MACHINERY COSTS AND INFLATION

This article addresses (1) the differences in machinery cost estimating techniques, particularly for depreciation and opportunity cost, and (2) the necessary modifications in cost estimating techniques to account for the changing monetary base under inflation. The conditions under which capital budgeting and traditional budgeting differ are examined on a before tax and after tax basis, with and without inflation. The variations in cost estimates depending upon techniques, and with and without inflation, are compared.Agricultural Finance,

GUIDELINES FOR WESTERN JOURNAL OF AGRICULTURAL ECONOMICS AUTHORS

This article explains the current editorial procedures and policies of the Western Journal of Agricultural Economics. The contents should be of interest both to readers and to authors who plan to submit manuscripts to the Journal. The current editorial policy of the Journal is discussed, the review and publication process is explained, and detailed guidelines for the proper preparation of manuscripts for the Journal are presented.Teaching/Communication/Extension/Profession,

THE VALUE OF PROTEIN IN FEED BARLEY FOR BEEF, DAIRY, AND SWINE FEEDING

The impact of the protein content of feed barley on the costs of feeding beef, dairy cattle, and swine in Montana is evaluated. A model of least-cost feed rations is constructed to analyze the marginal value of additional protein content in feed barley. The results indicate that increasing the protein content of feed barley above 12% will not substantially increase the value of barley to feeders. This implies that the establishment and maintenance of a protein premium in the feed barley market would tend to result in lower average prices for feed barley because the feed value/protein relationship is concave and the market would be sustaining costs that the inherent value of the commodity could not support.Livestock Production/Industries,

THE PROPER PREEMINENT ROLE OF PARENT DISCIPLINES AND LEARNED SOCIETIES IN SETTING THE AGENDA AT LAND GRANT UNIVERSITIES

Contrary to recent commentary, reliance on individual faculty initiative and learned societies in setting the academic agenda has greater promise for contributing to the land grant mission than more administratively driven and dominated systems. Learned societies have the advantage in evaluating disciplinary content and are thereby the appropriate evaluators of quality. A distinguishing characteristic of all university professors should be a continuing commitment to active participation in research in support of their principle function, teaching, be their students on-campus undergraduate or graduates, off-campus clientele, or professional peers. The popular notion that all, or even most recognized peer-review journals are oriented mainly to disciplinary (versus problem-focused) research is challenged.Teaching/Communication/Extension/Profession,

SURE Impact? An Empirical Investigation of Moral Hazard and Adverse Selection Behavior

The Supplemental Revenue Assistance Payments (SURE) program, enacted under the 2008 Farm Bill, is intended to provide indemnity payments to producers whose crop losses exceed 50% of their historical average yields. However, indemnification does not require that the farm is located in a region designated a disaster relief area -- a provision that can create significant moral hazard incentives. This study is the first to perform an empirical analysis of possible moral hazard behavior in corn, soybean, and wheat markets in response to the SURE program. Results suggest that an increase in crop insurance demand after the enactment of SURE may be due to the program's moral hazard incentives.Agricultural and Food Policy, Farm Management,

INCORPORATING SAFETY-FIRST CONSTRAINTS IN LINEAR PROGRAMMING PRODUCTION MODELS

A recent survey indicated that many procedures view risk in a safety-first context. Traditional methods used to impose safety-first constraints in optimization models have often been difficult to implement. This is particularly true when endogenous decisions affect the distribution of the chance-constrained random variable. This paper presents a method whereby probabilistic constraints can be easily imposed upon finitely discrete random variables. The procedure uses a linear version of the lower partial moment stochastic inequality. The resulting solutions are somewhat conservative but are less so than the results using the previously published mean income-absolute deviation stochastic inequality.Production Economics, Research Methods/ Statistical Methods,

PERFORMANCE OF RISK-INCOME MODELS OUTSIDE THE ORIGINAL DATA SET

Selected risk programming solutions (i.e., profit maximization, Target-MOTAD, and MOTAD) are tested in an economic environment outside the data set from which they were developed. Specifically, solutions are derived from either a longer 10-year (1965-74) or shorter 6-year estimation period (1969-74), and then, they are tested for consistent risk-income characteristics over a later 10-year period (1975-84). Risk solutions estimated from earlier periods perform well in the later test period in spite of different economic conditions between time periods. However, favorable performance may be related to the specific example used in this analysis. Further testing for other farm situations is needed before general conclusions can be reached.Risk and Uncertainty,

