Kimberly A. Zeuli

Despite failure: The emergence of “new” forest owners in private forest policy in Wisconsin, USA

Abstract Similar to other industrialized countries, the USA has experienced a significant increase in the number of non-industrial private forest (NIPF) owners as well as shifts in the values held by these owners. This study examines the motivations of predominantly new ex-urban forest owners interested in forest management in pursuing collective action through participation in the now out-of-business Sustainable Woods Cooperative (SWC). While common elsewhere, forest landowner cooperatives in the USA are an anomaly. Through a case-study design that depended primarily on semi-structured interviews, it was found that SWC members were motivated to join SWC as it was an attractive alternative to (1) the typical timber sale scenario that often places the forest owner at a disadvantage, and (2) the primary government tax incentive program. SWC represents a shift towards owners playing a greater role in shaping forest practices and markets, which is generally absent in the USA. It also suggests that new ex-urban forest owners, who are found in most industrialized countries, will seek to reshape the forest policy arena to meet their values and objectives. As such, this study provides insights for others in understanding the potential changes wrought by the changing characteristics of forest owners.

THE REVENUE RISK OF VALUE-BASED PRICING FOR FED CATTLE: A SIMULATION OF GRID VS. AVERAGE PRICING

The reluctance to adopt value-based pricing stems from a fundamental problem created by the system: increased revenue uncertainty and variability. The literature suggests that inconsistent carcass characteristics cause revenue variability under grid pricing. The possibility that the grid pricing structure, regardless of cattle quality variations, also causes revenue variability has been recognized but not fully analyzed. This study quantifies the impact of grid variability over time, pen quality differentials, and quality grade price discounts on average revenue per head for a pen of fed cattle. Grid pricing revenue results are compared to average pricing results.

Cooperatives in Rural Community Development: A New Framework for Analysis

Although cooperatives are viewed as an important vehicle for community development, the relationship between cooperatives and communities is a neglected research issue. Because of this neglect, no framework for analysis of the relationship between cooperatives and communities exists. We present case studies of non-agricultural cooperatives in rural areas that provide some general insights into the innovative activities of successful cooperatives in rural community development. The case studies help define a new framework for analyzing the complete impact and efforts of cooperatives as community development agents. In contrast to the typical unifunctional and multifunctional categorization of cooperatives, our framework identifies two main categories of cooperative community development activities: unintentional, by simply organizing a business as a cooperative, and intentional, by creating community development programs. Cooperatives in this latter group are further sub-divided according to how closely the development activity is related to their core function.

Producer Experience, Learning by Doing, and Yield Performance

Current crop insurance rating procedures consider only performance for the individual crop in question. Recent farm legislation has given producers considerable planting flexibility and, as a result, many have shifted to new crops. Producers without a production history for the new crop may be offered levels of insurance that do not accurately reflect their expected yields. Likewise, premium rates may not reflect a producers actual risk for a new crop. We examine the extent to which information about expected yields may be gleaned from a consideration of historical performance on other crops. We also consider the extent to which yield performance exhibits learning by doing such that yields improve with experience. Though the results are mixed, we generally find that yield performance tends to improve with experience. However, when yields are conditioned on historical yield performance for other crops, the importance of experience is diminished significantly. Yield performance is related to a number of farm characteristics. Finally, we examine the extent to which yield variability is correlated across crops for individual farmers. Implications for crop insurance rating practices are discussed. The results demonstrate robust correlation between a farms historical yield on other crops and a newly produced crop—a factor largely ignored in current crop insurance contracts. Copyright 2002, Oxford University Press.

Rainfall Insurance: A Promising Tool for Drought Management

Diverse and complex water management systems have been created in many areas of the world to manage the risk of drought. The primary challenge is the inherent uncertainty of water supply and demand over time, which makes the process of correctly allocating water rights annually a difficult and costly task. As a result, risk averse water authorities make overly conservative estimates of water supply. This paper introduces the use of a rainfall index contract as a tool to improve drought management. An irrigation district in New South Wales, Australia, is used as an illustration of the concept.

Will Southern Agriculture Play a Role in a Carbon Market

While a carbon market offers substantial opportunities for US agriculture, regional differences in such a market are often ignored. This paper focuses on the advantages and challenges for agriculture in the South. The potential of two promising options are analyzed: conversion from cropland to forests and greater use of conversation tillage. It is argued that the right institutional arrangements can overcome three fundamental challenges to an efficient carbon market: transaction costs, risk, and perverse incentives. Some examples are given, such as the use of a farmer-owned organization and the provision of land use and carbon information by the government.