Who Suffers Most when Disease Outbreaks and Food Recalls Happen? The Case of Mad Cow Disease in the United States

It is generally observed that whenever there are cases of disease outbreaks and food recalls, such as the case of the 2003 Mad Cow Disease (Bovine Spongiform Encephalopathy or BSE) outbreak, cattle and beef prices fall. Given these incidents, there is the question of which part of the marketing chain is the most affected. For those who produce live cattle, such as feedlot operators, the question is ‘what effect these events have on price and demand for beef and cattle?’ Similarly, how do the Food Safety Inspection Service (FSIS) recalls and diseases such as Mad Cow Disease outbreaks affect the beef marketing margins at all levels in the U.S. beef marketing chain? Identifying these effects along the marketing chain provides insight into which level along that channel is the most vulnerable to these events. In addition, this information helps to assess the impact of such events on the industry, providing a basis for policy formulation.

501(C)(3) Nonprofit Organizations in Nebraska: 2008

Nonprofit organizations are important to the quality of life in communities. They exist in complex variety and include church congregations, private schools, service clubs, business leagues, social and recreational clubs, labor unions, farm bureaus, community theaters, neighborhood organizations and many more. Only the largest of nonprofits are likely to have employees, with most relying upon volunteers to meet their human resource requirements. They obtain their financial resources through donations, investments, grants and fee based activities, such as festivals and educational programs.

Climate Change Policy: The Waxman-Markey Bill

The Waxman-Markey Bill is a comprehensive national climate and energy legislation designed to reduce global warming pollution and transition to a clean energy economy. In order to accomplish the first goal, the bill introduces a cap-and-trade program.

Grain Storage Costs and Rental Rates

Trends in Grain Storage - Commercial grain storage eliminates the need to monitor grain conditions and, hence, offers the peace of mind that unsold grain will remain in condition. There may be a cost trade-off between this reduced storage risk and the cost of on-farm storage.

Determining Farm Custom Rates

As I write this, there is still snow in some ditches and fence rows, and many fields look like they are just about right for rice planting rather than corn or soybeans. Nonetheless, spring fever has hit and the field work will soon be going at full throttle. This raises a frequently asked question: “What are custom rates this year?” The Nebraska Custom Rate Survey is conducted every two years, and we are in the process of analyzing the data from our 2010 survey. We will publish those numbers as soon as possible. At this point we are working on the data for Part I, Spring and Summer Activities, and surveys are still coming in for Part II on Fall and Miscellaneous Operations. We thank all responders who helped out by completing surveys and sending us their information. We conduct a relatively extensive survey across the state, and as a result, it takes considerable time to get the data entered and analyzed by region.

Nebraska Farmland Markets Plateau

After several years of successively rising land values and cash rents, Nebraska’s farmland markets throttled back during 2008. Preliminary results from the University of Nebraska-Lincoln’s 2009 Nebraska Farm Real Estate Market Survey show a clear picture of the market mood turning very cautious in response to the U.S. and global economic downturns. As of February 1, 2009, the weighted average value of Nebraska farmland was $1,424 per acre, identical to the year-earlier level (Figure 1 and Table 1 at end of article). Likewise, estimated 2009 cash rents are stable to slightly down from 2008 levels throughout most of the state.

Analyzing ACRE: Results for 2009 and Decisions for 2010

In 2009, agricultural producers participating in federal farm programs had to decide between staying in the existing Direct and Counter-Cyclical Program (DCP), and the new Average Crop Revenue Election Program (ACRE). If producers chose to keep the DCP, their farm income safety net is strictly tied to crop prices, with a combination of marketing loans, counter-cyclical payments and direct payments. If producers chose the new ACRE program, they changed their farm income safety net to a combination of price and revenue. The new ACRE component is based on revenue and replaces the counter-cyclical payment. The other parts of the safety net for ACRE participants remain tied to price, albeit at lower levels (direct payments reduced 20 percent, marketing loan rates reduced 30 percent).

