Determinants of Agricultural Disaster Payments in the Southeastern U.S.: County Level Analysis

This paper evaluates the relevance of weather and climate data in explaining county-level crop disaster payments in Georgia. Following previous research, regional socio-economic and community data are also used to control for factors other than weather. While weather and ENSO data explain the payments well, available economic variables do not.Environmental Economics and Policy, Public Economics,

Climate Effects on Rainfall Index Insurance Purchase Decisions

Rainfall Index insurance is a pilot insurance product offered to producers of hay and pasture in 9 states. This analysis examines the expected payoff of the RI insurance for bi-monthly periods based on rainfall shortage probabilities in alternative climate phases. Differences in expected returns indicate that selection of ENSO-specific optimal intervals may result in higher returns than those based on pooled rainfall series.rainfall insurance, ENSO, expected indemnity, Production Economics, Risk and Uncertainty,

A MODEL OF DEVELOPMENT OF AGRICULTURAL BIOTECHNOLOGICAL INNOVATIONS: PATENT POLICY ANALYSIS

In this paper, peculiarities of the process of development of agricultural biotechnological innovations are considered, in particular the distinction between R&D races for gene discoveries and subsequent competition for developing their marketable applications in the form of genetically modified (GM) crops, the results of which determine the payoffs of discovering a gene. A formal two-stage model is specified and analyzed with regard to how different patent protection regimes and other government policies affect firm's R&D strategies and the welfare realized from an innovation. We find that different policy measures affect the outcomes of the two stages of biotechnological innovation differently, which leaves some ambiguity as to which patent protection regimes might be strictly preferable. However, general direction of policy improvement is identified.Research and Development/Tech Change/Emerging Technologies,

Quality Premiums and the Post-Harvest Spot Market Thinness: The Case of U.S. Peanuts

In the paper, we analyze two issues that are important in the U.S. peanut markets: the absence of explicit quality premiums in the crop contracts, and the thinness of the postharvest cash/spot markets, which obstructs the operation of current production support policies. We argue that introduction of quality differentials in the form of either fixed premium or rank-order tournament contracts may kill two birds with one stone by increasing the spot market turnover and providing incentives for increasing crop quality. In addition, this arrangement is likely to reduce the costs of the federal support programs.contracts, tournaments, efficiency, cash markets, peanuts, Marketing,

Determinants of Agricultural Disaster Payments in the Southeastern U.S.: County Level Analysis

Using county level data we study if weather and climate variables or variables used as proxies for rent-seeking behavior determine disaster payment in the Southeast. We do not find evidence of rent-seeking but find that, in addition to weather, long term climate variables affect disaster payments.Farm Management, Risk and Uncertainty,

The Value of Long-Term Climate Forecast Information in Weather Index Insurance

In the paper, preliminary results of the analysis of potential use of climate forecast information in designing rainfall index insurance in the southeastern region of the U.S. are reported. Joint distributions of bi-monthly rainfall and El Nino Southern Oscillation (ENSO) indexes are estimated using copula analysis of historical data. The risk reducing effectiveness of introducing premiums conditional on ENSO forecast is evaluated. The results indicate some dependence of the downward volatility of rainfall on the lagged ENSO (forecast) index, particularly in the coastal areas and in the late winter and spring.Environmental Economics and Policy, Q14, Q54,

SIMULATING THE EFFECTS OF ADOPTION OF GENETICALLY MODIFIED SOYBEANS IN THE U.S.

The paper models the distributional effects of partial adoption of genetically modified soybeans under the assumptions of imperfectly competitive markets and identity preservation requirements. Our results show the welfare costs of market imperfections and improve understanding the diffusion of innovation in agriculture.Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,

A Model of Diffusion of Genetically Modified Crop Technology in Concentrated Agricultural Processing Markets - The Case of Soybeans

In the paper, a dynamic model of diffusion of genetically modified crop technology is developed and simulated using the U.S. soybean market data. The model accounts for factors specific to agricultural markets, such as oligopsony power and strategic interaction among crop processors, growers' characteristics such as adoption behavior, and identity preservation requirements. Simulation results show how these factors affect the magnitude and distribution of the potential gains from genetically modified crops.biotechnology in agriculture, soybeans, innovation diffusion, oligopsony, genetically modified crop, Consumer/Household Economics,

Financing Constraints and Access to Credit in Post Crisis Environment: Evidence from New Farmers in Alabama

We use survey data to study the level of financing constrains faced by new farmers in Alabama post 2008, and identify who got loans. We find that new farmers are financially constrained but not impacted by the crisis. Lending was collateral driven, although lenders also considered profitability and cash flows.financing constraints, access to agricultural credit, new farmers, Agricultural Finance, Financial Economics, Risk and Uncertainty, G31, Q12, Q14,

Designing Rainfall Insurance Contracts for Pasture, Rangeland, and Forage

In the paper, preliminary results of the analysis of potential use of climate forecast information in designing rainfall index insurance in the southeastern region of the U.S. are reported. Joint distributions of bi-monthly rainfall and El Nino Southern Oscillation (ENSO) indexes are estimated using copula analysis of historical data. The risk reducing effectiveness of introducing premiums conditional on ENSO forecast is evaluated. The results indicate some dependence of the downward volatility of rainfall on the lagged ENSO (forecast) index, particularly in the coastal areas and in the late winter and spring.rainfall index insurance, ENSO, copulas, Agricultural Finance, Research Methods/ Statistical Methods, Risk and Uncertainty, Q14, Q54,