Out With the Old, In With the New: Are Western Commodity Producers Ready for Buyouts?

Agricultural and Food Policy,

Risk Management for Ag Families: An Extension Model for Improving Family Business Success

A risky business environment for agricultural producers coupled with human risk elements unique to family businesses, points to the need for extension programs that integrate traditional risk management concepts into curriculums focused on the potentially unique educational needs of family farm management teams. Results in this paper indicate that a multi-state, grant funded program entitled "Risk Management for Ag Families" had impact and provides a model that traditional risk management education programs could benefit from.Risk and Uncertainty, Teaching/Communication/Extension/Profession,

Is Agricultural Policy Decoupling against Human Nature? Experimental Evidence of Fairness Expectations’ Contributions to Payment Incidence

The objective of this research is to measure individuals’ fairness expectations and relate them to their market behavior in a private-negotiation institution. By doing this, we may inform model parameterization of field data and increase understanding of payment incidence causation. We hypothesize agents will change both their market and UG behavior when the tenant/proposer receives a subsidy following a successful negotiation. We also hypothesize that agents’ market behavior does relate to their fairness expectations in the UG. Two economic experiments were developed to test our hypotheses, a market and an ultimatum bargaining game experiment. We recruited 106 undergraduate students and conducted the experiments in an experimental laboratory using a computer based market mechanism. Our findings suggest fairness expectations need to be considered as a possible constraint on agents’ profit maximization behavior in land markets. The experimental evidence indicates market sellers or landlords demand higher land rental prices when tenants receive per-unit subsidies. Their ability to obtain a higher price appears to be more formidable in markets with limited matching opportunities. We conclude fairness expectations may constrain individuals’ profit-maximization behavior in the land market and, in turn, affect payment incidence in this market.Agricultural and Food Policy,

Decoupled Programs, Payment Incidence, and Factor Markets: Evidence from Market Experiments

We use laboratory market experiments to assess the impact of asymmetric knowledge of a per-unit subsidy and the effect of a decoupled annual income subsidy on factor market outcomes. Results indicate that when the subsidy is tied to the factor as a per-unit subsidy, regardless of full or asymmetric knowledge for market participants, subsidized factor buyers distribute nearly 22 percent of the subsidy to factor sellers. When the subsidy is fully decoupled from the factor, as is the case with the annual payment, payment incidence is mitigated and prices are not statistically different from the no-policy treatment.laboratory market experiments, agricultural subsidies, subsidy incidence, land market, ex ante policy analysis, Agricultural and Food Policy, Institutional and Behavioral Economics, Q18, D03, C92,

Ranchers Diverse in Their Drought Management Strategies

Farm Management, Livestock Production/Industries,

Risk Management for Ag Families: An Extension Model for Improving Family Business Success

A risky business environment for agricultural producers coupled with human risk elements unique to family businesses, points to the need for extension programs that integrate traditional risk management concepts into curriculums focused on the potentially unique educational needs of family farm management teams. Results in this paper indicate that a multi-state, grant funded program entitled "Risk Management for Ag Families" had impact and provides a model that traditional risk management education programs could benefit from

Subsidy Incidence in Agricultural Land Markets: An Experimental Investigation

We use laboratory market experiments to control for market power and social norms in order to evaluate market outcomes associated with subsidy incidence. We estimate the incidence of a stylized agricultural subsidy in laboratory land rental negotiations and compare the market behavior of university students to agricultural professionals. In separate sessions with both subject groups, 21.5 percent of a per-unit subsidy paid to the buyer (tenant) was passed on to sellers (landlords). The consistent treatment effect between students and professionals is encouraging, particularly in the use of experimental laboratory methods for ex ante analyses of agricultural policy impacts