms produce a high quantity of pork per litter, produce a portion of their own feed grains, generate a large portion of their income from swine and other livestock enterprises, and have a lower debt-to-asset ratio.

The Impact of Size on Yield Variability and Crop Insurance Premiums

tions of enterprises, the benefits of diversification, and farmer response to different farm programs. Studies comparing the risk of different cropping practices have required data on farm yield variability (Williams, Llewelyn, and Mikesell; Mikesell, Williams, and Long). Crop insurance studies have needed the data for developing appropriate crop insurance rates (Carriker et al.). In some of these studies, availability of farm-level yield variability data has been a major problem. Frequently, other data have been used because they were the only data available. In particular, county-level data or experiment station data have been used as substitutes for actual farm-level data (Rowell, Williams, and Hickman; Williams, Llewelyn and Barnaby; Marra and Carlson). The accuracy of these data sources in representing farm-level data is not known. Frequently, county-level variability in yield is assumed to be less than farm-level variability, because it is more aggregated. On the other hand, variability in yield from experiment station data is sometimes assumed to be greater than farm-level yield variability, because the plots are usually small. The issues of aggregation level (Eisgruber and Schuman) and the impact of aggregation on variability are implicit in these assumptions about county and experiment station variability relative to farm-level variability. Marra and Schurle have recently addressed the possibility that aggregation on a farm can also influence yield variability on the farm. The implications of yield variability on the farm being related to the number of acres of the crop, and thus in many cases to the size of the farm, are far reaching. Pope and Prescott addressed the issue of diversification and farm size, and identified the trade-off between risk reduction and possible economies of size in a particular activity. Robison and Barry also addressed diversification and specialization as strategies for managing risk. If yield variability is less for larger acreage, and thus larger farms, then large farms may have a business-risk advantage (ceterius paribus) over small farms; i.e., business-risk economies of size. Then, it would also follow that farms with larger acreage should pay lower premiums per acre for crop insurance, other things being equal. In addition, model modifications may need to be developed that recognize the impact of enterprise size on yield variability. Current risk models typically consider variability and enterprise size to be independent. The Federal Crop Insurance Corporation (FCIC) has recognized a need to offer different premiums for different size acreage. They began offering a financial incentive to combine smaller insurance units into larger insurance units in the mid to late 1980s. A crop insurance premium reduction of 10 percent has been allowed if an acreage of one crop owned by one entity in one county is insured as a total unit rather than as smaller segments. Unit subdivision is allowed by section or by irrigated or dryland practice with supporting historical yield records of planted Bryan Schurle is a Professor in the Department of Agricultural Economics at Kansas State University, Manhattan, Kansas. This work was supported in part by the Federal Crop Insurance Corporation under agreement No. 92-EXCA-30203. The author thanks Jong-I Perng for her extensive computer work and patience throughout this project, Ken Harrison at FCIC for his provision of information and help, Art Barnaby and Barry Goodwin for help and review of previous manuscripts, three anonymous reviewers, and Ted Schroeder for his suggestions that improved the manuscript. Contribution No. 95-48-J from the Kansas

Sensitivity of Efficient Frontiers Developed for Farm Enterprise Choice Decisions

An efficient frontier provides information concerning the tradeoff between risk and return in farm enterprise choice decisions. If mean-variance analysis is used, the frontier is efficient in the sense that it represents a series of farm enterprise combinations, each enterprise combination having minimum risk (variance of returns) for a specified level of return. Anderson, Dillon, and Hardaker provide a discussion of the different types of frontiers and the different methods of deriving them. Development of efficient frontiers is particularly helpful when the risk among enterprises varies substantially (Schurle and Erven). However, efficient frontiers do not provide information about nearoptimal enterprise combinations. According to Heady and Candler the optimum solutions in linear programming need not be optimum for other criteria. Since farmers utility functions cannot be completely specified in terms of risk and returns, decision makers and researchers should be interested in

