Reducing agricultural nonpoint pollution has been an environmental policy issue since the early 1980s. We discuss the evolution and results of federal and state policy, the contributions of applied economic research to improving the effectiveness and efficiency of water pollution control policies for agriculture, elements of policy reforms that are consistent with the Clean Water Act, and the outlook for needed policy innovation.

This paper studies the preferences and willingness-to-pay of individuals for volunteer water quality monitoring programs. The study involves supporting water quality monitoring at two ponds in the state of Rhode Island. The paper uses both a hypothetical and a real-payment contingent valuation survey to directly measure individual preferences and willingness-to-pay (WTP) for volunteer water quality monitoring at the two ponds. The overall results of the study suggest that hypothetical WTP is not statistically greater than real WTP, and that the average survey respondent is willing to support water quality monitoring on one of the two ponds. The study also finds that the specified purpose of water quality monitoring and certain socioeconomic characteristics of a respondent significantly affect the respondent's decision to support volunteer water quality monitoring.

Increasing numbers of freshwater ecosystems have had sportfish consumption advisories posted in recent years. Advisories are sometimes issued in lieu of environmental remediation if they are considered more cost-effective than “cleaning up” the resource, but this approach assumes that anglers adjust behavior in response to the warning. Previous studies, however, suggest that compliance with advisories can be quite low. In contrast, this study measures a statistically significant response by reservoir anglers to consumption advisories. In particular, anglers are less likely to choose to visit a reservoir with an advisory than a similar reservoir without an advisory. Furthermore, the economic losses due to advisories are quantified for anglers in two regions of Tennessee.

This article discusses prospects and challenges related to the use of meta-regression models (MRMs) for ecosystem service benefit transfer, with an emphasis on validity criteria and post-estimation procedures given sparse attention in the ecosystem services literature. We illustrate these topics using a meta-analysis of willingness to pay for water quality changes that support aquatic ecosystem services and the application of this model to estimate water quality benefits under alternative riparian buffer restoration scenarios in New Hampshire's Great Bay Watershed. These illustrations highlight the advantages of MRM benefit transfers, together with the challenges and data needs encountered when quantifying ecosystem service values.

This study evaluates consumer perceptions of what “sustainably produced” food labels imply and estimates corresponding demand for products carrying these labels. Results suggest that the typical U.S. consumer is not willing to pay a positive premium for beef, tomatoes, or apple products labeled as “sustainably produced.” Demand is particularly sensitive to inferences consumers make regarding what a “sustainably produced” food label implies. Suggestions for future work and implications of standardizing the definition of sustainability are provided.

Agricultural economists' research on price forecasting and marketing strategies has been used little by those in the real world. We argue that fresh approaches to research are needed. First, we argue that we need to adopt a new theoretical paradigm, noisy rational expectations. This paradigm suggests that gains from using price forecasting models with public data or from using a marketing strategy are not impossible, but any gains are likely to be small. We need to conduct falsification tests; to perform confirmation and replication; to adjust research to reflect structural changes, such as increased contracting; and always to conduct statistical tests. We also provide a modest agenda for changing our research and extension programs.

A key issue in the design of land use policy is how to integrate information about spatially variable biophysical and economic conditions into a cost-effective conservation plan. Using common biophysical scoring methods, in combination with economic data and simple optimization methods, an illustration is provided for how to identify a set of priority land parcels for conservation investment. This study also demonstrates a way in which conservation agencies can incorporate concerns about biophysical thresholds in the identification of their priority land parcels. These methods are applied using Geographic Information System data from a New York conservation easement acquisition initiative for water quality protection.

High tunnels are being used by specialty crop producers to enhance production yields and quality, extend growing seasons, and protect crops from extreme weather. The tunnels are unheated, plastic-covered structures under which crops are planted directly in the soil, and they provide greater environmental protection and control than open-field production. This study uses field-level experiments to evaluate high-tunnel production. The results suggest that investments in high tunnels can provide increased profits and superior protection against adverse risks relative to crop insurance.

With the Waxman-Markey Bill passing the House and the administration's push to reduce carbon emissions, the likelihood of the implementation of some form of a carbon emissions policy is increasing. This study estimates the greenhouse gas (GHG) emissions of the six largest row crops produced in Arkansas using 57 different production practices predominantly used and documented by the University of Arkansas Cooperative Extension Service. From these GHG emission estimates, a baseline state “carbon footprint” was estimated and a hypothetical GHG emissions reduction of 5, 10, and 20 percent was levied on Arkansas agriculture using a cap-and-trade method. Using current production technology and traditional land use choices, results show that the trading of carbon-emitting permits to reduce statewide GHG emissions by 5 percent from the baseline would enhance GHG emissions efficiency measured as net crop farm income generated per unit of carbon emissions created. The 5 percent reduction in GHG emissions does cause marginal reductions in acres farmed and has marginal income ramifications. Beyond the 5 percent reduction target, gains in GHG emissions efficiency decline but remain positive in most counties through the 10 percent GHG reduction target. However, with a 10 percent GHG reduction, acreage and income reductions more than double compared to the 5 percent level. When GHG emissions are reduced by 20 percent from the baseline, the result is a major cropping pattern shift coupled with significant reductions in traditional row crop acreage, income, and GHG emissions efficiency.

