ECONOMIC AND ENVIRONMENTAL BENEFITS OF SOIL/WATER NITROGEN TESTING: THE CASE OF CENTRAL NEBRASKA

This research presents a competitive dynamic model to evaluate the economic and groundwater quality benefits resulting from the adoption of soil/water nitrogen testing. The model is applied to an irrigated corn production county in the Nebraska Mid-State area where the groundwater contamination level from nitrates is reported to be, on average, 18.7 parts per million (ppm). Adoption of nutrient management practices would result in increased economic benefits to farmers and reduced nitrate stocks in groundwater.Environmental Economics and Policy,

The Impact of Participation in Cooperatives on the Success of Small Farms

This study identifies and analyzes factors that contribute to the success of small farms. Particular attention is given to the effect of participation in marketing and supply cooperatives on the success of small farms. Using modified net farm income per dollar of assets and operator’s labor and management income as measures of success, results show participation in marketing and supply cooperatives is positively correlated with success. Further, analysis findings indicate farm size, controlling for variable and fixed costs, type of ownership, management strategies used, working off the farm, and age of the operator are important factors that influence profitability (modified net farm income per dollar of assets and operator’s labor and management income) and success.cooperatives, management strategies, marketing, small farms, success, supply cooperative, Agribusiness, Marketing,

Assessing Economic and Environmental Impacts of Ethanol Production on Fertilizer Use in Corn Production

The share of corn used in ethanol production has been growing rapidly. USDA predicts that more than 30 percent of the corn crop will be used for ethanol production in 2009/2010. Expanded corn acreage contributes to the application of more fertilizer and is likely to introduce a larger volume of nutrients into the environment. This study found that an increase in ethanol production is consistent with a significant increase in quality-adjusted fertilizer use in selected corn states.quality-adjusted fertilizer, corn production, ethanol, excess nutrients, Crop Production/Industries, Environmental Economics and Policy,

Pasture-Based Dairy Systems: Who Are the Producers and Are Their Operations More Profitable than Conventional Dairies?

U.S. dairy operations are sorted via a multinomial logit model into three production systems: pasture-based, semi-pasture-based, and conventional. Region, farm size, financial situation, and production intensity measures impact system choice. Analysis follows to determine the impact of production system on enterprise profitability. Region, farm size, and demographic variables impact profitability, as does system choice: semi-pasture-based operations were less profitable than conventional operations on an enterprise, per hundredweight of milk produced basis. Significant differences were not found in the profitability of pasture-based operations versus those using other systems.dairy farm size, grazing, pasture-based dairying, Livestock Production/Industries,

Forage Outsourcing in the Dairy Sector: The Extent of Use and Impact on Farm Profitability

The extent of forage purchasing behavior in milk production and its impact on profitability are analyzed using data from the 2000 and 2005 dairy versions of the Agricultural Resource Management Survey. Forage outsourcing is more common with hay than with silage and haylage, and is more prevalent in the western United States. Though silage and haylage outsourcing is found to impact profitability, the major profitability drivers appear to be farm size and efficiency. Evidence of significant forage contracting is found in the western United States.forage, input purchasing, outsourcing, contracting, milk production, Farm Management, Industrial Organization, Livestock Production/Industries,

Small U.S. Dairy Farms: Can They Compete?

The U.S. dairy industry is undergoing rapid structural change, evolving from a structure including many small farmers in the Upper Midwest and Northeast to one that includes very large farms in new production regions. Small farms are struggling to retain competitiveness via improved management and low-input systems. Using data from USDA’s Agricultural Resource Management Survey, we determine the extent of U.S. conventional and pasture-based milk production during 2003-2007, and estimate net returns, scale efficiency, and technical efficiency associated with the systems across different operation sizes. We compare the financial performance of small conventional and pasture-based producers with one another and with largescale producers. A stochastic production frontier is used to analyze performance over the period for conventional and pasture technologies identified using a binomial logit model. Large conventional farms generally outperformed smaller farms using most economic measures – technical efficiency, various profitability measures, and returns to scale.Pasture-based system, technical efficiency, returns to scale, dairy, Livestock Production/Industries, Productivity Analysis,

Dairy Resource Management: A Comparison of Conventional and Pasture-Based Systems

Facing rapid and significant change in the sector, U.S. dairy production trends from 1993-2005 were tracked and performance measures (scale and technical efficiency and returns on assets) were estimated for conventional and pasture-based dairy farms using data from USDA's Agricultural Resource Management Survey. Comparisons of relative economic performance of dairy farms by size and type are made.dairy operations, pasture-based systems, technical efficiency, Livestock Production/Industries,

Profits, Costs, and the Changing Structure of Dairy Farming

U.S. dairy production is consolidating into fewer but larger farms. This report uses data from several USDA surveys to detail that consolidation and to analyze the financial drivers of consolidation. Specifically, larger farms realize lower production costs. Although small dairy farms realize higher revenue per hundredweight of milk sold, the cost advantages of larger size allow large farms to be profitable, on average, even while most small farms are unable to earn enough to replace their capital. Further survey evidence, as well as the financial data, suggest that consolidation is likely to continue.Dairy farming, economies of scale, economies of size, dairy farm structure, milk costs, Farm Management, Industrial Organization, Livestock Production/Industries,

ECONOMIC AND ENVIRONMENTAL BENEFITS OF SOIL/WATER NITROGEN TESTING: THE CASE OF CENTRAL NEBRASKA

This research presents a competitive dynamic model to evaluate the economic and groundwater quality benefits resulting from the adoption of soil/water nitrogen testing. The model is applied to an irrigated corn production county in the Nebraska Mid-State area where the groundwater contamination level from nitrates is reported to be, on average, 18.7 parts per million (ppm). Adoption of nutrient management practices would result in increased economic benefits to farmers and reduced nitrate stocks in groundwater