Economic Impact of the Alabama Green Industry 2003 to 2008: Grower Optimism in a Changing Economy

Greenhouse and nursery contributes significantly to Alabama’s agricultural industry and the nation’s green industry. This industry represents the number one crop sector in Alabama agriculture and ranks 16th in the nation. This paper compared the 2003 and 2008 economic impact of the green industry in Alabama, which showed tremendous growth over the period. The paper also evaluated factors that influence grower optimism for future growth of their firm. It was found that the product type, percentage sales to different states and different wholesale marketing outlet had a significant impact on grower optimism.Financial Economics, Resource /Energy Economics and Policy,

Preferences for Livestock Revenue Insurance Among Beef Producers

Personal interviews were conducted with 52 Louisiana cow-calf producers to determine their preferences for a livestock revenue insurance (LRI) product. Conjoint analysis was utilized to determine the importance of selected attributes of insurance policies for these producers. Two-limit tobit models were estimated. Producers were segmented using cluster analysis based upon preferences for LRI product attributes. A multinomial logit model was used to determine differences between characteristics of producers in each cluster. Producers generally preferred higher-premium, zero-deductible products; 180-day policy length; the state price series; and an in-person method of marketing. Cluster analysis yielded three groups of preferencesPersonal interviews were conducted with 52 Louisiana cow-calf producers to determine their preferences for a livestock revenue insurance (LRI) product. Conjoint analysis was utilized to determine the importance of selected attributes of insurance policies for these producers. Two-limit tobit models were estimated. Producers were segmented using cluster analysis based upon preferences for LRI product attributes. A multinomial logit model was used to determine differences between characteristics of producers in each cluster. Producers generally preferred higher-premium, zero-deductible products, 180-day policy length, the state price series, and an in-person method of marketing. Cluster analysis yielded three groups of preferences, Agribusiness, Livestock Production/Industries,

Alabama Restaurant Preferences and Willingness to Pay for Local Food: A Choice Based Approach

Direct marketing to restaurants has become increasingly popular as chefs desire high quality, fresh foods to meet the demand of their customers who are becoming more health conscious. Restaurants accounted for approximately 70 percent of the 2009 total food expenditures, and as a result represent a tremendous potential for developing a sustainable network with local growers. This study seeks to determine restaurant/chefs’ preferences for local food in Alabama using choice based conjoint analysis, as well as, determine challenges faced by restaurants interested in purchasing locally. Availability and lack of knowledge are found to be the major barriers to purchasing locally. Results also suggest there is great potential for direct marketing to restaurants in Alabama that producers are not currently utilizing.Restaurants, Conjoint, Local, Chefs, Preferences, Marketing, Agribusiness,

Beef Producer Preferences and Purchase Decisions for Livestock Price Insurance

Personal interviews were conducted with beef cattle producers in Louisiana to determine their preferences and purchase decisions for livestock price insurance. Conjoint analysis was utilized to determine the importance of selected attributes of insurance policies for these producers. The characteristics of producers who prefer given attributes were also identified. Producers rated products given four economic situations to evaluate. A two-limit tobit model was used to estimate the part worth utility values for each attribute. Univariate probit models were estimated to evaluate the influence of producer characteristics on purchase decisions.conjoint, livestock price insurance, ordered probit, two-limit tobit, Agribusiness, Demand and Price Analysis, Livestock Production/Industries,

Beef producer perferences for various livestock revenue protection products: a conjoint approach

The federal government has recently approved legislation to develop revenue insurance products that are affordable and user-friendly for livestock producers. The features of the products will be the ultimate determinant of product acceptance among producers. The objective of the study was to determine the relative importance of livestock revenue insurance product attributes as well as to identify the characteristics of beef cattle producers who prefer certain levels of a given product attribute. Conjoint analysis was utilized to determine the importance of selected attributes. Conjoint Designer was used to develop eleven hypothetical insurance products from four attributes with three levels each. Producers rated each product from 0 (least preferred) to 10 (most preferred). The products were rated given four different economic scenarios to determine the influence of the cattle cycle on producers\u27 preferences and purchase decisions for products. Data were collected via personal interviews with 52 beef cattle producers in 15 parishes in Louisiana. A two-limit tobit model was used to analyze producer preferences. The part worth utility values estimated were used in a cluster analysis to segment producers based upon their preferences. Univariate probit models were estimated for nine products to evaluate the influence of various producer characteristics on purchase decisions. The results of the aggregate conjoint analysis indicated that producers preferred products with a $2.24|$0.00/cwt premium|deductible, a 180-day policy length, a state price series, and an in-person method of marketing. The price series made the largest contribution to the preference rating, and the results suggested that the economic scenario did not significantly impact preferences. The cluster analysis identified three market segments that exhibited significant differences in primary source of income, farm size, marketing strategies used, and risk attitude. The results of the univarite probit models revealed that the economic scenarios had a significant impact on producers\u27 insurance purchase decision. Producers who were risk averse and depended on income from beef cattle were more likely to purchase insurance. Producers who were older and/or had other means of mitigating risk were less likely to purchase insurance

An Estimation of Producer Preferences, and the Wage, Hours, and Gross Sales Effects of Migrant Labor in Alabama's Horticulture Industry

Using 2002 survey data, this study employs log-linear regression analysis to examine the effects of migrant labor on wages, hours, and gross sales in Alabama's horticulture industry. A binomial probit model is added to measure producer decisions to hire migrant workers. The presence of migrant workers is found to raise average wages within green industry firms, but exhibits no significant effects on hours and sales.Labor and Human Capital,