Multilateral Trade and Agricultural Policy Reforms in Sugar Markets, September 2005

We analyze the impact of trade liberalization, removal of production subsidies, and elimination of consumption distortions in world sugar markets using a partial-equilibrium international sugar model calibrated on 2002 market data and current policies. The removal of trade distortions alone induces a 27% price increase while the removal of all trade and production distortions induces a 48% increase by 2011/12 relative to the baseline. Aggregate trade expands moderately, but location of production and trade patterns change substantially. Protectionist OECD countries (the EU, Japan, the US) experience an import expansion or export reduction and significant contraction in production in unfettered markets. Competitive producers in both OECD countries (Australia) and non-OECD countries (Brazil, Cuba), and even some protected producers (Indonesia, Turkey), expand production when all distortions are removed. Consumption distortions have marginal impacts on world markets and location of production. We discuss the significance of these results in the context of mounting pressures to increase market access in highly protected OECD countries and the impact on non-OECD countries.

Production of renewable polymers from crop plants

Plants produce a range of biopolymers for purposes such as maintenance of structural integrity, carbon storage, and defense against pathogens and desiccation. Several of these natural polymers are used by humans as food and materials, and increasingly as an energy carrier. In this review, we focus on plant biopolymers that are used as materials in bulk applications, such as plastics and elastomers, in the context of depleting resources and climate change, and consider technical and scientific bottlenecks in the production of novel or improved materials in transgenic or alternative crop plants. The biopolymers discussed are natural rubber and several polymers that are not naturally produced in plants, such as polyhydroxyalkanoates, fibrous proteins and poly-amino acids. In addition, monomers or precursors for the chemical synthesis of biopolymers, such as 4-hydroxybenzoate, itaconic acid, fructose and sorbitol, are discussed briefly

On the Segregation of Genetically Modified, Conventional, and Organic Products in European Agriculture: A Multi-market Equilibrium Analysis, October 2005

Evaluating the possible benefits of the introduction of genetically modified (GM) crops must address the issue of consumer resistance as well as the complex regulation that has ensued. In the European Union (EU) this regulation envisions the “co-existence” of GM food with conventional and quality-enhanced products, mandates the labelling and traceability of GM products, and allows only a stringent adventitious presence of GM content in other products. All these elements are brought together within a partial equilibrium model of the EU agricultural food sector. The model comprises conventional, GM and organic food. Demand is modelled in a novel fashion, whereby organic and conventional products are treated as horizontally differentiated but GM products are vertically differentiated (weakly inferior) relative to conventional ones. Supply accounts explicitly for the land constraint at the sector level and for the need for additional resources to produce organic food. Model calibration and simulation allow insights into the qualitative and quantitative effects of the large-scale introduction of GM products in the EU market. We find that the introduction of GM food reduces overall EU welfare, mostly because of the associated need for costly segregation of non-GM products, but the producers of quality-enhanced products actually benefit.

Traducción comentada de “Genetically Modified Organisms (GMOs): Transgenic Crops and Recombinant DNA Technology”

The purpose of this paper is to provide a translation into Spanish of a review articleabout genetically modified organisms (GMOs) entitled “Genetically ModifiedOrganisms (GMOs): Transgenic Crops and Recombinant DNA Technology” publishedby the well-known scientific journal Nature. In a world where English has become thelingua franca when it comes to transferring scientific knowledge and information, itmust be taken into account that not everyone—from scientist to the general public—hasa good enough command of English so that they can feel comfortable enough reading inthis language. Translators are consequently needed resulting from a great demand oftranslation activity into, for example, Spanish. This is the reason why the proposedSpanish translation is followed by a detailed analysis emphasizing the difficulties andproblems that characterize scientific—and also general—translation (i.e. terminology,syntax, semantics, pragmatics, and ideology), for which different approaches as how tosolve them are provided. On the basis of the analysis, it can be concluded thatexperience will be of much help to scientific translators, given that specificterminological knowledge and style requirements must always be born in mind whentranslating in this field. Moreover, this paper is intended to serve as a guide forTranslation students specializing in the field of science and the expectation is to helpthem make the right decisions when it comes to translating. However, it is clear that itcan only be thought of as an introduction that should be completed with further researchand documentation tasks in order to offer a complete reference tool: the ultimatehandbook of scientific translation.

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.

Audit report on America's Agricultural Industrial Heritage Landscape Inc., D/B/A Silos and Smokestacks National Heritage Area, Independent Auditor's Reports, Financial Statements and Supplementary Information, Schedule of Findings and Questioned Costs, December 31, 2004 & 2005

Other Audit Reports - 28E Organizations

The emergence of biofuels and the co-movement between crude oil and agricultural prices

Biofuels are becoming an alternative to non-renewable energy sources but we know little about the economic mechanisms influencing their prices. This paper studies the interrelationships between the spot prices of oil and those of agricultural commodities used as biofuel feedstocks. Using daily data since 1988, we identify a co-movement after 2005 that does not appear for other food-related commodities and is not due to general economic variables. We also find traces of the co-movement in the prices of a large biofuel stock. The results amount to the first systematic piece of empirical evidence linking spot oil and agricultural markets via the emergence of biofuels.

