Stephen B. Harsh

Economics of robot application

Abstract Automated milking systems is a new technology recently developed for the dairy industry. This paper examined the economic consequence of using this technology in place of a conventional parlor system on dairy farms in the Netherlands and in the US. The approach is general and can also be applied to other farm and price conditions. The base analysis indicates that in both countries the break-even level of the automatic system is nearly double that of the parlor system. The sensitivity analysis indicates that the results can change fairly significantly when some assumptions are changed. This is particularly apparent with changes in wage rates. Lastly, with any new technology there may be some effects on the industry. Because of the nature of this technology, the industry effects will likely be fairly significant, particular with respect to changes in the structure of the industry.

Critical success factors and information needs on dairy farms: the farmer's opinion.

Abstract One of the major problems for animal status monitoring and farm-level information system users and developers is to determine farmers critical success factors and information needs. These are generally based on their goals and management strategies with respect to important decisions. Once critical success factors and information needs of individual farmers are identified, the question has to be addressed as to what extent they are similar across regions and consistent over time. In this paper we describe a series of 13 workshops run with dairy producers from the Netherlands and Michigan (USA), focused on assessing their goals, critical success factors and information needs. The workshops were run in 1993 and repeated in 1995. Total number of participants in the workshops was 73 in 1993 and 108 in 1995. Twenty-six dairy farmers participated in both 1993 and 1995. The results of this study indicated that critical success factors and information needs varied widely within and across regions, but were consistent over time if the farmers were analyzed as a group. However, significant differences were found between the responses of 1993 and 1995 if the farmers were analyzed individually. This low level of consistency has implications for information supply at farm level. Critical success factors with respect to finance were found to be most important.

Decision analysis in animal health programs: Merits and limitations

Abstract This paper reviews decision analysis as a method in animal health management programs. Because there are many possible management approaches to the solution of animal health problems, decision analysis is useful in making choices and delineating between them. It is flexible, easily understood and helpful in situations where outcomes cannot be predicted with certainty. The main limitations of this technique are the time involved in using it and the uncertainty about decision criteria, as well as the difficulty in establishing the value of model inputs and outputs and in deriving probabilities. These limitations, particularly the uncertainty about the decision criteria, are discussed in detail using a hypothetical example.

Incorporating Environmentally Compliant Manure Nutrient Disposal Costs into Least-Cost Livestock Ration Formulation

Livestock rations are formulated to minimize feed cost subject to nutritional requirements for a target performance level, which ignores the potentially substantial cost of disposing of nutrients fed in excess of nutritional requirements. We incorporate nutrient disposal costs into a modified least-cost ration formulation model to arrive at a joint least-cost decision that minimizes the sum of feed and net nutrient disposal costs. The method is demonstrated with phosphorus disposal costs on a representative dairy farm. Herd size, land availability and proximity, crop rotation, and initial soil phosphorus content are shown to be important in determining phosphorus disposal costs.

Labor Risk Attributes in the Green Industry: Business Owners' and Managers' Perspectives

Managers of greenhouses, nurseries, and landscape contractors participated in five focus group discussions on labor-related risks. Managers conceptualize labor risks along the human resource management process: (1) recruitment and selection, (2) training and development, (3) performance evaluation and discipline, (4) careers and relationships, and (5) compensation packages. In addition, they identified (6) immigrant employees and (7) labor laws and regulations as sources of risk. They recognized a large number of risk-increasing attributes, but also a number of mediating strategies to reduce these risks.

Human Resource Management Risks: Sources and Control Strategies Based on Dairy Farmer Focus Groups

Human resource management in agriculture and associated risks are under-researched topics. To identify the sources of human resource management risks confronting dairy farms, gain insights into how dairy farmers perceive the impacts of these risks, and identify control strategies, four focus group discussions were held with dairy farm managers. Managers’ perceptions served to develop a framework for the analysis of human resource management risks in agriculture and derive recommendations for reducing these risks. Results of this study have been used to tailor educational programs for farmers and suggest strategies for future research.

Quantifying Strategic Choice Along the Vertical Coordination Continuum

Given the increasing emergence of highly integrated agri-food supply chains, a key question arises as to how to measure the performance of these chains. This chapter postulates that agri-food supply-chain performance can be best understood with the help of three separate, but related phenomena: the individual firm’s desire to participate in the supply chain; the governance structure of the whole chain; and the application of industrial organization and institutional economic theory. The Peterson, Wysocki and Harsh (PWH) model of vertical coordination strategy selection is provided. A brief overview of the various forms that agri-food chains may take on and a multi-disciplinary approach to understanding agrifood chain performance are offered, including channel master, chain web and chain organism. The chapter ends with research challenges still needing to be addressed including the limited access to information and measurement issues. We conclude that the PWH model, learning supply-chain governance structures, and application of additional economic theories model can be useful in understanding and measuring performance in agri-food chains.

The Developing Technology of Computerized Information Systems

Space constraints allow only a narrow exploration of the subject assigned. Therefore, this paper discusses the potential impact of the developing technology on the design and usefulness of computerized information systems. This paper places major emphasis on examining the potential impact of technology already developed and tested. Less emphasis is given to theoretically possible or prototype technology because of the low probability that many of these technologies will ever become operational. In addition, this paper further limits the discussion to those technologies which are most likely to affect agricultural economists and their clientele groups. Finally, the technologies discussed in this paper reflect the authors interpretation of conversations with scientists in the computer and communications industry, reviewing the computer and information systems literature and the authors own experiences in this area. Emphasis placed on the various components discussed reflect the authors own perspective of the situation. It is highly probable that others acquainted with the topic would choose different, or emphasize other, concepts.

A financial analysis of alternative management strategies of cystic follicles

Abstract Follicular cysts are a common cause of anestrus in dairy cattle. Administration of human chorionic gonadotropin (HCG) and gonadotropin-releasing hormone (GNRH) are the most common forms of treatment on dairy farms in Michigan. The two treatments, however, differ in costs per unit of treatment, response rates to treatment and intervals from treatment to estrus. A comparative analysis, using decision-tree analysis, was undertaken to determine which of the two treatments was more economical. The value of the animal, response rates to treatment, days to onset of estrus and costs of treatment and examination were incorporated in the computation of expected values. The analysis showed that it is more economical to treat with GNRH than with HCG. Withholding treatment in the hope of obtaining spontaneous recovery is the least economical option. A sensitivity analysis was performed to test how sensitive the treatment strategies are to small changes in selected model parameters.

Development of a computerized systems model for health management decision support in growing hogs

Abstract A study was designed to provide decision support for health management in growing hogs. A dynamic, stochastic systems model for a confinement, continuous production hog growing enterprise (including nursery, grower and finisher phases) was developed to simulate the economic effects of disease, available floor space and feed additives using farm- specific data. Modeling techniques included: discrete and distributed (continuous) delays; triangular probability density functions; autocorrelation; table look-up functions; an alpha-beta tracker; non-linear, constrained optimization. The model was designed to be initialized with the systems current status, using an accompanying production/financial database to achieve individual-farm specificity. Initialization of rate variables required ‘reverse optimization’ of historical system performance. Model predictions are based on an adjustment approach, where changes in current performance are dictated by changes in disease rates, available floor space and feed additive use. These effects vary randomly, but are autocorrelated between production phases, between similar diseases and over time.