The technical efficiencies of New York dairy farms were estimated using a frontier production function. The average farm was 69 percent efficient. Individual farm efficiency was regressed on variables not considered inputs to explain why a farm was not on the frontier. Favorable location in the state and larger size (cows) as proxies for technology lead to greater efficiency. Participation in the Dairy Herd Improvement Cooperative and use of mail-in computerized records as proxies for management result in a reduction in efficiency. However, only 9 percent of variation in farm efficiency could be explained.

A stochastic capital budget was used to analyze the effect of net metering policies and carbon credits on profitability of anaerobic digesters on dairy farms in Pennsylvania. We analyzed three different farm sizes—500, 1, 000, and 2,000 cows—and considered the addition of a solids separator to the project. Results indicate that net metering policies and carbon credits increase the expected net present value (NPV) of digesters. Moreover, the addition of a solids separator further increases the mean NPV of the venture. In general, the technology is profitable only for very large farms (1, 000+ cows) that use the separated solids as bedding material.

The random nature of soil loss under alternative land-use practices should be an important consideration of soil conservation planning and analysis under risk. Chance constrained programming models can provide information on the trade-offs among pre-determined tolerance levels of soil loss, probability levels of satisfying the tolerance levels, and economic profits or losses resulting from soil conservation to soil conservation policy makers. When using chance constrained programming models, the distribution of factors being constrained must be evaluated. If random variables follow a log-normal distribution, the normality assumption, which is generally used in the chance constrained programming models, can bias the results.

Asian gypsy and nun moth introductions into the United States, possibly arriving on imported Siberian coniferous logs, threaten domestic forests and product markets and could have global market consequences. We simulate, using the Global Forest Products Model (a spatial equilibrium model of the world forest sector), the consequences under current policies of a widespread, successful pest invasion, and of plausible trading partner responses to the successful invasion. We find that trade liberalization would have a negligible effect on U.S. imports of Siberian logs and, consequently, on the risk of a pest invasion. But, if it happened, possibly through trade in other commodities, a successful and widespread pest invasion would have large effects on producers and consumers over the period 2002 to 2030.

The Dixit entry/exit real option model was applied to the entry/exit decisions of New York dairy farmers. For the cost structure of a 500-cow farm, the entry milk price is $17.52 per hundredweight (cwt) and the exit milk price is $10.84. For the 50-cow farm cost structure, the entry price is higher at $23.71 per cwt, and the exit price is also higher at $13.48. If infinite numbers of representative farms enter and exit at these prices, the price of milk should range between $13.48 and $17.52 per cwt.

This study evaluates the environmental performance of northeastern U.S. dairy operations that differ in size using a directional output-distance function that measures the joint production of milk and emissions while incorporating a four-way error approach that captures farm-size heterogeneity, transient and persistent technical efficiency, and random errors. For the emission component, a comprehensive pollution index is generated that incorporates three major sources of pollution in dairy farming: fuel, fertilizer, and livestock. Computed shadow prices and Morishima elasticities of substitution reveal that large dairy operations are environmentally inefficient compared to their smaller counterparts.

Many scholars and activists are interested in the potential for school-based childhood nutrition programs to positively impact the U.S. agri-food system. This paper explores efforts of a national K-12 school food collaborative to procure more sustainably grown and healthful food products. After a review of literature on transaction cost theory and school food procurement, the paper examines the potential of strategic partnerships in a value chain framework to meet procurement change goals. Results from a qualitative study of two participating school districts suggest that partnerships can offer potential solutions to recurring procurement barriers found in previous research.

Public preferences for the nonmarket services of permanently preserved agricultural land are measured and compared using conjoint analysis. The results from a survey of 199 Delawareans suggest environmental and nonmarket-agricultural services are the most important preserved-land attributes. Results also suggest that open space associated with wetlands on farms is neither an amenity nor a disamenity. On the margin, preserved parcels with agricultural and environmental attributes provide net benefits, which may exceed $1,000,000 for a 1,000-acre parcel. Preserved forestland provides benefits per acre that are statistically equivalent to cropland, though forestland may be less expensive to preserve.

Influence of land tenure and property rights (LTPRs) on farmers’ willingness to accept (WTA) incentives to embrace climate-smart agriculture (CSA) to combat land degradation was examined with choice experiment data collected from 1,138 farmers drawn across 16 States in Nigeria. Data analysis within random-effect and mixed logit framework revealed the existence of strong linkages between the payment vehicle, LTPRs and farmers’ CSA preferences. While farmers who were dependent on leased and/or communal lands expressed implicit dislike for CSA-related investments, the majority with freehold titles, particularly those with registered titles, expressed positive WTA incentives to embrace CSA and combat land degradation.

Forest managers in developing countries enforce extraction restrictions to limit forest degradation. In response, villagers may displace some of their extraction to other forests, which generates “leakage” of degradation. Managers also implement poverty alleviation projects to compensate for lost resource access or to induce conservation. We develop a model of spatial joint production of bees and fuelwood that is based on forest-compatible projects such as beekeeping in Thailand, Tanzania, and Mexico. We demonstrate that managers can better determine the amount and pattern of degradation by choosing the location of both enforcement and the forest-based activity.

Consumers rely on experience and credence attributes when purchasing beef from retailers. It is essential for all beef industry sectors to recognize the complexity of consumer buying behavior. A hedonic model is estimated to determine if there are incentives to brand beef steaks, the types of brands that entertain price premiums, and the level of existing premiums. Most branded steaks garnered premiums along with organic claims, religious processing claims, and premium cuts. Factors influencing brand value were new brands targeting emerging consumer trends, brands with regional prominence, and brands positioned as special label, program/breed specific production, and store labels.