Controlling for spatial heterogeneity and spatial dependence in farmland valuation models has gained substantial attention in recent literature. This paper proposes to derive the spatial structure of farmland values endogenously and semiparametrically based on the spatial competition theory. The paper assembles panel data of Pennsylvania county level farmland values between 1982 and 2012. A spatial autoregressive panel data model with spatial weights matrix endogenously incorporated is estimated. Out of sample predictions and non-nested statistical tests for model selection suggest that the fit and the predictability of hedonic farmland valuation models can be greatly improved.

Use of the economic threshold to improve the efficiency of preemergent-herbicide treatment decisions is limited by a lack of weed information. An economic model for assessing the expected value of weed information needed to implement a threshold decision rule is developed. Empirical results suggest that early season weed information can have value in cabbage weed management in Massachusetts.

The notion of industrialized agriculture has been a dominant theme in the applied economics literature. More recently, the debate has entered the realm of organic agriculture, with some suggesting that the organic sector has strayed from its agrarian roots. The terms “industrial” and “agrarian” are widely used, yet few have given precise definitions of what the terms mean. This paper puts forth testable hypotheses for agrarian and industrial agriculture. Then, using census data from the 2008 Organic Production Survey, we examine the evidence to assess whether the organic farm sector fits an agrarian or industrial model. Overall the evidence is mixed, yet suggests that the organic sector is less agrarian than expected.

Sustainability science is an emerging field directed at advancing sustainable development. Informed by recent scholarship and institutional experiments, we identify key roles for economists and encourage their greater participation in this research. Our call to collaborative action comes from positive experiences with the Sustainability Solutions Initiative based at the University of Maine, where economists collaborate with other experts and diverse stakeholders on real-world problems involving interactions between natural and human systems. We articulate a mutually beneficial setting where economists’ methods, skills, and norms add value to the problem-focused, interdisciplinary research of sustainability science and where resources, opportunities, and challenges from science bolster economic research specifically and land/sea grant institutions broadly.

This paper examines heterogeneity in the preferences for OHV recreation by applying the random parameters Poisson model to a data set of off-highway vehicle (OHV) users at four National Forest sites in North Carolina. The analysis develops estimates of individual consumer surplus and finds that estimates are systematically affected by the random parameter specification. There is also substantial evidence that accounting for individual heterogeneity improves the statistical fit of the models and provides a more informative description of OHV riders.

This paper focuses on estimating the effects of the real FDI-weighted exchange rate on real U.S. foreign direct investment (FDI) in the global processed food industry. We use a straightforward production possibility framework as our theoretical basis to demonstrate the shift of production between countries on the basis of exchange rate fluctuations. The log-log regression model, derived from the theoretical model, gives statistically robust results to show that for the years 1983 to 2002, the exchange rate fluctuations, the level of fixed capital in the U.S. food industry, and the cost of materials in both the United States and abroad were major determinants of the stock of U.S. FDI in the global processed food industry. As the dollar appreciated, U.S. FDI increased. An overall conclusion is that countries with an undervalued exchange rate will experience increased FDI. Countries with overvalued exchange rates incur costs from lost export opportunities for domestic firms as well as discourage FDI.

Farm-to-school (F2S) local food procurement must be cost-effective to be financially sustainable without policy support. We test, among schools participating in F2S programs, whether market channel procurement strategies for local foods affect schools’ perceptions of whether meal costs decline as a result of F2S participation. Schools that buy local foods exclusively from intermediaries are 7 percentage points less likely to report lower costs from undertaking F2S initiatives. We further demonstrate that the probability that schools source local foods exclusively from intermediaries is influenced by the number of direct marketing farmers in their county.

Permanent conversion of agricultural land to urban uses has concerned both suppliers and demanders of agricultural products in recent years. Although controversy on the importance of the problems associated with this conversion persists among economists (General Accounting Office, Healy, Plaut), policymakers across the nation have accepted the preservation of farmland as a goal requiring government action. All but two States (Georgia and Mississippi) provide some form of preferential property tax assessment for farmland (Davies and Beiden). Most localities with zoning authority attempt to protect farmland, and several less common land use management institutions have been implemented with farmland preservation as a principal goal.

AJAE per capita page counts provide one measure of an institution's research strength. In this article we refine Willis et al.'s measure of department size and, based on the refined measure, recompute departmental rankings for North American institutions. Results indicate that Northeastern United States departments are more widely represented among the top 20 institutions than 20 years ago and that two Canadian institutions—Guelph and British Columbia—rank in the top 12. The median AJAE publication frequency for the top 30 research institutions is about one article per research faculty member every 12 years. The AJAE page-count measure was found to be highly correlated (R2 = 0.82) with citation counts, whether narrowly or broadly defined. Thus, AJAE page counts appear to provide a simple yet valid representation of institutional research productivity.

A hedonic pricing model is developed to estimate the effects of policies to control agricultural sedimentation on lakeside property values at 15 Ohio state park lakes. Using an LA/AIDS demand system, we estimate changes in social welfare that result from upstream soil conservation practices and/or lake dredging activity, while holding other property characteristics constant. Policy simulation results suggest that lakeside residents generally have a higher willingness to pay on an annualized basis for sediment reduction from upstream soil conservation than for lake dredging. This has important implications for soil conservation policy, particularly in targeting improvements in the economic efficiency of the Conservation Reserve Program.

