Scott R. Jeffrey

Efficiency and Technical Progress in Traditional and Modern Agriculture: Evidence from Rice Production in China

Productive efficiency for Chinese hybrid and conventional rice production is estimated using a dual stochastic frontier efficiency decomposition model. Results reveal significant differences in technical and allocative efficiency between conventional and hybrid rice production, and indicate significant regional efficiency differences in hybrid rice production, but not in conventional rice production.

Farm-Level Modeling for Bigger Issues

The purpose of this paper is to discuss how farm-level modelers can best extend their research to address issues broader than just farm income. The paper describes how trade-off curves are a valuable tool for summarizing the missing information to policy makers on economic problems related to sustainability issues and agriculture. We outline steps an economic researcher could follow in developing an integrated farm-level model that successfully links changes in environmental quality with agricultural practices so that the relevant trade-offs for policy analysis can be quantified.

Analysis of production efficiency of beef cow/calf farms in Alberta

This article measures production efficiency across cow–calf farms in Alberta, and examines the sources of variation in efficiency. Average technical, allocative and economic efficiencies are, respectively, 83%, 78% and 67%. Biological efficiency (increased conception, calving and weaning rates), larger herd size, higher share of family labour and greater expense for bedding material reduce inefficiency. Inefficiency was also related to receipt of government subsidies.

The Effect of Supply Management on Herd Size in Alberta Dairy

A supply management program limits the aggregate supply of a commodity, often through the use of marketable quota licenses. The static, aggregate welfare effects of supply controls are well known, but the farm-level, dynamic effects on dairy investment are not. A theoretical cost-of-adjustment model is used to show that supply management reduces the rate of quasi-fixed input adjustment at the farm level. In fact, when a quasi-fixed input is complementary to quota licenses, investment or disinvestment can be impaired to such an extent that the input moves away from the long-run equilibrium. As a result, overinvestment in this input can significantly reduce productivity growth. Copyright 1997, Oxford University Press.

Estimating yield response to temperature and identifying critical temperatures for annual crops in the Canadian prairie region

Robertson, S. M., Jeffrey, S. R., Unterschultz, J. R. and Boxall, P. C. 2013. Estimating yield response to temperature and identifying critical temperatures for annual crops in the Canadian Prairie region. Can. J. Plant Sci. 93: 1237-1247. Historical yield and temperature data, by municipal district for the three prairie provinces, are used to estimate the marginal effect of exposure to specific temperatures in defined ranges during the growing season. Incorporating these non-linear temperature effects into the model improves yield forecasting for Canadian prairie annual crops over models that use average temperatures or growing degree days. Critical maximum temperatures at which yields decline, calculated for winter wheat, spring wheat, durum wheat, barley, spring rye, fall rye, oats, canola and flax, range between 28 and 34°C, depending on the crop. Additional critical minimum and maximum temperatures are estimated using the marginal effect of exposure to specific temperatures in defined ranges. Estimates of critical maximum temperatures and their marginal impact on yields are important for research and policy analysis on various issues and problems, including climate change, risk management instruments such as crop insurance, and development of heat tolerant crop varieties.

The impacts of agriculture support programs on wetland retention on grain farms in the Prairie Pothole Region.

The Prairie Pothole Region is a very important region for wetland wildlife habitat. A farm level simulation model based on a representative Saskatchewan grain farm was developed and used to estimate the incremental impact of Canadian government’s agricultural farm risk management support programs on future wetland loss. The model suggests that farm income support programs could lead to additional losses of wetlands over the next 20 years. Canadian policy makers need to evaluate negative environmental outcomes during farm income program development and implementation.

Capital structure, firm size, and efficiency: the case of farm petroleum and animal feed co-operatives in Canada

This paper examines the cost structure and cost efficiency for an unbalanced sample of 42 animal feed and 115 farm petroleum co‐operatives in Canada over the period 1984‐2001 using heterogeneous technology stochastic frontier models. The parameter estimates of the cost frontier and the resulting cost efficiency scores indicate there are statistically and economically significant cost inefficiencies. Further analysis revealed that financial structure and firm size have likely contributed to variations in cost efficiency. Obtaining sufficient equity capital is expected to improve co‐operative efficiency

Economics of riparian beneficial management practices for improved water quality: A representative farm analysis in the Canadian Prairie region

