News

March 14, 2024
Harris-Lagoudakis article accepted at Applied Economic Perspectives and Policy permalink

Dr. Katie Harris-Lagoudakis's article "The New Normal: Grocery Shopping Behavior Changes Before and After the COVID-19 Vaccine" has been accepted at Applied Economic Perspectives and Policy.

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Dr. Katie Harris-Lagoudakis's article "The New Normal: Grocery Shopping Behavior Changes Before and After the COVID-19 Vaccine" has been accepted at Applied Economic Perspectives and Policy.

The article uses transaction data from a large grocery store retailer to describe changes in grocery shopping behavior associated with the progression of the COVID-19 pandemic before and after the vaccines were developed. The authors find that in general, households increased their spending and decreased their number of transactions early in the pandemic. They also find changes in a store’s spending and transactions, along with the healthfulness of these purchases, vary significantly with the racial composition of a store’s market and these differential changes persisted after vaccines were available.

February 27, 2024
Kalna-Dubinyuk to present at ISCORE permalink

Post-doctoral Research Associate Tetyana Kalna-Dubinyuk will present at the Iowa State Conference on Race and Ethnicity (ISCORE) on Thursday, February 29, 2024, from 3:10 pm-4 pm at the Memorial Union on the Iowa State campus. Kalna-Dubinyuk will present "The Power of Having a Sense of Belonging" with Fally Masambuksa-Kanchewa, Assistant Professor of Agricultural Communication.

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Post-doctoral Research Associate Tetyana Kalna-Dubinyuk will present at the Iowa State Conference on Race and Ethnicity (ISCORE) on Thursday, February 29, 2024, from 3:10 pm-4 pm at the Memorial Union on the Iowa State campus. Kalna-Dubinyuk will present "The Power of Having a Sense of Belonging" with Fally Masambuksa-Kanchewa, Assistant Professor of Agricultural Communication.

ISCORE is a comprehensive forum on issues of race and ethnicity at Iowa State University and beyond. The local conference is designed to model the National Conference on Race and Ethnicity in Higher Education (NCORE). NCORE is the leading and most comprehensive national forum on issues of race and ethnicity in higher education, bringing together leading experts in the field. The conference assists institutions of higher education in creating inclusive environments, improving campus racial and ethnic relations, and expanding opportunities for access to education for traditionally underrepresented populations.

The NCORE-ISCORE Project consists of a delegation of Iowa State University students, faculty, and staff who attend the National Conference on Race and Ethnicity in Higher Education annually. Conference participants will disseminate information gathered from NCORE at ISCORE, the Iowa State Conference on Race and Ethnicity.

February 16, 2024
DePaula publishes in VoxDev permalink

Assistant Professor Guilherme DePaula published an invited article in VoxDev. DePaula authored "Bundled contracts and technological diffusion caused the Brazilian soybean boom." DePaula's article examines the introduction of a private, bundled contract that addresses the multiple barriers to technological diffusion in the Brazilian Savanna and demonstrates that a contractual innovation was at the heart of the transformation of the Brazilian Savanna into a major global source of soybeans.

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Assistant Professor Guilherme DePaula published an invited article in VoxDev. DePaula authored "Bundled contracts and technological diffusion caused the Brazilian soybean boom." DePaula's article examines the introduction of a private, bundled contract that addresses the multiple barriers to technological diffusion in the Brazilian Savanna and demonstrates that a contractual innovation was at the heart of the transformation of the Brazilian Savanna into a major global source of soybeans.

Bundled contracts and technological diffusion caused the Brazilian soybean boom
Guilherme DePaula
VoxDev February 13, 2024
https://voxdev.org/topic/agriculture/bundled-contracts-and-technological-diffusion-caused-brazilian-soybean-boom

February 16, 2024
Plastina publishes in Carbon Balance and Management permalink

Associate Professor Alejandro Plastina published an article in the most recent issue of Carbon Balance and Management. Plastina, with Haeun Jo of Iowa State University and Oranuch Wongpiyabovorn of South Dakota State University, authored the article "The business case for carbon farming in the USA." The article examines the potential effects of alternative private payment regimes, prices paid to farmers relative to out-of-pocket costs, and the availability of information on CO2 sequestration, on the adoption of cover crops and no-till in the United States, the resulting CO2 sequestration, and changes in farmers’ net returns. Results indicate that agricultural carbon markets can be profitable for U.S. farmers, although with substantial geographic variability, and that annual carbon sequestration could range between 17 and 75 million mtCO2e.

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Associate Professor Alejandro Plastina published an article in the most recent issue of Carbon Balance and Management. Plastina, with Haeun Jo of Iowa State University and Oranuch Wongpiyabovorn of South Dakota State University, authored the article "The business case for carbon farming in the USA." The article examines the potential effects of alternative private payment regimes, prices paid to farmers relative to out-of-pocket costs, and the availability of information on CO2 sequestration, on the adoption of cover crops and no-till in the United States, the resulting CO2 sequestration, and changes in farmers’ net returns. Results indicate that agricultural carbon markets can be profitable for U.S. farmers, although with substantial geographic variability, and that annual carbon sequestration could range between 17 and 75 million mtCO2e.

The business case for carbon farming in the USA
Alejandro Plastina, Haeun Jo, and Oranuch Wongpiyabovorn
Carbon Balance and Management 19(2024)
doi: 10.1186/s13021-024-00253-5

January 26, 2024
'Farmers' Share Perspectives on Climate Change, Land Rents and Conservation in Latest Iowa Farm Poll permalink

The latest Iowa Farm and Rural Life Poll is now available

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The latest Iowa Farm and Rural Life Poll is now available

AMES, Iowa – Although they wear many hats, perform many jobs and are referred to using many terms, it turns out the people who grow Iowa’s crops and livestock prefer to be called “farmers.”

The 2023 Iowa Farm and Rural Life Poll was released this winter and asked those surveyed what they preferred to be called. Some 75% said they prefer to be called a “farmer.” The term “farm operator” was a distant second, at only 10%, followed by even less popular names like “producer, grower and rancher.”

While the name may not seem like that big of a deal, it’s actually an important part of communicating with “farmers.”

“I work with a lot of people who work with farmers, and I hear them use different terms like ‘grower’ and ‘producer’ to refer to farmers. So I decided to ask farmers what they prefer to be called,” said J. Arbuckle, rural sociologist with Iowa State University Extension and Outreach and lead author for the poll. “Turns out they prefer to be called farmers, by a long shot. That’s important to know because to communicate effectively with audiences, we need to use terms that resonate with them.”

Some of the issues this year’s poll examines include climate change, soil and water conservation, rented land, woodland ownership and management, and markets for non-GMO corn.

This year’s survey is based on responses from 972 farmers. Nearly all (90%) plant corn or soybeans, and about half (47%) raise livestock.

New this year is a series of questions related to woodland ownership and management.

“Many farms have at least some woodland area, so we wanted to gain a better understanding of how that is being managed and the types of resources landowners are using,” said Billy Beck, forestry specialist with ISU Extension and Outreach. “These results will help us improve how we work with farmers who have woodlands.

Also new – the poll examines markets for non-GMO corn, in response to countries that have banned the import of GMO corn. Nineteen percent of farmers reported they were interested in contracting to grow non-GMO corn for export, while 54% said they were not and 27% said they were unsure.

Arbuckle said the Farm Poll is a great way for farmers to make their voices heard, while helping to contribute to a better understanding of challenges and opportunities in Iowa agriculture.

“The benefit is that farmers can confidentially share their perspectives on issues that impact their livelihoods, and the results help guide policy and program decisions that keep agriculture vibrant into the future,” he said.

Detailed results from the poll will be examined in future news releases from ISU Extension and Outreach. The full report is available from your ISU Extension and Outreach county office, the ISU Extension Store, the Extension Sociology website or from the authors.

Contacts:
J. Gordon Arbuckle, Sociology, 515-294-1497; arbuckle@iastate.edu

January 22, 2024
Hennessy publishes in Science of the Total Environment permalink

Professor David Hennessy published in the most recent issue of Science of the Total Environment. Hennessy co-authored the article "Health burden associated with tillage-related PM2.5 pollution in the United States, and mitigation strategies" with Ashish Pokharel and Felicia Wu of Michigan State University. The article estimates the annual deaths and disability-adjusted life years (DALYs) from CVD and COPD attributable to PM2.5 emissions from corn, soybean, cotton, and wheat tillage in the contiguous United States. The authors estimate that approximately 1000 annual deaths and 22,000 DALYs from CVD, as well as 300 annual deaths and 7400 DALYs from COPD, were attributable to tillage-related PM2.5 emissions. Tillage related primary PM2.5 emissions contribute about 0.002 % of total CVD and COPD deaths in the United States, and its related health economic value loss is about 12.9 billion USD annually.

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Professor David Hennessy published in the most recent issue of Science of the Total Environment. Hennessy co-authored the article "Health burden associated with tillage-related PM2.5 pollution in the United States, and mitigation strategies" with Ashish Pokharel and Felicia Wu of Michigan State University. The article estimates the annual deaths and disability-adjusted life years (DALYs) from CVD and COPD attributable to PM2.5 emissions from corn, soybean, cotton, and wheat tillage in the contiguous United States. The authors estimate that approximately 1000 annual deaths and 22,000 DALYs from CVD, as well as 300 annual deaths and 7400 DALYs from COPD, were attributable to tillage-related PM2.5 emissions. Tillage related primary PM2.5 emissions contribute about 0.002 % of total CVD and COPD deaths in the United States, and its related health economic value loss is about 12.9 billion USD annually.

Health burden associated with tillage-related PM2.5 pollution in the United States, and mitigation strategies
Ashish Pokharel, David Hennessy, and Felicia Wu
Science of the Total Environment 903(2023):166161
doi: 10.1016/j.scitotenv.2023.166161

January 22, 2024
Zhao, Hennessy publish in Agronomy Journal permalink

PhD Student Yue Zhao and Professor David Hennessy recently published in Agronomy Journal. Zhao and Hennessy co-authored the article "Information Conveyed by Management Zones and Optimal Soybean Seeding Rate" with Laura E. Lindsey and Alexander J. Lindsey of The Ohio State University and Maninder P. Singh of Michigan State University. The article constructs an economic conceptual model for evaluating information conveyed by variable rate seeding management zones. Results show that management zones in four out of 10 trials do not display statistically significant differences in marginal seed productivity.

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PhD Student Yue Zhao and Professor David Hennessy recently published in Agronomy Journal. Zhao and Hennessy co-authored the article "Information Conveyed by Management Zones and Optimal Soybean Seeding Rate" with Laura E. Lindsey and Alexander J. Lindsey of The Ohio State University and Maninder P. Singh of Michigan State University. The article constructs an economic conceptual model for evaluating information conveyed by variable rate seeding management zones. Results show that management zones in four out of 10 trials do not display statistically significant differences in marginal seed productivity.

Information Conveyed by Management Zones and Optimal Soybean Seeding Rate
Yue Zhao, D.A. Hennessy, L. Lindsey, M. Singh, and A. Lindsey
Agronomy Journal 116(1):289-301
doi.org/10.1002/agj2.21509

January 19, 2024
New and updated farmer decision tools available permalink

Associate Professor Alejandro Plastina and Iowa State Farm Management Specialist Kelvin Leibold have released two new farm decision tools on the Iowa State University Ag Decision Maker website. ARC-CO & PLC Per Acre Payment Estimator for Iowa, 2024-2025, uses reported and projected prices from USDA Farm Service Agency and Risk Management Agency to project county-level ARC-CO and PLC payments, and ARC-CO & PLC Per Acre Payment Projections by Crop and County for Iowa, 2019-23, provides projections on Iowa county level payments under ARC-CO and PLC for the 2022 crop as well as historical payment data for crop years 2019 through 2022. Plastina also updated the Estimated Costs of Crop Production in Iowa for the 2024 calendar year. The decision tool provides estimated costs of corn, corn silage, soybean, alfalfa, and pasture maintenance based on data from several sources, such has the annual Iowa Farm Business Association record summaries, production and costs data from the Departments of Economics, Agricultural and Biosystems Engineering, and Agronomy at Iowa State University, and a survey of selected agricultural cooperatives and other input suppliers around the state. Plastina noted that farmers only have until March 15 to decide between ARC-CO and PLC.

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Associate Professor Alejandro Plastina and Iowa State Farm Management Specialist Kelvin Leibold have released two new farm decision tools on the Iowa State University Ag Decision Maker website. ARC-CO & PLC Per Acre Payment Estimator for Iowa, 2024-2025, uses reported and projected prices from USDA Farm Service Agency and Risk Management Agency to project county-level ARC-CO and PLC payments, and ARC-CO & PLC Per Acre Payment Projections by Crop and County for Iowa, 2019-23, provides projections on Iowa county level payments under ARC-CO and PLC for the 2022 crop as well as historical payment data for crop years 2019 through 2022. Plastina also updated the Estimated Costs of Crop Production in Iowa for the 2024 calendar year. The decision tool provides estimated costs of corn, corn silage, soybean, alfalfa, and pasture maintenance based on data from several sources, such has the annual Iowa Farm Business Association record summaries, production and costs data from the Departments of Economics, Agricultural and Biosystems Engineering, and Agronomy at Iowa State University, and a survey of selected agricultural cooperatives and other input suppliers around the state. Plastina noted that farmers only have until March 15 to decide between ARC-CO and PLC.

Plastina's other recent tools include Suggested Closing Inventory Prices for 2023 Records, co-authored with Chad Hart and Lee Schulz, and Deductible Livestock Costs for Adjusting 2023 Income Tax Returns.

January 19, 2024
Arbuckle, Plastina join Journal of Soil and Water Conservation editorial board permalink

J. Gordon Arbuckle and Alejandro Plastina have both joined the editorial board of the Journal of Soil and Water Conservation. Plastina will serve as an associate editor, and Arbuckle will serve as a research editor and co-chair of the editorial board.

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J. Gordon Arbuckle and Alejandro Plastina have both joined the editorial board of the Journal of Soil and Water Conservation. Plastina will serve as an associate editor, and Arbuckle will serve as a research editor and co-chair of the editorial board.

In a press release, the journal said that it will add a second research editor for the first time since its inception. Arbuckle will oversee the review of research in the social sciences. “We are seeing more submissions from social scientists across the globe than ever before, and we want to ensure we are meeting the needs of our readers by publishing the best, high quality, up-to-date research in all the sciences—both physical and social—that is needed to advance conservation, particularly with the urgency in making our food systems and communities resilient to climate change,” Gretchen Sassenrath, JSWC research co-editor said in the release.

January 19, 2024
Chandio featured in Chicago Fed Insights permalink

Rabail Chandio was featured in the January 2024 edition of Chicago Fed Insights in their article "Farmers Still the Primary Owners of Farmland, Midwest Ag Conference Attendees Are Told," which you can read in full here.

December 22, 2023
Brighenti, Gassman publish in Journal of the ASABE permalink

Postdoctoral Researcher Tássia Mattos Brighenti and Research Scientist Phil Gassman published in the most recent issue of Journal of the ASABE. Brighenti and Gassman authored the article "Comparison of Two Tile-Drain Methods in SWAT via Temporal and Spatial Testing for an Iowa Watershed" with Jeffrey Arnold of the USDA-ARS Grassland Soil and Water Research Laboratory and Jan Thompson of Iowa State's Department of Natural Resource and Ecology Management. The article investigates the application of two different SWAT tile-drain calculation methods (empirically and physically-based) in simulating the streamflow of the Des Moines River Basin and finds both empirical function and physically-based methods have satisfactory model performance for monthly and daily calibration (NSE > 0.5; KGE > 0.6; Pbias < ±25%).

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Postdoctoral Researcher Tássia Mattos Brighenti and Research Scientist Phil Gassman published in the most recent issue of Journal of the ASABE. Brighenti and Gassman authored the article "Comparison of Two Tile-Drain Methods in SWAT via Temporal and Spatial Testing for an Iowa Watershed" with Jeffrey Arnold of the USDA-ARS Grassland Soil and Water Research Laboratory and Jan Thompson of Iowa State's Department of Natural Resource and Ecology Management. The article investigates the application of two different SWAT tile-drain calculation methods (empirically and physically-based) in simulating the streamflow of the Des Moines River Basin and finds both empirical function and physically-based methods have satisfactory model performance for monthly and daily calibration (NSE > 0.5; KGE > 0.6; Pbias < ±25%).

Comparison of Two Tile-Drain Methods in SWAT via Temporal and Spatial Testing for an Iowa Watershed
Tássia Mattos Brighenti, Philip W. Gassman, Jeffrey G. Arnold, and Jan Thompson
Journal of the ASABE 66(6):1555-1569
doi: 10.13031/ja.15534

December 12, 2023
Farmland Values Continue to Rise, Albeit at a Slower Pace permalink

Average land values in Iowa rose 3.7% nominally, 0.5% after adjusting for inflation

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Average land values in Iowa rose 3.7% nominally, 0.5% after adjusting for inflation

Ames, Iowa – Iowa’s farmland values rose again, albeit at a slower pace than the last two years. The annual Iowa State University Land Value Survey found that farmland values increased 3.7% or $424, to $11,835 per acre. The modest increase this year follows a 17% increase in 2022 and a near-record 29% increase in 2021. The nominal value of an acre of farmland is again higher this year than at any point since Iowa State University began surveying values in 1941. When adjusting for inflation, the 2023 average value surpasses 2022’s inflation-adjusted values by 0.5%.

Dr. Rabail Chandio, who is responsible for the annual survey, said many of the factors behind the large surge in values last year supported the increase this year as well. “Interest rates were lower through the first half of the year, commodity prices were still elevated, crop yields were a positive surprise despite the weather challenges throughout the growing season, cash and credit availability remained ample and allowed farmers to stay aggressive in the land market, and investor demand grew stronger nudged by inflation concerns and lack of alternative investment options,” she said.

The Federal Reserve has used interest rate hikes to help curb inflation rates that ballooned from mid-2021 through 2022; however, Chandio said that the pace of those hikes has been tempered. “The goal is to control inflation without triggering a recession, a strategy that has proven successful in 2023, and we hope to see maintained stability through 2024,” she said. She also noted that since the economy has not reached the 2% inflation target, she anticipates future interest rate increases.

Future rate increases will continue to slow the growth in farmland values, but not immediately. “It takes a couple of years for interest rates to be reflected in farmland values,” Chandio said. “The impact of the aggressive interest rate hikes of 2022 is expected to be felt more strongly in 2024 and beyond, resulting in much more modest growth or even decreases in land values in the coming years.”

