Agricultural factor use and substitution in the south-eastern United States

A study of the agricultural factor markets that support the farm economy of the southeastern United States aids the understanding of how farmers change the mix of factors as product and factor prices change. Factor demand elasticities were estimated for capital, land, labour, chemicals, energy and other intermediate inputs. On average; labour accounted for USD 0.410 of every USD 1 spent on agricultural inputs followed by other intermediate inputs, which accounted for USD 0.255. The demands for farm labour and other intermediate inputs were inelastic. The demand for farm chemicals was elastic, which indicates a lack of pricing power by companies that sell them. A substantial reduction in the use of farm chemicals could be achievable by increasing their price. Most of the factors are substitutes with the exceptions of capital and energy, and land and chemicals; which were found to be complements

Applied Theory of Energy Substitution in the Southeast: An SUR Approach

Issues on energy have recently dominated the economic decisions of several states across the U.S. economy and states in the southeastern region of U.S. are no exception. Almost all the states in the southeast import virtually all of their fuel resources from the Gulf Coast representing an annual financial diversion of several billions of dollars some of which could be used to develop domestic, alternative energy resources. The focus of this study was to determine the potential substitution between renewable energy and conventional energy forms in the southeast of U.S. We developed a system of factor share equations using translog cost function. The system of equations was estimated using a pooled iterative Non-linear Seemingly Unrelated Regression (SUR) procedure with homogeneity and symmetry restrictions imposed. Findings indicate that factor demands in the southeast energy sector are price inelastic and there is limited substitution potential when energy prices rise in fuel production. The substitution potential of renewable energy for the conventional energy forms is found to be higher than that of other conventional energy forms for renewable except renewable energy for natural gas. The substitution of renewable energy for natural gas is technically infeasible since the elasticity is negative. Since renewable energy has the potential to substitute for other forms of energy besides natural gas, federal and state governments might want to reverse the $10 billion petroleum subsidy versus the current$5 billion for renewable if the target (36 billion gallons of renewable fuel by 2022) set by 2007 Energy Independence Act is to be realized.Energy Substitution, Translog Cost Function, Resource /Energy Economics and Policy,

Food Sources and Preferences of College Students

Young adults, especially college students, in the United States (U.S.) have to make independent decisions on where to buy food and the attributes of the food to buy. For some, the decision is one of their first undertakings since leaving home and could be foundational relative to their food choices, with its attendant health implications, later in life. We used a data from a survey to ascertain the frequency with which some U.S. college students shop at different types of food vendors such as grocery stores, supermarkets, fast food restaurants and full-service restaurants. We also asked about the food attributes that were important to students. Our results indicate that supermarkets were the primary sources of food at home for the students while fast food restaurants were the dominant sources of food away from home. Taste, followed by price, were the most important food attributes for students. Most students indicated a willingness to pay more for local food and food produced on small farms. Food vendors that could provide food that tastes good at lower prices are likely to have a competitive edge in attracting college students as patrons. The interest of students in local foods suggests that the current local foods movement may not be a fad, but could be sustained for a longer period

The Business of Hemp in North Carolina: Where the Rubber Meets the Road

Industrial hemp continues to receive a lot of attention in the United States of America with a projected annual revenue growth rate of 18.4 percent by 2022. The momentum industrial hemp has gathered in the past few years has made it the ‘new lucrative crop’ for people to grow. However, many farmers have jumped into hemp farming without first obtaining a realistic economic analysis of hemp farming. In this paper, we seek to review and explore the economic opportunities and challenges of hemp production as a useful guide for reducing risks and maintaining profitability for farmers in North Carolina. Our reviews suggest that there are huge knowledge gaps between the \u27promised\u27 benefits (financial incentives) of hemp and what it will take for farmers to reap the financial benefits thereof. Therefore, more scientific research on sources of production inputs, basic agronomic practices, post-harvest processing, supply chain management, policies, and legal framework to guide production and marketing is needed to collect data specific to the hemp industry in North Carolina. Farmers in North Carolina have higher risks of failing and losing their investment and farms due to attempts to grow a new crop (hemp). Only significant effort to address the above missing gap in knowledge can guarantee access to the economic potential as well as plan and implement mitigation measures to the threats facing this emerging industry

U.S. Potential Biofuel Trade: A Worldwide Country-Pair

International Relations/Trade, Resource /Energy Economics and Policy,

Evaluating the Causes of Rising Food Prices in Low and Middle Income Countries

The effects of population, income, prices of major inputs, and exchange rate of the U.S. dollar on the prices of three key agricultural and food commodities (feed grains, oilseed, and fruits) for 13 low-income countries and seven middle-income countries were evaluated. Given the short time period, a modified seeming unrelated regression-vector autoregressive model that incorporates the lagged exogenous variables property of time series models and the system of equation estimation is employed in the analysis. The study finds no single factor that persistently explains all soaring food prices as reported in the literature. The only factor that persistently explains soaring food prices are the contemporaneous and one-year lagged exchange rates and income

Qualitative Analysis of Industrial Hemp Production, Markets, and Sustainability in North Carolina, United States

The North Carolina hemp industry has fallen short of its projected success despite its potential economic benefits and opportunities for farmers. The floral hemp sector specifically has been struggling due to excessive production and decreasing prices. The objective of the research was to examine the experiences and obstacles faced by early adopters and stakeholders of the hemp industry in NC. Through structured focus group discussions and interviews, data were collected and analyzed to gain insight into the industry’s direction. The results revealed that many floral hemp farmers have abandoned the crop because of financial setbacks, leading to a reduced interest in cultivation compared to five years prior. The floral hemp industry’s rapid growth and decline have tempered farmers’ expectations of the crop’s potential. The findings will provide a foundation for further research into NC’s hemp production and economy, enabling the provision of necessary information and extension services for profitable hemp farming in the state

Applied Theory of Energy Substitution in the Southeast: An SUR Approach

Issues on energy have recently dominated the economic decisions of several states across the U.S. economy and states in the southeastern region of U.S. are no exception. Almost all the states in the southeast import virtually all of their fuel resources from the Gulf Coast representing an annual financial diversion of several billions of dollars some of which could be used to develop domestic, alternative energy resources. The focus of this study was to determine the potential substitution between renewable energy and conventional energy forms in the southeast of U.S. We developed a system of factor share equations using translog cost function. The system of equations was estimated using a pooled iterative Non-linear Seemingly Unrelated Regression (SUR) procedure with homogeneity and symmetry restrictions imposed. Findings indicate that factor demands in the southeast energy sector are price inelastic and there is limited substitution potential when energy prices rise in fuel production. The substitution potential of renewable energy for the conventional energy forms is found to be higher than that of other conventional energy forms for renewable except renewable energy for natural gas. The substitution of renewable energy for natural gas is technically infeasible since the elasticity is negative. Since renewable energy has the potential to substitute for other forms of energy besides natural gas, federal and state governments might want to reverse the $10 billion petroleum subsidy versus the current$5 billion for renewable if the target (36 billion gallons of renewable fuel by 2022) set by 2007 Energy Independence Act is to be realized