Get a GRIP: Should Area Revenue Coverage Be Offered through the Farm Bill or as a Crop Insurance Program? 2007

The successful expansion of the U.S. crop insurance program has not eliminated ad hoc disaster assistance. An alternative currently being explored by members of Congress and others in preparation of the 2007 farm bill is to simply remove the “ad hoc” part of disaster assistance programs by creating a standing program that would automatically funnel aid to hard-hit regions and crops. One form such a program could take can be found in the area yield and area revenue insurance programs currently offered by the U.S. crop insurance program. The Group Risk Plan (GRP) and Group Risk Income Protection (GRIP) programs automatically trigger payments when county yields or revenues, respectively, fall below a producer-elected coverage level. The per-acre taxpayer costs of offering GRIP in Indiana, Illinois, and Iowa for corn and soybeans through the crop insurance program are estimated. These results are used to determine the amount of area revenue coverage that could be offered to farmers as part of a standing farm bill disaster program. Approximately 55% of taxpayer support for GRIP flows to the crop insurance industry. A significant portion of this support comes in the form of net underwriting gains. The expected rate of return on money put at risk by private crop insurance companies under the current Standard Reinsurance Agreement is approximately 100%. Taking this industry support and adding in the taxpayer support for GRIP that flows to producers would fund a county target revenue program at the 93% coverage level.

Audit report on America’s Agricultural Industrial Heritage Landscape, Inc., d/b/a Silos and Smokestacks National Heritage Area (Silos and Smokestacks), in Waterloo, Iowa for the years ended December 31, 2006 and 2005

Audit report on America’s Agricultural Industrial Heritage Landscape, Inc., d/b/a Silos and Smokestacks National Heritage Area (Silos and Smokestacks), in Waterloo, Iowa for the years ended December 31, 2006 and 2005

Adoption Subsidies and Environmental Impacts of Alternative Energy Crops, March 2007

We provide estimates of the costs associated with inducing substantial conversion of land from production of traditional crops to switchgrass. Higher traditional crop prices due to increased demand for corn from the ethanol industry has increased the relative advantage that row crops have over switchgrass. Results indicate that farmers will convert to switchgrass production only with significant conversion subsidies. To examine potential environmental consequences of conversion, we investigate three stylized landscape usage scenarios, one with an entire conversion of a watershed to switchgrass production, a second with the entire watershed planted to continuous corn under a 50% removal rate of the biomass, and a third scenario that places switchgrass on the most erodible land in the watershed and places continuous corn on the least erodible. For each of these illustrative scenarios, the watershed-scale Soil and Water Assessment Tool (SWAT) hydrological model (Arnold et al., 1998; Arnold and Forher, 2005) is used to evaluate the effect of these landscape uses on sediment and nutrient loadings in the Maquoketa Watershed in eastern Iowa.

Economic Aspects of Agricultural and Food Biosecurity in the United States, March 2007

Concerns about biosecurity in the food system raise a variety of issues about how the system is presently organized, why it might be vulnerable, what one could reasonably do to better secure it, and the costs of doing so. After presenting some facts about US agriculture and food, this paper considers three economic aspects of the general problem. One is the global problem, or the way biosecurity measures can affect how countries relate to each other and the global consequences that result. Another is how to best manage the immediate aftermath of a realized threat in order to minimize damage. The third is how to seek to prevent realization of the threat. Some policy alternatives are also presented.

Current status of the whitefly Aleurodicus dispersus as an invasive pest in the CapeVerte Islands

In the last three decades, the spiralling whitefly (Aleurodicus dispersus) has become an important international pest. The movement of plants and parts of plants (such as fruits) in international trade and tourism, and by natural dispersal, has favoured its introduction to new areas. In common with others whiteflies of economic importance, the immature and adult stages cause direct feeding damage by piercing and sucking of sap from foliage, and indirect damage following the accumulation all over host plants of honeydew and waxy flocculent material produced by the insects. Spiralling whitefly is a pest of tropical and subtropical crops, and highly polyphagous. Up to the 1970s, it had been recorded on 44 genera of plants, belonging to 26 botanical families (Mound & Halsey, 1978). This situation changed with the dispersal of the pest to new areas. Nowadays, the spiralling whitefly is one of the major pest of vegetable, ornamental and fruit crops around the globe (Lambkin, 1999). Important host crops include: banana (Musa sapientum), Citrus spp., coconut (Cocos nocifera), eggplant (Solanum melanogena), guava (Psidium guajava), Hibiscus rosa sinensis, Indian almond (Terminalia catappa), papya (Carica papaya), Rosa sp. and tomato (Lycopersicon esculentum) (Saminathan & Jayaraj, 2001). Spiralling whitefly has its origin in the tropical Americas, including Brazil. Although the pest has been recorded only once in Brasil, in the 1920s in the state of Bahia (Bondar, 1923), it now has official quarantine status because of its economic importance. In the Cape Verte Islands, on the West African coast, the pest was initially introduced in the first half of 2000; it has since become established, reaching urban, natural and agricultural areas of the islands that constitute the archipelago. Since then, the pest has been causing damage to many native plants, ornamentals and cultivated food crops (Anon., 2001; Monteiro, 2004). The present study was done in order to produce an inventory of the most common host plants of spiralling whitefly in this new habitat.

Welfare Impacts of Cross-Country Spillovers in Agricultural Research, 2007

The welfare implications of intellectual property protection (IPP) for private sector agricultural research are analyzed, focusing on the realistic cases in which countries provide different IPP levels, technology spills over across countries, and the public sector is involved in research. A model is developed to determine who benefits from, and who should pay for, the associated research. The paper contains some interesting results on the implications of a harmonization of IPP policies through multilateral agreements or via technology that allows research firms to prevent the copying of plants and animals that express traits that have emerged from their research.