Commodity prices were a commonly cited positive influence on this year’s farmland values. Chandio said they were elevated earlier in the year due to weather and geopolitical uncertainties, but they have decreased as of the end of the year. However, she said, “In terms of their influence on land values, they had a more positive impact on the land markets this year than a negative one.”

Chandio also noted farmers having ample cash reserves as an influence on land values this year. She attributed farmers’ recent accumulation of cash reserves to high net farm incomes. “Although the farm income forecast for December 2023 anticipates a decrease from 2022 levels, U.S. net farm income in 2023 remains over 30% higher than the 2020 level and the 20-year average (2003–2022),” she said. “The combination of debt-free ownership of most land, substantial farm incomes, and limited land supply means that farmers still maintain significant cash reserves.”

After three years of increases, Chandio says that we are currently at a plateau in farmland values. “While positive influences were more prominent at the beginning of the year, negative pressures are building as we approach 2024. Barring any unusual activity in the land markets, we may see the curve start to decline in the next year or so,” she said.

Chandio’s prediction tracks with the survey respondents’ near-term expectations—49% expect a decline in farmland values in one year, and only 30% expect an increase. Respondents were more optimistic about values five years out—a full 70% of respondents expect values to be up in five years.

Land Values by County
Eighty-seven of Iowa’s 99 counties showed an increase in land values. Sioux County topped the list this year with a per-acre value of $16,521, an increase of or $5 per acre, or 0.03%. Decatur County again reported the lowest value, $6,286 per acre; however, Decatur County saw land values increase 12.9%, or $720 per acre, which tied with Appanoose, Wayne, and Lucas Counties as the largest percent increase.

Marion County saw the largest dollar increase, $1,117 per acre. Scott County saw the largest dollar decline in values (a loss of $630/acre) as well as the largest percent decline in values (-3.9%).

Land Values by District
Land values increased in eight out of nine crop reporting districts. The Northwest district is the only district that reported an overall percentage loss (down 0.8%) and dollar loss (down $125 per acre) brining average land values there to $14,753. The Southeast district reported the largest gains both in terms of percentage increase (12.8%) and dollar increase ($1,183 per acre) bringing average values there to $10,460 per acre.

The South Central district reported the lowest dollar value, $7,482 per acre; however, per-acre values there are up 9.6% ($657 per acre).

Land Values by Quality
Statewide, low-quality land now averages $7,664 per acre, an increase of 4.0% or $296 per acre. Medium-quality land now averages $11,075 per acre, an increase of 3.8% or $401 per acre. High-quality land now averages $14,296 per acre, an increase of 3.5% or $479 per acre.

Despite an overall loss of value, the Northwest district reported the highest values for low-, medium-, and high-quality land at $9,497, $13,731, and $16,938 per acre, respectively. Despite the overall 9.6% increase, the South Central district reported the lowest values for low-, medium-, and high-quality land at $5,105, $7,498, and $9,718 per acre, respectively.

Low-quality land saw the largest percent increase 17.6%, and the largest dollar increase, $951 per acre, in the Southeast district. Low-quality land in the East Central district saw the largest percent decrease (-4.2%) and the largest dollar decrease (down $354 per acre).

Medium-quality land saw the largest percent increase (13.6%) and dollar increase ($1,181 per acre) in the Southeast district. The East Central district saw the only decrease in medium-quality land, which declined 0.1% or $14 per acre.

High-quality land saw the largest percentage increase (10.4%) and dollar increase ($1,329 per acre) in the Southeast district. The Northwest district reported the only decrease in high-quality land in terms of percentage (-1.1%) and dollar value (down $183 per acre).

Factors Influencing the Land Market
The most frequently mentioned positive factor influencing the land market was limited land supply. Stronger-than-expected yields and cash on hand/high credit availability were the second- and third-most frequently mentioned factors. Other frequently mentioned factors included higher commodity prices, strong demand for land, a good farm economy, and favorable interest rates.

The most frequently mentioned negative factor affecting land values was interest rate hikes. Other noted factors included lower commodity prices, higher input costs, weather uncertainty, stock market volatility, land availability, and an uncertain ag future.

Land values were determined by the 2023 Iowa State University Land Value Survey, conducted in November by the Center for Agricultural and Rural Development at Iowa State and Iowa State University Extension and Outreach. Results from the survey are consistent with results by the Federal Reserve Bank of Chicago, the REALTORS® Land Institute, and the U.S. Department of Agriculture.

The Iowa State Land Value Survey is based on reports by agricultural professionals knowledgeable of land market conditions, such as appraisers, farm managers, agricultural lenders, and actual land sales, and is intended to provide information on general land value trends, geographical land price relationships, and factors influencing the Iowa land market. The 2023 survey is based on 417 usable responses from 282 agricultural professionals. Forty-one percent of the 282 respondents answered the survey online.

The Iowa State Land Value Survey was initiated in 1941, the first in the nation, and is sponsored annually by Iowa State. The survey is typically conducted every November and the results are released mid-December. Only the state average and the district averages are based directly on the Iowa State survey data. County estimates are derived using a procedure that combines the Iowa State survey results with data from the U.S. Census of Agriculture.

CARD offers a web portal at https://www.card.iastate.edu/farmland/ that includes visualization tools, such as charts and interactive county maps, allowing users to examine land value trends over time at the county, district, and state level.

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
Rabail Chandio, 515-294-2536; rchandio@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

November 15, 2023
Iowa State Land Value Survey News Conference to be held December 12 permalink

Ames, IA – A news conference will be held at 10:00 a.m. on Tuesday, December 12 to announce the results of the 2023 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. Please note the change in location from previous years—the conference will take place in room 0008 of Curtiss Hall on the Iowa State campus in Ames.

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Ames, IA – A news conference will be held at 10:00 a.m. on Tuesday, December 12 to announce the results of the 2023 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. Please note the change in location from previous years—the conference will take place in room 0008 of Curtiss Hall on the Iowa State campus in Ames.

For those who can’t attend the conference, a livestream will be available on YouTube at http://bit.ly/LandResults2023.

Rabail Chandio, assistant professor of economics and farm management specialist, will head the news conference and announce the 2023 findings. Printed materials will be provided at the conference, including Iowa land value data from 1950 to present, current land value data from all 99 counties, and a press release summarizing the 2023 results. Dr. Chandio will make herself available to reporters for follow-up questions or one-on-one interviews immediately following the presentation of results.

The Iowa State Land Value Survey is currently ongoing, if you are an agricultural professional knowledgeable about the farmland market who has not participated in this year’s survey, you can participate in the Iowa State Land Value Survey online by November 30 at https://bit.ly/landvalue2023. If you have questions regarding the survey, please contact Dr. Rabail Chandio at rchandio@iastate.edu or call 515-294-6181. You can also see the land value trends at the county, district, and state level since 1950 at the interactive Iowa Farmland Value Portal at https://www.card.iastate.edu/farmland/.

An archive of the video and the printed materials available at the conference will be posted on the CARD homepage at https://www.card.iastate.edu soon after the conference.

Contacts:
Rabail Chandio, 515-294-6181; rchandio@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

November 15, 2023
Hayes receives USDA-ERS grant permalink

Professor Dermot Hayes received a $30,000 grant from the US Department of Agriculture’s Economic Research Service for the project “Food choices, food access, and nutritional outcomes.” Hayes’ project will assess how the entrance or exit of food-away-from-home establishments in the food retailer’s neighborhood affects consumers’ shopping behavior and nutritional outcomes.

November 6, 2023
Plastina publishes in Renewable Agriculture and Food Systems permalink

Associate Professor Alejandro Plastina published in the most recent issue of Renewable Agriculture and Food Systems. Plastina authored the article "Does grazing winter cereal rye in Iowa, USA, make it profitable?" with Jyotsna Acharya and Alison Robertson of Iowa State's Department of Plant Pathology, Entomology, and Microbiology and Fernando Mauri Marcos, Md. Rasel Parvej, and Mark Licht of Iowa State's Department of Agronomy.
The article evaluates the short-run private net returns to producers implementing a cereal rye (Secale cereale L.) cover crop preceding the no-till corn (Zea mays L.) phase of a US Midwest corn–soybean (Glycine max [L.] Merr.) rotation in an integrated crop and cow–calf operation.

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Associate Professor Alejandro Plastina published in the most recent issue of Renewable Agriculture and Food Systems. Plastina authored the article "Does grazing winter cereal rye in Iowa, USA, make it profitable?" with Jyotsna Acharya and Alison Robertson of Iowa State's Department of Plant Pathology, Entomology, and Microbiology and Fernando Mauri Marcos, Md. Rasel Parvej, and Mark Licht of Iowa State's Department of Agronomy.
The article evaluates the short-run private net returns to producers implementing a cereal rye (Secale cereale L.) cover crop preceding the no-till corn (Zea mays L.) phase of a US Midwest corn–soybean (Glycine max [L.] Merr.) rotation in an integrated crop and cow–calf operation.

Does grazing winter cereal rye in Iowa, USA, make it profitable?
A. Plastina, J. Acharya, F.M. Marcos, M.R. Parvej, M.A. Licht, and A.E. Robertson
Renewable Agriculture and Food Systems 38:E45
doi:10.1017/S1742170523000388

October 27, 2023
Farm Poll Examines Farmers' Use and Opinions of Precision Agriculture permalink

AMES, Iowa – One of the biggest keys to farm profitability is being efficient. Farmers are constantly looking for ways to improve yields while managing their inputs, and one of the ways they’ve done this for the past several years is by using precision agriculture.

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AMES, Iowa – One of the biggest keys to farm profitability is being efficient. Farmers are constantly looking for ways to improve yields while managing their inputs, and one of the ways they’ve done this for the past several years is by using precision agriculture.

Although this term can be defined many ways, the United States Department of Agriculture calls it a suite of technologies that can reduce input costs by providing the farm operator with detailed spatial information, that can be used to optimize field management practices.

In essence, it's producing more with less. But precision agriculture is a diverse field, and farmers approach it differently.

To better understand farmers’ use and opinions of precision agriculture, the 2022 Iowa Farm Poll asked questions about specific types of precision ag. The report, authored by extension sociologist J. Arbuckle, rural sociology graduate student Joe Hollis, and assistant professor of rural sociology Katie Dentzman, examines farmers’ use of precision agriculture, their views on potential benefits, as well as their concerns about potential downsides.

According to the poll, 66% of responding farmers said they use global positioning system yield monitors or maps, followed by 56% who use GPS guidance systems, such as autosteer, and 56% who said they use variable rate equipment such as sprayers and fertilizer equipment.

On the other hand, some technologies, like use of data from online decision tools, show less usage currently, but a strong likelihood of being adopted in the future. In 2021, 30% of farmers said they used this technology, while 21% said they plan to do so within the next three years and 25% said they are open to the technology in the future.

“We know that farmers have been using precision agriculture for some time, but what we have not always known is which types, to what extent and what the barriers to adoption may be,” said J. Arbuckle, rural sociologist with Iowa State University Extension and Outreach and lead author.

Trends among farmers

The survey of nearly 1,000 farmers measures the practices farmers are already using and the practices they intend to use in the future.

According to Arbuckle, adopting new technology is a process that starts with farmers knowing that it exists and then forming favorable opinions that lead to adoption.

“First, a farmer has to be aware of the technology, then consider the potential pros and cons of use, and then based on results of their research, form an intention to try it,” he said.

The survey results indicated that many of the farmers who were not using different precision agriculture technologies were open to use or actually intended to try them in the near future. Farmers were especially interested in adopting drones and on-farm sensor technology, as well as data from online decision tools.

According to the results, 18% of farmers plan to use drones within the next three years, while 29% are not planning to use drones but are open to using them down the road.

Benefits and barriers

The survey also asked farmers about potential benefits and downsides of precision technologies. While most farmers agreed or strongly agreed that precision agriculture could increase efficiency related to inputs, and nearly 80% agreed that the same technology could increase yields for individual crops, there is still a wide range of opinions about some aspects of precision technology.

More than half of farmers expressed concern over what their data might be used for, with 52% concerned their data could be used for regulatory purposes, and 41% concerned corporations would use the data for their own benefit, and not for farmers.

More than 70% were concerned that precision agriculture would lead to fewer and larger farms.

While concerns remain, co-author Dentzman said this information about farmers’ openness to precision agriculture can be useful for private and public sector entities that work to help farmers increase productivity while minimizing environmental impacts.

“Farmers see many benefits from precision agriculture, but they have important concerns as well,” said Dentzman. “This is useful information not only for farmers, but for those who are researching and developing the future of precision agriculture.”

About the poll

The Iowa Farm and Rural Life Poll survey is conducted by Iowa State University Extension Sociology, in partnership with Iowa State’s Center for Survey Statistics and Methodology. It is supported by ISU Extension and Outreach and the Iowa Agriculture and Home Economics Experiment Station.

Contacts:
J. Gordon Arbuckle, Sociology, 515-294-1497; arbuckle@iastate.edu

October 16, 2023
Study examines factors influencing farmers’ use of nutrient management practices permalink

AMES, Iowa - A study of Iowa farmers’ use of 4R Plus nutrient management practices offers insights into social, economic, and ecological influences on adoption that operate at both an individual level and within a larger, county-level context.

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AMES, Iowa - A study of Iowa farmers’ use of 4R Plus nutrient management practices offers insights into social, economic, and ecological influences on adoption that operate at both an individual level and within a larger, county-level context.

The 4R approach to agricultural nutrient management aims to ensure use of the “right source” of nutrients at the “right rate,” the “right time” and in the “right place” for efficient use of fertilizers to avoid nutrient loss and maximize farm income. While 4R refers to in-field nutrient management practices, “Plus” refers to in-field conservation practices, such as no-till and cover crops, and edge-of-field conservation practices, including bioreactors or saturated buffers.

“There has been a lot of research looking at adoption of individual 4R Plus conservation practices. However, we think this is the first study that examines a full range of 4R Plus practices,” said J. Arbuckle, professor of sociology at Iowa State University and director of the annual Iowa Farm and Rural Life Poll.

Arbuckle was on the research team who reported findings from the project recently in the Journal of Soil and Water Conservation, with Suraj Upadhaya, now assistant professor of sustainable systems at Kentucky State University, who worked on the project as an Iowa State research scientist, and Lisa Schulte Moore, professor of natural resource ecology and management at Iowa State.

They conducted a multi-level analysis that reflected self-reported data from just over 6,000 farmers across the state from 2015-2019, representing a response rate of 42% out of about 14,000 contacts. Data were gathered on use of 14 different 4R Plus practices and other diverse factors, including information sources, attitudes, demographics and farm characteristics. The responses were analyzed along with county-level data from the same period that assessed several contextual factors which could impact farmer decision-making - average farm income, percent of farmland rented, slope of cropland and rate of participation in crop insurance.

Among the findings:
• 86% of farmers said they had used one or more 4R practice;
• 6% reported they had used three 4R practices (right source, rate and time); and
• Roughly 83% said they had used at least one in-field or edge-of-field “plus” practice.

Not surprisingly, farmers with more positive attitudes toward the Iowa Nutrient Reduction Strategy were more likely to have used many of the practices. The INRS is a strategy centered on voluntary adoption of diverse conservation practices to reduce nutrient losses contributing to water quality impairments across the Upper Midwest and hypoxic conditions in the Gulf of Mexico. Also, farmers with land adjacent to water bodies, such as creeks, streams, rivers or lakes, were more likely to have adopted Plus practices.

Other significant findings of the study:
• Lack of confidence in agronomic capacity to address nutrient losses was negatively associated with use of all the 4R Plus practices, except for the right source;
• Acres of cropland and pasture showed positive associations with use of 4R practices;
• County-level average crop insurance coverage level was negatively related to adoption of both in-field and edge-of-field Plus practices;
• Individuals farming in counties with a higher percentage of rented land were less likely to have adopted right time, right source and edge-of-field practices;
• Farmers in counties with a greater average slope were less likely to adopt nutrient management practices, but more likely to adopt the “plus” conservation practices.

“Many Iowa farmers indicate they still lack confidence in their capacity to reduce nutrient loss despite major efforts to promote nutrient management,” the study’s lead author Upadhaya said. “This points to a continuing need to help farmers gain confidence in their ability to follow 4R Plus stewardship guidelines, which could save them money and improve environmental outcomes.”

Crop insurance, purchased by most row crop farmers in intensively farmed areas in the United States, also may be an obstacle to farmers’ adoption of 4R Plus practices, according to the study.

“Crop insurance is a critically important safety net tool, but we need to make sure that short-term risk management policies do not undermine long-term goals for agricultural sustainability and food security,” Arbuckle said.

The study suggests that new programs, such as the Post-Application Coverage Endorsement (PACE), which reduces financial risks associated with in-season N application, could help mitigate current disincentives discouraging use of nutrient management and other conservation practices.

“This work is important to help us understand how best to tailor policy, research and education to encourage use of nutrient management practices,” said Matthew Helmers, director of the Iowa Nutrient Research Center, which helped fund the study. Other support came from the Nature Conservancy, Iowa State’s Consortium for Cultivating Human and Naturally reGenerating Enterprises (C-CHANGE) initiative, the Iowa Department of Agriculture and Land Stewardship and Iowa State University Extension and Outreach.

This study is unique, due to its innovative multi-level analysis that examined the influence of both individual-level characteristics and county-level contextual factors on adoption behaviors, according to Upadhaya.

“The results are complicated, though, due to the number of predictor variables and conservation practices,” he said. “The relationships between variables were not as consistent as we anticipated, indicating that factors influencing adoption vary among practice types. This area needs additional exploration.”

CALS News Service

Contacts:
J. Arbuckle, Sociology and Criminal Justice, 515-294-1497; arbuckle@iastate.edu
Ann Robinson, Agriculture and Life Sciences Communications, 515-294-3066; ayr@iastate.edu

October 16, 2023
Feng participating in agrivoltaics research project, facility ribbon cutting on October 19 permalink

Assistant Professor Hongli Feng is a co-PI of an interdisciplinary team of Iowa State University researchers studying the emerging concept of agrivoltaics--using solar power sites for agricultural purposes to make more efficient use of the land and create value for the communities where solar panels are located. Funded by a $1.8 million, four-year grant from the US Department of Energy, most of the research will be conducted a few miles south of Ames on a 1.35 megawatt solar farm. The project will raise bees and plant vegetables, fruits, and pollinator habitat within the 10-acre Alliant Energy Solar Farm at Iowa State.