Analyzing the ACRE Program

The new farm bill enacted by Congress in June 2008 includes a new revenue-based safety net, the Average Crop Revenue Election (ACRE) Program, that is available to producers beginning with the 2009 crop year. While final details and implementation of the program is yet to be announced by the USDA Farm Service Agency (FSA), an analysis of the mechanics of ACRE and the relevant yields and prices to include in ACRE can help producers assess whether ACRE will be a good choice for this crop year and beyond.

Cultivating Dreams - Harvesting Profits, Women In Agriculture 2009

The University of Nebraska!Lincoln Department of Agricultural Economics hosted the 24th Women in Agriculture (WIA) Conference February 26-27, 2009. Over 350 women participated in the event. A majority came from across the great state of Nebraska, but there were a few individuals that made the trip from California, Colorado, North Carolina, Kansas, Iowa and South Dakota. For some women, this was their first time experiencing the conference and for others it was their 24th time. Average attendance among the women was approximately 6.5 times. The main goal of the conference was to heighten the womens’ skills and gain knowledge to take back to their agricultural operations.

North Central Risk Management Education Center

The North Central Risk Management Education Center has been providing program coordination for extension risk management education in the North Central Region since 2001. During this time, nearly five million dollars has been awarded to public, private and non-profit entities to carry out producer-focused, results-based risk management education programs. The North Central Region includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio, North Dakota, South Dakota and Wisconsin.

Never Let a Crisis Go to Waste

The phrase, “never let a crisis go to waste” may take frugality to a whole new level! That’s the sentiment of Lynda Applegate, Professor of Business Administration at the Harvard Business School, in a recent on-line article, Building Businesses in Turbulent Times.

Attracting and Retaining Workers in Rural Communities

Many rural communities focus their development efforts on job creation. In the non-metropolitan portions of the Northern Great Plains, job creation efforts in the first half of this decade were quite successful. According to the Bureau of Economic Analysis (BEA, 2005), 167 of the 223 non-metropolitan counties in Nebraska, North Dakota and South Dakota saw an actual aggregate increase in total jobs (full and part-time) of 28,734, between the years 2001 and 2005.

Nebraska NAMA Big XII Champs!

The University of Nebraska-Lincoln National Agri-Marketing Association (NAMA) Marketing Team brought home the Big XII Championship as a national finalist at the 2009 NAMA Annual Conference held April 14-17 in Atlanta, Georgia.

Poverty Reduction and the Income Inequality in China

In 2000, the United Nations adopted the Millennium Development Goals which set targets for raising living standards in low-income countries. The first goal was to “eradicate extreme poverty and hunger” (United Nations). The World Bank defines extreme poverty as income of less than $1.25 per day (World Bank, 2010a). Based on this definition, the World Bank estimates that the percentage of the population in China living in extreme poverty has fallen from 84 percent in 1981 to about 16 percent in 2005, a period during which China’s population grew by more than 300 million people (see Table 1 on last page). Because China is a very large country with a current population approaching 1.4 billion (more than four times the United States population), its dramatic reduction in poverty over the past 30 years has had a profound effect on global poverty measures. In fact, poverty reduction in China is the main reason that the incidence of extreme poverty in developing countries has fallen from about 52 percent in 1981 to 25 percent in 2005 (Table 1). While the absolute number of poor in China fell by some 627 million, the number of poor in other developing countries actually grew slightly (from 1,065 million to 1,166 million). These figures represent a decline in the percentage of the total population in poverty in other developing countries because of general population growth over that 25-year period (World Bank, 2010b).

NAMA National Conference a Learning Experience for Nebraska Students

Change was in the air at the 2010 National Agri- Marketing Association (NAMA) Annual Conference held April 20-23 in Kansas City, Missouri. Students and professionals alike were given the opportunity to rub shoulders with, and hear nationally known speakers engaging audiences on topics such as the new rules of marketing and publication relations, measuring the effectiveness of social media and strategy, and brand communication.