RATES OF RETURN IN THE FARM AND NON-FARM SECTORS: A TIME SERIES COMPARISON

Financial Economics,

THE MEASUREMENT OF INEQUALITY IN CANADIAN AND U.S. AGRICULTURAL INCOME BY COMPONENTS OF NET VALUE ADDED

This paper examines changes in net value added generated through Canadian and U.S. farm production, 1970-2000. We consider how the structural changes in Canadian and U.S. agriculture have affected the size and distribution of net value added and its components: rent, capital, labor, and to net farm income. We use the Theil Measure of Inequality (TMI) to compare and explain changes in 1) the between and within-region distribution of net value added, and 2) changes in the distribution of factor shares of net value added in Canada and in the U.S. Results show that in Canada (1960-2000), net value added has become somewhat more equally distributed relative to the number of farms per province, but has varied widely from 1972-1988. Between-region inequality in net value added accounted for from 0.5 to 85.5 percent of this inequality from 1960-2000. In the U.S. (1949-2000), net value added has become more unequally distributed. About half of the variation in net value added in the U.S. is due to between-region variation and about half to within-region variation in net value added. We find that most of the variation in the components of net value added (returns to capital, labor, nonoperator landlords, and to farm operators) in Canada and the United States is due to variations across regions, rather than to variations in the components of net value added themselves. These variations have generally been due to macroeconomic differences in regions, such as shifts in enterprise specialization, urbanization, changes in government programs, and to other structural changes in agriculture.Agricultural Finance,

NEXT YEAR ON THE U.S. FARMLAND MARKET: AN INFORMATIONAL APPROACH

This paper formulates an information measure for changes in asset values and applies the formulation to farmland values in the United States for 1960-99. The results indicate that changes in asset values contained significant information following the Russian wheat sale in the early 1970s and the financial crisis in agriculture in the mid 1980s. Further, information about preceding year's asset value largely explains the regional distribution of current year's farmland values.Land Economics/Use,

REGIONAL CHANGES IN THE DISTRIBUTION OF NET VALUE ADDED IN U.S. AGRICULTURE, 1960-2002

This paper examines the effects of structural changes on the distribution of net value added and the difference between net value added and agricultural income over time. We present and discuss the changes in the distribution of net value added (land, labor, capital, and farm operator income) over time. Net value added by U.S. agriculture grew significantly from $18 billion to 1960 to$95 billion in 1996. We examine regional differences in net value added using the Theil entropy measure. The inequality (dispersion) of net value added increased over time. The increased inequality represented both increases in regional dispersion in net value added and increases in the average inequality in net value added in each region. Thus, the net value added is becoming less alike across the U.S. We also examined the inequality in the components of net value added. The greatest dispersion occurred in returns to land followed by returns to capital. Therefore, changes in the dispersion of net value added by agriculture are explained by differences in the payments to non-operator landlords and to capital.Agricultural Finance,

A TRANSLOG COST FUNCTION ANALYSIS OF U.S. AGRICULTURE: A DYNAMIC SPECIFICATION

This study has used an empirical approach developed by Urga and Walters (2003) to examine the implications of the short-run specification of the standard translog cost specification along with the possible implications of non-stationarity. We have estimated a dynamic translog cost specification complete with dynamic share equations for U.S. agriculture and compared it to the static, long-run specification. We found that the dynamic translog specification yielded more significant parameter estimates, and yielded results that are consistent with economic theory. In particular, the coefficient m (the adjustment cost parameter) determines the overall autoregressive structure of the model. The fact that its estimated value (0.36) is statistically different from zero at any conventional level of confidence indicates that the dynamic structure of the model is important. This finding illustrates the superiority of the short-run, dynamic specification over the static, long-run model.Agribusiness,

Spurious phase in a model for traffic on a bridge

We present high-precision Monte Carlo data for the phase diagram of a two-species driven diffusive system, reminiscent of traffic across a narrow bridge. Earlier studies reported two phases with broken symmetry; the existence of one of these has been the subject of some debate. We show that the disputed phase disappears for sufficiently large systems and/or sufficiently low bulk mobility.Comment: 8 pages, 3 figures, JPA styl

Determinants of Farm Household Income Diversification in the United States: Evidence from Farm-Level Data

This study examines the determinants of income diversification of farm households in the United States. Farm households allocate their time between farm and off-farm activities to help stabilized household income (consumption). What characterizes those households who engage in off-farm activities? Is there any pattern over time? Using 1999, 2003 and 2007 farm-level data from the USDA’s Agricultural Resource Management Survey (ARMS), this study estimates intensity of off-farm income (or income diversification). The results show that older operators, full owners, and small farms have higher intensity of off-farm income in total household income. In contrast, dairy farms, vertically coordinated farms and farms located in the Southern and Pacific regions have lower intensity of off-farm income. In other words, household incomes of these farms are less likely to be diversified.Tobit, income diversification, vertical integration, tenure, farm households, Agricultural Finance, Consumer/Household Economics, D1, J2, Q12,

Radar systems for the water resources mission. Volume 4: Appendices E-I

The use of a scanning antenna beam for a synthetic aperture system was examined. When the resolution required was modest, the radar did not use all the time the beam was passing a given point on the ground to build a synthetic aperture, so time was available to scan the beam to other positions and build several images at different ranges. The scanning synthetic-aperture radar (SCANSAR) could achieve swathwidths of well over 100 km with modest antenna size. Design considerations for a SCANSAR for hydrologic parameter observation are presented. Because of the high sensitivity to soil moisture at angles of incidence near vertical, a 7 to 22 deg swath was considered for that application. For snow and ice monitoring, a 22 to 37 deg scan was used. Frequencies from X-band to L-band were used in the design studies, but the proposed system operated in C-band at 4.75 GHz. It achieved an azimuth resolution of about 50 meters at all angles, with a range resolution varying from 150 meters at 7 deg to 31 meters at 37 deg. The antenna required an aperture of 3 x 4.16 meters, and the average transmitter power was under 2 watts

Radar systems for the water resources mission, volume 2

The application of synthetic aperture radar (SAR) in monitoring and managing earth resources was examined. The function of spaceborne radar is to provide maps and map imagery to be used for earth resource and oceanographic applications. Spaceborne radar has the capability of mapping the entire United States regardless of inclement weather; however, the imagery must have a high degree of resolution to be meaningful. Attaining this resolution is possible with the SAR system. Imagery of the required quality must first meet mission parameters in the following areas: antenna patterns, azimuth and range ambiguities, coverage, and angle of incidence

Radar systems for the water resources mission, volume 1

The state of the art determination was made for radar measurement of: soil moisture, snow, standing and flowing water, lake and river ice, determination of required spacecraft radar parameters, study of synthetic-aperture radar systems to meet these parametric requirements, and study of techniques for on-board processing of the radar data. Significant new concepts developed include the following: scanning synthetic-aperture radar to achieve wide-swath coverage; single-sideband radar; and comb-filter range-sequential, range-offset SAR processing. The state of the art in radar measurement of water resources parameters is outlined. The feasibility for immediate development of a spacecraft water resources SAR was established. Numerous candidates for the on-board processor were examined