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Assistant Professor Hongli Feng is a co-PI of an interdisciplinary team of Iowa State University researchers studying the emerging concept of agrivoltaics--using solar power sites for agricultural purposes to make more efficient use of the land and create value for the communities where solar panels are located. Funded by a $1.8 million, four-year grant from the US Department of Energy, most of the research will be conducted a few miles south of Ames on a 1.35 megawatt solar farm. The project will raise bees and plant vegetables, fruits, and pollinator habitat within the 10-acre Alliant Energy Solar Farm at Iowa State.

Feng co-leads the socio-econ aspect of the project. Besides co-leading research related to the benefits and costs of agrivoltaics, Feng will also investigate the perceptions and attitudes of different stakeholder groups such as landowners, developers, and the general public as well as the factors that drive those perceptions and attitudes.

Iowa State will hold a ribbon-cutting for the new solar farm on October 19.

Who: Alliant Energy, Iowa State University and more
What: Ribbon cutting for the Alliant Energy Solar Farm at Iowa State University
Learn about this public - private partnership that will identify impacts on energy, horticultural crops and beekeeping production.
When: Thursday, October 19, 10:30 a.m., remarks at 10:45 a.m.
Where: 52166 260th St., Ames, IA

*Please note - this event will be outdoors. No open-toed shoes or heels will be allowed on the property. Please dress accordingly for an outdoor, field event.

RSVP here.

September 7, 2023
Dumortier named Applied Economic Perspectives and Policy editor permalink

CARD collaborator Jerome Dumortier has been named editor of Applied Economics Perspectives and Policy, a publication of the Agricultural & Applied Economics Association. Dumortier will start his AEPP duties on January 1, 2024.

August 25, 2023
DePaula publishes in Journal of Developmental Economics permalink

Assistant Professor Guilherme DePaula published in the most recent issue of Journal of Developmental Economics. DePaula is the author of "Bundled contracts and technological diffusion: Evidence from the Brazilian soybean boom." The article analyzes a novel panel dataset with farm-level census data and finds that a bundled contract including technology, finance, inputs, and market access led to rapid technological diffusion, agricultural expansion, and a 10-fold increase in agricultural productivity by enabling the conversion of marginal land into commercial soybean plantations.

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Assistant Professor Guilherme DePaula published in the most recent issue of Journal of Developmental Economics. DePaula is the author of "Bundled contracts and technological diffusion: Evidence from the Brazilian soybean boom." The article analyzes a novel panel dataset with farm-level census data and finds that a bundled contract including technology, finance, inputs, and market access led to rapid technological diffusion, agricultural expansion, and a 10-fold increase in agricultural productivity by enabling the conversion of marginal land into commercial soybean plantations.

Bundled contracts and technological diffusion: Evidence from the Brazilian soybean boom
Guilherme DePaula
Journal of Developmental Economics 165(2023):103163
doi: 10.1016/j.jdeveco.2023.103163

July 28, 2023
Martens publishes in Energies permalink

Associate Professor Bobby Martens published in the journal Energies,. Martens co-authored the article "Cost Assessment of Centralizing Swine Manure and Corn Stover Co-Digestion Systems" with Gabrielle M. Meyers, Daniel S. Andersen, and D. Raj Raman, all of Iowa State University.

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Associate Professor Bobby Martens published in the journal Energies,. Martens co-authored the article "Cost Assessment of Centralizing Swine Manure and Corn Stover Co-Digestion Systems" with Gabrielle M. Meyers, Daniel S. Andersen, and D. Raj Raman, all of Iowa State University.

The article explores the economics of anaerobic digestion systems in Iowa to evaluate reasons for low deployment and explores the production cost impacts of biogas cleaning and injection into the natural gas grid, amending manure with biomass, and centralizing digesters across multiple farms. Key findings include that under the model assumptions, distributed, farm-scale digesters are not competitive with average natural gas prices in Iowa.

Cost Assessment of Centralizing Swine Manure and Corn Stover Co-Digestion Systems
Gabrielle M. Meyers, Daniel S. Andersen, Bobby J. Martens, and D. Raj Raman
Energies 2023 16(11):4315
doi: 10.3390/en16114315

July 27, 2023
Ji publishes in Annual Review of Resource Economics and Environmental and Energy Policy and the Economy permalink

Research Scientist Yongjie Ji co-authored the articles "The Economics of Nutrient Pollution from Agriculture" in Annual Review of Resource Economics and "Environmental Justice and the Clean Water Act: Implications for Economic Analyses of Clean Water Regulations in Environmental and Energy Policy and the Economy.

The ARRE article, authored with Gemma Del Rossi of the University of California and Mohammad Mainul Hoque and Catherine L. Kling of Cornell University summarizes data trends on commercial fertilizer use, manure, cropland, and concentrations of nitrogen and phosphorus in waterways and presents data indicating that fertilizer applications per acre of US cropland exhibit an upward trend, with a strong spatial correlation between agricultural intensification and nutrient contents in waterbodies.

The EEPE article, which Ji co-authored with Tihitiana Andarge and David A. Keiser of the University of Massachusets Amherst, and Bonnie L. Keeler and Conor McKenzie of the University of Minnesota, seeks to understand how prior guidelines have been implemented in federal regulatory reviews related to the Clean Water Act and provide a baseline for future studies of the distributional effects of clean water regulations.

The Economics of Nutrient Pollution from Agriculture
Gemma Del Rossi, Mohammad Mainul Hoque, Yongjie Ji, and Catherine L. Kling
Annual Review of Resource Economics 15(October 2023)
doi: 10.1146/annurev-resource-111820-021317

Environmental Justice and the Clean Water Act: Implications for Economic Analyses of Clean Water Regulations
Tihitiana Andarge, Yongjie Ji, Bonnie L. Keeler, David A. Keiser, and Conor McKenzie
Environmental and Energy Policy and the Economy 5
https://ideas.repec.org/h/nbr/nberch/14879.html

July 27, 2023
Arbuckle publishes in Society & Natural Resources permalink

Professor J. Arbuckle published in the most recent issue of Society & Natural Resources. Arbuckle authored the article "Measuring and Predicting Iowa Farmers’ Current and Potential Future Use of Cover Crops" with Laurie Nowatzke, Coordinator of the Midwest Climate Hub in Ames, Iowa.

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Professor J. Arbuckle published in the most recent issue of Society & Natural Resources. Arbuckle authored the article "Measuring and Predicting Iowa Farmers’ Current and Potential Future Use of Cover Crops" with Laurie Nowatzke, Coordinator of the Midwest Climate Hub in Ames, Iowa.

The article draws on the reasoned action approach and diffusion-adoption frameworks to understand individual-level and external factors that influence farmers’ adoption of cover crops, an agricultural conservation practice.The study explores variation among non-adopters and contributes to a more nuanced understanding of potential future adopters of cover crops in Iowa.

Measuring and Predicting Iowa Farmers’ Current and Potential Future Use of Cover Crops
Laurie W. Nowatzke and J. G. Arbuckle
Society & Natural Resources 36(2023):755-775
doi: 10.1080/08941920.2023.2183442

July 19, 2023
Moschini publishes in International Journal of Industrial Organization permalink

Professor GianCarlo Moschini published in the most recent issue of International Journal of Industrial Organization. Moschini authored the article "Switching costs in the US seed industry: Technology adoption and welfare impacts" with Jinjing Luo of Citibank and Edward Perry of Kansas State University. The article evaluates the role of brand and technology switching costs in the US soybean seed industry using a unique dataset of actual seed purchases by about 28,000 farmers from 1996 to 2016 and finds that farmers are willing to pay large premiums for brand labels, and even larger premiums for the GT trait, although there is considerable heterogeneity in these values.

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Professor GianCarlo Moschini published in the most recent issue of International Journal of Industrial Organization. Moschini authored the article "Switching costs in the US seed industry: Technology adoption and welfare impacts" with Jinjing Luo of Citibank and Edward Perry of Kansas State University. The article evaluates the role of brand and technology switching costs in the US soybean seed industry using a unique dataset of actual seed purchases by about 28,000 farmers from 1996 to 2016 and finds that farmers are willing to pay large premiums for brand labels, and even larger premiums for the GT trait, although there is considerable heterogeneity in these values.

Switching costs in the US seed industry: Technology adoption and welfare impacts
Jinjing Luo, GianCarlo Moschini, Edward D. Perry
International Journal of Industrial Organization 89(2023):102977
doi: 10.1016/j.ijindorg.2023.102977

June 30, 2023
Plastina co-authors new Egg Industry Center study permalink

Associate Professor Alejandro Plastina co-authored a new study for Iowa State University's Egg Industry Center. The study helps egg farmers compare industry costs with their own operational costs of processing (washing and weighing), putting eggs in cartons, and transporting eggs to market. The Egg Industry Center published special reports estimating the same costs for 2018, 2020 and 2021. The new report updates these estimates for 2022.

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Associate Professor Alejandro Plastina co-authored a new study for Iowa State University's Egg Industry Center. The study helps egg farmers compare industry costs with their own operational costs of processing (washing and weighing), putting eggs in cartons, and transporting eggs to market. The Egg Industry Center published special reports estimating the same costs for 2018, 2020 and 2021. The new report updates these estimates for 2022.

Some key findings from the study include:
-Most costs are higher than those estimated in the previous report for 2021.
-The largest difference with respect to the previous study is in the grade yield loss followed by the processing cost.
-The large price difference between large, medium, and small-size eggs in 2022 resulted in a much larger value for the estimated grade yield loss than in previous years.
-Cost line items with higher variability among survey respondents are probably where processors have most opportunities to reduce costs.

Read the press release here. The study can be read here.

June 22, 2023
Plastina receives Outstanding Article Award, will be recognized by AAEA permalink

Associate Professor Alejandro Plastina has been selected to receive the Choices Magazine Outstanding Article Award for "The Invisible Elephant: Disadoption of Conservation Practices in the United States." Plastina authored the article with Wendiam Sawadgo, an assistant professor and extension economist at Auburn University. At the time the article was written, Sawadgo was a PhD student in Iowa State University's Department of Economics.

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Associate Professor Alejandro Plastina has been selected to receive the Choices Magazine Outstanding Article Award for "The Invisible Elephant: Disadoption of Conservation Practices in the United States." Plastina authored the article with Wendiam Sawadgo, an assistant professor and extension economist at Auburn University. At the time the article was written, Sawadgo was a PhD student in Iowa State University's Department of Economics.

The article examines trends in cover crop usage in the United States revealed through U.S. Department of Agriculture data. Plastina and Sawadgo found that cover crop adoption increased by 50% between 2012 and 2017, while showing substantial variability across the United States. The use of conservation tillage, including no-till, followed varying patterns through time and across main cash crops—an initial period of substantial growth in conservation tillage and no-till wheat (2004–2009) and soybeans (2002–2006) was followed by less rapid gains for wheat (2009–2017) and decline in conservation tillage and no-till soybeans (2006–2012), while growth in conservation tillage and no-till use was modest in corn and cotton.

Plastina and Sawadgo will be recognized during the Agricultural and Applied Economics Association Awards & Fellows Recognition Ceremony on Monday, July 24 at the 2023 Annual Meeting in Washington, DC.

June 16, 2023
Gassman publishes in Agricultural Systems permalink

Research Scientist Phil Gassman published in the most recent issue of Agricultural Systems. Gassman authored the article "Field scale SWAT+ modeling of corn and soybean yields for the contiguous United States: National Agroecosystem Model Development" with Natalja Cerkasova, Jungang Gao, and Manyowa Meki of Texas A&M AgriLife Research, Michael White, Jeffrey Arnold, Marilyn Gambone, and James Kiniry of USDA-ARS Grassland Soil and Water Research Laboratory, Katrin Bieger of Aarhus University, and Peter Allen of Baylor University.

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Research Scientist Phil Gassman published in the most recent issue of Agricultural Systems. Gassman authored the article "Field scale SWAT+ modeling of corn and soybean yields for the contiguous United States: National Agroecosystem Model Development" with Natalja Cerkasova, Jungang Gao, and Manyowa Meki of Texas A&M AgriLife Research, Michael White, Jeffrey Arnold, Marilyn Gambone, and James Kiniry of USDA-ARS Grassland Soil and Water Research Laboratory, Katrin Bieger of Aarhus University, and Peter Allen of Baylor University.

The article develops the National Agroecosystem Model: a comprehensive model that uses the updated Soil and Water Assessment Tool (SWAT+) to accurately simulate staple crop yields across the contiguous United States, with an initial focus on corn and soybean yields.

Field scale SWAT+ modeling of corn and soybean yields for the contiguous United States: National Agroecosystem Model Development
Natalja Cerkasova, Michael White, Jeffrey Arnold, Katrin Bieger, Peter Allen, Jungang Gao, Marilyn Gambone, Manyowa Meki, James Kiniry, Philip W. Gassman
Agriculture Systems 210(August 2023):103695
doi.org/10.1016/j.agsy.2023.103695

June 8, 2023
Iowa Farmland Trends: More Leased Land, Less Than Half of Farmland Owners Farm permalink

AMES, Iowa — As the average age of Iowa’s farmland owners continues to rise, other trends in landownership have begun to emerge.
According to an Iowa State University study, 58% of Iowa’s farmland is now leased out, a significant increase from the last time the same study was conducted in 2017.

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AMES, Iowa — As the average age of Iowa’s farmland owners continues to rise, other trends in landownership have begun to emerge.
According to an Iowa State University study, 58% of Iowa’s farmland is now leased out, a significant increase from the last time the same study was conducted in 2017.

“There is a long-term trend toward farmland leasing since 1982,” said Wendong Zhang. Zhang is an assistant professor of economics at Cornell University and conducted the Iowa Farmland Ownership and Tenure Survey with Jingyi Tong, a PhD student in the Department of Economics at Iowa State. “The percentage of farmland being leased in Iowa increased from 53% in 2017 to 58% in 2022. This represents a relative increase of roughly one million acres over five years, which is quite significant,” Zhang said.

Conducted by Iowa State since the 1940s, the Iowa Farmland Ownership and Tenure Survey—completed every five years—focuses on forms of ownership, tenancy and transfer of farmland in Iowa, and characteristics of landowners. The latest survey was conducted in July 2022, and was funded by Iowa State’s College of Agriculture and Life Sciences, Iowa Nutrient Research Center, Leopold Center for Sustainable Agriculture, Department of Economics, Center for Agricultural and Rural Development and Iowa State University Extension and Outreach.

Farmland leases also increasingly favor cash rent over crop sharing and owner-operating arrangements. In 2017, 82% of leased farmland was cash rented, but cash rent, predominantly fixed-cash rental contracts, now account for 87% of leased land.

“The rise of cash rent, especially fixed cash rent, correlates with the growing percentage of landowners who are part-time and non-residents of Iowa,” said Wendong Zhang. “Fifty-five percent of land is owned by an owner who did not farm in 2022, and, of them, over half do not have farming experience. Especially for those landowners, a fixed cash rental contract is a natural choice,” Zhang said. According to the study, 47% of farmland was directly operated by the landowner in 2017, but that number has now fallen to just 42%.

The survey found that the average age of Iowa’s farmland owners is still increasing. In 1982, only 29% of Iowa farmland was owned by those over the age of 65. That percentage has steadily increased over the years, totaling 60% in 2017 and 66% today. Tong noted that women own 46% of Iowa’s farmland, and they hold a larger share among senior owners.

Tong indicated several factors are contributing to the increasing age of Iowa’s farmland owners, including the increase in using farmland as an inheritance or long-term investment, fewer young people going into farming, and those young farmers facing large start-up costs. “Also, some senior farmers may retain ownership of their land due to a lack of succession planning, thus keeping the farm even if they aren't actively farming. The survey shows 17% of landowners neither have a successor for ownership or management,” Tong said.

However, Tong noted that survey results show three of every four landowners in Iowa are interested in selling land to beginning farmers when incentivized with federal and state tax credits. “At the same time, over half of Iowa landowners expressed concerns about difficulty finding quality beginning farmers as well as beginning farmers’ ability to pay the best prices for land,” Tong said.

The recent survey also reveals changing trends in how ownership of Iowa’s farmland is held. In 1982, 80% of Iowa’s farmland was owned through a combination of sole ownership and joint tenancy; however, those now only account for 52% of Iowa farmland ownership. Meanwhile, the amount of farmland held in trusts has skyrocketed from 1% in 1982 to 23% today.

“Trusts have grown in popularity due to their numerous benefits. Particularly for farmland owners, trusts can ensure the preservation of the farm within the family, manage land transitions, and potentially provide tax benefits, making them a valuable tool in succession planning,” said Zhang.

The percentage of farmland owned debt-free has also continued to increase—84% of Iowa farmland is held without any debt, the highest level observed. This represents a steady and significant increase from 1982, a year that marked the onset of the farm debt crisis, when only 62% of the land was held without debt. Tong said that some of that recent increase is due to the hike in commodity profits, aging landowners coupled with longer lengths of ownership, and government payments during the COVID-19 pandemic.

Zhang said that the survey also found interesting trends in the use of conservation techniques on Iowa farmland. He noted that no-till farming saw a significant increase from 21% of owners and 27% of acres in 2017 to 29% and 30%, respectively, in 2022. “The use of cover crops also saw a slight increase over this period, from 5% of owners and 4% of acres in 2017 to 7% for both owners and acres in 2022,” he said. However, only 2% of Iowa landowners have already participated in a carbon credit program and another 3% are considering doing so, but, Zhang said, “most landowners are either not interested or have never heard of them.”

More information about the 2022 Iowa Farmland Ownership and Tenure Survey results can be found on the CARD website at https://www.card.iastate.edu/.

Contacts:
Wendong Zhang; wendongz@cornell.edu
Jingyi Tong, Department of Economics; jitong@iastate.edu
Nathan Cook, Communications, Center for Agricultural and Rural Development, 515-294-3809; nmcook@iastate.edu

June 8, 2023
Hart receives Certificate of Appreciation from Iowa Bankers Association permalink

Professor Chad Hart received a Certificate of Appreciation from the Iowa Bankers Association for his extensive and sustained contributions to the Iowa Bankers Association-Iowa State University Agricultural Credit School and the Iowa Ag Lending Community. A bronze plaque with Professor Hart's name will be placed on the Wall of Alumni and Friends on the east side of the Iowa States Alumni Center, where forever-true Cyclones are acknowledged, honored, and remembered.

