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BiorenewablesNews Archives
In recent years, several health and food groups have made claims that farm subsidies that support agricultural commodity production are directly implicated in the growing obesity problem in the United States and the increased consumption of sweetened foods and drinks. A new analysis finds otherwise. ...read more
Expectations for greater biofuel plant capacity and the federal Renewable Fuels Standard have created a "can't lose" demand proposition for U.S. corn and soybean farmers. This is according to the testimony of Bruce A. Babcock at a field hearing of the Senate Agriculture Committee on food, feed and fuel production at the University of Nebraska, Omaha, on August 18. ...read more
ACRE, short for Average Crop Revenue Election, is a new commodity program included in the Food, Conservation and Energy Act of 2008—the 2008 farm bill. This new commodity program presents farmers with a choice for covering their eligible crops over the period of the new legislation, 2009–2012. ...read more
In a May 7 hearing on fuel subsidies and their impact on food prices called by the U.S. Senate Committee on Homeland Security and Government Affairs, Bruce Babcock, professor of economics and director of the Center for Agricultural and Rural Development at Iowa State University, told senators that changes in federal biofuels policies now will not have a dramatic effect on food prices in the short term. And in the longer run, corn and food prices will be determined largely by the price of crude oil. ...read more
Bruce Babcock, professor of economics at Iowa State University and director of the Center for Agricultural and Rural Development, will appear before the U.S. Senate Committee on Homeland Security and Government Affairs May 7 in a hearing on fuel subsidies and their impacts on food prices. ...read more
WASHINGTON — Continuing high crude-oil prices and new bioenergy mandates, such as the U.S. Energy Independence and Security Act of 2007, are expected to sustain prices at historic highs across all agricultural commodities over the next decade. This is according to analysts with the Food and Agricultural Policy Research Institute, or FAPRI, who briefed Congress this week on their new 10-year projections for U.S. and international commodity markets. ...read more
Recreationists, policymakers, and community leaders can find a resource for decisions about lakes water quality improvement at the Iowa Lakes Valuation Project Web site, redesigned and relaunched this month at www.card.iastate.edu/lakes/. ...read more
Jacinto F. Fabiosa, co-director of the Food and Agricultural Policy Research Institute in the Center for Agricultural and Rural Development at Iowa State University, has been named a Fulbright Scholar to conduct research at Cairo University in Cairo, Egypt. ...read more
How have existing on-farm conservation efforts affected Iowa's water quality and what value do they have? ...read more
The American Society of Agricultural and Biological Engineers (ASABE) has published "The Soil and Water Assessment Tool: Developmental History, Applications, and Future Research Directions" 
in Transactions of the ASABE as an inaugural paper in a new invited paper series established by the ASABE Soil and Water Division. CARD researcher Philip Gassman was lead author of the paper; his co-authors were Manuel Reyes of the North Carolina A&T University Biological Engineering Program, and Colleen Green and Jeffrey Arnold of the U.S. Department of Agriculture's Grassland, Soil and Water Research Laboratory in Temple, Texas, a unit of the Agricultural Research Service. The paper chronicles the historical development of the Soil and Water Assessment Tool (SWAT) model, including modified SWAT models and graphical user interfaces, and the wide range of SWAT applications that have been performed across the globe. Strengths and weakness of the model are also discussed, and future research needs are detailed. More information about the selection of the paper for this groundbreaking invited paper series will be included in the next issue of the ASABE's Resource Magazine. ...read more
Several Iowa State University economics faculty, researchers, and students received awards and honors at the 2007 Joint Annual Meeting of the American Agricultural Economics Association (AAEA), the Western Agricultural Economics Association (WAEA), and the Canadian Agricultural Economics Society (CAES) held in Portland, Oregon, July 29-August 1. ...read more
Jacinto F. Fabiosa and Dermot J. Hayes became the new co-directors of the Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University on July 1, 2007. They succeed John C. Beghin, director since 1999, who will spend the next year at the University of Sydney, Australia, before returning to the Iowa State Department of Economics. ...read more
U.S. crop insurance has failed to prevent costly ad hoc disaster assistance for farmers, even though its cost to taxpayers doubled with Congress's 2000 reform of the program. ...read more
Bruce Babcock, director of Iowa State University's Center for Agricultural and Rural Development and professor of economics, spoke at events hosted by Oxfam America and by the German Marshall Fund of the United States in Washington, D.C., on March 7. ...read more
WASHINGTON--Despite high crude oil prices and various policy incentives, profit margins in bio-energy are expected to deteriorate, according to the Food and Agricultural Policy Research Institute's 2007 agricultural outlook. This decline is the result of high feedstock prices and progressive elimination of unmet demand following a large expansion in capacity in renewable fuels, FAPRI analysts told Congress today. The institute prepares a set of 10-year projections for U.S. and international commodity markets and presents the results at this time each year. ...read more
Iowa State University and ISU Extension will offer a program that explores the economics of liquid fuels produced by plant sources other than corn, the overall market for biofuels, and what it will take for the United States to significantly reduce its consumption of fossil fuels. ...read more
