The 21st Century Land Grant Economist

The land grant system is a value-added infrastructure, designed to extend the boundaries of traditional colleges and universities to bring science to bear on the pressing needs and problems of underserved citizens and communities. With supplemental resources to support mission-oriented research and outreach, the system has addressed a market failure in higher education. It has been a key asset in achieving for the United States a vibrant agricultural economy, a prominent position in world trade, significant rural development, healthy families and communities, and the increasingly sustainable natural resource base that are characteristic of "the great American Society." This paper explores some of the recent challenges facing the land grant system, provides a framework for examining these challenges, and stresses the need for a new cadre of "land grant economists" to provide leadership as land grants struggle to identify new visions, missions, programs, and innovations that would serve as the bedrock of a new system. Selected areas of emerging opportunities for land grant intervention are also identified.Teaching/Communication/Extension/Profession,

NEW CHALLENGES FACING AGRICULTURAL AND RESOURCE ECONOMICS DEPARTMENTS IN THE TWENTY-FIRST CENTURY

Land/grant colleges were established to serve the public via a tripartite system of teaching, research, and extension. Agricultural economists have played a key role in this system in meeting agriculture's needs and are expanding this role to better cover the areas of food, natural resources and the environment. The declining economic importance of agriculture and the growing interest in relegating agriculture to free market forces has resulted in declining formula funding for the land grant system, greater emphasis on competitive funding, demands for greater accountability, and demands for a return to greater focus on public service, problem solving, and stakeholder involvement in the definition of research, teaching, and outreach agenda. Simultaneously, the demand for the traditional "agricultural economics" graduate is declining. This paper reviews the current and long-term issues and trends facing agricultural economics departments, explores the futures of their teaching, research, and outreach programs, and highlights the challenges that will be faced as these departments explore new teaching, research, and service opportunities in the areas of food, natural resources, and the environment. The paper concludes by arguing that for forward thinking agricultural economics departments, these pending changes will represent opportunities for better scholarship, more balance, and more effective service.Teaching/Communication/Extension/Profession,

PRODUCTIVITY GROWTH AND INPUT MIX CHANGES IN FOOD PROCESSING

To examine productivity growth in New Jersey's food-processing sector, this study conducts a joint analysis of total and partial factor productivity indexes. Results indicate growing material intensity, declining labor and capital intensities, and relatively slow material productivity growth. However, due to the high cost share of material inputs, material productivity growth contributed more to total factor productivity growth than did growth in the productivity of any other input. In fact, almost half of the growth in overall productivity is attributed to material productivity growth. Results also suggest that the 1973 decline in total factor productivity was characterized by greater decline in material productivity than in the productivities of labor and capital.Agribusiness, Productivity Analysis,

ANALYSIS OF CONSUMERS' INTEREST IN ALTERNATIVE FOOD DELIVERY SYSTEMS: RESULTS FROM A CONSUMERS' SURVEY IN NEW JERSEY

Consumer/Household Economics,

POLITICAL ECONOMY OF RIGHT-TO-FARM

This paper investigates the motivations for local right-to-farm protection ordinances by estimating a logit model relating the adoption of these ordinances to various political, economic and demographic factors previously found to affect the likelihood of passage of farmland preservation policies. Results suggest that the probability of adopting right-to-farm policies increases with the size and political clout of the farm public and with incentives to promote right-to-farm. Adoption is not enhanced by environmental concerns, nor by factors known to encourage adoption of farmland preservation policies. These findings raise serious concerns about the long-run viability of protections afforded agriculture in urbanizing areas.nuisance litigation, open space, political economy, restrictive ordinances, right-to-farm, Political Economy,

A MULTI-PRODUCT ANALYSIS OF ENERGY DEMAND IN AGRICULTURAL SUBSECTORS

A multi-product cost function model was used to analyze energy demand in various agricultural subsectors. This approach has advantages over previously used approaches since it reduces aggregation bias, considers technological jointness, and provides various disaggregative measures related to energy input demand. When fitted to West Virginia county level data, labor and miscellaneous inputs in crop and livestock production were found to be substitutes for energy, while capital, machinery, and fertilizer were complementary to energy. Energy demand was inelastic and increases in machinery prices had the largest reduction effect on energy demand. Technological change was found to be capital, machinery, and fertilizer using, but it was labor and energy saving. Analyses indicated that the elasticity of demand for energy inputs with respect to livestock output was significantly larger than the elasticity with respect to crop output.Resource /Energy Economics and Policy,