May 17, 2023
Iowa Farmland Ownership Tenure Survey news conference to be held June 8 permalink

A press conference will be held at 2:00 p.m. on Thursday, June 8, 2023, to announce the full results of the 2022 Iowa Farmland Ownership Tenure Survey conducted by Iowa State University Extension and Outreach. The conference will take place in Room 0008 of Curtiss Hall, located on the Iowa State campus in Ames. Wendong Zhang, associate professor of economics, will head the news conference and announce the 2022 findings.

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A press conference will be held at 2:00 p.m. on Thursday, June 8, 2023, to announce the full results of the 2022 Iowa Farmland Ownership Tenure Survey conducted by Iowa State University Extension and Outreach. The conference will take place in Room 0008 of Curtiss Hall, located on the Iowa State campus in Ames. Wendong Zhang, associate professor of economics, will head the news conference and announce the 2022 findings.

A YouTube livestream of the conference will be available at https://go.iastate.edu/L45MOR for those unable to attend in person. The full results of the survey will be available on the CARD website at https://www.card.iastate.edu after the conference.

The Iowa Farmland Ownership Tenure Survey is mandated by the State of Iowa and has been conducted every five years since the 1980s. The survey allows policymakers and researchers to track ownership and leasing trends in Iowa farmland.

May 14, 2023
Plastina talks about quality carbon credits permalink

What makes a quality carbon credit? The short answer is that buyers often look for high-quality credits that are based on additional practices, ensure some amount of permanence, are verified and registered. Alejandro Plastina, economics, contributed to a white paper on this topic just issued by the American Society of Agronomy, the Crop Science Society of America and the Soil Science Society of America. Read the rest of the article here.

May 9, 2023
USDA awards $645,000 grant to study how demographic change and COVID-19 impacts rural quality of life permalink

The US Department of Agriculture awarded the Iowa Small Towns Project at Iowa State University $645,000 to understand rural quality of life in Iowa. The project will identify effective place-based strategies to manage population change in rural Iowa, whether from declines due to out-migration or growth from diverse new residents. The project will also identify strategies to help small towns recover from the lingering impacts of COVID-19. Particular attention will be given to communities of color, mostly diverse meatpacking towns, as they face unique challenges. The goal is to expand essential services like health/senior/child care and food access, retain businesses and investments for a robust local economy, maintain physical infrastructure with a smaller population and tax base, and address labor shortages and skill gaps. In short, the goal is to give rural people and places the tools to survive and thrive in the twenty-first century.

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The US Department of Agriculture awarded the Iowa Small Towns Project at Iowa State University $645,000 to understand rural quality of life in Iowa. The project will identify effective place-based strategies to manage population change in rural Iowa, whether from declines due to out-migration or growth from diverse new residents. The project will also identify strategies to help small towns recover from the lingering impacts of COVID-19. Particular attention will be given to communities of color, mostly diverse meatpacking towns, as they face unique challenges. The goal is to expand essential services like health/senior/child care and food access, retain businesses and investments for a robust local economy, maintain physical infrastructure with a smaller population and tax base, and address labor shortages and skill gaps. In short, the goal is to give rural people and places the tools to survive and thrive in the twenty-first century.

Funding comes from USDA’s Agriculture and Food Research Initiative, the nation’s leading competitive grants program for agricultural and rural sciences. The project is led by David Peters in Rural Sociology, with fellow researchers Ramesh Balayar (Rural Sociology), Biswa Das (Community and Regional Planning), and Himar Hernandez (ISU Extension). Other partners include the Iowa Farm Bureau Federation, the League of United Latin American Citizens, and the Iowa Council of Governments. The project will begin in the summer of 2023 and run for four years. Researchers will conduct surveys and interviews in 125 small towns in Iowa, continuing a data collection effort that started in 1994. For more information, visit the project’s website at https://smalltowns.soc.iastate.edu/istp2024.

April 18, 2023
Gassman publishes in Agriculture permalink

Research Scientist Phil Gassman published in the most recent issue of Agriculture. Gassman co-authored the article "Simulated Ecosystem and Farm-Level Economic Impacts of Conservation Tillage in a Northeastern Iowa County" with Edward Osei, Syed H. Jafri, and Ali Saleh, all of Tarleton State University.

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Research Scientist Phil Gassman published in the most recent issue of Agriculture. Gassman co-authored the article "Simulated Ecosystem and Farm-Level Economic Impacts of Conservation Tillage in a Northeastern Iowa County" with Edward Osei, Syed H. Jafri, and Ali Saleh, all of Tarleton State University.

The article examines the ecosystem and farm-level economic impacts of no-till, using Buchanan County in northeastern Iowa as the backdrop due to previously established data and model validation efforts in that region. The authors find that, given the simulated yield penalties associated with no-till, corn and soybean prices would have to be substantially lower in order for no-till to break even. Consequently, incentives for conservation practice implementation may need to be tied to commodity prices and yield penalties in order to elicit greater adoption rates.

Simulated Ecosystem and Farm-Level Economic Impacts of Conservation Tillage in a Northeastern Iowa County
Edward Osei, Syed H. Jafri, Philip W. Gassman, Ali Saleh
Agriculture 13(4): 891
doi.org/10.3390/agriculture13040891

April 3, 2023
Arbuckle, O’Neal Will Share Sustainable Agriculture Chair Position at Iowa State University permalink

AMES, Iowa – J. Arbuckle, professor in sociology and criminal justice, and Matthew O’Neal, professor in plant pathology, entomology and microbiology, will serve a joint appointment as Henry A. Wallace Chairs for Sustainable Agriculture at Iowa State University, starting May 15, 2023.

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AMES, Iowa – J. Arbuckle, professor in sociology and criminal justice, and Matthew O’Neal, professor in plant pathology, entomology and microbiology, will serve a joint appointment as Henry A. Wallace Chairs for Sustainable Agriculture at Iowa State University, starting May 15, 2023.

The Wallace Chair provides leadership to develop and implement major educational and research programs on the sustainability of current and future agricultural practices.

“J. and Matt were selected because of their complementary visions to support and enable undergraduate education in this arena,” said Daniel J. Robison, holder of the endowed dean’s chair in the College of Agriculture and Life Sciences, on announcing their appointments. They are both committed to furthering experience and discovery in the many realms of sustainable agriculture and related sciences, technologies, policy and economics. Agricultural sustainability at all scales is a unifying and common thread across the college. Through these positions, Matt and J. will add further dimensions to that work.”

The Wallace Chair comes with special resources from an endowment supported by the W.K Kellogg Foundation and the Wallace Genetic Foundation, in collaboration from the College of Agriculture and Life Sciences and the ISU Foundation. The Iowa State chairs are part of a network of sustainability fellows around the country who hold Kellogg-sponsored positions.

J. Arbuckle has extensive research and extension efforts focused on improving the environmental and social performance of agricultural systems. He is director of the long-standing annual Iowa Farm and Rural Life Poll and is nationally recognized for work studying the drivers of farm stakeholder decision making related to soil and water quality and adaptation to climate change.

Arbuckle said one of his first priorities as Wallace Chair will be to conduct research to gain perspectives from key private and public stakeholders on what Iowa State is doing well in the realm of sustainable agriculture, how it can improve, and what related skills and knowledge respondents want future employees to have.

This will build on a recent project he helped lead to assess student interest in sustainability and their related experiences at Iowa State. That survey found strong, widespread interest in sustainability, along with perceptions that the university’s academic and extracurricular programs could better prepare them in this area.

“The results of the stakeholder engagement process will provide direction for new programs and to enhance the integration of sustainability concepts into what is already being offered here,” Arbuckle said. He is also interested in sharing ideas and experience with other Wallace Chair scholars around the country.

He came to Iowa State in 2007 from the University of Missouri, Columbia, where he earned a doctorate in rural sociology and a master’s degree in agricultural economics. He also has a bachelor’s degree in Spanish from Guilford College, Greensboro, North Carolina.

Matthew O’Neal came to Iowa State in 2004 and oversees research related to the management of insect pests of annual crops, with a focus on soybeans. He also teaches courses in entomology and sustainable agriculture. His overall goal has been to help develop pest management programs that are economically and environmentally sustainable.

O’Neal has a doctorate in entomology from Michigan State University, East Lansing, and a master’s degree in entomology and bachelor’s degree in Biology, both from the University of Illinois, Urbana-Champaign.

“The Wallace Chair role will give us the opportunity to provide leadership to create a new undergraduate program in sustainability and food systems that can provide expanded options for our students in terms of career readiness and research,” O’Neal said. “Iowa State was the first university to create a graduate program in sustainable agriculture. That program has a strong reputation and provides a foundation for an undergraduate degree program.”

O’Neal plans to continue his research and teaching and his involvement in pollinator conservation projects as Wallace Chair. He is especially excited about a new research effort he’s helping lead to explore the emerging field of agrivoltaics—combining agricultural enterprises with solar energy—through a public-private partnership with Alliant Energy and funding from the U.S. Department of Energy.

“One thing I have to say about this new appointment is that I didn’t get here by myself,” O’Neal said. “All along the way, the projects I’ve been part of that have been the most impactful have been as part of teams. I know J. feels similarly. Together we have worked with a broad community of faculty and staff, students and outside organizations that have supported and influenced our work. I expect these relationships to be even more important as Wallace Chairs.”

Arbuckle and O’Neal both said they already have positive experience working together on interdisciplinary and multi-institutional projects—including the prairie STRIPS program and as faculty leaders for the Graduate Program for Sustainable Agriculture—and they look forward to opportunities to collaborate more closely.

The Henry A. Wallace Endowed Chair for Sustainable Agriculture was established to promote the philosophical and practical ideas of Iowan Henry A. Wallace, former U.S. secretary of agriculture, and commerce, U.S. vice president, co-founder of Pioneer Hi-Bred, communicator, scientist and farmer. The chair honors Wallace's commitment to the wise use of science and public policy to protect natural resources and farmland, enhance vibrant and enduring rural communities and alleviate global poverty and hunger. Former Wallace Chairs at Iowa State have been Matt Liebman (2007–2022) and Lorna Michael Butler (2000–2007).

The new Wallace Chairs were selected by an interdepartmental search committee led by CALS Dean Daniel Robison, with Stephen Dinsmore, interim director of the Leopold Center for Sustainable Agriculture, Matt Helmers, director of the Iowa Nutrient Research Center, Ajay Nair, program director for the Graduate Program in Sustainable Agriculture, and Asheesh (Danny) Singh, professor, agronomy.

Iowa State University College of Agriculture and Life Sciences

Contacts:
Daniel J. Robison, College of Agriculture and Life Sciences Administration, 515-294-3830; robisond@iastate.edu
Ruth MacDonald, College of Agriculture and Life Sciences Administration, 515-294-5991; ruthmacd@iastate.edu
Andy Zehr, Agriculture and Life Sciences Communications, 515-294-9123; azehr@iastate.edu

April 3, 2023
Zhang publishes in Applied Economics Perspectives and Policy permalink

Associate Professor Wendong Zhang published an article in the latest issue of Applied Economics Perspectives and Policy with Qing Liu of Zhongnan University of Economics and Law and Beatrice Maule of Iowa State University.

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Associate Professor Wendong Zhang published an article in the latest issue of Applied Economics Perspectives and Policy with Qing Liu of Zhongnan University of Economics and Law and Beatrice Maule of Iowa State University.

Zhang, Liu, and Maule authored the article "Of women and land: How gender affects successions and transfers of Iowa farms." Their article uses responses to the 2019 Iowa Farm Transfer Survey to examine factors in farm successor choices among Iowa farmers with a focus on female successors and landowners and finds striking evidence of gender imbalance in farm succession, transfer, and inheritance decisions of US farms.

Of Women and Land: How Gender Affects Successions and Transfers of Iowa Farms
Qing Liu, Wendong Zhang, Beatrice Maule
Applied Economics Perspectives and Policy 2023: 1-26
doi.org/10.1002/aepp.13363

April 3, 2023
Cheng, Lee receive Best PhD Dissertation Award permalink

CARD Director John Crespi announced Drs. Nieyan Cheng and Jiwon Lee as recipients of the CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy for 2023. Cheng and Lee will both receive a $500 prize, and will have their names added to the Dissertation Award winners plaque in the CARD suite in Heady Hall.

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CARD Director John Crespi announced Drs. Nieyan Cheng and Jiwon Lee as recipients of the CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy for 2023. Cheng and Lee will both receive a $500 prize, and will have their names added to the Dissertation Award winners plaque in the CARD suite in Heady Hall.

Cheng was recognized for her dissertation "Three essays on agri-environmental policy and hazardous materials," which consists of three chapters related to policy evaluation, a political economy model-building as well as the estimation of treatment effects.

Lee was recognized for her dissertation "Stated preferences on foreign animal disease outbreaks and prevention measures," which empirically examines consumer perceptions of foreign animal diseases and their preferences for intervention measures to prevent outbreaks.

Congratulations to both!

March 27, 2023
Pudenz, Schulz publish in American Journal of Agricultural Economics permalink

PhD student Christopher Pudenz and Associate Professor Lee Schulz published in the most recent issue of American Journal of Agricultural Economics. Pudenz and Schulz authored the article "Multi-plant coordination in the U.S. beef packing industry," which uses a Salop Circular City framework---including negotiated and formula pricing---to demonstrate that multi-plant coordination leads to wider spreads between downstream beef prices and upstream fed cattle prices if multi-plant coordination markdowns outweigh multi-plant coordination efficiencies.

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PhD student Christopher Pudenz and Associate Professor Lee Schulz published in the most recent issue of American Journal of Agricultural Economics. Pudenz and Schulz authored the article "Multi-plant coordination in the U.S. beef packing industry," which uses a Salop Circular City framework---including negotiated and formula pricing---to demonstrate that multi-plant coordination leads to wider spreads between downstream beef prices and upstream fed cattle prices if multi-plant coordination markdowns outweigh multi-plant coordination efficiencies.

Multi-plant coordination in the U.S. beef packing industry
Christopher C. Pudenz and Lee L. Schulz
American Journal of Agricultural Economics
doi.org/10.1111/ajae.12391

March 9, 2023
Schulz Receives Dean Lee R. Kolmer Award for Excellence in Applied Research permalink

AMES, Iowa — Lee Schulz is the recipient of the 2023 Dean Lee R. Kolmer Award for Excellence in Applied Research from the College of Agriculture and Life Sciences at Iowa State University.

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AMES, Iowa — Lee Schulz is the recipient of the 2023 Dean Lee R. Kolmer Award for Excellence in Applied Research from the College of Agriculture and Life Sciences at Iowa State University.

Schulz is an extension livestock economist and an associate professor of economics. His work encompasses farm management extension, focusing on the beef and pork industries. He has conducted extensive research on livestock production, marketing and risk management.

Schulz’s economics research during the COVID-19 pandemic was critical to producers and consumers when livestock processing plants shut down. He developed models to track production trends and financial losses, and he maintained a constant media presence to share this information with market participants.

He has also collaborated with other researchers to assess economic damages created by the trade war between the United States and China. Schulz and his colleagues estimated crop and livestock revenue losses and correlated them with lost labor income and tax revenue. These estimates were used to help guide federal assistance payments for producers affected by the trade tariffs.

“In both cases, Dr. Schulz was proactive in summarizing the economic situations, pulling together the appropriate modeling and research tools to analyze the issues, and connecting with state and industry leaders to address and respond to the challenges faced,” said Chad Hart, professor of economics and extension crop markets specialist.

In addition, Schulz has developed decision making tools and fact sheets for cattle and swine producers, studied risk management strategies for beginning farmers, and investigated the impacts of foreign animal disease outbreaks on livestock markets. He has also taught several economics courses at Iowa State and serves as the co-advisor for the Agricultural Marketing and Management Organization student club.

Schulz received a bachelor’s degree in agricultural business from the University of Wisconsin–River Falls and a master’s in agricultural economics from Michigan State University. He then earned a doctorate in economics at Kansas State University in 2012 before he began working at Iowa State later that year.

The Kolmer Award is named after Lee R. Kolmer, who served as dean of the College of Agriculture and Life Sciences for 14 years beginning in 1972. Kolmer and his wife, Jean, established the award to honor faculty and staff who have made significant contributions to improving the welfare of Iowans through applied research.

Contacts:
Lee Schulz, Economics, 515-294-3356; lschulz@iastate.edu
Chad Hart, Economics, 515-294-9911; chart@iastate.edu
Amber Friedrichsen, Agriculture and Life Sciences Communications; amberf@iastate.edu
Whitney Baxter, Agriculture and Life Sciences Communications; wjsager@iastate.edu

March 7, 2023
Plastina, Crespi author ProMarket article permalink

Associate Professor Alejandro Plastina and Professor John Crespi authored an article for ProMarket. Plastina and Crespi wrote the article "Policies To Reduce GHG Emissions Should Look to Agricultural Carbon Markets" with Iowa State PhD candidate Oranuch Wongpiyabovorn.

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Associate Professor Alejandro Plastina and Professor John Crespi authored an article for ProMarket. Plastina and Crespi wrote the article "Policies To Reduce GHG Emissions Should Look to Agricultural Carbon Markets" with Iowa State PhD candidate Oranuch Wongpiyabovorn.

The article examines what it will take for an agricultural carbon market to thrive---including overcoming transparency, measurement, and standardization problems. The authors note that the recently signed Consolidated Appropriations Act of 2023 is a good start.

March 6, 2023
Peters publishes in Rural Sociology permalink

Professor David Peters published in the most recent issue of Rural Sociology. Peters authored the article "Gene-Edited Food Adoption Intentions and Institutional Trust in the United States: Benefits, Acceptance, and Labeling" with Sonja Lindberg and Christopher Cummings, both of Iowa State University.

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Professor David Peters published in the most recent issue of Rural Sociology. Peters authored the article "Gene-Edited Food Adoption Intentions and Institutional Trust in the United States: Benefits, Acceptance, and Labeling" with Sonja Lindberg and Christopher Cummings, both of Iowa State University.

Their article examines how crop-based gene-edited food adoption is linked to public trust in institutions and values using the Theory of Planned Behavior and finds that adoption hinges on public trust in institutions overseeing gene-edited food development, especially trust in university scientists.