Bruce Babcock, professor of economics and director of the Center for Agricultural and Rural Development (CARD), traveled to Washington December 22 for a briefing of Secretary of Agriculture Mike Johanns on issues surrounding biorenewable fuels. The meeting was attended by the deputy secretary, the under secretaries for Rural Development and Farm and Foreign Agricultural Services, and Chief Economist Keith Collins. Much of the discussion centered on increasing E-85 fuel supply and meeting ethanol, livestock, and export demands for corn. Discussion also focused on CARD's preliminary estimates of the long-term impacts of ethanol expansion on the grain, oilseed, and livestock sectors, one of the earliest attempts to project the effects of a major shift in U.S. energy policy. ...read more
Researchers at Iowa State University will evaluate the costs and benefits of ethanol expansion to rural communities in the Upper Mississippi River Basin as part of a $676,722 biofuels research grant. ...read more
The U.S. Department of Agriculture has provided $275,000 in research funding to the Center for Agricultural and Rural Development at Iowa State University to provide estimates of the impact on farmers, consumers and international trade from increased energy production from agriculture. ...read more
Researchers at Iowa State University will evaluate the costs and benefits of ethanol expansion to rural communities in the Upper Mississippi River Basin as part of a $676,722 biofuels research grant. ...read more
Consumer prices of commodities that are traded in international markets are influenced by such factors as supply, demand and governmental policies to control trade or prices. Fuel ethanol is no exception. Intense debate has focused on the shifting costs of ethanol at the fuel pump and the impact of the United States' energy and trade policies. ...read more
Congress should take the best of current commodity policy and add in the best ideas from the Risk Management Agency to build a more efficient farm bill, Bruce Babcock told a U.S. House of Representatives subcommittee on September 21. Babcock, director of the Center for Agricultural and Rural Development (CARD) and a professor of economics at Iowa State, was invited to testify about current and future farm policy before the House Committee on Agriculture, Subcommittee on General Farm Commodities and Risk Management, which is chaired by Jerry Moran of Kansas. Babcock's statement is available on the CARD Web site. The subcommittee invited Babcock to talk about the effects of the 2002 farm legislation and what should go into the 2007 farm bill. Babcock provided some preliminary estimates of the costs of a more efficient agriculture safety net relative to the current program. Babcock and other analysts at CARD conduct analysis on commodity and risk management policy, and he has written and presented extensively on these topics. ...read more
The Center for Agricultural and Rural Development (CARD) at Iowa State University is launching a new Biorenewables Policy Division effective July 1. ...read more
The USDA's Risk Management Agency has greatly expanded availability of Group Risk Income Protection (GRIP) for 2006. GRIP is a revenue-based crop insurance plan that makes indemnity payments only when the average country revenue for the insured crop falls below the revenue chosen by the farmer (between 90 and 150 percent of expected county revenue). Covered crops now include corn, soybeans, grain sorghum, wheat, and cotton in most major production regions. With this expanded coverage, many farmers and their insurance agents are considering whether GRIP would be a good choice for coverage in 2006 and beyond. Economists at ISU's Center for Agricultural and Rural Development calculated what GRIP would have cost and what it would have paid out had it been available from 1980 through 2004 for Iowa corn (in Poweshiek County), North Dakota wheat, and Texas cotton, and how it would have performed against other revenue insurance plans. According to the calculations, Poweshiek County corn producers would have received $17 more per acre in net indemnities for GRIP than for Revenue Assurance over the historical period. Losses on corn in Iowa tend to be driven primarily by systemic factors, such as widespread drought or excess rainfall, so farm yields and county yields are usually highly correlated. GRIP therefore may provide good risk management benefits for Iowa corn producers. For more information, see "When Is GRIP the Right Choice for Crop Insurance?" in the winter 2006 issue of the Iowa Ag Review. Contact Chad Hart, (515) 294-9911, or Sandy Clarke, CARD communications, (515) 294-6257. ...read more
Ames, Iowa -- In October, the U.S. Trade Representative released a proposal for agricultural trade reform in the ongoing World Trade Organization negotiations. The Food and Agricultural Policy Research Institute today released its analysis of the impacts of this proposal on U.S. and world agriculture. ...read more
AMES, Iowa - Two new research projects at Iowa State University have been funded as part of more than $14 million in grants nationwide to address water supply and water quality issues. The grants are administered by the U.S. Department of Agriculture's Cooperative State Research, Education and Extension Service (CSREES). ...read more
Researchers at the Center for Agricultural and Rural Development (CARD) have developed a method for better assessing the costs and benefits of a range of conservation practices in agriculture to mitigate water pollution. The conservation practices are estimated to be costly but provide significant reductions in water pollution from agricultural runoff, with expenditures not out of the range of recent outlays for commodity programs in Iowa. ...read more
AMES, Iowa - Iowa's reputation as a producer of high-quality beef is the basis for a demonstration project at Iowa State University to develop a brand linked to that reputation. ...read more