Optimal Density for Municipal Revenues

The distribution of lot sizes and associated improvements affect property values. Hence, zoning affects municipal property tax revenues. If optimal lot size is inconsistent with the targeted zoning density in a community, municipal revenue can be increased through zoning change. This paper theoretically derives the optimal lot size that maximizes tax revenues as a function of the elasticities of improvement value and lot size prices with respect to density, and the elasticities of land and improvement demand with respect to lot size. Empirical hedonic pricing model estimates for a Michigan Community suggest that the optimal lot size for recently sold property is lower than current zoning on existing properties. The possibility that municipal revenue can be enhanced through greater zoning density hints of a cost associated with exclusionary zoning. Local units of government should therefore more seriously consider the fiscal implications of their zoning decisions as they pursue growth control.Optimal lot-size, municipal revenue maximization, zoning, hedonic pricing, Financial Economics,

The Political Economy of Downzoning

“Substantial downzoning†is defined as the exercise of police power to significantly reduce the legally permitted density on undeveloped land in a community. This contentious practice is typically challenged by those who perceive the action to limit their market opportunities (e.g., farmers and developers), their sympathizers, and others who prefer the status quo. Supporters tend to be those who perceive positive benefits (e.g., environmentalists, conservationists, and homeowners) and those who see it as a supplement to other preservation techniques, based on concerns over such things as growing public costs of land acquisition, limited effectiveness of existing alternatives, or the perceived urgency to act to manage growth. Given the complexity of the issue and the lack of previous research, this paper develops a conceptual model of the public choice to “substantially downzone†and presents specific hypotheses to be empirically tested, using New Jersey as a case study. The probability of implementing substantial downzoning is found to increase with (i) the amount of open space that remains to be protected, (ii) declining farm population, (iii) recent growth in non-farm population, (iv) recent growth in land values, and (v) the presence of alternative growth management tools. Results also suggest its use as a substitute for other preservation tools when the financial and/or political ability of communities to afford other approaches is limited. Hence, the likelihood of substantial downzoning may increase over time if alternatives become more difficult to implement.substantial downzoning, takings, land use, growth management, open space, political economy, Institutional and Behavioral Economics, Political Economy,

The Political Economy of Downzoning

Increasingly, in response to concerns about urban sprawl and environmental protection, local governments are exercising their police power to reduce the legal permitted density on undeveloped land. This controversial practice, known in many parts of the country as "downzoning", is generally opposed by farmers, developers and others whose market opportunities are limited by such action. This paper constructs a theoretical model of the impact of larger minimum lot sizes on the current land prices of farmers and homeowners within the same community. The theoretical model suggests that net losses for farmers and net gains for homeowners from downzoning are a reasonable, if not inevitable, expectation. Following Pelzman, Hahn, and Campos, the paper then develops a model to explain the public choice decision-making process that leads to downzoning by local public officials. This model is tested using data on 214 New Jersey municipalities. The probability of downzoning is found to increase when there is a lot of open space to protect, but only when farmers constitute a small proportion of all voters. The probability of downzoning also increases when a community has experienced rapid population growth and increased land values. It is more likely to be found in municipalities that have enacted right-to-farm ordinances, suggesting an overall preservation focus on the part of the community along with some sensitivity to farmers' concerns.Land Economics/Use,

Renewable Energy Development and Implications to Agricultural Viability

Food and energy security have increasingly acquired key natural resource policy focus. As alternative energy solutions become more land intensive, the potential implication to the agricultural sector becomes of policy interest. This study investigated the impact of projected wind energy development in Michigan on the agricultural sector. Results indicate that land lease payments overtime for wind turbine siting are expected to generate $50 million per year, impacting agricultural viability. Spatial distribution analysis suggests that most of the projected lease payments to farmers are concentrated in low value agricultural land, low value agricultural production, urban influenced, and low net farm income locations. We found that the spatial distribution of wind energy impact on agricultural viability is wide, but significant in some counties, by a margin of more than 50% net farm income gain. As renewable energy development becomes more land intensive, the potential cross-sectoral impacts need to be carefully considered.agricultural viability, renewable energy, land use, spatial analysis, Resource /Energy Economics and Policy,