Gene-Edited Food Adoption Intentions and Institutional Trust in the United States: Benefits, Acceptance, and Labeling
Sonja A. Lindberg, David J. Peters, and Christopher L. Cummings
Rural Sociology
doi.org/10.1111/ruso.12480

March 3, 2023
Plastina presents at Carbon Credit Symposium permalink

Associate Professor Alejandro Plastina presented at the University of Delaware's Carbon Credit Symposium on March 1 at the State Fairgrounds in Harrington, DE. Plastina presented “Carbon Farming: What’s at Stake for Farmers?” to about 100 farmers and agricultural leaders.

March 2, 2023
Campbell, Gassman, Moschini, and Thornburg honored by 25 Year Club permalink

Systems Analyst Todd Campbell, Research Scientist Phil Gassman, Professor GianCarlo Moschini, and Grants Finance Specialist Deb Thornburg were all honored by Iowa State's 25 Year Club at the annual banquet on February 27. Campbell, Gassman, Moschini, and Thornburg were all honored for providing 35 years of service.

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Systems Analyst Todd Campbell, Research Scientist Phil Gassman, Professor GianCarlo Moschini, and Grants Finance Specialist Deb Thornburg were all honored by Iowa State's 25 Year Club at the annual banquet on February 27. Campbell, Gassman, Moschini, and Thornburg were all honored for providing 35 years of service.

An important tradition

Eligible members of the 25 Year Club must complete at least 25 years of consecutive service by Dec. 31 of the given year to qualify, meaning that those honored in 2023 achieved the milestone in 2022.

Tin-Shi Tam, professor of music and current president of the 25 Year Club, says her favorite parts of the annual banquet are sharing memories, meeting colleagues from around campus and hearing President Wendy Wintersteen's remarks on events at the university decades ago.

Informally founded in 1915, the 25 Year Club was formally recognized in 1934 under the direction of Harold Pride, former secretary of the Iowa State College Alumni Association.

"Staff members who have served the college as long as you have, come to personify the college to her alumni," Pride said to the charter members. "Buildings and land do not make a college, it is the men and women of the staff who make any college."

Tam echoed Pride's sentiment. "It is important to recognize and honor faculty and staff with continuous, dedicated service to the university -- a tradition we carry on and celebrate."

February 23, 2023
Zhang, Gassman publish in American Journal of Agricultural Economics permalink

Associate Professor Wendong Zhang and Research Scientist Phil Gassman published in the most recent issue of American Journal of Agricultural Economics. Zhang and Gassman co-authored the article "Evaluating the tradeoff between cost effectiveness and participation in agricultural conservation programs" with Gregory Howard of East Carolina University and Adriana Valcu-Lisman of USDA Economic Research Service.

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Associate Professor Wendong Zhang and Research Scientist Phil Gassman published in the most recent issue of American Journal of Agricultural Economics. Zhang and Gassman co-authored the article "Evaluating the tradeoff between cost effectiveness and participation in agricultural conservation programs" with Gregory Howard of East Carolina University and Adriana Valcu-Lisman of USDA Economic Research Service.

The article uses survey responses to examine the impacts of three program innovations—reverse auctions, spatially targeted payments, and higher offered payments—on agricultural conservation program cost effectiveness and participation by farmers. Policy simulations show that even with large budgets, the watershed-level nitrogen reduction from all policy interventions remains far below the policy targets set by the Iowa Nutrient Reduction Strategy.

Evaluating the tradeoff between cost effectiveness and participation in agricultural conservation programs
Gregory Howard, Wendong Zhang, Adriana Valcu-Lisman, Philip W. Gassman
American Journal of Agricultural Economics
doi.org/10.1111/ajae.12397

February 21, 2023
Plastina, Lence author top cited article permalink

Sergio Lence and Alejandro Plastina's article "How weather affects the decomposition of total factor productivity in U.S. agriculture" has been noted as a top cited article in the journal Agricultural Economics. Their article illustrates and quantifies how overlooking the impact of weather shocks can affect the measurement and decomposition of agricultural total factor productivity change and was noted for generating immediate impact and visibility.

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Sergio Lence and Alejandro Plastina's article "How weather affects the decomposition of total factor productivity in U.S. agriculture" has been noted as a top cited article in the journal Agricultural Economics. Their article illustrates and quantifies how overlooking the impact of weather shocks can affect the measurement and decomposition of agricultural total factor productivity change and was noted for generating immediate impact and visibility.

How weather affects the decomposition of total factor productivity in U.S. agriculture
Alejandro Plastina, Sergio H. Lence, Ariel Ortiz-Bobea
Agricultural Economics 52(2):215-234
doi.org/10.1111/agec.12615

February 17, 2023
Gassman publishes in Agriculture permalink

Research Scientist Phil Gassman published in the most recent issue of Agriculture. Gassman co-authored the article "Climate Change Impacts on Surface Runoff and Nutrient and Sediment Losses in Buchanan County, Iowa" with Edward Osei, Syed H. Jafri, Ali Saleh, and Oscar Gallego, all of Tarleton State University.

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Research Scientist Phil Gassman published in the most recent issue of Agriculture. Gassman co-authored the article "Climate Change Impacts on Surface Runoff and Nutrient and Sediment Losses in Buchanan County, Iowa" with Edward Osei, Syed H. Jafri, Ali Saleh, and Oscar Gallego, all of Tarleton State University.

The article contributes to the existing literature by elucidating the impacts of climate projections on edge-of-field surface runoff and sediment and nutrient losses. Results indicate that there will be a moderate to substantial increase in surface runoff, sediment, and nutrient losses depending upon the reference point of comparison (baseline scenario) and upon which climate scenario actually materializes.

Climate Change Impacts on Surface Runoff and Nutrient and Sediment Losses in Buchanan County, Iowa
Edward Osei, Syed H. Jafri, Philip W. Gassman, Ali Saleh, Oscar Gallego
Agriculture 2023 13(2):470
doi.org/10.3390/agriculture13020470

February 16, 2023
Curtis Balmer permalink

Curtis Balmer, 45, of Ames passed away on Saturday, February 11, 2023, at his home after a short and difficult journey with pancreatic cancer.

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Curtis Balmer, 45, of Ames passed away on Saturday, February 11, 2023, at his home after a short and difficult journey with pancreatic cancer.

A Celebration of Curtis' Life will be held on Monday, February 27, 2023 from 4-7pm at Torrent Brewing Company, 504 Burnett Ave, Ames. There will be a time for remarks and sharing of memories at 5pm.

Curtis Glenn Balmer was born November 1, 1977, in Davenport, Iowa to Roger and Sandra (Depew) Balmer. He grew up in Roland where he received his education, graduating from Roland-Story High School in the class of 1996. Following graduation, Curtis attended Iowa State University where he earned his bachelor's degree in Computer Engineering. Curtis remained at Iowa State making his career as a Systems Analyst for the Center for Agriculture and Rural Development in the College of Economics.

On June 21, 2002, Curtis was united in marriage to Stacey Leigh Brown. The couple made their home in Ames and were blessed with one son, Kellen Balmer-Brown. Curtis lived life to its fullest. He was an avid golfer and enjoyed bicycling and disc golfing. He was very competitive and loved to make bets about everything, turning the most mundane happenings into competitions. He was always watching sports and was a big fan of the Dallas Cowboys and the Iowa State Cyclones. Curtis enjoyed spending Saturdays during the ISU football season tailgating and having fun with friends and family, often being the first to arrive and the last to leave. Curtis was kind and was always willing to help anyone with anything. Most of all, Curtis loved being with Stacey, Kellen, and his family. They treasured time together playing games at home, attending live music events, traveling, and living in the moment with each other and their two dogs.

Curtis will be deeply missed by his wife of 20 years, Stacey; son, Kellen; father, Roger (Kathy) Balmer; siblings, Jerry (Mindi) Balmer and Angie (Kevin) Rice; parents-in-law, Texas Gail and Lee Raymond and Bill and Margaret Brown. His is also survived by his sisters-in-law, Kristi (Steven) Buhler, and Laura (Rich) McCallon; brothers-in-law, Eric (Kim) Brown and Aaron Raymond; and nieces and nephews, Bailey Balmer, Tristan Balmer, Cameron Matthews, Nate Brown, Gabe Brown, Andrew Buhler, Chelsea Buhler, Jonathan Buhler, Abigail Buhler, William Terney, Ricky Avila, and Caris Avila; and many other extended family members and close friends.

He was preceded in death by his mother, Sandra Balmer and his grandparents.

In lieu of flowers, memorials may be directed to the family. Memorials will be donated to support Peutz-Jegher's Syndrome and pancreatic cancer research and awareness organizations, as well as to support the family.

February 14, 2023
Brighenti, Gassman publish in Water permalink

Post-doctoral Researcher Tássia Brighenti and Research Scientist Phil Gassman published in the most recent issue of the journal Water. Brighenti and Gassman authored the article "Assessing the Influence of a Bias Correction Method on Future Climate Scenarios Using SWAT as an Impact Model Indicator" with William Gutowski, Jr. and Janette Thompson, both of Iowa State University.

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Post-doctoral Researcher Tássia Brighenti and Research Scientist Phil Gassman published in the most recent issue of the journal Water. Brighenti and Gassman authored the article "Assessing the Influence of a Bias Correction Method on Future Climate Scenarios Using SWAT as an Impact Model Indicator" with William Gutowski, Jr. and Janette Thompson, both of Iowa State University.

The article evaluates the implications of a bias correction method on a combination of Global/Regional Climate Models for simulating precipitation and, subsequently, streamflow, surface runoff, and water yield in the Soil and Water Assessment Tool (SWAT).

Assessing the Influence of a Bias Correction Method on Future Climate Scenarios Using SWAT as an Impact Model Indicator
Tássia Mattos Brighenti, Philip W. Gassman, William J. Gutowski, Jr. and Janette R. Thompson
Water 2023 15(4):750
doi.org/10.3390/w15040750

February 8, 2023
Plastina to present on carbon market updates permalink

Dr. Alejandro Plastina will give a presentation on carbon market updates during the next Conversations about Carbon webinar. Plastina will address key questions about carbon reduction, removal, and repair.

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Dr. Alejandro Plastina will give a presentation on carbon market updates during the next Conversations about Carbon webinar. Plastina will address key questions about carbon reduction, removal, and repair.

The series is hosted by the ISU Bioeconomy Institute in collaboration with the ISU College of Agriculture and Life Sciences. Plastina's webinar will take place on Wednesday, February 15 at 12:00 p.m. You can attend the virtual conference at https://iastate.zoom.us/j/99818537176

February 6, 2023
Plastina, Hart to present at 2023 Farm Transitions Conference permalink

Drs. Plastina and Hart will present at The Beginning Farmer Center's 2023 Farm Transition Conference. This two-day seminar will equip farmers--whether they are entering, expanding, or exiting the business--to transition well, by educating attendees about opportunities, pitfalls to avoid, and tools required for a successful farm transition.

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Drs. Plastina and Hart will present at The Beginning Farmer Center's 2023 Farm Transition Conference. This two-day seminar will equip farmers--whether they are entering, expanding, or exiting the business--to transition well, by educating attendees about opportunities, pitfalls to avoid, and tools required for a successful farm transition.

Hart and Plastina will both present on the first day of the conference, which will focus on the state of the farm economy and financial sector. Attendees will learn about the financial considerations necessary for beginning or expanding a farming business. Hart will present on the agricultural market outlook and Plastina will present on major financial decisions for farm transitions.

The second day of the conference will explore how relationships with family members and business partners impact the success of a farm business, and presenters will also review relevant tax, business, and estate law considerations and explain important planning tools and strategies.

Those attending in person will have opportunities for networking including an optional tour of Jack Trice Stadium (limited to 50 attendees). Both in person and online attendees may interact with speakers and ask questions throughout both days. All attendees will receive a Farm Transitions manual.

You can register for the conference here.

Date and Time:
Thursday, February 9, 2023 - 8:30am to Friday, February 10, 2023 - 4:30pm

Location:
Gateway Hotel & Conference Center, 2100 Green Hills Dr, Ames, IA 50014 and Online

Registration:
$175 - In-person Registration (includes lunch both days and a Farm Transitions workbook).

For groups of two or more, use code GROUP50 to receive $50 off each in-person registration. Does not apply to student registration.

$100 - University or College Student Registration (in person or online) (Student scholarships are available. Visit this link to apply).

$150 - Webinar Registration (includes Farm Transitions workbook PDF) (Webinar participants will receive two links from GoToWebinar to join conference virtually).

February 3, 2023
Hayes named recipient of Honorary Pork Producer Award permalink

Dermot Hayes has been selected as the recipient of the 2022 Honorary Pork Producer Award from the Iowa Pork Producer Association. Hayes was recognized for his impact on the pork industry, his expertise and insight in evaluating US pork exports, and his integral role in the profitability of pork production. The award is one of the highest recognitions bestowed by the association.

January 30, 2023
Call for Participants for Farmer Crop Insurance Survey, Compensation Offered permalink

The US crop insurance program currently has a primary role in federal government efforts to promote economic stability in agriculture. Policy effectiveness depends on attaining high participation, both for acres covered and coverage levels chosen. The government seeks to ensure high program participation. However, crop insurance, like other insurance in our life, is a complex topic. A better understanding of farmers’ crop insurance experience and how they make their insurance decisions would support policy changes to achieve high participation while addressing other farmer goals and ensuring that program benefits endure.

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The US crop insurance program currently has a primary role in federal government efforts to promote economic stability in agriculture. Policy effectiveness depends on attaining high participation, both for acres covered and coverage levels chosen. The government seeks to ensure high program participation. However, crop insurance, like other insurance in our life, is a complex topic. A better understanding of farmers’ crop insurance experience and how they make their insurance decisions would support policy changes to achieve high participation while addressing other farmer goals and ensuring that program benefits endure.

To understand farmers’ crop insurance experience, and how farmers make crop insurance decisions and the impact of those decisions on farm operations, researchers at Iowa State University, Kansas State University, Michigan State University, and the University of Illinois Urbana-Champaign are conducting a survey on farmers’ crop insurance experience and decisions.

The survey takes about 30 minutes to complete and contains questions about crop insurance usage and crop insurance decisions in given scenarios. Participants who complete the survey will receive an Amazon gift card, with an average value of $71 (ranging from $50 to $99).

To participate in the survey, go to https://bit.ly/ins-survey-card1.

January 25, 2023
Gassman publishes in Agriculture permalink

Research Scientist Phil Gassman published in the most recent issue of the journal Agriculture. Gassman co-authored the article "Simulated Climate Change Impacts on Corn and Soybean Yields in Buchanan County, Iowa" with Edward Osei, Syed H. Jafri, Ali Saleh, and Oscar Gallego, all of Tarleton State University.

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Research Scientist Phil Gassman published in the most recent issue of the journal Agriculture. Gassman co-authored the article "Simulated Climate Change Impacts on Corn and Soybean Yields in Buchanan County, Iowa" with Edward Osei, Syed H. Jafri, Ali Saleh, and Oscar Gallego, all of Tarleton State University.

The article contributes to the understanding of climate change impacts on production and farm revenues by projecting their impacts on corn and soybean yields in Buchanan County, Iowa. Projections indicate that as atmospheric temperatures rise and precipitation levels vary markedly, the result is a significant decline in corn and soybean yields, the latter to a lesser extent, as compared to long-term yield trends.

Simulated Climate Change Impacts on Corn and Soybean Yields in Buchanan County, Iowa
Edward Osei, Syed H. Jafri, Ali Saleh, Philip W. Gassman, Oscar Gallego
Agriculture 13(2)
doi.org/10.3390/agriculture13020268

January 24, 2023
Iowa State Researchers Help Lead Multistate Project for a More Diverse Corn Belt permalink

AMES, Iowa – In Iowa, more than 24 million acres are devoted to crops. That represents about 68% of the state’s land area -- and more than 94% of that land is used to produce corn and soybeans, according to the latest National Agriculture Statistics Survey (2021).

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AMES, Iowa – In Iowa, more than 24 million acres are devoted to crops. That represents about 68% of the state’s land area -- and more than 94% of that land is used to produce corn and soybeans, according to the latest National Agriculture Statistics Survey (2021).

“Iowa’s agriculture is highly specialized, with almost all of its cropland planted to corn and soybeans,” said J. G. Arbuckle, professor of sociology at Iowa State University, director of the annual Iowa Farm and Rural Life Poll. “However, few farmers think agricultural specialization has generally been positive for farmers and rural communities.”

Arbuckle is one of the investigators on a new, multistate project seeking to address that trend. The $10 million, five-year USDA-funded Diverse Corn Belt (DCB) Project launched in 2022 to explore the potential to increase diversification of crops and livestock on farms in the Midwest.

Overall, the team includes more than 30 investigators who are working with farmers and other agricultural stakeholders in Iowa, Indiana and Illinois to envision and evaluate more diverse agricultural systems for the Midwest. They aim to chart roadmaps that can help the region reverse trends that have been building for decades.

“Our goal is to plant the seeds for new opportunities for farmers that will enhance resilience of both individual farms and the agricultural landscape across our region,” said Linda Stalker Prokopy, DCB Project director, a professor and chair of the Department of Horticulture and Landscape Architecture at Purdue University.

Focus groups

Focus groups have already been held to gather insight and ideas from farmers representing a range of ages, farm sizes and degrees of diversification. Members of the team are analyzing the initial data and plan to conduct more focus groups in 2023. The team also plan to collect data on farmer and agricultural stakeholder perspectives through a mail survey and individual interviews.

Reimagining Agricultural Diversity Teams will be a unique feature of the project. While focus groups will center specifically on farmers, RAD Teams will include stakeholders throughout the agricultural value chain, such as crop advisers, bankers, processors, retailers, non-farming landowners and policymakers. The RAD Teams will offer a chance for longer-term dialogue, exploration and visioning.

Modeling

“As ideas develop, we will also use modeling to evaluate the economic, environmental and climatic implications of different crops and livestock choices, landowner decisions and policy changes,” said Philip Gassman, a researcher with the Center for Agricultural and Rural Development at Iowa State, who is part of the DCB’s modeling group.

The modelers will focus on one watershed in each of the three states to help assess scenarios the RAD Teams choose to explore in detail, he said. For Iowa, the watershed will be the upper portion of the Des Moines River Basin, where the project can leverage modeling being conducted by the Iowa State-led Urban Food-Energy-Water Systems project.

“Corn and soybeans became the dominant cropping system over a century,” Gassman said. “To make headway, it will take work from a lot of angles to develop -- or in some cases, redevelop -- markets and infrastructure.”