Rural amenities, state and local tax burdens, population, amount of primary agriculture activity, and demographics—new research at the Center for Agricultural and Rural Development (CARD) shows that these factors have the largest impact on county economic growth. The analysis used economic growth models and data from 734 counties in Minnesota, Wisconsin, Illinois, Iowa, Missouri, Kansas, Nebraska, and South Dakota. The research also used geographical information systems (GIS) software to map growth spots in these states. The study found that counties with a heavy agricultural presence have not fared as well as less agriculturally dependent counties, although counties that have increased their value-added agriculture, measured as growth in livestock sales receipts, enjoyed additional economic growth. Also, increased livestock production must be weighed against availability of recreational amenities, which are a significant growth factor and may become even more important as the demand for outdoor recreation grows with growing incomes, leisure time, and population. Counties with an older population experienced slower economic growth, further eroding tax bases and services. Higher local tax burdens had a negative impact on growth, and while local tax burdens can be reduced, this will affect the level of local services. Further, the researchers found that higher local government salaries relative to a county's population had a negative effect on county growth. Counties can reduce costs through consolidation, reorganization, and regionalization of services, but while this will save money, it will also reduce local employment opportunities. For more information, see "An Analysis of Regional Economic Growth in the U.S. Midwest," available on the CARD Web site. Contact Bruce Babcock, (515) 294-6785, or Sandy Clarke, CARD communications, (515) 294-6257. ...read more
Findings Indicate That Rice Eaters Have Diets More Consistent with 2005 U.S. Dietary Guidelines for Americans ...read more
WASHINGTON -- Solid prices, stable economic growth globally, and a weak dollar in industrialized trading countries will keep U.S. agricultural exports strong for the next 10 years, according to the projections of the Food and Agricultural Policy Research Institute (FAPRI) presented to Congress this week. Sanitary and phytosanitary concerns, however, will continue to plague meat markets in the short term and will partially offset the growth in exports of coarse grains. ...read more
The U.S. Department of Agriculture is facing significant cuts in its spending on farm support. Bruce Babcock, professor of economics and director of the Center for Agricultural and Rural Development (CARD), has identified a specific cut in the crop insurance program that could actually improve how the program operates while saving money. Babcock has zeroed in on the "optional units" feature of crop insurance. Currently, farmers who grow a crop on more than one section of land can create a separate insurance unit--an "optional unit"--for the land in each section. Each optional unit stands alone when it comes time to calculate premiums and indemnities. An alternative to optional units is to insure a farmer's entire crop in a single insurance unit. The insurance guarantee on this single unit is exactly equal to the sum of the insurance guarantees on the optional units. However, the frequency of insurance payments would be lower on the single unit because production from all fields is pooled together when calculating whether there is a loss. This change could reduce the taxpayer costs of the program by as much as $330 million with no impact on the ability of the program to provide support to farmers when harvested yields or harvest time revenue falls short of the insurance guarantee. For more information, see the briefing paper "ARPA Subsidies, Unit Choice, and Reform of the U.S. Crop Insurance Program," available on the CARD Web site. Contact Bruce Babcock, (515) 294-6785, or Sandy Clarke, CARD communications, (515) 294-6257. ...read more
An agricultural trade expert at Iowa State University was recently enlisted by the World Bank to bring top analysts together to sort through the multiplicity of effects from protections and policy reforms in agricultural markets. ...read more
Iowa crop insurance agents and pork producers have a new tool at their disposal to help them make decisions about insuring against losses in revenue. This week, the Center for Agricultural and Rural Development (CARD) at Iowa State University posted a calculator on the CARD Web site developed to give estimates on premiums for different levels of Livestock Gross Margin (LGM) insurance coverage on swine. The calculator is available at www.card.iastate.edu/ag_risk_tools/lgm/. ...read more
What would happen if American companies lost the ability to call their homegrown sparkling wine "champagne," or their crumbly and salty curd cheese "feta"? If a current proposal by the European Union through the World Trade Organization (WTO) is passed, then Champagne would become a geographical indication (GI), and the name could only be used for bubbly that comes from the Champagne region of France. Likewise, cheese called Feta would have to come from the sheep or goats of Greece and not from the cows of Wisconsin. With the threat of losses to U.S. companies, U.S. trade negotiators have opposed the proposal from the start. But could GIs be used to protect high-value, uniquely American products in world markets? A briefing paper published by the Midwest Agribusiness Trade Research and Information Center describes and contrasts three systems of protecting property rights for agricultural products: certification marks, E.U.-wide GIs, and WTO GIs. The paper discusses some of the benefits and problems of each system and its effectiveness in helping to differentiate and protect high-value U.S. agricultural products. The paper, "Geographical Indications and Property Rights: Protecting Value-Added Agricultural Products," is available at www.matric.iastate.edu. ...read more
In 1984, the U.S. Congress decided it needed help developing the next farm bill. A special appropriation led to the establishment of the Food and Agricultural Policy Research Institute (FAPRI). Twenty years later, this joint effort between Iowa State University and the University of Missouri-Columbia continues to provide vital information to public policymakers. ...read more