The need for models that forecast land use change spans many disciplines and encompasses many approaches. Pattern-based models were the first in which projections of change at specific locations in actual landscapes could be predicted. In contrast, recent economic models have modeled the underlying behavioral process that produces land use change. This paper combines attributes from each approach into a hybrid model using a multiple discrete continuous extreme value formulation that allows for multiple conversion types, while also estimating the intensity of each type of conversion, which is an important but often overlooked dimension. We demonstrate the simulation routine, which successfully predicts a majority of growth by type, time, and location at a disaggregated scale, for a three-county region in Maryland.

Food away from home (FAFH) accounts for over 40 percent of food spending. We use NHANES survey data to examine resulting effects on commodity sectors, and find that production/consumption of beef, chicken, potatoes, cheese, and lettuce have increased the most due to FAFH, while fluid milk and all fruits have declined. Such changes have reduced overall nutrition, and nutrition within commodity categories is generally lower in restaurants than at home. FAFH consumers tend to have less healthy home diets than have nonconsumers, suggesting that observed low FAFH nutrition may be partly because restaurant diners select less healthy foods regardless of source.

This paper describes a novel experiment designed to examine how rent dissipation may occur in fisheries in which the right to participate is limited and fishermen compete amongst themselves for shares of an exogenous total allowable catch. We demonstrate that rent dissipation may occur through multiple mechanisms, and that the heterogeneity of fishermen has important implications for how rent dissipation occurs and the extent to which different individuals may benefit from the implementation of rights-based management. We apply this approach to investigate the concept of voluntary rights-based management under which managers divide the total allowable catch between two separate fisheries, and fishermen may choose between fishing for a guaranteed individual harvest quota and competing for a share of the total catch in a competitive fishery.

The number of wineries in nontraditional cool climate regions of the United States has increased dramatically in the last decade. We examine factors influencing distribution channel choices by these wineries, including winery characteristics, marketing strategies, and the extent of vertical and horizontal integration. Using a survey of winery operators in Michigan, Missouri, and New York, we developed fractional logit models to test hypotheses regarding their distribution channel choices. We find that the share of wine sold through intermediated channels increases with winery size, years of operation, increased vertical and horizontal integration, and greater promotional intensity and levels of self-reported marketing challenges.

This paper outlines a method to determine the tradeoff between economies of size in water treatment and diseconomies of distribution. Cost equations are estimated for several treatment technologies and distribution extensions. Empirical results are used to identify optimal system size where average total costs are minimized. Regardless of treatment, most costs are due to distribution. As water systems expand service territories, only in the most densely populated areas would remaining economies of size in treatment outweigh the diseconomies in distribution.

The use of survey or contingent valuation methods to estimate an individual's valuation of non-marketed goods, especially environmental resources, has attracted increasing attention in recent years. Initially, research efforts in this area were viewed by a majority of the economics profession with considerable skepticism. However, with the increased need for information on individuals’ valuation of a whole range of environmental resources and limitations on the ability of indirect market-based methods for valuing all of these resources, there has been a substantial increase in the use of contingent valuation methods to provide this information. Indeed, a recent state-of-the-art assessment (see Cummings et al. [1984]) of the contingent valuation method (CVM) has been able to develop a set of reference operating conditions under which it was reasonable to expect the CVM approach would yield estimates with accuracy that was approximately comparable to the indirect methods. Clearly the definition of these conditions is a judgmental one. Nonetheless, it was based on a substantial number of comparative studies evaluating the relationship between CVM and indirect market estimates of the benefits associated with changes in specific environmental resources. Moreover, it does reflect the changing attitude toward the CVM approach. It is therefore particularly appropriate to consider new directions in the development of the contingent valuation method.

This study explores how higher temperatures influence corn yield response to planting density. Using 1990–2010 field trial data from Wisconsin and econometric models with a variety of specifications, we find that higher temperatures reduce the yield benefits of increasing planting density. However, these adverse high-temperature effects are smaller for genetically modified corn varieties, especially those with rootworm-resistant traits. Consistent with previous studies, these results support the notion that varietal improvements through genetic modification may have paved the way for higher planting densities in US corn production. Moreover, our results imply that expected in-season temperatures are important considerations when making planting density decisions.

When the modern era of environmental policy began with creation of the Environmental Protection Agency and passage of the Clean Air and Clean Water Acts, economists and economics were little used. Over time, economics became a major contributor to formation of environmental policy. Executive Order 12291 pushed economics into the policy process but also rendered benefit-cost analysis controversial. I report on economics’ role in the policy process over time and examine contributions by economists to environmental policymaking. Advancing benefit-cost analysis is an obvious contribution. I describe other areas in which economists have contributed and highlight milestones for economics at EPA.

Agri-environmental programs, such as the Environmental Quality Incentives Program, provide payments to livestock and crop producers to generate broadly defined environmental benefits and to help them comply with federal water quality regulations, such as those that require manure nutrients generated on large animal feeding operations to be spread on cropland at no greater than agronomic rates. We couch these policy options in terms of agri-environmental “carrots” and regulatory “sticks,” respectively. The U.S. agricultural sector is likely to respond to these policies in a variety of ways. Simulation analysis suggests that meeting nutrient standards would result in decreased levels of animal production, increased prices for livestock and poultry products, increased levels of crop production, and water quality improvements. However, estimated impacts are not homogeneous across regions. In regions with relatively less cropland per ton of manure produced, the impacts of these policies are more pronounced.

To analyze Canada's Tariff Rate Quota (TRQ) administration, a model of efficient quota administration is put forward. After examining the operation of the Canadian TRQ system for its twenty-one TRQs, conclusions are drawn. In general this system has worked well in Canada. The quotas are almost all filled, and the administration is transparent and not costly for quota-holders to use. Among the international lessons from Canada's experience are that few WTO rules may be needed in this area, aside from steps to ensure the TRQ is fully available to users and can be freely transferred among them.