Infrastructure development

Developing that infrastructure is part of the focus for another Iowa DCB partner, Practical Farmers of Iowa. PFI’s role includes extension-type support for outreach and field days. They are also providing leadership to help develop market channels for alternative farming enterprises, which could create the pull for other project components, according to PFI Field Crops Viability Manager Lydia English, who has a master’s in sustainable agriculture from Iowa State.

“There is strong interest in creating alternative markets among the very diverse group of farmers we work with,” she said. “We view this as a two-way street: Farmers add value to the project, and the project has potential to benefit them over time by opening up new market options.”

The DCB Project is funded by the USDA National Institute of Food and Agriculture through an Agriculture and Food Research Initiative competitive grant. Members of the research team represent land grant institutions, federal agencies and nonprofit organizations.

“If Midwestern agriculture is going to thrive over the long term, it needs to be resilient to unexpected challenges from pests and diseases, harsh weather, uncertain input costs, and market volatility,” said Matthew Liebmann, Iowa State emeritus professor of agronomy, who helped craft the plan for the DCB Project and continues to serve as an advisor.

“Diversity can be an effective way to protect crop yields, livestock production and farm profitability, while also improving environmental quality. Researchers, farmers and other members of the agricultural community working together can identify the best paths toward diverse, durable farming systems,” he said.

Farmers or other stakeholders who are interested in learning more or getting involved can find out more at the Diverse Corn Belt website.

Iowa State University College of Agriculture and Life Sciences

Contacts:
J. Arbuckle, Department of Sociology and Criminal Justice, 515-294-1497; arbuckle@iastate.edu
Philip Gassman, Center for Agricultural and Rural Development, 515-294-6313; pwgassma@iastate.edu
Ann Y. Robinson, Agriculture and Life Sciences Communications, 515-294-3066; ayr@iastate.edu

January 24, 2023
Gassman publishes in Land permalink

Research Scientist Phil Gassman published in the most recent issue of the journal Land. Gassman co-authored the article "An Approach for Prioritizing Natural Infrastructure Practices to Mitigate Flood and Nitrate Risks in the Mississippi-Atchafalaya River Basin" with Keith E. Schilling and Jerry Mount of the University of Iowa, Kelly M. Suttles and Eileen L. McLellan of the Environmental Defense Fund, and Michael J. White and Jeffrey G. Arnold of USDA-ARS.

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Research Scientist Phil Gassman published in the most recent issue of the journal Land. Gassman co-authored the article "An Approach for Prioritizing Natural Infrastructure Practices to Mitigate Flood and Nitrate Risks in the Mississippi-Atchafalaya River Basin" with Keith E. Schilling and Jerry Mount of the University of Iowa, Kelly M. Suttles and Eileen L. McLellan of the Environmental Defense Fund, and Michael J. White and Jeffrey G. Arnold of USDA-ARS.

Their article intersects watershed-scale risks to flooding and nitrate export in the Mississippi-Atchafalaya River Basin with potential locations of seven natural infrastructure practices to prioritize where they can be most effective for combined risk reduction at watershed scales. The study results are a launching point from which to improve the connections between watershed scale risks and the potential use of natural infrastructure practices to reduce these risks.

An Approach for Prioritizing Natural Infrastructure Practices to Mitigate Flood and Nitrate Risks in the Mississippi-Atchafalaya River Basin
Keith E. Schilling, Jerry Mount, Kelly M. Suttles, Eileen L. McLellan, Phillip W. Gassman, Michael J. White, Jeffrey G. Arnold
Land 12(276)
doi.org/10.3390/land12020276

January 18, 2023
Ji receives EPA grant permalink

Research Scientist Yongjie Ji received an incrementally funded grant from the US Environmental Protection Agency for the project Valuing Water Quality Improvements in Nationwide Ecosystems: Total Value based on the Biological Condition Gradient. The research project seeks to provide insight on the extent of the market, willingness to pay, and distance decay in representative watersheds within each of the nine ecoregions of the United States. The project also seeks to develop data and models to quantify a "Biological Condition Gradient" in watersheds by using stated revealed preference surveys across the country. Dr. Ji will serve a a co-principal investigator and will collaborate with the research team in the development and implementation of the proposed nationwide non-market survey.

January 18, 2023
Peters publishes in Journal of Rural Studies permalink

Professor David Peters published in the most recent issue of Journal of Rural Studies. Peters authored the article "Conditions facilitating aging in place in rural communities: The case of smart senior towns in Iowa" with Associate Professor Ilona Matysiak of The Maria Grzegorzewska University.

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Professor David Peters published in the most recent issue of Journal of Rural Studies. Peters authored the article "Conditions facilitating aging in place in rural communities: The case of smart senior towns in Iowa" with Associate Professor Ilona Matysiak of The Maria Grzegorzewska University.

Their article analyzes the data from the Iowa Small Towns Project to explore why some small rural communities affected by population aging deal better with this challenge than others. The findings indicate that smart senior towns score higher on most indicators compared with vulnerable ones. However, the assessments of older residents are significantly more positive than those of younger cohorts.

Conditions facilitating aging in place in rural communities: The case of smart senior towns in Iowa
Ilona Matysiak, David J. Peters
Journal of Rural Studies 97:507-516
https://doi.org/10.1016/j.jrurstud.2023.01.005

January 11, 2023
Hart to be Featured Speaker at Informational Meeting permalink

Chad Hart will be a featured speaker at an informational meeting focusing on grain marketing, crop insurance, and the farm bill. Hart will speak about the direction of the commodity market.

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Chad Hart will be a featured speaker at an informational meeting focusing on grain marketing, crop insurance, and the farm bill. Hart will speak about the direction of the commodity market.

The meeting will take place on Monday, February 6 at 6:00 p.m. in the basement of Dallmeyer Hall on the Washington County Fairgrounds. The meeting is free to attend, and a light meal will be served from 5:00-6:00 p.m. RSVP by calling Fulton Insurance at 319-461-6260.

December 19, 2022
Peters publishes in American Journal of Criminal Justice permalink

Professor David Peters published in the most recent issue of American Journal of Criminal Justice. Peters authored the article "Prescription Opioid Resiliency and Vulnerability: A Mixed-Methods Comparative Case Study" with Professor Andy Hochstetler of Iowa State University and Professor Shannon Monnat of Syracuse University.

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Professor David Peters published in the most recent issue of American Journal of Criminal Justice. Peters authored the article "Prescription Opioid Resiliency and Vulnerability: A Mixed-Methods Comparative Case Study" with Professor Andy Hochstetler of Iowa State University and Professor Shannon Monnat of Syracuse University.

Their article examines why, despite declines in prescription opioid overdoses, rural areas continue to have higher prescription opioid overdose rates than urban areas and aims to understand why high overdose places were resilient to the prescription opioid overdose crisis (better than predicted), while others were vulnerable (worse than predicted).

Prescription Opioid Resiliency and Vulnerability: A Mixed-Methods Comparative Case Study
Andy Hochstetler, David J. Peters, Shannon M. Monnat
American Journal of Criminal Justice 47:651-671
doi.org/10.1007/s12103-022-09701-9

December 15, 2022
Feng co-authors issue brief for Resources for the Future permalink

Assistant Professor Hongli Feng has co-authored an issue brief for Resources for the Future. Feng is an author of "Policies to Increase Mitigation of Agricultural Greenhouse Gas Emissions." The brief considers three policy approaches to voluntary reduction of ag-GHGs--increased government co-financing, "climate-smart" agricultural commodity programs, and ag-GHG emissions reduction credit mechanisms--all of which reward farmers and ranchers who shift practices toward lower-GHG production.

December 13, 2022
Iowa Farmland Values Hit All-time High despite Concerns about Higher Inflation, Interest Rates permalink

Ames, Iowa – One year after skyrocketing 29%, the average value of an acre of Iowa farmland jumped another 17%, or $1,660, to $11,411 per acre. The nominal value of an acre of farmland is again higher this year than at any point since Iowa State University began surveying values in 1941. When adjusting for inflation, the 2022 average value surpasses the previous inflation-adjusted record value set in 2013 for the first time.

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Ames, Iowa – One year after skyrocketing 29%, the average value of an acre of Iowa farmland jumped another 17%, or $1,660, to $11,411 per acre. The nominal value of an acre of farmland is again higher this year than at any point since Iowa State University began surveying values in 1941. When adjusting for inflation, the 2022 average value surpasses the previous inflation-adjusted record value set in 2013 for the first time.

Farmland values in Iowa have increased more than 15% in a year a handful of times since 1941, most notably in 2011, when values rose 32.5%, and last year, when values rose 29%.

While inflation was a major factor that drove the increase last year, Wendong Zhang, an associate professor of economics and faculty affiliate of Center for Agricultural and Rural Development (CARD) at Iowa State University, said that it did not play as much of a factor as commodity prices, limited land supply, and low interest rates through summer 2022 did this year.

Zhang, who is responsible for conducting the annual survey, said that inflation rates this year are similar to those from last year, but the Federal Reserve has used aggressive rate hikes since this summer to curb the problem. “The Federal Reserve seems to be determined to keep raising interest rates until they get a firm control on inflation. This is a tricky balance because larger and quicker interest rate hikes run the risk of slowing down the economy, potentially to a recession,” Zhang said. While he noted that higher interest rates put downward pressure on the land market, the effects typically don’t show up in land prices for one or two years.

While the Federal Reserve has been raising interest rates, Zhang said that 81% of Iowa farmland is fully paid for, so the higher interest rates don’t always affect farmers’ land purchasing decisions. This is especially true when high inflation makes the real interest rates negative or low, which tends to incentivize more borrowing and investment. Furthermore, a significant portion of respondents said that cash on hand was a positive factor influencing land values. “Farmers have a lot more cash on hand and supply chain issues led to a shortage of equipment, so the money that farmers normally spend on equipment is now devoted to land,” he said.

As for commodity prices, Zhang said they have been strong this year and yields have been higher than expected, despite the weather challenges. “Not only are crop prices are much higher, livestock and poultry prices are also significantly higher, translating into higher farm income and profits,” he said.

For the first time, this year’s survey asked respondents’ views of current farmland values. Zhang said that 70% of respondents feel that current land values are “too high” or “way too high.” “The higher land values do create an even higher entry barrier for beginning farmers, and the following increase in cash rents along with higher input costs could negatively affect producers, especially those with a lot of rented ground” he said.
Zhang said that 48% of respondents forecasted an increase in farmland values one year from now, while 24% forecasted no change and 28% expected lower values. He said that most respondents expect the one-year value to either be the same or increase roughly 5%–10%.
Looking five years ahead, Zhang said that 60% of respondents believe land values will increase 10%–20% from current values, while about 24% forecast a decline in prices.

Land Values by County
For the second year in a row, all 99 of Iowa’s counties showed an increase in land values. However, for the first time in almost a decade, Scott County did not report the highest overall value. O’Brien County topped the list this year, reporting a 20.6% increase, or $2,818 per acre, to $16,531. Decatur County again reported the lowest value, though land values there increased 10%, or $505 per acre, to $5,566.

Mills, Fremont, Page, and Montgomery Counties reported the largest percentage increase, 21.6%, while O’Brien County saw the largest dollar increase, $2,818 per acre. Wayne, Lucas, Appanoose, and Decatur Counties saw the smallest percentage increase, 10%, while Decatur County saw the smallest dollar increase, $505 per acre.

Land Values by District
Land values increased across all crop reporting districts. The Northwest district reported the highest overall value, $14,878 per acre, the largest percentage increase, 22.3%, and the largest dollar increase, $2,714 per acre.

The South Central district reported the lowest values, $6,824 per acre, and the lowest dollar change, $790 per acre, while the Southeast district saw the smallest percentage increase, 9.8%.

Land Values by Quality
Statewide, low-quality land now averages $7,369 per acre, an increase of 15.2% or $972 per acre. Medium-quality land now averages $10,673 per acre, an increase of 17.7% or $1,602 per acre. High-quality land now averages $13,817 per acre, an increase of 16.8% or $1,983 per acre.

The Northwest district reported the highest values for low-, medium-, and high-quality land at $9,569, $13,710, and $17,121 per acre, respectively. The South Central district reported the lowest values for low-, medium-, and high-quality land at $4,379, $6,872, and $9,478 per acre, respectively.

Low-quality land saw the largest percent increase in the Northeast district, 19.8%, while the Northwest district saw the largest dollar increase, $1,481 per acre. Low-quality land saw the smallest percent increase, 7.9%, and the lowest dollar increase, $321 per acre, in the South Central district.

Medium-quality land saw increases of more than 20% in the West Central, Northeast, Southwest, and Northwest districts, which respectively showed increases of 20.1%, 21.9%, 22.7%, and 24.2%. The Northwest district also saw the largest dollar increase in medium-quality land, $2,688 per acre. The Southeast district showed the lowest percent increase in medium-quality land, 6.2%, and the lowest dollar increase, $508 per acre.

High-quality land in the West Central, Southwest, and Northwest districts all saw increases of more than 20%—20.6%, 21.2%, and 22.3%, respectively. The Northwest district reported the largest dollar increase in high-quality land at $3,124 per acre. The Southeast district reported the smallest percent change in high-quality land, 10.3%, and the smallest dollar increase, $1,201 per acre.

Factors Influencing the Land Market
The most frequently mentioned positive factor influencing the land market was higher commodity prices. Limited land supply and low interest rates through summer 2022 were the second- and third-most frequently mentioned factors. Other frequently mentioned factors included cash on hand and high credit availability, strong yields, a good farm economy, and strong demand.

The most frequently mentioned negative factor affecting land values was interest rate hikes. Other noted factors included concerns about higher input costs and stock market volatility and economic uncertainty were the second- and third-most frequently mentioned negative factors.

Land values were determined by the 2022 Iowa State University Land Value Survey, conducted in November by the Center for Agricultural and Rural Development at Iowa State and Iowa State University Extension and Outreach. Results from the survey are consistent with results by the Federal Reserve Bank of Chicago, the REALTORS® Land Institute, and the U.S. Department of Agriculture.

The Iowa State Land Value Survey is based on reports by agricultural professionals knowledgeable of land market conditions, such as appraisers, farm managers, agricultural lenders, and actual land sales, and is intended to provide information on general land value trends, geographical land price relationships, and factors influencing the Iowa land market. The 2022 survey is based on 668 usable responses from 443 agricultural professionals. Seventy-one percent of the 443 respondents answered the survey online.

The Iowa State Land Value Survey was initiated in 1941, the first in the nation, and is sponsored annually by Iowa State. The survey is typically conducted every November and the results are released mid-December. Only the state average and the district averages are based directly on the Iowa State survey data. County estimates are derived using a procedure that combines the Iowa State survey results with data from the U.S. Census of Agriculture.

CARD offers a web portal at https://www.card.iastate.edu/farmland/ that includes visualization tools, such as charts and interactive county maps, allowing users to examine land value trends over time at the county, district, and state level.

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu; wendongz@cornell.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

December 9, 2022
Moschini publishes in Journal of Wine Economics permalink

Professor GianCarlo Moschini published in the most recent issue of Journal of Wine Economics. Moschini co-authored the article "Product differentiation and the relative importance of wine attributes: U.S. retail prices" with Raj Chandra, an economist for Amazon.

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Professor GianCarlo Moschini published in the most recent issue of Journal of Wine Economics. Moschini co-authored the article "Product differentiation and the relative importance of wine attributes: U.S. retail prices" with Raj Chandra, an economist for Amazon.

Their article investigates the relative importance of various attributes, including varietal, brands, and geographic origin, in explaining retail wine prices for the United States market and finds that brands alone explain more than 70% of the variation in wine prices, but geographic origin and varietals retain additional explanatory power.

Product differentiation and the relative importance of wine attributes: U.S. retail prices
Raj Chandra and GianCarlo Moschini
Journal of Wine Economics 17(3):177-208.
https://doi.org/10.1017/jwe.2022.23

December 9, 2022
Hayes, Schulz, Crespi publish in Journal of Agricultural & Food Industrial Organization permalink

Professor Dermot Hayes, Associate Professor Lee Schulz, and Professor John Crespi published in the most recent issue of Journal of Agricultural & Food Industrial Organization. Hayes, Schulz, and Crespi co-authored the article "Resilience of U.S. Cattle and Beef Sectors: Lessons from COVID-19" with Associate Professor Keri Jacobs at the University of Missouri. The article examines the upheaval the U.S. beef industry faced due to the COVID-19 pandemic and what specific factors led to that upheaval.

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Professor Dermot Hayes, Associate Professor Lee Schulz, and Professor John Crespi published in the most recent issue of Journal of Agricultural & Food Industrial Organization. Hayes, Schulz, and Crespi co-authored the article "Resilience of U.S. Cattle and Beef Sectors: Lessons from COVID-19" with Associate Professor Keri Jacobs at the University of Missouri. The article examines the upheaval the U.S. beef industry faced due to the COVID-19 pandemic and what specific factors led to that upheaval.

Resilience of U.S. Cattle and Beef Sectors: Lessons Learned from COVID-19
Dermot Hayes, Keri Jacobs, Lee Schulz, John Crespi
Journal of Agricultural & Food Industrial Organization
https://doi.org/10.1515/jafio-2022-0021

November 14, 2022
Iowa State University Land Value Survey News Conference to be held December 13 permalink

Ames, IA – A news conference will be held at 10:00 a.m. on Tuesday, December 13 to announce the results of the 2022 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. Please note the change in location from previous years—the conference will take place in room 142 of Curtiss Hall on the ISU campus in Ames.

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Ames, IA – A news conference will be held at 10:00 a.m. on Tuesday, December 13 to announce the results of the 2022 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. Please note the change in location from previous years—the conference will take place in room 142 of Curtiss Hall on the ISU campus in Ames.

For those who can’t attend the conference, a livestream will be available on YouTube at http://bit.ly/LandResults2022.

Wendong Zhang, associate professor of economics and farm management specialist, will head the news conference and announce the 2022 findings. Printed materials will be provided at the conference, including Iowa land value data from 1950 to present, current land value data from all 99 counties, and a press release summarizing the 2022 results. Dr. Zhang will make himself available to reporters for follow-up questions or one-on-one interviews immediately following the presentation of results.