This paper examines the economics of adopting agricultural beneficial management practices (BMPs) to protect riparian areas in the Canadian Prairies. Monte Carlo simulation methods and cost/benefit analysis (net present value) are used to evaluate BMP adoption for a set of representative cropping and mixed farm operations in Alberta and Saskatchewan. BMPs considered in the analysis involve restoration, maintenance and/or protection of riparian areas and associated wetlands. Implementation of these BMPs by the representative farms is generally costly, resulting in negative net benefits. This is primarily due to opportunity costs from forgone returns and BMP establishment costs. The farm level results are combined with estimates of public values for riparian ecosystem services using the Pannell land use policy framework. Results indicate that in many cases, positive incentives, such as subsidies or conservation auctions, are appropriate policy responses to encourage increased production of riparian/wetland ecosystem services. Given the uncertainty in public and private benefit estimates, it may also be the case that no intervention is the optimal policy response in some instances. There is significant scope for further research in order to obtain better estimates of benefits and costs associated with riparian area management. Ce travail étudie les gains économiques obtenus en adoptant de meilleures pratiques agricoles de management (MPAMs) pour protéger les zones riparienne des Rocheuses Canadiennes. Nous combinons les méthodes statistiques de Monte Carlo et une analyse coût/bénéfice (valeur présente nette) pour évaluer l’adoption de meilleure pratiques pour un échantillon représentatif de fermes céréalières dans l’Alberta et la Saskatchewan. Les MPAMs considérées dans notre analyse impliquent la restauration, le maintien et/ou la protection des zones riparienne et des marais qui leur sont associés. La mise en place d’une MPAM est en général couteuse et réduit les bénéfices nets. Cette réduction est en grande partie due aux coûts de mise en œuvre de la MPAM et à la perte nette d’exploitation qui résulte de la MPAM. En nous aidant du cadre règlementaire de l’utilisation des terres développé par Pannell, les résultats obtenus à l’échelle de la ferme sont combinés avec les estimations des valeurs publiques pour des services des écosystèmes riparien. Nos résultats montrent que dans de nombreux cas des incitations positives telles que des subventions ou des enchères de conservation sont nécessaires pour encourager la production de services obtenus grâce aux écosystèmes riparien. Dans certains cas, étant donnée l’incertitude, il est possible qu’il soit optimal de ne pas intervenir du tout. Notre étude montre aussi l’importance de continuer les travaux de recherche dans le management des zones ripariennes.

Economic Evaluation of Manure Management and Farm Gate Applications : A Literature Review of Environmental and Economic Aspects of Manure Management in Alberta's Livestock Sectors

Livestock operations in Alberta have a significant impact on the economy. Manure is a by-product of livestock production. The review of the science on manure examined the environmental impacts of manure. These impacts include water pollution, air pollution, climatic change, and soil degradation. There are several technologies that may be used to manage manure on-farm and off-farm. These include nutrient recycling through soil application and composting. Composting reduces the volume of manure, but increases the nitrogen losses from the manure This review, using a very simplistic approach, estimated that more than 6.3 million tonnes of manure were generated in Alberta in 1996. Other studies have estimated significantly higher annual manure production. On a province-wide basis, there is adequate cropland area to make use of all the nutrients available in the manure produced. However, manure production tends to be concentrated on smaller land areas. Benefits of manure are constrained by both hauling costs and the costs of managing the manure itself. The on-farm economic costs or benefits are not well documented. Four general approaches have been used to analyze the on-farm economics of manure management. - Opportunity Cost: Value the nutrient content of manure using commercial fertilizer values and consider the manure or manure product as a commercial fertilizer substitute or supplement. - Crop Benefit: Value the direct crop benefit through a comparison of production in soil with manure applied versus a control with no manure applied. - Cost of Business: View the manure exclusively as a by-product of livestock production and evaluate methods for minimizing the cost of disposal. - Business Enterprise: View manure production as a value-added business and evaluate as a separate business enterprise using an appropriate approach. Any detailed economic analysis should incorporate the dynamic nature of manure production, and the management of manure through recycling through soil. Only one study was identified that was based on Alberta conditions and utilized a systems approach. At best, only one of the published studies explicitly incorporated the dynamic interactions of the livestock operation with a cropping enterprise, to analyze the on-farm economics of manure. This may be, in part, related to the complexities of modeling the key components in the system, while including the dynamic time-related interactions between soil, manure, and the environment. Those studies that attempted a systems approach or, at the very least, a more complete investment analysis, generally showed manure to be a net cost to the farm business. Little farm gate economic research applicable to Alberta on cost and benefits of manure systems for commercial farms for feedlots, dairy, pork or poultry was found. Future research could focus on a) economic case studies of selected farms to value manure management systems and b) working towards a systems analysis of manure management for Alberta livestock farms.

Efficiency, Economic Performance and Financial Leverage of Agribusiness Marketing Co-operatives in Canada

The agribusiness co-operative sector in Canada has been affected by ongoing changes in economic, political, and social policies. Increased competition from local investor-owned firms and multinational companies, deregulation and globalization of trade and increased concentration of suppliers and purchasers have put tremendous competitive pressure on agribusiness marketing co-operatives. The enhanced level of competitive rivalry may force co-operatives into lowering costs and prices. Improvement in cost or operating efficiency of agribusiness marketing co-operatives may be crucial as changes in regulation, technology, and other market developments bring into question the long-term viability of co-operative businesses. Therefore, information as to the efficiency with which agribusiness co-operative firms operate would be useful.