CURRENT STATE AND FUTURE DIRECTIONS OF SAEA

Teaching/Communication/Extension/Profession,

THE PROPOSED UNITED STATES-MEXICO-CANADA NORTH AMERICAN FREE TRADE AGREEMENT: THE MEXICAN PERSPECTIVE

International Relations/Trade,

The Economics of Commonly Owned Groundwater When User Demand Is Perfectly Inelastic

This paper provides a theoretical analysis of the common-pool resource dilemma in extracting nonrenewable groundwater resources when water demand is perfectly inelastic. It complements the existing theory of groundwater use, which assumes away the possibility of demand perfect inelasticity. Under perfectly inelastic water demand, the common-pool resource dilemma is by-passed if groundwater users are equally productive in water use. If they are not, a new type of inefficiency can arise due to the lack of a rationing mechanism on the basis of productivity. Our analysis suggests that groundwater management research should pay more attention to water demand elasticity and productivity heterogeneity.common-pool resources, groundwater extraction, groundwater management, groundwater use, irrigation water demand, optimal control, pumping externality, water demand elasticity, Resource /Energy Economics and Policy,

FARM LEVEL DYNAMIC ANALYSIS OF SOIL CONSERVATION: AN APPLICATION TO THE PIEDMONT AREA OF VIRGINIA

A conceptual optimal control theory model which considers farm level decision making with respect to soil management is developed. A simplified version of the theoretical model is applied to the Piedmont area of Virginia. The model includes the productivity impacts of both soil erosion and technological progress. Both the theoretical model and its empirical application are improvements over previous efforts. Results suggest that farmers in the study area can achieve substantial reductions in soil erosion by adopting alternative farming practices.Farm Management,

QUANTIFYING THE DIFFERENCES IN MANAGEMENT GOALS AND TECHNOLOGY CHOICE IN PEANUT PRODUCTION

Precision farming and whole-field farming are compared with respect to yields, net present value of returns above nitrogen and water costs (NPVR), and nitrogen application rates to determine the differences in management practices. Precision farming yields, NPVR, and nitrogen application levels are then compared under yield maximizing verses profit maximizing strategies. The results quantify the gains from technology and management goals of peanut producers and suggest the technology effect is greater than the management effect.Crop Production/Industries,

A VARIABLE PRICE SUPPORT FARM PROGRAM: A TRANSITION TOOL TO A FREE MARKET

This paper analyzes a variable price support program (VPS) as an alternative to the current farm income support program. The VPS program can control U.S. agricultural production while protecting income of small farmers. The VPS is designed to alter farm level production decisions by reducing commodity support prices for each additional unit of production produced. This will serve to discourage excess aggregate production. The VPS program can be a mechanism to stabilize income of efficient small farms during the transition from the current farm programs to a free market environment. An illustrative study is used to target government program benefits to various farm-size groups.Agricultural Finance,

Economics of Management Zone Delineation in Cotton Precision Agriculture

This paper develops a management zone delineation procedure based on a spatial statistics approach and evaluates its economic impact for the case of Texas cotton production. With the use of an optimization model that utilizes a yield response function estimated through spatial econometric methods, we found that applying variable N rates based on the management zones delineated would result in higher cotton yields and higher net returns, above Nitrogen cost, relative to uniformly applying a single N rate for the whole field. In addition, a variable rate N application using the delineated management zones produced higher net returns, above Nitrogen cost, relative to a variable N rate system where the zones are based solely on landscape position. This is indicative of the potential economic value of using a spatial statistics approach to management zone delineation.Management Zones, Exploratory Spatial Data Analysis, Site-Specific Nitrogen Management, Cotton Precision Agriculture., Crop Production/Industries, Q1, Q16,

Why Don't Farmers Adopt Precision Farming Technologies in Cotton Production?

We used the 2009 Southern Cotton Precision Farming Survey data collected from farmers in twelve U.S. states (Alabama, Arkansas, Florida, Georgia, Louisiana, Missouri, Mississippi, North Carolina, South Carolina, Tennessee, Texas, and Virginia) to understand why farmers do not adopt seemingly profitable precision farming technology. Farmers provided cost, time constraint, satisfaction with the current practice and other as reasons for not adopting precision farming technology. Results from a multinomial logit regression model indicated that manure application on field, more formal education, larger farm size, participation in conservation easement or agricultural easement generally decreases the probability of nonadoption of precision agriculture in cotton production.precision agriculture, technology adoption, multinomial logit, Crop Production/Industries, Farm Management, Research and Development/Tech Change/Emerging Technologies, C25, Q16,

Economics of Management Zone Delineation in Cotton Precision Agriculture

This paper develops a management zone delineation procedure based on a spatial clustering approach and evaluates its economic impact for the case of Texas cotton production. The results show that there is potential economic value in using a spatial approach to management zone delineation, but its value critically depends on the cost of collecting soil test information needed to delineate those zones.Management Zones, Exploratory Spatial Data Analysis, Site-Specific Nitrogen Management, Cotton Precision Agriculture, Crop Production/Industries, Q12,

Irrigation Technology Adoption in the Texas High Plains: A Real Options Approach

Water scarcity has been a significant issue for several decades in the Texas High Plains, with agriculture identified as the main activity contributing to this scarcity. To address this issue, much effort has been devoted to developing and encouraging adoption of sophisticated irrigation systems with high levels of water application efficiency, such as the low energy precision application (LEPA) system, subsurface drip irrigation (SDI), and variable rate irrigation (VRI). In this study, the economic feasibility of these irrigation systems is evaluated in cotton farming in the Texas High Plains using a real options approach. Results find that only the LEPA system is profitable under current conditions. The VRI system is profitable with high cotton prices (above $0.72/lb), while SDI is not profitable under any conditions explored.Resource /Energy Economics and Policy,