American Journal of Agricultural Economics最新文献

Outdoor agricultural workers often work in harsh environmental conditions, including high temperatures and poor air quality. This paper studies how these factors impact worker productivity, which can have implications for worker health, well-being, and income as well as farm payroll, production, and profitability. Our analysis uses 6 years of payroll records of harvesters on two large farms combined with pollution and weather monitor data from multiple sources. We address simultaneity issues by exploring pollution measurements from nearby upwind and downwind monitors and incorporating an alternative PM_2.5 measure that better captures ambient or regional concentration. Across all specifications, results suggest that heightened concentrations of ground-level ozone and PM_2.5 are associated with reduced productivity. In our main specification, we find that one standard deviation increases in ozone and PM_2.5 are associated with reductions in productivity of 2% and 1.1%, respectively.

Many countries of the world have implemented subsidy programs to maintain a minimum amount of farm production especially for rice. Agricultural support programs usually cause significant fiscal burdens on government budgets. These programs can be generally categorized into decoupled and coupled programs, and one longstanding research interest of previous literature is whether these programs are decoupled or coupled with farm production practices. In Taiwan, a unique land direct payment (LDP) program to rice farms was implemented to ease severe financial burden of the price support program with government purchase. In contrast to production control programs imposing quantity restrictions on farm production, this program is voluntary for rice farms, and participants are paid at a fixed rate per hectare of farmland. This paper examines the impacts of this program on farm income and farm production practices in Taiwan. The causal effect of the program is identified based on the exogenous rollout of the policy across multiple times and areas. We construct a dataset linking nationally representative rice farm surveys over several years and administrative records on program recipients to estimate the local average treatment effect of the program. We find that the effect is 4% of farm income. In addition, program participants rely less on price support programs and produce less rice and use less fertilizer, pesticide, and machinery. Although the LDP reduces rice production, we find that it causes overall government spending on the price support and direct payment programs to increase by 8.7% after the LDP.

We estimate market power in California's surface water market. Market power may distort the potential welfare gains from water marketing. We use a Nash-Cournot model and derive a closed-form solution for the extent of market power in a water market setting. We then use this solution to estimate market power in a newly assembled dataset on California's water economy. We show that, under the assumptions of the Nash-Cournot model, market power in this thin market is limited.

This paper presents a novel study examining the effect of a property rights law reform that legalized land transfers on land quality. Using unique Chinese county-level land erosion data, we show that formally legalizing land transfers significantly reduces land erosion. This is an important and surprising benefit of a secure land transfer right to the land resource itself and a positive biophysical spillover to the natural environment that is largely ignored in the existing literature and in the policy making process. We further demonstrate that the land quality improvement brought by the law reform was associated with an increase in farming investments that can improve land quality but are subject to economies of scale. Land concentration made such investments economically feasible. We also show that the land quality-improving benefits are unevenly distributed across regions with different socioeconomic backgrounds. Future land law reforms should consider both the potential efficiency and equality implications in terms of land quality.

We study household food security dynamics in the United States from 2001 to 2017 using a new measure, the probability of food security (PFS), the estimated probability that a household's food expenditures equal or exceed the minimum cost of a healthful diet. We use PFS to analyze household-level and subpopulation-scale dynamics by investigating the conditional distribution of estimated food insecurity spells and the chronic and transient components of estimated food insecurity. We find that two-thirds of households experienced no estimated food insecurity during the 2001 to 2017 period and more than half of newly food insecure households regain food security within 2 years. Households headed by female, non-White, or less educated individuals disproportionately suffer persistent, chronic, and/or severe food insecurity.

