Implications of the Sanitary and Phytosanitary (SPS) regulations on the EU – U.S. Corn Trade Sector and the Case of the ‘Agenda 2000’ Reforms

Corn trade between the European Union (EU) and the United States has undergone substantial changes over the past decade. EU Reforms of the Common Agricultural Policy (CAP), beginning with the Mac Sharry Reforms of 1992 and continuing with the Agenda 2000 Reforms, were directed at bringing EU agricultural policy into compliance with World Trade Organization (WTO) provisions. These reforms have brought about considerable changes in the market structure in corn trade. However, while trade has been facilitated by decoupling payments and removing levies and tariffs on imported corn, EU’s Sanitary and Phytosanitary (SPS) measures have negated some of the progress in trade between EU countries and the United States. Technical Barriers to Trade (TBT), in the form of SPS measures, have progressively replaced traditional tariff and non-tariff trade barriers while allowing the EU to remain in compliance with WTO regulations. The absence of recognizing equivalency in production procedures has created a further decline in corn trade accounting for over $300 million loss annually to U.S. corn exports since 1997 (Weyerbrock and Xia 2000). Using data obtained from the USDA and EUROSTAT, we develop a three stage simultaneous equation model to estimate the economic impact of TBTs on EU-U.S. bilateral corn trade for specific EU countries. Further, welfare effects for producers and consumers in EU countries are also estimated.Sanitary and Phytosanitary measures, Technical Barriers to Trade, Common Agricultural Policy, Agenda 2000 Reforms, Genetically Modified corn, welfare effects, Agricultural and Food Policy, International Relations/Trade,

Economic Analysis of Tillage and Nutrient Best Management Practices in the Ouachita River Basin, Louisiana

Replaced with revised version of paper 07/24/09.Crop Production/Industries,

FARMERS' DECISION PROCESSES AND ADOPTION OF CONSERVATION TILLAGE

In a transect survey of crop residue levels in 1995 and 1996, two Minnesota counties had very different percentages of cropland with desired residue cover even though the soil types were similar. To gain a better understanding of the reasons behind this difference, the farmers in these two counties were surveyed about their use or lack of use of conservation tillage practices. A statistical logit analysis of survey responses showed farmers are more apt to adopt conservation tillage if they are larger; are more concerned about erosion on their land; have made a recent major investment in the farm; use other producers for tillage information; have the management skill for conservation tillage; and believe conservation tillage will fit with their production goals and the physical setting of their farm. Two counterintuitive findings are the negative effects of the ease of finding information and the degree of control of the adoption decision. The costs and labor requirements of conservation tillage were important but not as statistically significant as those factors just listed. Some variables, that are often listed as potentially important factors, were not found to be important in this survey. These included the long-term viability of the farm; the age, education, and experience of the farmer; the debt level of the farm; whether a family member wanted to continue farming; the proportion of land rented; the use of other sources for tillage information; the complexity of conservation tillage practices; the producer's planning horizon; the risk of negative returns; the availability of support for conservation tillage systems; and the quality of conservation tillage information.Crop Production/Industries,

