SHORT- AND LONG-RUN DEMAND AND SUBSTITUTION OF AGRICULTURAL INPUTS

Short- and long-run Hicksian and Marshallian elasticities are estimated, along with Morishima elasticities of substitution, using a restricted profit function and a series of decomposition equations. Convexity in prices and concavity in quasi-fixed factors of the restricted profit function are simultaneously imposed using Bayesian techniques. The empirical model is disaggregated in the input side, utilizes a Fuss-quadratic flexible functional form, incorporates the impact of agricultural policies, and introduces a new weather index. The methodology is applied to Illinois's agriculture, and implications for agriculture in the Corn Belt and the Northeast are briefly discussed.Demand and Price Analysis,

INNOVATION AND REGULATION IN THE PESTICIDE INDUSTRY

This paper examines the impact of pesticide regulation on the number of new pesticide registrations and pesticide toxicity. Results suggest that regulation adversely affects new pesticide introductions but encourages the development of pesticides with fewer toxic side effects. The estimated regression model implies that a 10% increase in regulatory costs (about $1.5 million per pesticide) causes a 5% reduction in the number of pesticides with higher toxicity.Agribusiness,

OFF-FARM WORK AND THE ECONOMIC IMPACT OF ADOPTING HERBICIDE-TOLERANT CROPS

This paper examines the hypothesis that farmers may be adopting herbicide-tolerant crops because of the simplicity and flexibility of weed control, freeing management time. We develop an econometric model to analyze the adoption of HT soybeans controlling for the effect of off-farm work and estimate it using 2000 survey data.Labor and Human Capital,

OFF-FARM WORK AND THE ADOPTION OF HERBICIDE-TOLERANT SOYBEANS

Adoption of herbicide-tolerant (HT) soybeans is proceeding rapidly despite little difference between the net returns to HT versus conventional soybeans. Using a multivariate probit model, we analyze the interaction of off-farm work and adoption and test if farmers adopt HT soybeans because its simplicity and flexibility frees management time.Biotechnology, herbicide-tolerant soybeans, technology adoption, off-farm work, household models, Crop Production/Industries,

CONCENTRATION, MARKET POWER, AND COST EFFICIENCY IN THE CORN SEED INDUSTRY

The paper presents a model developed to examine the effects of industry concentration on market power and cost efficiency in the seed industry. In addition, the paper presents preliminary measures of the relative strengths of these effects for the case of the U.S. corn seed industry over the past 3 decades. The model uses conjectural elasticities and is estimated using data collected from USDA sources. The empirical results allow us to distinguish between the market power and cost effects of concentration, and to ascertain the tradeoff between the cost efficiency and market power resulting from higher concentration in the corn seed industry.Marketing,

ADOPTION OF BIOENGINEERED CROPS

Use of crop biotechnology products, such as genetically engineered (GE) crops with input traits for pest management, has risen dramatically since commercial approval in the mid-1990s. This report addresses several of the economic dimensions regarding farmer adoption of bioengineered crops, including herbicidetolerant and insect-resistant varieties. In particular, the report examines: (1) the extent of adoption of bioengineered crops, their diffusion path, and expected adoption rates over the next few years; (2) factors affecting the adoption of bioengineered crops; and (3) farm-level impacts of the adoption of bioengineered crops. Data used in the analysis are mostly from USDA surveys.Biotechnology, technology adoption, genetic engineering, pest management, financial effects, tillage, herbicide-tolerant crops, Bt crops, corn, soybeans, cotton, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,

The Impacts of Off-Farm Income on Farm Efficiency, Scale, and Profitability for Corn Farms

This paper estimates returns to scale and technical efficiency of corn farms following an input distance function approach and compares the relative performance of farm operator households with and without off-farm wages and salaries. We use 1995-2003 USDA data. The input distance function results suggest that off-farm outputs and inputs can be modeled in a multi-activity framework, which materially alter performance measures in the Corn Belt. We find that off-farm income boosts scale and technical efficiency of smaller operations. We also find that the number of hours worked off-farm by the spouse contributes to a higher technical efficiency.Farm Management,

Revisiting the Impact of Bt Corn Adoption by U.S. Farmers

This study examines the impact of adopting Bt corn on farm profits, yields, and insecticide use. The study employs an econometric model that corrects for self-selection and simultaneity. The model is estimated using nationwide farm-level survey data for 2005. Regression analysis confirms that Bt adoption is associated with increased profits, yields and seeding rates. However, the results of this analysis suggest that Bt adoption is not significantly related to insecticide use. This result appears to be related to the fact that insect infestation levels were lower in 2005 than they were in earlier years.Genetically engineered corn, insect resistance, Bt corn, insecticide use, technology adoption, yields, Production Economics, Research and Development/Tech Change/Emerging Technologies,

FACTORS AFFECTING THE LIKELIHOOD OF CORN ROOTWORM BT SEED ADOPTION

The likelihood of adopting corn rootworm (CRW) Bt seed technology was analyzed using an ordered logit model. Data used to estimate the model came from USDAs 2001 Agricultural Resource Management Survey. Statistically significant variables include operator age, farm type, farm size, rootworm loss and current treatment for rootworm, off farm labor, and Bt technology for corn borer. The likelihood of adoption was not related to crop rotation, tillage system, new variant CRW region, or education.Crop Production/Industries,