Can Education Be a Barrier to Technology Adoption?

The objective of this study is to test the widely‐held belief that the effect of education has a positive impact on technology adoption. Using 2006 Agricultural Resource Management Survey "ARMS" data, we estimate a simultaneous equations model to integrate farmers’ labor allocation decision with adoption of GM crops and precision farming. We confirm that the marginal effect of education on technology adoption is significantly larger for large farms for both GM crops and precision farming and it is unexpectedly negative for GM crops at all levels of farm size. These results suggest that formal education can be a barrier to technology adoption, especially for small scale farmers who have higher tendency to work off‐farm.Education, Technology Adoption, Off‐farm Labor Supply, Precision Farming, Genetically Modified Crops, Simultaneous Equations Model, International Development, Labor and Human Capital, Research and Development/Tech Change/Emerging Technologies, Q10, Q12,

Use of Direct Marketing Strategies by Farmers and Their Impact on Farm Business Income

Direct marketing strategies increasingly have been recognized as a viable business option in U.S. agriculture as they allow producers to receive a better price by selling products directly to consumers. The objective of this study is twofold. Using a national survey, we first estimated a zero-inflated negative binomial model to identify factors affecting the total number of direct marketing strategies adopted by farmers. Then we estimated a quantile regression model to assess the impact of the intensity of adoption of direct marketing strategies on gross cash farm income. The results show that the intensity of adoption has no significant impact on gross cash farm income and that participation in farmers markets is negatively correlated with gross cash farm income at all five quantiles estimated.direct marketing strategies, count data, gross cash income, quantile regression, Agribusiness, Agricultural Finance, Farm Management, Production Economics,

The Impact of Natural Amenity on Farmland Values: A Quantile Regression Approach

The objective of this study is to estimate the impact of natural amenity on farmland values in the contiguous United States using a quantile regression approach and data from the 2006, 2007, and 2008 Agricultural Resource Management Surveys. The contribution of this study is three-fold. First, we explicitly include variables representing natural amenity and soil characteristics of farmland. Second, we employ a quantile regression approach to examine potentially heterogeneous impacts of natural amenity and soil characteristics at different quantiles of farmland values. Third, we utilized data from a nationwide survey of farm household to examine findings in studies using regional data are consistent at a national scale. Our quantile regression analysis offers some insightful results. Natural amenity is positively correlated with farmland values and its impact is often more pronounced at a higher price range of farmland.Farmland Values, Quantile Regression, Natural Amenity, Environmental Economics and Policy, Land Economics/Use, C14, Q15, Q24,

Learning by Doing, Risk Aversion and Use of Risk Management Strategies

Using a national survey, double hurdle models are estimated to examine the impact of farmers’ risk attitude on use of production and marketing contracts. Risk averse farmers are less likely to use contracts but risk attitude does not have any significant impact on the intensity at which contracts are adopted.Risk attitude, Double hurdle model, production contracts, marketing contracts, Agribusiness, Crop Production/Industries, Farm Management, Livestock Production/Industries, Marketing, Risk and Uncertainty, Q10, Q13, D81,

Are Organic Farmers Really Better Off Than Conventional Farmers?

We employed the propensity score matching and estimated the causal effect of being certified organic crop producers on farm household income and its various components in the United States. Contrary to the standard assumption in economic analysis, certified organic farmers do not earn significantly higher household income than conventional farmers. Certified organic crop producers earn higher revenue but they incur higher production expenses. In particular, certified organic producers spend significantly more on labor expenses, insurance payments, and marketing charges than conventional farmers. The results suggest that early adopters of organic farmers have done so for non pecuniary reasons and the lack of economic incentives can be an important barrier to conversion to organic farming in the United States.organic farming, propensity score matching, nearest neighbor matching, average treatment effect, Agribusiness, Crop Production/Industries, Farm Management, Marketing, Q10, Q13, J43, C21,

Does “Convenience Agriculture” Affect Off‐farm Labor Allocation Decisions?

The objective of this study is to examine the effect of adoption intensity of GM crops on off‐farm labor supply by farm households. Using ARMS data in 2004, 2005 and 2006, we estimate a two stage simultaneous Tobit model and find that adoption intensity of GM crops has a negative impact on off‐farm labor supply by operators and a positive impact on off‐farm labor supply by spouse. This may be due to the comparative advantage of operators and spouses. Our results find that GM crops adoption has different but significant implications on off‐farm labor supply by operators and spouses and underscores the importance of understanding farm households’ decisions to explain behaviors of farm businesses in the United States.Technology Adoption, Two stage simultaneous Tobit model, GM Crops, Off‐farm labor, Agricultural and Food Policy, Labor and Human Capital, Q10, Q12,

Motivation for Technology Adoption and Its Impact on Abandonment: A Case Study of U.S. Cotton Farmers

We estimate a bivariate probit model with sample selection to identify factors affecting adoption and abandonment of precision farming technologies for cotton farmers, using the 2009 Southern Cotton Precision Farming Survey conducted in 12 Southern states in the United States. Farmers for whom being at the forefront of agricultural technology is not an important reason for adoption are more likely to abandon precision farming technologies. This study identified various factors associated with adoption and retention of precision farming technologies. Findings from this study offer significant information to policy‐makers for a better formulation of agri‐environmental programs that encourage farmers to adopt environmentally benign farming practices including precision farming technologies.Technology Abandonment, Technology Adoption, Bivariate Probit with Sample Selection, Multinomial Logit, Precision Farming, Agribusiness, Crop Production/Industries, Farm Management, Production Economics, Research and Development/Tech Change/Emerging Technologies, Q10, Q12, Q16,