Keri L. Jacobs

Midwest vision for sustainable fuel production.

This article charts the progress of CenUSA Bioenergy, a USDA-NIFA-AFRI coordinated agricultural project focused on the North Central region of the US. CenUSA’s vision is to develop a regional system for producing fuels and other products from perennial grass crops grown on marginally productive land or land that is otherwise unsuitable for annual cropping. This article focuses on contributions CenUSA has made to nine primary systems needed to make this vision a reality: feedstock improvement; feedstock production on marginal land; feedstock logistics; modeling system performance; feedstock conversion into biofuels and other products; marketing; health and safety; education, and outreach. The final section, Future Perspectives, sets forth a roadmap of additional research, technology development and education required to realize commercialization.

Current trends in cooperative finance

Purpose - The purpose of this paper is to explore the recent financial trends affecting grain and farm supply cooperatives. Design/methodology/approach - Review of and descriptive analysis of current cooperative finance topics. Findings - In recent years three important trends have become apparent among grain marketing and farm supply cooperatives. These farmer-owned firms have been rapidly investing in infrastructure, reformulating profit distribution and equity strategies, and have pursued consolidation with other cooperatives. Originality/value - Grain and farm supply cooperatives are changing at a rapid clip to meet the needs of their evolving and growing farmer-owners. New research is needed to help these cooperatives meet these needs, and this paper identifies new areas of research in cooperative finance.

The Effect of Conservation Priority Areas on Bidding Behavior in the Conservation Reserve Program

We explore how a landowner’s bid to enroll in the Conservation Reserve Program (CRP) is influenced by his parcel’s designation as a Conservation Priority Area (CPA). A theoretical model of a landowner’s optimal bid is presented, and we demonstrate the ambiguity in a landowner’s optimal bid response to CPA designations. The bid choice is analyzed using a data set of accepted and unaccepted offers during three CRP sign-up periods. We focus empirically on a subset of offers from the Prairie Pothole CPA to identify whether bid responses to exogenous location factors differ across landowners with varying opportunity costs to enrollment. (JEL Q15, Q18)

The cooperative capital constraint revisited

Purpose - – There is little reason a priori to expect that a cooperative firm’s capital needs are different from a non-cooperative firm’s needs if the two firms are otherwise similar in function and size and operate within similar market economies. However, the notion that cooperatives face capital constraints that investor-owned firms (IOFs) do not is a persistent theme in the literature. The paper aims to discuss these issues. Design/methodology/approach - – The authors revisit this hypothesis with an empirical examination of capital constraints in a panel data set of US agricultural supply and grain cooperatives and IOFs. Findings - – The findings are mixed. While the authors find little to suggest that cooperatives face financial constraints on borrowing in the short run, relative to IOFs, the authors do find some evidence that for long-term investments, a capital constraint may exist. Originality/value - – These short and long run differences have implications for the survival and growth of agricultural cooperatives. While in the short run, access to debt financing allows these firms to operative profitably, ultimately long-term large investments in technology and fixed assets will be required to maintain competitiveness in this industry.

Biomass for Bioenergy: Optimal Collection Mechanisms and Pricing when Feedstock Supply Does Not Equal Availability

The supply chain connecting biofuel processing firms and suppliers of biomass is evolving, and processors face a choice in the collection and pricing strategies they will employ to procure biomass. One option is to pay a single price for biomass collected field-side (processor collection). Another is to pay a single price for biomass at the plant gate (supplier delivery). The literature in this area is relatively young, but there is a sense that the evolution of contracting and pricing structures will dictate the industrys success, and ultimately the costs of producing biofuels from dedicated and non-dedicated energy crops. We examine the collection and pricing choices for a cost-minimizing cellulosic biofuel processor, who initially has monopsony power in feedstock procurement in their collection area. We derive optimal prices, total expenditures on feedstocks, and the collection areas required to meet a processors fixed input needs. We show that while societal welfare is greatest under supplier delivery; however, the processor will be indifferent between supplier delivery and processor collection unless they areconcerned about entry of a competing processor. When this is the case, the processor can use the processor-collection mechanism as an effective deterrent to entry. Numerical simulation based on corn stover for biomass is used to illustrate optimal pricing and the extent of biomass collection areas for different procurement and pricing strategies. We use these findings to calculate the rates at which collection costs increase for a monopsonistic stover processor constrained to a defined procurement area, as might emerge as the industry moves toward commercialization. The derived marginal cost curve for a monopsonistic processor of stover is compared with the marginal cost curve across alternative feedstocks.

Measuring the Effectiveness of Team-Based Learning Outcomes in a Human Factors Course

This paper will describe a synopsis of the development and application of a survey instrument to assess team skills and professional development outcomes of Team-Based Learning (TBL) in a human factors course. TBL is an advancing teaching pedagogy that shifts instruction from a traditional lecture-based teaching paradigm to a structured learning sequence that includes individual student preparation outside of class followed by active, in-class problem solving exercises completed by student learning teams. As an evolving teaching method, TBL appears to be producing new empirical learning outcomes in areas that have only preliminarily been explored. Traditionally, the effectiveness of TBL has been assessed through grades and numeric measures of performance; however, TBL was designed to both enhance learning as well as team collaboration and critical thinking skills. Thus there a need for a validated measurement instrument emerged to assess the development of team skills in TBL classes. The newly developed survey instrument is designed to assess three overarching factors within the TBL framework: 1) attitudes and beliefs about learning; 2) motivation to learn; and 3) professional development. A pilot survey was created and administered in the summer of 2013 to 25 undergraduate students at a large Mid-Western university and was tested for internal consistency. To further improve the quality of the survey, two focus groups were also conducted. In the fall of 2013 the revised survey was administered to 182 undergraduate students and in the spring of 2014 to 197 undergraduate students. Based on encouraging results, the survey was used to assess the learning outcome gains in a graduate level human factors course. Preliminary results for this sample showed modest gains in critical thinking and external motivation. The survey has the potential to provide instructors a mechanism to measure student learning gains in TBL educational settings.