THE SUSTAINABLE GROWTH PARADIGM'S APPLICATION TO U.S. FARM BUSINESSES

The sustainable growth paradigm is used to analyze aggregate output decisions across U.S. agricultural productions regions. Results show that the farm sector has adapted to positive or negative sustainable growth challenges (SGC) and that, from an equilibrium point of view, SGC countercyclical measures indicate a usual tendency towards balanced growth.Production Economics,

FARM FINANCIAL STRUCTURE DECISIONS UNDER DIFFERENT INTERTEMPORAL RISK BEHAVIORAL CONSTRUCTS

An alternative unconstrained expected-utility maximization model of farm debt is developed using the location-scale parameter condition that incorporates the empirically validated hypotheses of decreasing absolute and constant relative risk aversion. Simulation-optimization results based on the old and new model versions provide interesting implications for various levels of risk aversion and initial equity investments.Risk and Uncertainty,

Farmland Control Decisions under Different Intertemporal Risk Behavioral Constructs

Simulation-optimization techniques are employed to analyze changes in farmland control arrangements as a result of using different constructs of intertemporal risk behavior. Risk behavior based on constant absolute risk aversion (CARA) and constant relative risk aversion (CRRA) mean-standard deviation functions are used to achieve this objective. Specfically, a multi-period programming framework for a representative grain farm is developed to explore farmland control decisions under these two behavioral assumptions. Our results suggest that the use of a CRRA behavioral construct in analyzing farmland control decisions produce predictions that are more consistent with observed farm behavior.Farm Management,

Determinants of the Organic Farmers' Demand for Hired Farm Labor

Labor and Human Capital,

FARM-LEVEL EVIDENCE ON THE RISK BALANCING HYPOTHESIS FROM ILLINOIS GRAIN FARMS

This study provides farm-level empirical support to the Risk-Balancing Hypothesis using Illinois grain farm data. The econometric results indicate that risk-balancing farmers comprise more than half of the sample. These farmers tend to be older, have higher leasing ratios, are less financially efficient and manage risk through crop specialization, enterprise diversification, and marketing strategies in addition to risk balancing.Risk and Uncertainty,

Comparison of two Near-Isogenic Lines of Bell Pepper (Capsicum annuum): One Endornavirus-Infected and the Other Endornavirus-Free

Bell pepper (Capsicum annuum) is an economically important food crop cultivated worldwide. So far, all tested commercial cultivars have been shown to be infected with Bell pepper endornavirus (BPEV). Although BPEV does not cause apparent disease, the effect of this virus on bell pepper has not been investigated. A comparative study that included plant phenotype and some physiological characteristics was conducted with two near-isogenic lines (NIL) of the bell pepper cv. Marengo: one infected with BPEV and the other BPEV-free. The interaction of BPEV with a disease-causing virus of pepper, Pepper mild mottle virus (PMMoV), was also investigated. Differences in the overall phenotypic characteristics between the two bell pepper lines were not observed. Comparisons of the vegetative growth which included plant growth habit, plant height, stem thickness, fruit size, and percentage of dry matter did not yield statistically significant differences. The BPEV-free line showed significantly higher percentage of seed germination and root length, and the total fruit weight obtained from the BPEV-negative line was significantly higher than the fruit weight from the BPEV-infected line. A field isolate of PMMoV was characterized and used to conduct an interaction study between BPEV and PMMoV. Mechanical inoculations of PMMoV to the bell pepper NILs resulted in less severe symptoms in the BPEV-infected line than in the BPEV-free line. The BPEV-infected line also yielded lower virus titer and viral RNA accumulation. Although the virus titer and RNA accumulation data analyses did not result in statistically significant differences, the negative effect of BPEV on PMMoV was consistent in the various tests, suggesting that BPEV has an antagonistic effect on PMMoV. The overall results of this investigation suggest that infections of bell pepper by BPEV could have a negative effect on bell pepper production. However, more comparative studies involving biotic and abiotic agents should be conducted to determine other effects that BPEV may have on bell pepper

Weather Cycles, Production Yields and Georgia's Muscadine

This paper looks at the relationship between weather, crop yield, and market price of muscadines using a dynamic panel data that spans from the 2000 to 2005 and across the state of Georgia. We use a Generalized Methods of Moments technique to estimate the impact of weather on the price of muscadines with the yield per acre as the instrumented variable. The results suggest that there is a relationship between the price and weather for muscadines, which provide important implications for the potential relevance of a weather derivative for muscadine production.muscadines, weather cycles, price, production yields, Georgia, Generalized Method of Moments, Farm Management, Risk and Uncertainty,

Evaluating Agricultural Banking Efficiency Using the Fourier Flexible Functional Form

This study applied more flexible cost functional form, Fourier Flexible Functional Form, and tested the validity of the Translog cost functional form as to estimate the cost function incorporating risk and loan's quality for banking industry. Meanwhile, the study extended four different cost efficiency measures for banking industry not only among different sized banks but also between commercial banks and agricultural banks. And thereafter, by evaluating these efficiency measures, banks will identify sources of inefficiency, which should aid banks in developing approaches to improve their operational policies, procedures, and performance.Agricultural Finance,

Gender Bias Claims in Farm Service Agency’s Lending Decisions

This study analyzes the courts’ denial of women farmers’ motion for class-action certification of their lawsuits alleging gender discrimination in Farm Service Agency (FSA) lending decisions. The plaintiffs’ claim of “commonality†of circumstances in women farmers’ dealings with FSA is tested using a four-year sampling of Georgia FSA loan applications. The econometric framework has been developed after accounting for the separability of loan approval and amount decisions, as well as endogeneity issues through instrumental variable estimation. This study’s results do not produce overwhelming evidence of gender bias in FSA loan approval decisions and in favor of the “commonality†argument among Georgia FSA farm loan applicants.class-action suit, credit risk, creditworthiness, gender discrimination, Heckman selection, instrumental variable probit, Labor and Human Capital,