An Iowa State University team has launched a new Web site that gives water quality measures and recreational information for Iowa lakes. It is part of the Iowa Lakes Valuation Project, which is gathering information about lake usage, water quality and perceptions. Funding comes from the Iowa Department of Natural Resources and the U.S. Environmental Protection Agency. ...read more
As consumers become more interested in the origin of the foods they eat and devote more of their expendable income on the purchase of value-added foods and unique experiences, interest in the concept of agritourism has grown as a possible opportunity for farmers to market not only their products but also their bucolic way of life. Writing in the summer 2004 issue of the Iowa Ag Review newsletter, Roxanne Clemens, managing director of ISU's Midwest Agribusiness Trade Research and Information Center (MATRIC), cites the case of farmers in the Veneto region of Italy, where she recently studied agritourism and other research topics. "Over the past five years, agritourism in Italy has increased by 25 percent, mostly because of the increase in the number of farms offering overnight accommodations." In Italy, as in other countries of the European Union, farmers have incentives to produce high-value food products and to encourage customers to visit their farms to experience rural activities, social customs, and locally grown items. In the European Union, this kind of agritourism is highly regulated and functions mostly as a secondary activity to support main farming operations. Clemens suggests that the United States would need greater policy incentives to nurture similar agritourism ventures on U.S. farms. The article, titled "Keeping Farmers on the Land: Agritourism in the European Union," is available at www.card.iastate.edu/iowa_ag_review/summer_04/article4.aspx. ...read more
Most Iowa farmers grow corn and soybeans that are sold as general commodities. One farmer's crop becomes comingled with others as the grain and oilseeds make their way from the farm to the processor or exporter. ...read more
Brazil's emergence as a commodity-producing powerhouse has kept U.S. economists, trade representatives, and policymakers interested in learning more about the country's infrastructure, production capacity, and growing capital investment in agriculture. In September 2003, economists with the Center for Agricultural and Rural Development at Iowa State University traveled to Brazil to get a first-hand impression of its agricultural sector-particularly of its future potential in crop production. In a briefing paper summarizing the fact-finding trip, the researchers say that Brazil's future expansion of production and exports is almost certain. However, other social, economic, and political pressures may cause Brazilian policymakers to reassess the large-scale, low-cost model embraced in the Center-West region of the country. The authors write, "We observed factors within Brazil itself that have potential for creating tensions which may ultimately force politicians to consider reforms that reduce production efficiency to achieve other social and environmental objectives." Some of those tensions include pressures to support small farmers and rural economies, lobbies against deforestation and environmental degradation, and the agrarian reform movement to benefit the landless poor. The briefing paper, titled "Brazil: The Future of Modern Agriculture?" was published by the Midwest Agribusiness Trade Research and Information Center and is available at www.matric.iastate.edu. Contact Frank Fuller, (515) 294-2364, Jay Fabiosa, (515) 294-6183, or Sandy Clarke, (515) 294-6257. ...read more
In a preliminary ruling, the World Trade Organization decided United States' government subsidies to cotton farmers are in violation of international trade rules. The decision could lead to stringent fines for the United States or lower subsidies for crop farmers. A final decision on the case, which was brought forth by Brazil, will be made in June. ...read more
Researchers in ISU's Department of Economics and Center for Agricultural and Rural Development (CARD) are using responses from a 2002 survey of Iowa grain handlers to study issues that arise in the handling of specialty crops and those free of genetically modified (GM) materials. Nearly 18 percent of firms surveyed reported handling specialty grains. One important issue is the added costs of differentiating products. On average, firms reported costs of 32¢ per bushel for handling. In a preliminary analysis of the data, the ISU researchers find that significant differences in specialty crop handling costs and investment exist between cooperative handlers and privately held firms and corporations. Subsequent work will address reasons for these differences. More analysis of the survey data is planned to help sort out the industry effects of providing new systems for segregating non-GM and specialty crops. A paper describing the preliminary study, "Product Differentiation and Segregation in Agricultural Systems." Contact John Miranowski, 515-294-6132, Helen Jensen, 515-294-6253, or Sandy Clarke, CARD communications, 515-294-6257. ...read more
WASHINGTON - A weak dollar, high prices, and global economic growth bode well for U.S. agricultural exports, according to the 10-year projections of the Food and Agricultural Policy Research Institute (FAPRI), presented to Congress this week. ...read more
Iowans like lakes. That's the simple conclusion drawn from a recent survey of how Iowans use and value lakes. Researchers from the Iowa State University economics department and the Center for Agricultural and Rural Development (CARD) still are analyzing data from the first year of this four-year study, funded by the Iowa Department of Natural Resources and the U.S. Environmental Protection Agency. But it's clear those surveyed think Iowa's lakes are important. ...read more
Japanese consumers are sophisticated, highly conscious of food quality and safety, and willing to pay more for attributes they believe result in a high-quality, safe product. The same can be said of American consumers. An analysis of efforts in Japan designed to assure consumers the meat they buy is safe offers insight to exporters, but also to producers and retailers in this country. ...read more