The Iowa State Land Value Survey is currently ongoing, if you are an agricultural professional knowledgeable about the farmland market who has not participated in this year’s survey, you can participate in the Iowa State Land Value Survey online by December 1 at https://tinyurl.com/landvalue2022. If you have questions regarding the survey please contact Dr. Wendong Zhang at wdzhang@iastate.edu or call 515-294-2536. You can also see the land value trends at the county, district, and state level since 1950 at the interactive Iowa Farmland Value Portal at https://www.card.iastate.edu/farmland/.

An archive of the video and the printed materials available at the conference will be posted on the CARD homepage at https://www.card.iastate.edu soon after the conference.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

November 2, 2022
Feng receives INRC grant permalink

Assistant Professor Hongli Feng received a $98,738 grant from the Iowa Nutrient Research Center for the project "Spatially delineated carbon credit potential and implied nutrient reduction co-benefit: An Assessment with integrated ecological and economic modeling framework." Feng's project will use scenario-based and case-study-based assessment
of the nutrient reduction potential of various carbon initiatives with integrated ecological and economic modeling that incorporates spatial-temporal variabilities and how farmers respond to different payment schemes.

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Assistant Professor Hongli Feng received a $98,738 grant from the Iowa Nutrient Research Center for the project "Spatially delineated carbon credit potential and implied nutrient reduction co-benefit: An Assessment with integrated ecological and economic modeling framework." Feng's project will use scenario-based and case-study-based assessment
of the nutrient reduction potential of various carbon initiatives with integrated ecological and economic modeling that incorporates spatial-temporal variabilities and how farmers respond to different payment schemes.

The project runs through August 2024.

October 27, 2022
Plastina receives USDA-ERS grant permalink

Associate Professor Alejandro Plastina received a $174,970 grant from the US Department of Agriculture Economic Research Service. The grant is for the project "Incentives for Carbon Sequestration, the Role of Markets and the USDA." The main objective of the cooperative research proposal is to fund the development of a congressionally directed report discussing the role of incentive programs for soil carbon sequestration through agricultural management practices.

October 17, 2022
Hart receives INRC grant permalink

Professor Chad Hart received a $61,949 grant from the Iowa Nutrient Research Center for the project "Landowners Matter Too: Accelerating Adoption of In-field and Edge-of-field Nutrient Reduction Practices through Better Engaged Landowners." Hart's project will seek to provide a comprehensive assessment of Iowa landowners’ views on and barriers to adopting key in-field and edge-of-field practices to achieve INRS nutrient reduction goals.

October 13, 2022
Global hunger, carbon emissions could both spike if war limits grain exports permalink

AMES, Iowa — If Russia's invasion and the ensuing war significantly reduce Ukrainian grain exports, surging prices could increase food insecurity and carbon dioxide emissions, as marginal land is pushed into crop production.

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AMES, Iowa — If Russia's invasion and the ensuing war significantly reduce Ukrainian grain exports, surging prices could increase food insecurity and carbon dioxide emissions, as marginal land is pushed into crop production.

That's the chain reaction predicted by modeling from a research team that includes Amani Elobeid, a teaching professor of economics at Iowa State University. An article about their projections was published recently in Nature Food, an academic journal.

Elobeid said she and her colleagues — Jerome Dumortier of Indiana University-Purdue University Indianapolis and Miguel Carriquiry of the University of the Republic in Uruguay — ran their models shortly after the start of the invasion in February in hopes of estimating the impact on global grain markets and the subsequent climate implications.

"We're trying to present a more complete picture of what this war is costing the world," she said.

Ukraine, sometimes called the "bread basket of Europe," is a major exporter of wheat and corn. A deal struck with Russia in July aims to allow Ukrainian grain shipments, but it's unclear how effective it will be at limiting the war's impact on exports. For the study, researchers examined four potential outcomes: a 50% drop in Ukrainian exports and three scenarios assuming no Ukrainian exports in combination with other related situations or responses, such as a reduction in biofuel production in the U.S. and Europe or a 50% drop in Russian grain exports.

Their models estimate how changes in global agricultural markets impact production, trade, food consumption and prices — which in turn affect what land is used for crops. When the price of corn goes up due to a shortage, for instance, dense Brazilian forests are likelier to be razed for farming because there's an incentive to expand production.

Depending on the scenario, the cost of wheat would rise up to 7.2%, while the price hike for corn could reach 4.6%. Elobeid said those spikes would be on top of already rising food costs and would disproportionally worsen hunger in poorer countries in Africa and the Middle East, regions which rely heavily on grain imports from Ukraine.

"In the U.S., an additional 5% increase in food prices might not be that alarming. But in countries that are extremely poor and have high levels of food insecurity, even a 1% increase is very significant," she said.

Globally, the amount of new land used for growing crops under the scenarios studied would range from 16.3 million to 45 million acres, causing an average estimated increase in carbon emissions between 527 million and 1.6 billion metric tons of carbon dioxide equivalent, according to the study.

In wealthier countries, increased subsidies for lower-income households would help counteract higher food prices, but that's not an option in poorer nations, Elobeid said. Removing trade restrictions and implementing policies such as temporarily reducing biofuel mandates would help reduce grain prices worldwide and limit land-use changes that drive up carbon emissions. The most effective policy response, however, is clear yet elusive.

"The obvious solution is for the conflict to end," she said.

Iowa State University News Service

Contacts:
Amani Elobeid, 515-294-8122; amani@iastate.edu
Dave Roepke, ISU News Service, 515-294-4548; dcroepke@iastate.edu

October 13, 2022
Hayes receives USDA-ERS grant permalink

Professor Dermot Hayes received a $40,000 grant from the US Department of Agriculture's Economic Research Service for the project "Renewable Diesel and US Livestock Production and Trade." The project will analyze the impacts of renewable diesel expansion on US agricultural markets, focusing on livestock production and trade prospects.

October 5, 2022
Winters publishes in Applied Economic Perspectives and Policy permalink

Professor John Winters published in the most recent issue of Applied Economic Perspectives and Policy. Winters authored the article "Resource Booms, State Economic Conditions, and Child Food Security" with Seung Jin Cho, associate research fellow at Korea Institute for International Economic Policy, and Professor Brent Kreider, also of Iowa State University. Their article uses the fracking era oil and gas boom of the early 2000s as a natural experiment to examine the importance of state economic conditions for child food security and finds that increases in oil and gas labor income improve child food security, especially for children with less educated parents and those residing in single-mother households.

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Professor John Winters published in the most recent issue of Applied Economic Perspectives and Policy. Winters authored the article "Resource Booms, State Economic Conditions, and Child Food Security" with Seung Jin Cho, associate research fellow at Korea Institute for International Economic Policy, and Professor Brent Kreider, also of Iowa State University. Their article uses the fracking era oil and gas boom of the early 2000s as a natural experiment to examine the importance of state economic conditions for child food security and finds that increases in oil and gas labor income improve child food security, especially for children with less educated parents and those residing in single-mother households.

Resource Booms, State Economic Conditions, and Child Food Security
Applied Economic Perspectives and Policy
Seung Jin Cho, Brent Kerider, John V. Winters
https://doi.org/10.1002/aepp.13327

October 5, 2022
Hennessy, Feng publish in American Journal of Agricultural Economics permalink

Professor David Hennessy and Assistant Professor Hongli Feng published in the most recent issue of American Journal of Agricultural Economics. Hennessy and Feng authored the article "Systemic Risk, Relative Subsidy Rates, and Area Yield Insurance Choice" with Ph.D student Xuche Gong of Iowa State University. Their article investigates the nature of crop yield systemic risk and its implications for farmers' area yield insurance choices. They find that threshold relative area subsidy rate (TRASR) values indicate that current area yield insurance subsidy rates discourage farmers from choosing area yield insurance over individual yield insurance, especially at low area yield insurance coverage levels.

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Professor David Hennessy and Assistant Professor Hongli Feng published in the most recent issue of American Journal of Agricultural Economics. Hennessy and Feng authored the article "Systemic Risk, Relative Subsidy Rates, and Area Yield Insurance Choice" with Ph.D student Xuche Gong of Iowa State University. Their article investigates the nature of crop yield systemic risk and its implications for farmers' area yield insurance choices. They find that threshold relative area subsidy rate (TRASR) values indicate that current area yield insurance subsidy rates discourage farmers from choosing area yield insurance over individual yield insurance, especially at low area yield insurance coverage levels.

Systemic Risk, Relative Subsidy Rates, and Area Yield Insurance Choice
Xuche Gong, David A. Hennessy, Hongli Feng
American Journal of Agricultural Economics
https://doi.org/10.1111/ajae.12342

September 23, 2022
CARD part of $80 million USDA grant permalink

AMES, Iowa — Keeping plants continuously growing on farmland through the winter protects and enriches soil, improves water quality and reduces greenhouse gas emissions. That's why Lisa Schulte Moore, a professor of natural resource ecology and management at Iowa State University, is working to make year-round covered ground a conventional practice.
"My vision is that when we drive around Iowa in December, we don't see a single bare field," she said.

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AMES, Iowa — Keeping plants continuously growing on farmland through the winter protects and enriches soil, improves water quality and reduces greenhouse gas emissions. That's why Lisa Schulte Moore, a professor of natural resource ecology and management at Iowa State University, is working to make year-round covered ground a conventional practice.
"My vision is that when we drive around Iowa in December, we don't see a single bare field," she said.

While use of cover crops is growing, it's far from common. A new grant of up to $80 million from the U.S. Department of Agriculture will fund a project meant to spur more farmers to plant cover crops and perennial prairie grass, through both direct payments and a demonstration of how harvested winter-hearty crops and grass can be processed into renewable natural gas.

"This is about creating economic incentives so farmers' hearts and minds can align. They want to keep their soil. They want to keep their nutrients in place. We know they value environmental quality. But it needs to make financial sense for them," said Schulte Moore, co-director of Iowa State's Bioeconomy Institute and a 2021 McArthur Fellow.

The five-year grant is among the $2.8 billion in federal investments in 70 projects announced this month as part of the USDA's Partnerships for Climate-Smart Commodities program. The grant builds on the work of the Consortium for Cultivating Human and Naturally reGenerative Enterprises (C-CHANGE), founded in 2018 as an ISU Presidential Interdisciplinary Research Initiative. The initiative expanded in 2020 to a multi-institutional project led by Schulte Moore with a five-year, $10 million grant grant from the USDA's National Institute for Food and Agriculture.

Several CARD faculty members, including John Crespi, Dermot Hayes, Amani Elobeid, Alejandro Plastina, Wendong Zhang, and CARD Faculty Collaborator Jerome Dumortier will serve as principal investigators on the project.

Iowa State will receive roughly $10 million from the new grant and is one of 14 partners involved in the project, which is called Horizon II and is led by Roeslein Alternative Energy, a St. Louis-based company that is also an industry partner on C-CHANGE.

"Since founding RAE, our overarching goal has been to provide farmers an alternative way to use land, especially highly erodible acres, in ways that will benefit the environment, wildlife and their own livelihood," said founder and CEO Rudi Roeslein. "This funding will propel Horizon II forward more rapidly than otherwise would have been possible. We will show how farmers and landowners can do well for themselves while also providing ecological services and wildlife benefits."

A little more than half of the grant will be devoted to creating a new market for prairie grasses and winter-hearty crops such as cereal rye, paying for the associated environmental benefits of planting them. RAU will develop a market to pay corn and soybean producers in Iowa and Missouri to plant winter-hearty plants on productive cropland and restore less-productive areas to prairie, Schulte Moore said. That could begin by fall 2024, she said.

The project also includes two pilot sites where harvested grasses and cover crops will be used as the feedstock for anaerobic digesters, which produce methane as microbes break down organic matter. One of the sites will be at Sievers Family Farms, a cattle operation about 20 miles northwest of Davenport. The other is at a Smithfield Foods farm in northern Missouri.

The Sievers' facility has converted a mix of manure and bedding into biogas for nearly a decade, and in December 2021 entered a partnership with RAE. Now an additional anaerobic digester is being built, the farm's third, to enable further breakdown of the organic matter from grassy crops. The material will be converted into renewable natural gas -- a high-quality fuel that can be sold to energy suppliers and is indistinguishable from the natural gas that powers furnaces, stoves and vehicles, Schulte Moore said. Digestate, the material remaining after the gas is produced, can be used or sold as a nutrient-rich fertilizer and carbon-rich soil amendment.

The pilot sites hope to show that an on-farm anerobic digester running on biomass from nearby operations could create a self-sufficient market for grass and cover crops, attaching a stable income stream to an environmentally sound choice available to producers of all sizes. RAE estimates that a nationwide network of anaerobic digesters running on local production of cover crops and grass could annually generate more than $70 billion in new annual revenue and sequester 250 million metric tons of carbon dioxide, equivalent to 20.7 billion gallons of diesel fuel consumption.

"There needs to be a market pull to make continuous living cover standard practice on Iowa's landscape. We're hoping to grow a whole industry to provide that pull, " Schulte Moore said.

Education is needed, too. Many existing programs that provide farmers financial incentives to use conservation practices, including cover cropping, aren't fully used. The Horizon II grant will help address the need for expanded outreach by expanding C-CHANGE's team of ISU experts, which includes economists, agronomists, engineers and extension specialists.
"This is not like flipping a light switch. It really is a management transition that takes design, testing, data collection, demonstration and awareness-building. It will be a process," Schulte Moore said.

Iowa State University News Service

Contacts:
Lisa Schulte Moore, NREM, 515-294-7339; lschulte@iastate.edu
Dave Roepke, ISU News Service, 515-294-4548; dcroepke@iastate.edu
John Crespi, CARD, 515-294-1699; jcrespi@iastate.edu
Nathan Cook, Communications Specialist, CARD, 515-294-3809; nmcook@iastate.edu

September 23, 2022
Hayes receives USDA-ERS grant permalink

Professor Dermot Hayes received a $35,000 grant from the US Department of Agriculture's Economic Research Service for the project "Effects of the EU's Farm to Fork on Individual Member Countries' Pork Sectors, and Implications for US Pork Exports." Hayes' project will analyze the impacts of the EU's recently adopted "Farm to Fork and Biodiversity Strategies," which aims to restrict specified resource usages by European agriculture in order to meet climate and biodiversity goals.

September 22, 2022
Elobeid publishes in Nature Food permalink

Teaching Professor Amani Elobeid published in the most recent issue of Nature Food. Elobeid authored the article "Trade scenarios compensating for halted wheat and maize exports from Russia and Ukraine increase carbon emissions without easing food insecurity" with CARD faculty collaborators Miguel Carriquiry and Jerome Dumortier. Carriquiry is Professor in the Instituto de Economía at Universidad de la República Oriental del Uruguay and Dumortier is Associate Professor in the Paul H. O’Neill School of Public and Environmental Affairs at Indiana University – Purdue University Indianapolis. Their article present scenarios of reduced exports and production due to the Ukraine/Russia war that could increase maize and wheat prices by up to 4.6% and 7.2%, respectively.

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Teaching Professor Amani Elobeid published in the most recent issue of Nature Food. Elobeid authored the article "Trade scenarios compensating for halted wheat and maize exports from Russia and Ukraine increase carbon emissions without easing food insecurity" with CARD faculty collaborators Miguel Carriquiry and Jerome Dumortier. Carriquiry is Professor in the Instituto de Economía at Universidad de la República Oriental del Uruguay and Dumortier is Associate Professor in the Paul H. O’Neill School of Public and Environmental Affairs at Indiana University – Purdue University Indianapolis. Their article present scenarios of reduced exports and production due to the Ukraine/Russia war that could increase maize and wheat prices by up to 4.6% and 7.2%, respectively.

"Trade scenarios compensating for halted wheat and maize exports from Russia and Ukraine increase carbon emissions without easing food insecurity"
Miguel Carriquiry, Jerome Dumortier, Amani Elobeid
Nature Food
https://doi.org/10.1038/s43016-022-00600-0

September 19, 2022
Schulz: Farmers need solid crop, livestock earnings into next year for 2023 farmland values, cash rents to match 2022 gains permalink

Lee Schulz recently authored two articles for Wallaces Farmer. The first, "The cost-price squeeze for farmers," examines factors that could affect farmer profitability in the near term. The second, "Farmland values, cash rents surge in 2022," examines recent trends and factors influencing farmland values and cash rents.

September 15, 2022
Feng, Hart receive INRC funding permalink

The Iowa Nutrient Research Center at Iowa State University announced funding of just over $1.4 million to support a dozen new water quality and nutrient management projects for 2022-2023.

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The Iowa Nutrient Research Center at Iowa State University announced funding of just over $1.4 million to support a dozen new water quality and nutrient management projects for 2022-2023.

"This year, INRC celebrates its first decade. We are very pleased to have the opportunity to continue supporting this important work to improve Iowa’s water quality and agricultural systems,” said Matt Helmers, Iowa Nutrient Research Center director and professor of agricultural and biosystems engineering at Iowa State. “These projects represent new approaches, as well as continuing study of areas where more work is needed to inform recommendations for farmers, policymakers and stakeholders.”

Hongli Feng, assistant professor, received funding for the project "Spatially delineated carbon credit potential and implied nutrient reduction co-benefit: An assessment with integrated ecological and economic modeling framework." The project will take a cross-disciplinary approach to investigate the nutrient reduction potential of various carbon initiatives with integrated modeling that incorporates diverse variables, including information on farmers’ response to different incentive payment strategies.

Chad Hart, professor, received funding for the project "Landowners Matter Too: Accelerating Adoption of In-field and Edge-of-field Nutrient Reduction Practices through Better Engaged Landowners." The project will assess Iowa landowners’ views on and barriers to adopting key in-field and edge-of-field practices for nutrient reduction, looking for more “win-win” situations that could encourage increased conservation practice adoption.

September 13, 2022
Ag Business Club brings home awards from AAEA Annual Awards permalink

The Iowa State University Agricultural Business Club brought home two awards—Outstanding Chapter Club and Creative Club—and a top placing in the annual quiz bowl from the Agricultural and Applied Economics Association (AAEA) Annual Awards and Fellows Ceremony.

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The Iowa State University Agricultural Business Club brought home two awards—Outstanding Chapter Club and Creative Club—and a top placing in the annual quiz bowl from the Agricultural and Applied Economics Association (AAEA) Annual Awards and Fellows Ceremony.

Outstanding Chapter Clubs are recognized for their hard work throughout the school year based on the goals and objectives of the chapter, the club’s membership recruitment and the chapter's activities. Creative Awards are given to clubs that organize a special event during the school year, which are judged based on the club's written account of the idea or project, its implementation, and its result. This year, the Ag Business Club received the award for adding two industry advisor positions to strengthen how the club connects with agribusinesses.

