Governance and Deforestation Due to Agricultural Land Expansion

This article examines the effect of governance on forest cover in developing countries. We develop a theoretical model that explains how governance, particularly corruption control and politically stability, affects deforestation due to agricultural land expansion. The theoretical model shows the importance of the complementarity or substitutability of technology and land use in determining the effect of governance on agricultural land expansion and, consequently, forest cover. We complement the theoretical model with a structural empirical analysis to measure the effect of corruption control and political stability on deforestation in developing countries through two direct channels of deforestation: agricultural land expansion and road building. We find that political stability has a positive and significant effect on forest cover but corruption control has a negative and significant effect on forest cover due to increased agricultural land expansion.Deforestation, Governance, Corruption, Political stability

2010 Estimated Cost of Producing Hops in the Yakima Valley, Washington State

The enterprise budget provides estimates of production costs for a well-managed hop enterprise in Yakima Valley, Washington as of 2010. Three producer scenarios are presented to demonstrate how the enterprise budget can be used to evaluate situations in which the producer may find him/herself. An interactive Excel Workbook is developed and detailed instructions are provided to allow users to input their own data or make changes to the existing spreadsheets.enterprise budget, hops, Washington

Economic Impacts of the Elimination of Azinphos-methyl on the Apple Industry and Washington State

The Environmental Protection Agency has declared the organophosphate pesticide azinphos-methyl (AZM) cannot be used in the production of apples after September 30, 2012. We estimate the change to sales, price, and employment to the Washington State apple industry from using the likely AZM alternative had this ban been in effect in 2007. Furthermore, we estimate the effects of this ban as it ripples through the overall Washington State economy. We find the ban will bring a relatively modest change to sales (-0.8%), prices (0.2%), and employment (0.1%) in the apple industry, with negligible impacts on the overall Washington State economy.apples, azinphos-methyl, economic impact, computable general equilibrium

The Economic Value of Biochar in Crop Production and Carbon Sequestration

This paper estimates the economic value of biochar application on agricultural cropland for carbon sequestration and its soil amendment properties. In particular, we consider the carbon emissions avoided when biochar is applied to agricultural soil, instead of agricultural lime, the amount of carbon sequestered, and the value of carbon offsets, assuming there is an established carbon trading mechanism for biochar soil application. We use winter wheat production in Eastern Whitman County, Washington as a case study, and consider different carbon offset price scenarios and different prices of biochar to estimate a farm profit. Our findings suggest that it may be profitable to apply biochar as a soil amendment under some conditions if the biochar market price is low enough and/or a carbon offset market exists.Biochar, Carbon sequestration, Crop, Farm profitability, Soil amendment

Will Washington Provide Its Own Feedstocks for Biofuels?

The study finds that Washington State’s field corn, sugar beet and canola production could satisfy only a small percentage of the State’s annual gasoline or diesel consumption. Linear programming projections for 2008 showed a relatively close match between projected and actual production. Projections for 2009-2011 showed no increase in the State’s capacity to increase biofuel crop feedstocks. In comparison to crop feedstocks, Washington’s total annual lignocellulosic biomass is abundant. However, only a fraction of the biomass could be converted to biofuel due to high costs of collection and processing, competing markets for some biomass, and limitations in current technology.biofuels, biofuel feedstocks, canola, cellulosic inventories, grain corn, linear programming, Washington State

The effects of government spending on deforestation due to agricultural land expansion and CO2 related emissions

This paper examines the effect of changes in government spending level and composition on deforestation due to agricultural land expansion and related carbon dioxide emissions. Our theoretical model shows an unintended consequence from increased government spending and widening social safety nets in developing countries where agricultural land expansion significantly affects forest cover: there is an increase in deforestation and carbon dioxide emissions from land use change. Our empirical tests show that an increase in total government spending significantly increases forest land clearing for agricultural production in the short run leading to more carbon dioxide emissions. However, there is no long-run statistically significant effect on the steady-state forest cover and carbon dioxide emissions.•We model the effects of government spending on deforestation and CO2 emissions.•Government spending significantly increases deforestation in the short run.•Government spending significantly increases CO2 emissions in the short run.•Government spending has an insignificant impact on deforestation in the long run.•Government spending has an insignificant impact on CO2 emissions in the long run

An Assessment of the Interaction between High Tunnels and Crop Insurance for Specialty Crop Producers

Protective covers, such as high tunnels, are being used by specialty crop producers to enhance production quality and yields, expand or growing seasons, and protect crops from some extreme elements. While growing in popularity, one barrier to larger utilization includes the uncertainty regarding their practices and benefits. This paper recognizes that high tunnels can be used as a form of risk management and examines the relationship with crop insurance in order to better define optimal risk management strategies.high tunnels, specialty crop insurance, risk management, Production Economics,

Costs and Profitability for Mechanized Pruning and Harvest in Two Cider Apple Orchard Systems

Growers need reliable information on costs and returns they can expect for a cider apple (Malus xdomestica) orchard suitable for mechanization because specialty cider apples can only be used for making cider, and returns are expected to be lower than for fresh table apples. This study estimates the costs, returns, and net profit that growers may realize by planting cider apples in either a freestanding or tall spindle system that use a mechanical harvester (both systems) and mechanical hedger (tall spindle system only). Results show that both production systems have positive net returns during full production, and their respective break-even returns are lower than the current market price, demonstrating that both systems are potentially profitable investments. Results also show that the tall spindle system is potentially more profitable due to the advantages of earlier start of fruiting and higher crop yield. The estimated net returns of the tall spindle system during full production are nearly 4 times higher than that of a freestanding system. At a discount rate of 10%, the net present value (NPV) of the tall spindle system is positive and payback period is 13 years, whereas the NPV of the freestanding system is negative. The discount rate represents the time value of money and reflects the perception of risk for the investment. The break-even discount rates (i.e., NPV = 0) are approximate to 6.88% for the freestanding system and 10.78% for the tall spindle system. Sensitivity scenarios found that when all else was constant, profitability increased as market price, crop yield, and production area increase and also when the cost of the harvester decreased. Because mechanical harvesters are expensive, profitability tends to be more favorable for larger farms due to economies of scale. Also, a high picking efficiency is important because fruit that falls on the ground is considered crop yield loss and reduces the gross income from cider apples

The role of federal Renewable Fuel Standards and market structure on the growth of the cellulosic biofuel sector

This article examines the effect of the Renewable Fuel Standards and market power on the growth of the cellulosic biofuel sector. We develop a sectoral model to show how changes in the regulations governing cellulosic fuel production affect the equilibrium quantity of cellulosic ethanol. Based on model calibration for Washington State, we find that existing low-cost waivers purchased by obligated parties in lieu of cellulosic fuel production negate the effectiveness of the Renewable Fuel Standard to induce the production and consumption of cellulosic biofuels. However, raising waiver price slightly relative to the status quo significantly increases the equilibrium quantity of cellulosic ethanol. The high cost of cellulosic ethanol production is often cited as the cause of the lack of cellulosic ethanol production, which is used to justify low waiver prices. Our policy message is the converse: the low current waiver price significantly contributes to the cellulosic ethanol market stagnation in the context of the current biofuel policy. (C) 2016 Elsevier B.V. All rights reserved