Having a national identification system did not protect Canadian cattle from a sole case of bovine spongiform encephalopathy (BSE) discovered in the spring of 2003, but it did help speed and lend confidence to the investigation. These are the findings of a team of researchers from the Iowa Beef Center who recently visited Ontario and Alberta, Canada, to study the Canadian cattle identification system. A report on the trip has been published by the Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University and is available online at www.matric.iastate.edu. In Canada's mandatory system, initiated in July 2001, animals are tagged before leaving the farm of origin and the tags are read when the animal is either harvested or exported. The team found that the cost to develop and initiate the system in Canada was relatively low. Producers support the industry-owned, government-enforced program, as evident by the high rate of compliance. Despite a Japanese ban on Canadian beef following discovery of the BSE case, the identification system "has proven to be a valuable tool in the surveillance of BSE and other animal diseases," according to the report. Contact John Lawrence, 515-294-6290, or Sandy Clarke, CARD-ISU communications, 515-294-6257. ...read more
AMES, Iowa -- In the midst of the controversy surrounding the location and effects of large livestock operations in rural Iowa, a new study by the Center for Agricultural and Rural Development (CARD) at Iowa State University suggests there may be room for beneficial trade between livestock producers and neighboring homeowners. ...read more
McDonald's Corporation, one of the largest buyers of meat in the U.S. fast-food industry, recently adopted a policy that prohibits its direct suppliers from using medically important antibiotics as growth promotants in food animals after 2004. The implications of such a voluntary ban in the United States remain to be seen, but a recent study by researchers in the Center for Agricultural and Rural Development (CARD) at Iowa State University provides some comparable evidence from Denmark. Professors Dermot Hayes and Helen Jensen compiled information they gleaned from interviews with Danish veterinarians, farmers, economists, and industry analysts and evaluated the economic costs of an antibiotics ban for pork producers. Denmark first imposed a ban in pork production at the finishing stage, which was considered a success, with producers encountering few additional costs. When the country further implemented a ban at the weaning stage, producers encountered severe health problems and incurred large costs. In addition, a complete ban actually increased the total antibiotics used, as Danish veterinarians were forced to prescribe additional therapeutic agents—which were those used most often in human medicine. The researchers estimate that a U.S. ban would increase costs by approximately $4.50 per animal in the first year. The total cost of a ban to the U.S. pork industry spread across a ten-year period could be in excess of $700 million. See the full briefing paper, "Lessons from the Danish Ban on Feed-Grade Antibiotics." Contact Dermot Hayes, 515-294-6185, Helen Jensen, 515-294-6253, or Sandy Clarke, CARD communications, 515-294-6257. ...read more
WASHINGTON -- Recent strength in crop prices will not be sustained for long, according to a report of the Food and Agricultural Policy Research Institute (FAPRI) presented to Congress today. Two years of drought in many grain-growing regions and planted-acreage reductions attributable to low crop prices in the late 1990s are the cause of the recent run-up in prices. However, a return to normal weather and an acreage response by producers to the price rebound will keep a cap on prices over the next 10 years. ...read more
The Trade Sanctions Reform and Export Enhancement Act of 2000 allowed U.S. food and agricultural products into Cuba for the first time in forty years. The opening of Cuba's borders to U.S. exports sparked little enthusiasm at first from the U.S. Department of Agriculture or State Department. But recent trips of the Iowa trade delegation to Cuba have discovered what could be a lucrative market for Iowa agricultural interests, according to Tom Rial of the Iowa Export Assistance Center and Midwest Agribusiness Trade Research and Information Center. Writing in the latest edition of the Iowa Ag Review, the newsletter of the Center for Agricultural and Rural Development (CARD) at Iowa State University, Rial cites a study that concludes Iowa could gain more than $70 million in agricultural sales to Cuba, with an additional spin-off of more than $206 million into the Iowa economy. Rial says with aggressive marketing efforts, Iowa pork, beef, processed egg products, animal feed, and soy protein and oil could flourish in Cuban markets. An Iowa company, FC Stone, has already secured a $5 million contract for corn and soybeans. But trade with Cuba is far from easy, and future success depends on such factors as recovery of the country's economy and further liberalization of the Cuban trade regime. Rial says interested firms should do their homework and seek out prospective distributors. The full text of the article is available at www.card.iastate.edu/iowa_ag_review/winter_03/article2.aspx. For more information, e-mail info@exportpartnership.com, or call Sandy Clarke, CARD communications, 515-294-6257. ...read more
AMES, Iowa -- Quotes just released for spring Livestock Gross Margin (LGM) insurance should make the product more appealing to pork producers, says an Iowa State University agricultural economist. ...read more
