Will the rural economy rebound with the rest of the nation?

Rural areas ; Rural development

Will the rural economy rebound with the rest of the nation?

As the U.S. economy slipped into recession in 2001, an already lackluster rural economy lost even more steam. Since 1995, job growth in rural areas has trailed growth in metro areas. But in the wake of last year’s terrorist attacks, national recession, and falling food demand, job rolls in many parts of rural America have not only stopped growing but contracted. Meanwhile, commodity prices have only recently begun to turn around. As a result, farm incomes continue to rely on large government payments.> With the U.S. economy now in recession, the demand for most rural products - farm and nonfarm alike - has stalled. Many economic analysts expect the U.S. economy to turn around in 2002. But, are the prospects of a rural recovery as bright as the rest of the nation? Are both the Main Street and farm segments of the rural economy positioned to recover?> Henderson examines the impact of the current recession on rural growth, recaps rural performance in 2001, and explores the prospects for the year ahead. He suggests that, overall, rural areas seem poised to recover along with the rest of the nation in 2002, but only if demand for rural products rebounds.Rural development ; Rural areas ; Farm produce

THEME OVERVIEW: FARMLAND VALUES

Farmland, Land Values, Farm Real Estate, Land Economics/Use, Q14, Q15,

Conversion from Staple to Cash Crop Production in Mexico After NAFTA: Effects of PROCAMPO and Credit Constraints

In this paper, we ask whether PROCAMPO helped Mexican agricultural producers benefit from NAFTA. Specifically, we explore the effect of these decoupled income payments (PROCAMPO) on producers’ ability to switch to cash crop production, and whether these payments help alleviate credit constraints for poorer producers. Given that WTO negotiations are currently stalled in part because of the trade concerns of developing nations, exploring the constraints that small producers face and whether decoupled subsidies can assist those producers in benefiting from new markets is important. Unlike previous studies, who concentrated on specific regions and ejidal lands, we use nationwide county-level data, which allows for us to see the regional distribution of change across Mexico. We use these data to estimate the change in staple crop production as a function of county-level characteristics. We find some evidence to support the hypothesis that an increase in PROCAMPO payments leads to a decrease in the area planted in staples. Second, the implementation of NAFTA is associated with greater cash crop production and we can see that the creation of new markets is, in general, leading to a reduction in land planted in staples. Third, we find that the effect of PROCAMPO is even larger for ejido producers, implying that their benefits are not constrained to larger producers. Last, we find evidence that areas closest to the United States border have seen a greater movement to cash crop production after NAFTA.NAFTA, PROCAMPO, Credit Constraint, Mexico, staple production, crop choice, International Relations/Trade,

GLOBALIZATION FORCES RURAL AMERICA TO BLAZE A NEW TRAIL

International Relations/Trade,

ADOPTION OF E-COMMERCE STRATEGIES FOR AGRIBUSINESS FIRMS

This paper analyzes the factors guiding Internet and e-commerce implementation by agribusiness firms. The relationship between Internet/e-commerce strategies and manager perceptions on the barriers and factors to e-commerce adoption are analyzed in a supply-chain management framework. Using factor analysis and an ordered Probit model, results indicate that the implementation of Internet/e-commerce strategies is more likely to be adopted in larger firms with a global scope. Also, manager perceptions regarding supply-chain functions influencing transaction costs are more strongly associated with Internet/e-commerce adoption than other functions influencing production costs.e-commerce, supply-chain, transaction costs, factor analysis, order Probit, Agribusiness, Marketing,

DOES RURAL JOB GROWTH LEAD THE ECONOMY OUT OF RECESSION?

This paper explores the dynamics of rural and non-rural job growth to investigate if job growth starts in rural places, making it one of the leading indicators of economic growth. Empirical results provide mixed evidence. The mixed results of the Granger non-causality tests could be sensitive to the non-rural area definition. The relationship between rural job growth and non-rural job growth is not restricted to post-recession periods. Analysis of Bureau of Labor Statistics data suggests the spillover effects of non-rural growth are larger than the spillover effect of rural growth on non-rural areas. But this positive response of rural growth disappears over time and turns sharply negative. In the long run, "backwash" effects outweigh "spread" effects.Community/Rural/Urban Development,

Internet and e-Commerce Use by Agribusiness Firms: 2004

In 2001, the dot.com bubble burst and U.S. e-commerce growth slowed. Slower e-commerce growth may signal changes in the use and perceptions of the Internet and e-commerce in agribusiness companies. Agribusiness firm managers were surveyed in 2004 to identify agribusiness use of the Internet and e-commerce and to solicit their perceptions about the Internet and e-commerce. The survey was developed from a similar survey conducted in 1999. In 2004, agribusiness firms were using e-commerce more with their suppliers than with their customers. Perceptions regarding Internet and e-commerce varied by the intensity of e-commerce use. Given the variety of opinions regarding the Internet and e-commerce, e-commerce capabilities in the agribusiness industry will remain highly diverse in the near term.agribusiness, e-commerce, Internet, Agribusiness, Research and Development/Tech Change/Emerging Technologies,

E-Business and Distribution Channel Strategies in Agribusiness Industries

The explosion of e-business activity presents many challenges to manufacturers, distributors, and dealers as they select a distribution channel for the delivery of products, services, and information. The expected growth in Internet sales by agribusiness firms is analyzed to provide insight into the selection of an e-business distribution channel. Agribusiness firm managers were surveyed regarding the application and perceived impacts of e-business activity on their firm's operations. Firm characteristics and manager perceptions regarding the impact of e-business activity were analyzed descriptively and in regression analysis to understand the drivers of expected Internet sales growth. Expected Internet sales growth was found to vary by the firm's position in the distribution channel. Yet, firms with greater levels of existing e-communication with either customers or suppliers and with managers perceiving greater ability of e-business activity to improve inventory management and logistics issues have higher levels of expected Internet sales.Agribusiness,