Understanding How Farmers Evaluate and Value Services

Farm Management,

Using APT to Assess the Impact of Farm Policy on Agribusiness Stocks

This study investigates the impact of differing U. S. Farm Policy regimes on the stock prices of publicly traded agribusinesses. Following the Roll and Ross approach, we apply a two step Arbitrage Pricing Model (APM). We analyze the effect of agricultural policy on returns to agribusiness by applying a modified APM to agricultural returns to test for the presence of an agribusiness premium or discount. We further augment our analysis by dividing the sample into two time periods around the implementation of the 1996. The differences in agribusiness premium can then be tested using a paired t-test. The empirical evidence lends support to a switch from negative returns to agribusiness stocks pre-FAIR Act to positive returns to agribusiness stocks after its enactment.Agribusiness, Agricultural and Food Policy,

Direct Marketing of Specialty Crops by Producers: A Price-Comparison between Farmers' Markets and Grocery Stores

Oftentimes, prices at farmers' markets are much cheaper than those at grocery stores. However, little is known about the pricing relationship between farmers' markets and nearby grocery stores. Only by further analyzing this relationship can we gain a better understanding of these pricing trends. Although this trend is seemingly consistent, further research is necessary to test this assumption. Through the collection of prices at both locales, farmers' markets and grocery stores, producers as well as consumers will have access to current prices in both markets. In recent years, consumers are looking for local produce and are willing to pay for them as they are faced with increased grocery store prices, while producers are simultaneously seeking to increase their profit margins. This paper uses data that was collected over the course of one year while recording pricing trends from farmers' markets and nearby grocery stores. The survey also records demographic and operational data from individual producers and or vendors at those farmers' markets within the State of Florida. It is hypothesized that producers selling at farmers' markets are not receiving a price premium for their products and the current prices they charge are, on average, significantly less than those found at a grocery store. Research gives evidence that producers should be receiving a price premium for their products. It is believed that they are being paid only a portion of the true market value for their products. As a result of this research, farmers should have a better understanding of state-wide pricing trends at farmers' markets and grocery stores which in turn will help them make better, more informed decisions when pricing and marketing their specialty crops.farmers markets, pricing, grocery stores, Agribusiness, Community/Rural/Urban Development, Farm Management, Marketing,

The Triple Bottom Line: What is the Impact on the Returns to Agribusiness?

event-study, sustainability, profitability, corporate social responsibility, Dow Jones Sustainability Index, Agribusiness, Agricultural and Food Policy, Agricultural Finance, Demand and Price Analysis, Environmental Economics and Policy, Financial Economics, Risk and Uncertainty,

CREDIT RISK MIGRATION EXPERIENCED BY AGRICULTURAL LENDERS

Loan records and lender credit risk classifications are used to examine agricultural credit risk migration. The results include estimates of the likelihood of borrowers transitioning among five credit risk tiers. The paper also examines factors that influence or predict credit risk migration and its impact on loan pricing.credit risk, agricultural lending, credit risk migration, credit quality, Agricultural Finance,

Protecting Your Turf: First-mover Advantages as a Barrier to Competitor Innovation

Product innovation for a juice company and its associated first-mover advantages are analyzed. Stochastic simulation is used to model market size, price, competitive intensity, and the likelihood of competitor entry. Results of moving first allow the firm to capture market share, realize first-mover advantages in excess of $2 million, and deter competitor innovation. In addition, the proposed model is flexible enough to be applied in other industries.Product innovation, first-mover advantages, barriers to entry, stochastic simulation, uncertainty, Research and Development/Tech Change/Emerging Technologies,

Identifying Abnormal Returns to Food and Agribusiness Stocks on Key Farm Policy Legislative Dates

The efficient market hypothesis would suggest that stock prices incorporate the information revealed in the public process of creating legislation as the debate occurred. Thus, there should be no abnormal returns to agribusiness stocks on key legislative dates when drafting and altering the farm bill. Using an event study methodology, key legislative dates are tested for abnormal returns to firms that supply inputs to or process outputs of agricultural producers. Typically, agribusinesses react on the date legislation emerges from the joint House and Senate conference committee.agribusiness stock values, event study, farm bill, Agribusiness, Agricultural and Food Policy,

Using Land Values to Predict Future Farm Income

land values, almon lag, farm profitability, Agribusiness, Agricultural Finance, Farm Management, Financial Economics, Production Economics,