Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications, May 2006

This paper examines the incentive of atomistic agricultural producers within a specific geographical region to differentiate and collectively market products. We develop a model that allows us to analyze the market and welfare effects of the main types of real-world producer organizations, using it to derive economic insights regarding the circumstances under which these organizations will evolve, and describing implications of the results obtained in the context of an ongoing debate between the European Union and United States. As the anticipated fixed costs of development and marketing increase and the anticipated size of the market falls, it becomes essential to increase the ability of the producer organization to control supply in order to ensure the coverage of fixed costs. Whenever a collective organization allows a market (with a new product) to exist that otherwise would not have existed there is an increase in societal welfare. Counterintuitively, stronger property right protection for producer organizations may be welfare enhancing even after a differentiated product has been developed. The reason for this somewhat paradoxical result is that legislation aimed at curtailing the market power of producer organizations may induce large technological distortions.

Iowa Pseudoephedrine Control Law, March 22, 2005

This law is intended to reduce the number of hazardous methamphetamine labs in Iowa, by controlling meth cooks’ access to the key meth-making ingredient: pseudoephedrine. In 2004, Iowa law enforcement agencies responded to a record 1,472 meth lab incidents. Below, please find links to: Senate File 169 (Iowa’s pseudoephedrine control law); an Iowa meth fact sheet; a brief overview of the law; and general compliance guidelines for consumers, pharmacies, retailers and law enforcement. Most provisions of this law, pertaining to pseudoephedrine sales, are effective May 21, 2005. However, two other provisions were effective immediately—March 22, 2005—upon the Governor’s signing of this measure into law: (1) removal of exceptions on the Schedule V Controlled Substance status for ephedrine [all ephedrine products now may only be sold in licensed pharmacies…no retail sales of ephedrine permitted]; and (2) addition of a requirement that bailable defendants charged with manufacture, delivery, possession with the intent to deliver, or distribution of methamphetamine, shall, in addition to a substance abuse evaluation, remain under supervision and be required to undergo random drug tests as a condition of release.