In 1989, the European Union banned imports of beef treated with growth-promoting hormones. Suddenly, a large market for U.S. variety meats and a niche market for U.S. non-treated beef had all but disappeared. In an effort to recapture lost market share, many U.S. producers hastened to adopt the European Union's stringent guidelines for producing, harvesting, and certifying non-hormone treated beef. But, according to a report of the Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University, the producers' efforts have gone largely unrewarded. In general, the added costs of producing and certifying non-treated beef have made U.S. product too expensive to export, say the report's authors. And while some producers have been able to sell their non-treated beef in the domestic natural beef market, they have received little in the way of a premium to cover their extra costs as compared to producers who verify their "natural" beef in less-expensive ways. Although U.S. retaliation to the hormone ban was hoped to even the field by blocking some E.U. agricultural imports, the researchers say U.S. beef stands to lose even more trade potential as more countries accede to the European Union and adopt the ban. The full text of the report is available at www.matric.iastate.edu/publications.aspx. Contact Roxanne Clemens, MATRIC Director, (515) 294-8842, or Sandy Clarke, Communications, (515) 294-6257. ...read more
A new report from the Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University traces the history of Vidalia onions from a single producer to a trademarked product, in hopes of discovering lessons suitable for Iowa crop growers. ...read more
When consumers are willing to pay premium prices for products with the characteristics that they desire, niche markets often result. However, the very success of that niche market often leads to imitation, expanding the supply and ultimately reducing producers' profitability. ISU economists Dermot Hayes and Sergio Lence recently traveled to Italy to study that country's model for farmer-owned brands. The key factor in the success of these brands is that they allow producers not only to differentiate their products but also to legally control supply. This can be accomplished in a number of ways, including restricting the growing region based on its exceptional attributes, limiting membership in a producer group, imposing strict production or quality standards, or restricting access to a product ingredient or process. In Italy, the researchers found several exciting examples of farmer-owned brands, such as Brunello di Montalcino, a wine produced by an association that limits the quantity of grapes and the production area. Another success story is Parma Ham, owned by a group of ham processors who maintain control over the curing location and methods, a process that purportedly gives this product its unique flavor. Lence and Hayes describe how this model might work in the U.S. Midwest in a paper titled "Farmer-Owned Brands?." Contact Hayes, (515) 294-6185, or Sandy Clarke, CARD Communications, (515) 294-6257. ...read more
Ames, Iowa -- Replacing Iowa's sales tax with an equivalent income-based tax would increase tax revenue for the state without increasing the overall tax burden on Iowans, says a team of Iowa State University economists. ...read more
Question: Can Vidalia onions be grown in Iowa? Answer: No, Vidalia onions can only be grown in a legislated geographical region in the state of Georgia, and the producers who grow these famous sweet onions have a federal marketing order that says so. An analysis of how a trademark and a federal marketing order can be part of a strategy to increase the economic value of agricultural products is available from the Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University. Vidalia onions represent a proven success story in using effective marketing, legislation, and research to develop a niche market for an agricultural product. By protecting a product's name, quality, and image through state ownership of the trademark, producers can protect their market from becoming oversupplied, thus creating higher value throughout the marketing chain. The paper, "Why Can't Vidalia Onions Be Grown in Iowa? Developing a Branded Agricultural Product." Contact Roxanne Clemens, MATRIC, (515) 294-8842, or Sandy Clarke, Center for Agricultural and Rural Development, (515) 294-6257. ...read more
China's accession to the World Trade Organization in 2001 was a significant event for U.S. agricultural trade. China has promised to cut tariffs and further open its markets to U.S. products. The exact composition and extent of U.S. agricultural and food trade with China, however, remains unclear. Recent research at the Midwest Agribusiness Trade Research and Information Center (MATRIC) compares the productivity and cost of production of China and the U.S. Midwest to see how the two agricultural powers might stack up. The results show that the U.S. Midwest has a substantial advantage in land and labor productivities in producing corn and soybeans. Only China's Northeast region has an advantage over the U.S. in cost of production. In hog production, the U.S. Midwest has a cost advantage over China in feed cost and labor productivity, but this advantage is more than offset by the lower cost of feeder pigs and possible lower capital replacement cost in China. Land policy and labor productivity will be important determinants of the competitive positions of the two countries in the future. For more information, see "Does the U.S. Midwest Have a Cost Advantage Over China in Producing Corn, Soybeans, and Hogs?." Contact Jacinto Fabiosa, (515) 294-6183, or Sandy Clarke, Center for Agricultural and Rural Development, (515) 204-6257. ...read more
A team of Iowa State University faculty traveled recently to Australia and New Zealand to study those countries' beef production and marketing quality assurance systems. John Lawrence, economics professor and director of the Iowa Beef Center, says they wanted to learn why the beef industries in Australia and New Zealand evolved as they have, and if there are lessons to be learned for the U.S. market. ...read more
Ames, Iowa -- The Food and Agricultural Policy Research Institute (FAPRI), a dual policy center of Iowa State University and the University of Missouri-Columbia, received a Secretary's Honor Award from Secretary of Agriculture Ann Veneman at a ceremony in Washington, D.C., on July 8. The Secretary's Honor Awards are the highest awards bestowed by the U.S. Department of Agriculture. FAPRI's recognition was in the category "Expanding Economic and Trade Opportunities for United States Agricultural Producers." ...read more