The Public Resource Management Game

Use of public resources for private economic gain is a longstanding, contested political issue. Public resources generate benefits beyond commodity uses, including recreation, environmental and ecological conservation and preservation, and existence and aesthetic values. We analyze this problem using a dynamic resource use game. Low use fees let commodity users capture more of the marginal benefit from private use. This increases the incentive to comply with government regulations. Optimal contracts therefore include public use fees that are lower than private rates. The optimal policy also includes random monitoring to prevent strategic learning and cheating on the use agreements and to avoid wasteful efforts to disguise noncompliant behavior. An optimal policy also includes a penalty for cheating beyond terminating the use contract. This penalty must be large enough that the commodity user who would gain the most from noncompliance experiences a negative expected net return.Renewable resources, public resources policy, optimal contracts

Grazing Fees versus Stewardship on Federal Lands

Livestock grazing on public lands continues to be a source of intense conflict and debate. We analyze this problem using a dynamic game. Low grazing fees let ranchers capture more rent from grazing. This increases the incentive to comply with federally mandated regulations. Optimal grazing contracts therefore include grazing fees that are lower than competitive private rates. The optimal policy also includes random monitoring to prevent strategic learning by cheating ranchers and avoid wasteful efforts to disguise noncompliant behavior. Finally, an optimal policy includes a penalty for cheating beyond terminating the lease. This penalty must be large enough that the rancher who would profit the most from cheating experiences a negative expected net return

Allostatic load, educational attainment, and risk of cancer mortality among US men

IMPORTANCE: Health disparities among racial and ethnic minoritized populations, particularly for cancer mortality rates, remain a major public health concern. Men from underrepresented backgrounds (Black and Hispanic men, specifically) face the pervasive effects of discrimination in their daily lives, which also contribute to the complex associations among allostatic load (a marker of chronic stress), educational opportunities, and elevated risks of cancer mortality. OBJECTIVE: To elucidate the associations among educational attainment, allostatic load, and cancer mortality risk among men. DESIGN, SETTING, AND PARTICIPANTS: This is a retrospective cohort analysis of data from the National Health and Nutrition Examination Survey, a nationally representative sample of approximately 5000 people across the US, from 1988 to 2010 linked with data from the National Death Index, which served as follow-up data for the cohort and was available through December 31, 2019. Participants included men aged 18 years and older. Data were analyzed from June to October 2024. EXPOSURE: Allostatic load data were stratified by educational attainment levels, categorized as (1) less than high school education and (2) high school graduate and above. Allostatic load score was calculated as the sum of total abnormal biomarkers and health measures (9 total). Participants were considered to have high allostatic load if their score was 3 or more. MAIN OUTCOMES AND MEASURES: The primary outcome was cancer death. Weighted Cox proportional hazards models were fitted to estimate adjusted hazard ratios (HRs) of cancer death between educational attainment and allostatic load (adjusted for age, income, and smoking status). RESULTS: Among all 20 529 men (mean [SE] age, 41.00 [0.22] years), those with high AL and less than high school educational attainment had a greater than 4-fold increased risk of cancer mortality (unadjusted HR, 4.71; 95% CI, 3.36-6.60) compared with those with low allostatic load and a college degree or higher. Similarly, both Black men (HR, 4.19; 95% CI, 2.09-8.40) and White men (HR, 5.77; 95% CI, 4.06-8.20) with high allostatic load and less than high school educational attainment had higher risks for cancer death compared with race-specific counterparts with college education and low allostatic load. After adjustments for age, poverty-to-income ratio, smoking status, history of cancer, and ever congestive heart failure and heart attack, the associations were attenuated, but all men (HR, 1.69; 95% CI, 1.15-2.47) and White men (HR, 1.82; 95% CI, 1.16-2.85) still had greater than 50% increased risk of cancer death compared with men with college education and low allostatic load. CONCLUSIONS AND RELEVANCE: This study highlights the detrimental association of not attaining a high school degree, combined with high allostatic load as a marker of chronic stress, with cancer mortality. Efforts to promote educational attainment and address the underlying social determinants of health are imperative in reducing cancer disparities in this population