Politics and Trade in the Former Soviet Union

Fifteen independent countries emerged from the collapse of the Soviet Union in 1989-91. Aside from the Russian Federation, the former Soviet Republics lie in four geographic regions: the Caucasus (Armenia, Azerbaijan, Georgia); Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan); the Baltics (Estonia, Latvia, Lithuania); and Eastern Europe (Belarus, Moldova, Ukraine).

Nebraska’s Virtual Corn Suitability Rating

Corn Suitability ratings have been used for many years in other parts of the Corn Belt as an agronomic measure of soil productivity, and in turn, some correlation with associated cropland values. For example, in Iowa the Corn Suitability Rating (CSR) is used extensively as a measure of soil productivity across regions and counties, and even down to parcel levels. Google on Iowa CSR, and you will find weighted average CSRs for each county, as well as private firms offering detailed analysis of CSR for any parcel of land in the state. The intent is to provide an index (between 5 and 100) of potential yields for row crop production.

Weather Derivatives as a Potential Risk Management Tool for Irrigators

Irrigators in the Republican Basin and in parts of the North Platte Basin must learn to incorporate multiple year drought risk into their management plans, as they adapt to the limitations imposed by five-year pumping allocations. A major concern involves the implications of being water-short during the later years of the allocation period, because of an accumulative rainfall shortage or drought. Currently, producers can either ignore the risk of substantially lower incomes if their allocation is exhausted too soon, or reduce the risk by using less water early in the allocation period. The latter approach, however, may substantially reduce the present value of total net income over the five-year period. Alternatively, in the future it may be possible to use weather derivatives to manage income risk.

Evaluating the EDGE: What are the Impacts?

In 2008, the Center for Applied Rural Innovation conducted a comprehensive five-year evaluative study of the NebraskaEDGE program. Two different surveys were sent to former NebraskaEDGE training participants who were enrolled in the EDGE training courses between the Fall of 2002 and Spring of 2007. The objective of the surveys were to: 1) measure changes in participant knowledge and skills as a result of the entrepreneurial training class, and 2) better learn how participants applied their new skills to their businesses and what those impacts were on the businesses.

Leveraging Technology for the Future of Nebraska: Creating a Statewide Broadband Plan

In Nebraska, some areas of the state S primarily in the most rural areas of the state S may be underserved or unserved in terms of broadband access. Rural areas of the state also lag in economic development and are experiencing population losses. Additionally, broadband adoption and Internet usage among certain income and population groups remains low. Increasing adoption of broadband and Information Technology (IT) services is one way to create economic opportunities, attract new residents to rural areas and address economic inequalities among population groups.

High Plains Ag Lab Rotations Show Fallow Still Works in Western Nebraska

The High Plains Ag Laboratory (HPAL) in Sidney, Nebraska is the dryland research site for the University of Nebraska located in the Panhandle. In addition to the typical small plot agriculture experiment areas, there is a significant dryland production area. There are a total of 718.5 acres in production, divided into 27 individual fields, ranging from the smallest unit at 19.7 acres to the largest at 36.7 acres. Within these fields there are presently seven different crop rotations, each with winter wheat as the base crop, including everything from the traditional wheat-fallow system to a continuous cropping system.

Co-Product Prices May Be Nearing Seasonal Low

The supply of corn milling co-products from ethanol production has increased rapidly over the last several years. Based on United States Department of Agriculture (USDA) projections of corn ground for ethanol production, approximately 38 million tons of distillers grains would have been produced in the 2009-10 marketing year, with 40 million tons projected for the 2010-11 marketing year. While supply has grown, so too has demand from both domestic and international users. Cattle feeders in particular have found wet distillers grains plus solubles (WDGS), modified wet distillers grains plus solubles (MWDGS) and dried distillers grains plus solubles (DDGS) to be excellent feedstuffs that can lower cost of gain through performance efficiencies and lower ingredient costs. United States swine and poultry producers have also increasingly adopted DDGS in rations in response to higher corn prices, while international shipments of DDGS have also grown.

Making an ACRE Decision for 2009

The initial sign-up period for 2009 farm commodity programs and the choice between the new ACRE (Average Crop Revenue Election) program and the existing DCP (Direct and Counter-Cyclical Payment) program is quickly winding down. But as the current August 14 deadline approaches, producers know more and more about the potential safety net provided under the ACRE program, and have a better opportunity to analyze the economics of choosing ACRE versus the DCP program before visiting their USDA Farm Service Agency (FSA) office.

Nebraska Panhandle Connects with German Institute on Agri Benchmark Project

In the Spring of 2009, the University of Nebraska Panhandle Research and Extension Center was contacted by a representative from the Institute of Farm Economics at the Johann Heinrich von Thunen Institute (vTI) in Braunschweig, Germany. In the initial meeting, a partnership was arranged to provide Western Nebraska irrigated economic data for the Agri Benchmark project operated by vTI, with the University of Nebraska receiving access to the worldwide data set that exists within the project. This relationship has grown over the past 18 months to include a number of other opportunities.

Measuring the Performance of Cooperative Equity Redemption Plans

Cooperatives differ from other businesses in that they are owned by their patrons and net margins are distributed to patrons on the basis of use instead of capital investment. For financing, cooperatives often rely on allocated equities from retained patronage refunds. Retained patronage refunds are noncash allocations of net margins reinvested in a cooperative by patrons. Under an ideal program of equity formation, equity is held by patrons in proportion to patronage. Each patron’s share of financing the cooperative is equal to the share of benefits received. Equities of former patrons are retired as active patrons take on more of the responsibility of financing the organization.

No Newsletter - Thanksgiving Holiday

Market report

New 2010 Crop Enterprise Budgets

The 2010 Crop Enterprise Budgets will soon be published. They will be available on the web in two places: the University of Nebraska’s “Crop Watch” website (http://cropwatch.unl.edu) in the Economics and Marketing section, and on the Agricultural Economics website at http://www.agecon.unl.edu.

Defining and Measuring Poverty in Nebraska

Data recently released by the Census Bureau estimate that 47.4 million Americans, or about one-insix, are living in poverty. This latest estimate has drawn criticism from some observers who see it as an attempt to artificially inflate the magnitude of poverty in America. The criticism results from a change in methodology that included not just income (the Whitehouse Office of Management and Budget (OMB) poverty threshold for 2009 is $22,050 a year for a family of four), but also made adjustments, taking into account such things as region, out-of-pocket medical expenses and child care costs, that in total add about seven-million individuals to the poverty population.

Looming Changes in the Energy Economy

Over the next decade or two, the energy sector on which the world economy is based will undergo significant transformations. The fossil fuels on which the industrial revolution was built are on their way out. Nebraskans will face higher energy prices, but they will also produce more energy.

Market and Welfare Effects of Mandatory Country-Of-Origin Labeling in the Specialty Crops Sector

Public Law 107-171 of the U.S. Farm Security and Rural Investment Act of 2002 required country-of-origin labeling (COOL) for beef, lamb, pork, fish, perishable agricultural commodities (fresh and frozen fruits and vegetables) and peanuts. While a goal of this law was to benefit domestic consumers by allowing them to make informed consumption decisions, the effects of COOL on the interest groups involved have been the subject of a heated on-going debate.