If the wealthiest nations abolished their trade-distorting agricultural policies, they would do far more to alleviate global poverty than the most ambitious direct aid programs could accomplish. This is the finding of a recent study by economists at the Center for Agricultural and Rural Development (CARD). CARD initiated a study to better understand the link between rich-country agricultural support and poor-country incomes. The analysis considered the removal of all agricultural protections in high-income countries, including export subsidies, tariffs, and tariff rate quotas, as well as input and output subsidies. The results show that developing countries would gain about $26 billion per year at 1997 prices with the removal of these subsidies. Rising global prices would improve the incomes of farmers who have had no prior income support. In addition, rich country taxpayers would benefit, with lower taxpayer burden and lower consumer food costs. For more information, see the article, "Rich Countries, Poor Countries, and the Doha Round Trade Negotiations" in the Summer 2002 issue of the Iowa Ag Review, available at www.card.iastate.edu/iowa_ag_review/summer_02/article5.aspx. Contact Sandy Clarke, CARD Communications, (515) 294-6257. ...read more
The establishment of a center that focuses on value-added agriculture was announced at a news conference at Iowa State University in January. Since then, dozens of research and extension personnel at ISU, Kansas State University, the University of California and Oklahoma State University have been on a fast track. ...read more
In the ongoing search for remedies to the planet's greenhouse gas excesses, agriculture is often identified as a key player. Agriculture can reduce its own contributions of these gases (carbon dioxide, methane, and nitrous oxide), and it can act as a carbon "sink," a kind of gas storehouse and converter through its soil, plants, wetlands, and forests. But producers need incentives to change their management practices or to adopt a greenhouse gas mitigation strategy. A resource and environmental economist at ISU's Center for Agricultural and Rural Development has been studying the economic feasibility of these strategies. Using mathematical programming, Uwe Schneider and research partner Bruce McCarl of Texas A&M examined the economic potential of a variety of greenhouse gas mitigation strategies in U.S. agriculture and forestry. They entered various strategies, such as reduced tillage and production of energy crops, into an agricultural sector model. They then ran a simulation to see how mitigation strategies compete against conventional agricultural production at various "carbon prices" (a fee paid to producers per ton of carbon equivalent stored). The results show that it is economically feasible for U.S. agriculture to contribute to greenhouse gas reduction. However, some strategies are much more viable than others. The right strategy depends on the right carbon price, and different strategies are optimal for different regions of the country. The full report, "The Potential of U.S. Agriculture and Forestry to Mitigate Greenhouse Gas Emission: An Agricultural Sector Analysis," is available at www.card.iastate.edu. Contact Schneider, 515-294-6173, or Sandy Clarke, CARD Communications, 515-294-6257. ...read more
A U.S. Supreme Court decision in December of 2001 strengthened intellectual property rights for plant research. The Court held that plant seeds and plants themselves, whether traditionally bred or genetically engineered, are patentable under U.S. law. This decision is expected to have important consequences for the U.S. seed industry and for U.S. farmers. GianCarlo Moschini, Pioneer Hi-Bred International Chair in Science and Technology Policy at the Center for Agricultural and Rural Development (CARD), analyzes the benefits and costs of patents in two recent papers. Patents do not allow farmers to save seed from harvest, nor can patented varieties be used legally by researchers to develop new crop varieties. While patents generally stimulate innovations that otherwise would not take place, the fact that they grant exclusive rights on exploitation of a new product or process can adversely affect the efficient use of new knowledge after it is generated. To learn more about the economics of patents, see CARD series papers 01-WP 275 and 02-WP 293, available on the Web at www.card.iastate.edu. Contact Moschini, (515) 294-5761, after April 20; or Sandy Clarke, CARD Communications, (515) 294-6257. ...read more
In 1996, Congress significantly transformed the U.S. welfare system, converting it from a cash-benefit entitlement program to a state block grant program with time-limited assistance in exchange for work or work preparation. How have Iowans in need fared since the enactment of the reforms? In 1998, the U.S. Department of Agriculture's Economic Research Service funded four state studies, including one in Iowa, to help evaluate the new welfare program's effectiveness in moving people toward economic self-sufficiency. ISU researchers at the Center for Agricultural and Rural Development and Statistics Laboratory surveyed a sample of 1997 Food Stamp Program participants still living in Iowa. As was the case nationally, Iowa experienced sharp decreases in Food Stamp Program enrollment following the welfare reforms of 1996. The study found that less than one-half of the 1997 participants surveyed were still enrolled in the Food Stamp Program in 1999. However, other measures of well-being indicated the families in the study continue to struggle. Private assistance is commonly combined with public assistance and earnings to meet basic needs. One-quarter of the families in the survey said they experienced hunger in the year before the interview. Results for the other states, Arizona, Illinois, and South Carolina, were similar to those for Iowa. Contact Helen Jensen, (515) 294-6253, or Sandy Clarke, (515) 294-6257. ...read more
Ames, Iowa -- The Center for Agricultural and Rural Development (CARD) will bring together top agricultural policy analysts from around the world to talk about global trade and domestic farm support at the Agricultural Forum 2002, "Prices, Policy, and the WTO," March 1 at the Scheman Building in Ames, Iowa. This year's forum comes at a time when Congress is hammering out the details of a new U.S. farm bill while a new agreement in agriculture also is pending for World Trade Organization members. The juxtaposition of the two agricultural policies-with their seemingly competing goals-sets the stage for the conference discussion. ...read more