Commodity inventories are the key state variable determining the magnitude of commodity price responses to supply and demand shocks. Many firms in commodity supply chains use storage, but we know little about which firms and why. The economic theory of storage asserts that firms in a competitive market for inventories will store based on current and expected market prices and the per-unit cost of storing. We empirically test at the firm-level the importance of one major cost of storage: the opportunity cost of capital used to value foregone revenue from deferred commodity sales. To do so, we use panel data from thousands of Illinois farms who hold inventories of corn and soybeans. Although interest rates as a measure of capital costs are unlikely to vary widely across firms in this context, we exploit variation in the weighted average cost of capital due to cross-firm differences in capital structure. Using two-way fixed effects regressions, we find a statistically significant average effect of capital costs on inventory that masks notable heterogeneity across firms. Panel quantile regressions reveal two groups of firms: one whose inventory holdings are responsive to changes in the opportunity cost of storage and another whose are not. Our results suggest some farms behave like the profit-maximizing ones from theory but substantial inframarginal commodity inventories are held by farms for other reasons.

Pulse production in India has stagnated relative to staple grains and cash crops, raising concerns about rural protein consumption. We experimentally evaluate an effort to increase local pulse production in Bihar. This intervention consisted of 2 years of input subsidies and extension to facilitate learning, followed by the creation of marketing organizations and a year of output price support to raise profitability. Farmers respond to price signals by expanding inputs when subsidized and increasing pulse sales under price supports. However, we see no evidence that the program shifted equilibrium production portfolios as pulses return to pre-intervention levels after the support ends. Results indicate that short-term learning by doing cannot overcome long-run barriers to local pulse production, even when farmers have a viable outlet to sell their surplus output.

This study investigates whether cover crop adoption reduces extreme-weather-related crop insurance losses. To achieve this objective, we utilize a county-level panel data set with information on cover crop adoption acres, crop insurance losses (i.e., specifically due to drought, excess heat, or excess moisture), and a number of weather variables. The data cover the main row crop production region in the Midwestern United States (US) for the period 2005 to 2018. We utilize linear fixed effects econometric models and a number of robustness checks in the empirical analysis (i.e., a fractional regression approach, two “external-instrument-free” estimation procedures, and a variety of alternative empirical specifications). The estimation methods used take advantage of the panel nature of the data to address various specification and endogeneity issues. We find evidence that counties with higher cover crop adoption tend to have lower crop insurance losses due to drought, excess heat, or excess moisture. Our analysis also indicates that cover crops likely have stronger loss mitigation effects against excess moisture events (like floods) and somewhat weaker loss mitigation impacts against droughts and excess heat. Nonetheless, our results overall suggest that cover crops can enhance resilience to extreme weather events and have the potential to be an effective climate change adaptation strategy in US agriculture.

Evaluations of agricultural technologies rarely consider the implications of how adoption may alter the labor allocation of different individuals within a household. We examine intrahousehold decision-making dynamics that shape smallholder households' decision to use mechanical rice transplanting (MRT), a technology that disproportionately influences demand for women's labor. To study the adoption decision, we experimentally estimate the willingness to pay for MRT services both at the individual and household level. We find that women value MRT more than men, especially when they participate in transplanting on their own farms. This preference heterogeneity is evident in the unconditional differences between women's and men's valuation and differences conditional on their individual observable characteristics. Despite having stronger preferences for MRT, women have less influence on the household's technology adoption decision than men. This differential influence over the MRT adoption decision reflects the intrahousehold power structure: in households where women have less control over assets, they also have less influence over the MRT adoption decision. Our results highlight how technological changes interact with unobserved, gender-based intrahousehold power relations to influence agricultural production decisions and, by extension, the gendered allocation of labor and welfare of women.

Accurately reflecting expected prices in stated preference designs can be challenging for foods like ribeye steak, which exhibit stark fluctuations in prices across time and space. To address this issue, we introduce a novel price vector design, the reference-price-informed (RP-informed) design, which directly incorporates individual's reference prices into discrete choice experiments. By presenting consumers with posted prices that align with their expected prices, this design reflects real-world food markets. We test this design in a discrete choice experiment evaluating consumer preferences for “low carbon” beef. Our results project a very small market share of low-carbon ribeye (3%–5%) with conventional meat taking up most of the market. Our results also show that a reference-price-informed design reduces reference price uncertainty and leads to more conservative market share estimates than traditional designs, thus preventing the potential overestimation of product's market potential.