ENVIRO-ECONOMIC ANALYSIS OF PHOSPHORUS NONPOINT POLLUTION

The state of Minnesota seeks to reduce phosphorus loading to the Minnesota River by 40% from current levels. The state agency charged with achieving this reduction has indicated each watershed should reduce its current phosphorus loading by 40%. We hypothesized that policies targeting specific practices or regions would have a smaller negative impact on farm income than policies requiring every nonpoint polluter to reduce its contribution by 40%. Using a stylized version of one major watershed in the river basin as an example, we analyzed the cost-effectiveness of various nonpoint pollution reduction policies. We simulated current and alternative farming systems (designed to reduce phosphorus loading by changing tillage or fertilizer practices) in distinct regions within the watershed using a biophysical process model. For each system, estimates of phosphorus loading from biophysical simulation were combined with production cost and return estimates to create an enviro-economic model of the watershed. Additionally, risk premiums were estimated and included with cost estimates for each alternative system. We used a positive math-programming (PMP) version of the enviro-economic model to analyze nonpoint pollution reduction policies (pollution standard, phosphorus effluent tax, conventional tillage tax, and phosphorus fertilizer tax). When regions and practices within the watershed could be targeted for achieving the pollution reduction standard, 13,500 fewer hectares (6% reduction from the baseline cropland level) were farmed. When the same standard was uniformly applied to all regions (not targeted), cropland decline by 40,500 hectares (20%). Under either scenario, cropland was removed from production, implying some producers may exit farming. Cropland reductions resulted in farmers losing $2.8 million (5$11.4 million (21%). This finding illustrates how difficulty it is to reduce nonpoint pollution if one does not focus on specific regions. An effluent tax of $74 per kilogram of phosphorus reaching the river was needed to reduce phosphorus loading by 40$14 million (25% reduction from the baseline income level), $11 million of which were revenues from the effluent tax. Neither the conventional tillage tax nor the phosphorus fertilizer tax achieved a 40% reduction in phosphorus loading. This finding illustrates the difficulty of reducing nonpoint pollution by focusing only on one practice. Under a pollution-reduction standard, our results indicated it is more cost effective to reduce nonpoint pollution by targeting particular regions or practices in a watershed compared to not targeting. Specifically, producers farming on cropland susceptible to erosion in close proximity to water who switch from conventional tillage to conservation tillage and reduce phosphorus fertilization levels to those recommended by the state extension service will appreciably reduce phosphorus nonpoint pollution loading potential. Efforts to target those producers could minimize potential losses in farm income in the watersheds and the river basin.Environmental Economics and Policy,

Adoption of Cover Crops and Its Effect on Nitrogen Use by Farmers

With increasing environmental concerns, increasing population, changing tastes and preferences of consumers towards healthier foods, and with more food safety requirements, agronomic practices have changed gradually to provide not only food and fiber but also public goods and other beneficial services from agriculture. Cover cropping is one type of technology increasingly being adopted by producers of multifunctional agriculture. Cover crops provide a range of benefits, both private and public. In this paper we identify factors affecting farmers’ choice to adopt cover crops. We examine the impact on nitrogen use from adopting cover crops and the resultant decrease in input costs. Using a two-stage approach that incorporates endogeneity of adoption in nitrogen management, we conclude that farmers adopting cover crop technologies, that increase production efficiency, tend to decrease nitrogen fertilizer use by 4.75%, as hypothesized by Smith (2002).cover crops, nitrogen usage, technology adoption, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Land Economics/Use, Production Economics, Risk and Uncertainty,

An “Integrated Firm†Strategy In Asian Vegetable Imports

International Relations/Trade,

Factors Influencing the Adoption of Russian Varroa-Resistant Honey Bees

Factors influencing the adoption of Russian Varroa-Resistant honey bees were assessed. Logit results indicate factors associated with the adoption include sales, internet use, and contact with other beekeepers. Negatively associated factors are age and income. Future adoption depends upon previous use and perception.Agribusiness,

Best Management Practices: How Economical is it in Southern Agricultural Systems?

Conventional drainage systems tend to aggravate runoff and nutrient leaching problems on farms especially during the off-season. This study uses a biophysical economic model to identify, evaluate and determine multifunctional benefits of implementing and establishing nitrogen rate fertilizer application and conservation tillage practices as best management practices (BMPs) in the lower Mississippi River Basin (MRB). Simulation results showed that agricultural producers generally preferred no tillage to conventional tillage in reducing nutrient runoffs from fields because of higher net revenue per acre. Finally, given nitrogen runoff restrictions, farmers reduced crop acreage and nitrogen fertilizer application rates to help minimize losses.biopysical economic model, tillage practices, nitrogen fertilizer application rates, MRB, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Farm Management,

B834: An Economic Analysis of Crops Grown in Rotation with Potatoes in Aroostook County, Maine

This bulletin examines rotations of potatoes with alternative crops to identify net revenue-maximizing rotations in Aroostook County, Maine.https://digitalcommons.library.umaine.edu/aes_bulletin/1020/thumbnail.jp

Willingness to Participate in Dairy Programs to Reduce Manure Related Problems in Louisiana's Major Dairy Production Region

Logistic and tobit models were used to understand the factors affecting dairy program participation and stated bid values by respondents. Results indicated that past participation is the key variable in regression. Bootstrap result confirms that most of the estimated parameters fall within the range of bootstrap confidence interval.Livestock Production/Industries,