Food security was an issue during World Trade Organization meetings last November. South Korea is one of several developing countries that wants to maintain self-sufficiency objectives and has been reluctant to open borders to trade. It defines food security as ensuring an adequate food supply under all market conditions. As a result, high tariffs protect domestic producers from lower-cost imports--especially rice, meat and dairy. High production prices are supported by government purchases. Recent research at Iowa State University suggests that, rather than ensuring that all citizens have access to affordable food, South Korea's food security objectives hurt consumers and may slow the country's overall economic growth. Economists John Beghin and Jean-Christophe Bureau at ISU's Center for Agricultural and Rural Development found that agricultural subsidization in South Korea costs consumers more than producers gain. They also found that high food costs can reduce demand and keep poor consumers from acquiring adequate nourishment. The researchers propose an alternative policy that sets production rather than self-sufficiency targets for staple foods and uses imports for additional food sources. Their paper, "Food Security and Agricultural Protection in South Korea," is available online at www.card.iastate.edu/publications/synopsis.aspx?id=345. Contact Beghin, (515) 294-5811, or Sandy Clarke, (515) 294-6257. ...read more
Ames, Iowa -- "Prices, Policy, and the WTO," the Agricultural Forum 2002 at Iowa State University, will focus on the effort to align U.S. farm policy with commitments to world trade. ...read more
AMES, Iowa -- Researchers at Iowa State University have found that older Americans have a limited understanding of the nutrition information found on food product labels. ...read more
AMES, IOWA--Dispelling common misperceptions about U.S. farm programs and agricultural trade policies is the goal of an educational forum in Ames Oct. 8. ...read more
In the fall of 1998, low prices for corn and soybeans triggered the federal loan deficiency payment (LDP) program -- one of two parts of the federal price support program. The first portion of the program is the traditional marketing loan that allows farmers to store their harvested crops and sell at a later date when market conditions improve. ...read more
AMES, IOWA--Bruce Babcock, director of the Center for Agricultural and Rural Development, appeared before the U.S. Senate Committee on Agriculture, Nutrition and Forestry on April 25 to talk about the farm economy, current agricultural trade conditions, and possible barriers to trade over the next five years. ...read more
AMES, IOWA--For the first time since agricultural prices peaked in the mid 1990s, the value of U.S. agricultural exports is expected to increase this year. According to new analysis by the Food and Agricultural Policy Research Institute (FAPRI), a gradual recovery in agricultural prices from last year's 13-year lows drives the value of agricultural exports up by 3.6 percent in 2000/01, and both export volume and value will continue to rise 2 to 4 percent for the next decade. ...read more
AMES, IOWA--The widely publicized protests at the 1999 World Trade Organization meetings in Seattle illustrated the kind of pressure and profound change that surround the food industry today. Groups there overtly displayed their views about such things as biotechnology and globalization. On the home front, consumers are expressing their opinions about food and food policy in more subtle but equally demonstrable ways at grocery checkout counters, farmers' markets, and even at their computers by choosing to buy foods that best reflect their individual lifestyles and beliefs. ...read more
AMES, IOWA -- The Center for Agricultural and Rural Development (CARD) has launched an interactive Web site (www.card.iastate.edu/ag_risk_tools/ldp/) to help farmers understand the risks and rewards associated with alternative marketing strategies for corn and soybeans. ...read more
AMES, IOWA--The 1999 FAPRI (Food and Agricultural Policy Research Institute) agricultural trade projections for the next decade are now available in two published reports and online. ...read more
AMES, IOWA -- The decline in U.S. agricultural exports, both in terms of quantity and value, is likely to bottom out this year in response to large global supplies and weak agricultural demand. This finding comes from a recent analysis by the Food and Agricultural Policy Research Institute (FAPRI). ...read more
AMES, IOWA--The collapse in hog prices in fall 1998 has renewed interest in using insurance as a way to provide an affordable safety net to U.S. farmers. One option that has received attention is to expand the U.S. Department of Agriculture's crop insurance program to include livestock producers with either price insurance or revenue insurance. ...read more
AMES, IOWA -- The Center for Agricultural and Rural Development (CARD) is pleased to announce the appointment of two new division heads. Cathy Kling, professor of economics, and John Beghin, associate professor of economics, began their positions at CARD in January. ...read more
Why do some farmers adopt conservation tillage practices while others do not? In a recent study, resource and environmental economists at the Center for Agricultural and Rural Development (CARD) found that even though conservation practices can raise expected profits, some farmers are reluctant to adopt them, considering them riskier than conventional methods. The study estimates the financial incentives necessary to encourage the adoption of conservation tillage, finding that a premium can play a significant role in these decisions. The researchers used 1992 data and concluded that in that year, on average, a subsidy of $2.40 per acre for corn and $3.50 per acre per year for soybeans would have allowed Iowa farmers to overcome aversion to the risks they perceived in adopting conservation tillage practices. The research paper, "Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior," is available online, or for a print copy, call (515) 294-7519. ...read more