The meaning of sustainable agriculture: Reflections of some Kansas practitioners

In this paper we report on what “sustainable agriculture” means to farmers who seek to develop more sustainable farming systems. Group interviews were conducted with two groups of sustainable farmers in Kansas to learn how they developed their respective approaches, the kinds of parameters they have used to evaluate success and progress, and what other evaluation tools would be helpful to them. For the farmers we interviewed, the central meaning of sustainable agriculture is its holistic approach to assets management. It also means an alternative perspective on what constitutes success in farming. While economic considerations are important, they are balanced by other considerations such as environmental quality, quality of life, and the contributions the farmers can make to their communities. Sustainable agriculture also means an approach to agriculture that entails “thinking risks” as much as financial risks. Lastly, sustainable agriculture means whole farm planning; the farmers we interviewed were more interested in applying whole-farm planning principles based on their local knowledge, than in evaluation tools based on the expert knowledge of researchers and other scientists. The implications of what sustainable agriculture means to these farmers for research and educational programs are discussed.

Determinants Of Kansas Farmers' Participation In On-Farm Research

On-farm research (OFR) has increased in popularity in the U.S. in recent years due to heightened interest in sustainability issues, the likely decline in resources available for agricultural research, and increasing pressures for accountability and responsiveness to state and local needs. Information relating to OFR was obtained from 431 commercial Kansas farmers. Data were analyzed to determine the degree of OFR being implemented, and three models were estimated to identify which farmer/farm characteristics influenced its implementation. The results indicate that OFR is commonly implemented, and that several farm/farmer characteristics are related to the degree of OFR initiated. It is proposed that to maximize the return from externally initiated OFR, there would be merit in focusing attention on farms/farmers with those characteristics.

Environmental and economic tradeoffs of alternative cropping systems.

ABSTRACT The tradeoffs between economic profitability and environmental impacts of five cropping systems being used by farm managers in northeast Kansas were examined. The Erosion/Productivity Impact Calculator (EPIC) was used to estimate potential crop yields, nitrate (NO3) contamination, and soil erosion from the cropping systems. Prices and enterprise budget data were combined with the crop yields simulated by EPIC to calculate annual net returns for each system. The tradeoff between net returns and environmental contaminants were evaluated using a Chance Constrained Programming (CCP) model. The overall results of the CCP models, including targets for all contaminants, indicated that the alternative cropping system of wheat and grain sorghum was preferred to the traditional system, which also includes corn and soybeans. An alfalfa-wheat-soybean rotation generally was preferred when the contaminant targets were restricted to NO3 runoff and soil erosion. The results also imply that financial incentives and site- and soil-specific policies for reducing groundwater contamination are needed if environmental contaminants are to be reduced.

Macroeconomics and Undergraduate Agricultural Economics

This paper focuses on macroeconomics in undergraduate agricultural economics curricula. We briefly review some of what leaders in the agricultural economics and economics professions, macroeconomics teachers, and textbook authors say about what is important, what should be taught and learned in modern undergraduate macroeconomics courses. We also report on a survey of faculty of agricultural economics departments who have responsibility for undergraduate instruction in 50 U.S. agricultural economics undergraduate programs. The surveys provide information on the current status of economics courses in their programs and the relative importance of different macroeconomic subjects to students in undergraduate agricultural economics.

Technological Advances in Agricultural Economics Curricula

The potential use of computers and electronic technology have created considerable interest among educators in agricultural economics. This paper provides an overview of the use of electronic technology within agricultural economics curricula; examines areas in which technological development offers promise and examines issues associated with adoption of the technology.

Explaining differences in efficiency among farrow-to-finish producers

This report is brought to you for free and open access by New Prairie Press. It has been accepted for inclusion in Kansas Agricultural Experiment Station Research Reports by an authorized administrator of New Prairie Press. Copyright 1996 Kansas State University Agricultural Experiment Station and Cooperative Extension Service.

Experiences with microcomputer applications in agricultural economics

Abstract Microcomputers are finding application in a variety of forms in Colleges of Agriculture instruction programs. This paper reports on the experiences of faculty in developing and teaching an undergraduate computer applications course in Agricultural Economics. Students perceptions of the usefulness of computer applications for selected career categories are reported as well. This includes their observation concerning the use of several commercial software packages.