Amani Elobeid, economics teaching professor and CARD faculty member, is one of the club’s advisors. Elobeid said the club is entirely student-run with guidance from dedicated advisors. The committees determine what awards to apply for and arrange events, industry meetings and club educational sessions.

This year, some club members decided to restart the AAEA Quiz Bowl contest team a couple of months before the competition. In the past, the Ag Business Club had sent a team to compete, but for the past few years, Iowa State had not participated.

“I went to some of the executive committee members and said, ‘Why don't we just test it out and see if it's something that we want to revive?’” Elobeid said. “It's a time commitment, and we didn’t get to practice very much. We weren’t even able to get the answering software they use at the competition.”

The other schools had a full year to prepare, but Iowa State’s club had just a few weeks. Elobeid said they went into the competition intending to try their best but not be disappointed if they didn’t do well. The team placed third out of 14 teams.

"This is a testament to the strength of the Agricultural Business program and the caliber of students in the major," Elobeid said.

Learn more about the Agricultural Business Club by visiting their website.

September 9, 2022
Winters publishes in JAAEA permalink

Professor John Winters published in the most recent issue of the Journal of the Agricultural and Applied Economics Association. Winters authored the article "Minimum wages and restaurant employment for teens and adults in metropolitan and nonmetropolitan areas," which estimates effects of minimum wages on individual restaurant employment using the 2005–2019 Current Population Survey and a two-way fixed effects regression model. The results indicate that minimum wages on average decrease restaurant employment for teens and increase restaurant employment for adults with less than an associate's degree.

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Professor John Winters published in the most recent issue of the Journal of the Agricultural and Applied Economics Association. Winters authored the article "Minimum wages and restaurant employment for teens and adults in metropolitan and nonmetropolitan areas," which estimates effects of minimum wages on individual restaurant employment using the 2005–2019 Current Population Survey and a two-way fixed effects regression model. The results indicate that minimum wages on average decrease restaurant employment for teens and increase restaurant employment for adults with less than an associate's degree.

"Minimum wages and restaurant employment for teens and adults in metropolitan and nonmetropolitan areas"
John V. Winters
Journal of the Agricultural and Applied Economics Association
https://doi.org/10.1002/jaa2.25

September 1, 2022
Hennessy, Feng publish in AEPP and JAAEA permalink

David Hennessy, professor, and Hongli Feng, assistant professor, published in the most recent issue of Applied Economic Perspectives and Policy. Hennessy and Feng authored the article "Grassland easement acquisition: Conversion hazard rate, additionality, spatial spillover, and heuristics," with Ruiqing Miao of Auburn University, Gaurav Arora of Indraprastha Institute of Information Technology Delhi, and Charles R. Loesch of the US Fish and Wildlife Service.

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David Hennessy, professor, and Hongli Feng, assistant professor, published in the most recent issue of Applied Economic Perspectives and Policy. Hennessy and Feng authored the article "Grassland easement acquisition: Conversion hazard rate, additionality, spatial spillover, and heuristics," with Ruiqing Miao of Auburn University, Gaurav Arora of Indraprastha Institute of Information Technology Delhi, and Charles R. Loesch of the US Fish and Wildlife Service.

The article examines optimal grassland easement acquisition strategies with a focus on the roles of environmental benefit additionality and spatial spillover effect of grassland conversion.

Hennessy and Feng also authored the article "Assessing peer effects and subsidy impacts in conservation technology adoption: Application to grazing management choices," which appears in the most recent issue of the Journal of the Agricultural and Applied Economics Association.

The JAAEA article was authored with Yuyuan Che of North Carolina State University and examines peer networking and grazing practice decisions, and how subsidies affect decisions in the presence of peer effects.

"Grassland easement acquisition: Conversion hazard rate, additionality, spatial spillover, and heuristics"
Ruiqing Miao, Hongli Feng, David A. Hennessy, Gaurav Arora, Charles R. Loesch
Applied Economic Perspectives and Policy
https://doi.org/10.1002/aepp.13318

"Assessing peer effects and subsidy impacts in conservation technology adoption: Application to grazing management choices"
Yuyuan Che, Hongli Feng, David A. Hennessy
Journal of the Agricultural and Applied Economics Association
https://doi.org/10.1002/jaa2.26

August 22, 2022
Crespi receives Pomerantz Endowment support permalink

CARD Director John Crespi received the Marvin A. Pomerantz Endowment for Faculty Enrichment award for FY23. Established in 1992 and administered by the provost's office, the endowment award provides additional support for faculty who are deemed outstanding in their teaching, research and outreach. Recipients rotate among Iowa State's seven colleges each year.

August 19, 2022
Arbuckle receives Fellow Award permalink

The Soil and Water Conservation Society (SWCS) recognized recipients of the 2022 SWCS awards at its annual conference held Aug. 2 in Denver, Colorado.

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The Soil and Water Conservation Society (SWCS) recognized recipients of the 2022 SWCS awards at its annual conference held Aug. 2 in Denver, Colorado.

Among the award winners is J. Arbuckle, professor of sociology in Iowa State’s Department of Sociology and Criminal Justice. Arbuckle received a Fellow Award, which recognizes SWCS members who have performed exceptional service in advocating for the conservation of soil, water and related natural resources. Fellowship is an honor bestowed upon the best in the conservation profession.

Additional information about the 2022 SWCS awards is available online.

August 18, 2022
Rural Drinking Water Survey Shows Significant Nitrate Risk for Many Iowans permalink

Survey shows private well water users are at risk of exposure to unhealthy levels of nitrate or bacteria

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Survey shows private well water users are at risk of exposure to unhealthy levels of nitrate or bacteria

AMES, Iowa – The results of a new drinking water survey reveal a stark risk of exposure to potentially unhealthy drinking water. Risk profiles were compiled based on recent testing, use of reverse osmosis filters, and use of supplemental water sources.

The Iowa Drinking Water Survey was conducted by the Conservation Learning Group, a think tank based at Iowa State University Extension and Outreach, and the Center for Agricultural and Rural Development at Iowa State University, which conducts innovative public policy and economic research. The results of the survey can be found in this online report and infographic.

The survey was designed to gather information and provide a stronger understanding of well water testing frequency, what avoidance behaviors users may employ to mitigate risk, filtering efforts and water quality perceptions.

“Around 7.6% of Iowa households — 230,000 to 290,000 Iowans — rely on private well water as their water source,” said Jamie Benning, assistant director for Agriculture and Natural Resources Extension at Iowa State. “The Iowa Department of Natural Resources and the Environmental Protection Agency recommend yearly testing of private wells, but it is the owner’s responsibility to test. There are no requirements or regulations related to well water testing by homeowners. This study helps to start filling the information gap so we can better understand behaviors related to well water that will inform outreach to help protect the health and wellbeing of rural Iowans.”

Some 73% of surveyed households are at risk of exposure to potentially unsafe water due to lack of recent testing, avoidance and/or mitigation. This equates to a number of Iowans at risk that falls somewhere between the population of Cedar Rapids and Des Moines. And 33% are categorized at the highest risk level because of no testing and no avoidance.

Other key findings included in the report
Only 10% of households tested their water quality in the last year.
Around 50% of households supplement their drinking water with bottled water or water coolers.
While 70% of households report using water filters, just 10% report having a reverse osmosis filter that can remove nitrate.
“Nitrate infiltration into water sources is simply a part of Iowa’s agricultural ecosystem, and while many efforts are being made to control loss of agricultural nitrate to waterways, there is a risk of elevated nitrate in private wells,” continued Benning. “The report clearly identifies needs for more regular testing and awareness of the potential risks. Testing can bring peace of mind that well water is safe to drink or inform next steps if an unsafe level of a contaminant is found. In the report, we make recommendations for education and outreach supports which can help carry the message to well users, but there is still more to learn, and more effort required to identify at-risk households, inform them, and incentivize testing and mitigation actions.”

The Center for Agricultural and Rural Development, the Leopold Center for Sustainable Agriculture and the U.S. Department of Agriculture National Institute of Food and Agriculture Project No. IOW05570 provided funding that supported this project.

Iowa State University Extension and Outreach

Contacts:
Ann Staudt, Program Specialist, 515-294-4878; astaudt@iastate.edu
David Keiser, Professor; dkeiser@umass.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

August 3, 2022
Gassman receives EDF grant permalink

Research Scientist Phil Gassman received a $10,000 grant from the Environmental Defense Fund for the project “Whole River Scoping of the Mississippi River Basin: Part 2,” which will support Environmental Defense Fund research focused on evaluating natural infrastructure practice adoption, placement, and effectiveness in the Mississippi-Atchafalaya River Basin.

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Research Scientist Phil Gassman received a $10,000 grant from the Environmental Defense Fund for the project “Whole River Scoping of the Mississippi River Basin: Part 2,” which will support Environmental Defense Fund research focused on evaluating natural infrastructure practice adoption, placement, and effectiveness in the Mississippi-Atchafalaya River Basin.

The project runs through September 30, 2022.

July 18, 2022
Schulz authors Wallaces Farmer article permalink

Associate Professor Lee Schulz authored a recent article for Wallaces Farmer. Schulz article focuses on how pork producers are reducing production even though pork prices are projected to stay high. In the article, Schulz says that "On the surface, pork producers trimming production in the face of continuing strong hog prices defies logic. However, pork producers pulling back in the face of feed costs up almost 20% compared to a year ago — and up nearly 80% from two years ago — makes perfectly logical sense."

June 22, 2022
ISU study sheds light on fertilizer price spikes permalink

DES MOINES – Fertilizer producers’ profits have soared over the last two years as farmers were hit hard by increased prices, according to a new study by Iowa State University and requested by Iowa Attorney General Tom Miller.

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DES MOINES – Fertilizer producers’ profits have soared over the last two years as farmers were hit hard by increased prices, according to a new study by Iowa State University and requested by Iowa Attorney General Tom Miller.

While crop prices have roughly doubled over the past couple of years, fertilizer prices are two to four times higher than they were in September 2020. Fertilizer producers have higher profit growth during the pandemic than many other food and agricultural industries, the analysis by ISU’s Center for Agricultural and Rural Development shows.

The report contains some promising news: “As supply chains improve, ports reopen, labor becomes more available, and energy prices ease, the expectation is that fertilizer prices will decline in the second half of 2022.” However, factors could prevent fertilizer prices from stabilizing in the short and longer term, including “natural gas demand and supply, changes in trade policy or economic sanctions, increased acreage demand by farmers, and potential market power in the fertilizer industry.”

The study says there is not enough evidence to determine whether fertilizer producers are using their market power to engage in “greedflation.” Whether “fertilizer firms may be taking advantage of inflation to raise prices . . . are good questions for which we need more data,” according to the report by agriculture economist John Crespi, director of CARD, and other five other ISU researchers.

Miller thanked ISU for undertaking the study. “This thorough report raises many good questions, which we will continue to explore," he said. "Although there are a lot of unknowns, we remain concerned that increases in crop returns for farmers tend to coincide with even higher increases in fertilizer expenditures.”

In February, Miller announced that his office would examine the unprecedented increases in fertilizer prices after the Iowa Corn Growers Association approached him with concerns. Miller began working with U.S. Agriculture Secretary Tom Vilsack and others, and he requested information from the five major fertilizer manufacturers: Mosaic, Nutrien, CF Industries, Koch Industries, and OCI N.V. (owner of Iowa Fertilizer Co.)

The ISU study shows that from 2018-19 to 2020-21, net income for fertilizer companies have increased fourfold in some cases. Bunge’s profits increased 415%, Mosaic’s 418%, and Nutrien’s 276%. However, the study noted that many fertilizer companies had negative returns in 2018-19.

The fertilizer companies have cited many reasons for the price increases, which the ISU study notes: decreased production due to COVID, natural gas production disruptions and price fluctuations, natural disasters affecting production and natural gas demand, and tight global supplies compounded by the Chinese ban on exports and sanctions on Russia and Belarus.

Iowa Department of Justice Office of the Attorney General

Contacts:
Lynn Hicks, Chief of Staff, Office of the Attorney General, 515-281-6699; lynn.hicks@ag.iowa.gov
John Crespi, Director, Center for Agricultural and Rural Development, 515-294-1699; jcrespi@iastate.edu
Ashlee Kieler, Communications Specialist, Office of the Attorney General, 515-281-6710; ashlee.kieler@ag.iowa.gov
Nathan Cook, Communications Specialist, Center for Agricultural and Rural Development, 515-294-3809; nmcook@iastate.edu

June 3, 2022
Arbuckle named SWCS Fellow, receives award for paper permalink

The Soil and Water Conservation Society has named Professor J. Arbuckle as Fellow, and as the winner of the Best Research Paper for Impact and Quality Award. SWCS bestows the designation of Fellow on members who have performed exceptional service in advocating the conservation of soil, water, and related natural resources. Professional achievement may be in practicing, investigating, administering, or teaching soil and water conservation or closely related fields.

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The Soil and Water Conservation Society has named Professor J. Arbuckle as Fellow, and as the winner of the Best Research Paper for Impact and Quality Award. SWCS bestows the designation of Fellow on members who have performed exceptional service in advocating the conservation of soil, water, and related natural resources. Professional achievement may be in practicing, investigating, administering, or teaching soil and water conservation or closely related fields.

The Best Research Paper for Impact and Quality Award is for the article "Adoption of agricultural conservation practices in the United States: Evidence from 35 years of quantitative literature."

SWCS will present awards at the 77th SWCS International Annual Conference July 31-August 3, 2022.

June 3, 2022
Brighenti, Gassman publish in Science of the Total Environment permalink

Tássia Brighenti, post-doctoral research associate, and Phil Gassman, research scientist, have published in the most recent issue of Science of the Total Environment. Brighenti and Gassman wrote the article "Determination of accurate baseline representation for three Central Iowa watersheds within a HAWQS-based SWAT analyses" with Keith Schilling of the University of Iowa, Raghavan Srinivasan of Texas A&M University, Matt Liebman and Jan Thompson of Iowa State University.

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Tássia Brighenti, post-doctoral research associate, and Phil Gassman, research scientist, have published in the most recent issue of Science of the Total Environment. Brighenti and Gassman wrote the article "Determination of accurate baseline representation for three Central Iowa watersheds within a HAWQS-based SWAT analyses" with Keith Schilling of the University of Iowa, Raghavan Srinivasan of Texas A&M University, Matt Liebman and Jan Thompson of Iowa State University.

Their article uses a multi-phase testing approach to represent baseline hydrologic conditions across three agricultural basins that drain parts of north central and central Iowa: the Des Moines River Basin, the South Skunk River Basin, and the North Skunk River Basin. The full article is available here.

Determination of accurate baseline representation for three Central Iowa watersheds within a HAWQS-based SWAT analyses
Tássia Mattos Brighenti, Philip W.Gassman, Keith E.Schilling, Raghavan Srinivasan, MattLiebman, Jan R.Thompson
Science of The Total Environment
https://doi.org/10.1016/j.scitotenv.2022.156302

May 27, 2022
Crespi, Hennessy publish in Handbook of Agricultural Economics permalink

John Crespi, CARD Director, and CARD Faculty affiliate David Hennessy published in the latest volumes of the Handbook of Agricultural Economics. Hennessy, with Thomas Marsh of Washington State University, published "Economics of Animal Health and Livestock Disease" in Volume 5. Crespi, with James MacDonald of University of Maryland, published "Concentration in Food and Agricultural Markets" in Volume 6.

May 24, 2022
Startups near State Lines Gravitate toward Side with Lower Property Tax permalink

AMES, IA – Researchers at Iowa State University found significantly different state tax rates affect where new businesses set up shop near state lines. Their study published in the journal Small Business Economics shows the fourth greatest distortion in the U.S. is between Iowa and its northwest neighbor.

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AMES, IA – Researchers at Iowa State University found significantly different state tax rates affect where new businesses set up shop near state lines. Their study published in the journal Small Business Economics shows the fourth greatest distortion in the U.S. is between Iowa and its northwest neighbor.

"The probability of starting up on one side of the border versus the other due to tax rates is 7.5% higher in South Dakota than Iowa, but it may not be for the reasons people think. Namely, property taxes seem to matter more than other types of taxes and providing certain incentives for some businesses in Iowa may hurt others,” said University Professor of Economics Peter Orazem who led the study.

Orazem explained he and his team focused on state borders because this approach helps control for unobservable local factors that would influence new businesses on both sides of the border, such as an atypically strong local economy, better local access to labor or venture capital, or an unusually supportive local business community.

To collect their data, the researchers looked at the individual and combined effects of four types of state taxes (i.e., property, sales, personal income, corporate income) and pulled information on new businesses less than a year old between 1999 and 2015 from the Statistics of U.S. Businesses under the U.S. Census Bureau.

“The reason we were particularly interested in business startups is that they may consider multiple locations to set up. They will be more sensitive to different tax rates compared to a well-established firm that would have to move all of its equipment and employees or find new workers if it jumped state lines,” said Orazem.

The researchers found a state with a one-point higher tax rate in each of the four types of taxes will have a “small but statistically significant” 3.2% lower probability of attracting a startup than its neighboring state. The greatest distortion in startups due to tax rates in the U.S. is Wyoming's 8.6% advantage over Idaho. Wyoming’s state revenue is largely subsidized by taxes and royalties from fossil fuel production in the state, which eases the pressure to tax other types of businesses.

Orazem and his team emphasized the probability of businesses starting up on one side of the border or the other drops off when two neighboring states have similar tax structures. For example, Rhode Island has the highest tax rate in the U.S., but its neighbor, Connecticut, has the third highest tax rate, essentially erasing what could otherwise be a disadvantage.

The study also found property taxes have the greatest adverse effect on the rate of new businesses. Orazem explained that’s because new businesses may pay property taxes even if they are not generating any revenue.

Gaining a competitive edge
As director of the Program for the Study of Midwest Markets and Entrepreneurship at ISU, Orazem said he and his colleagues are always trying to figure out what incentivizes and prevents businesses from setting up in Iowa and the region.

"Tax policies are one of the reasons why people have specified South Dakota as being a relatively faster growing state in the Midwest. So, even though the study isn’t focused on South Dakota, we were curious if we could see a difference, which we did.”

But Orazem emphasized many of the strategies implemented in Iowa to try to stay competitive with South Dakota are not necessarily the most efficient.

“What’s bizarre about Iowa is we tend to have high marginal tax rates, but then we give tax breaks to some businesses and not to others. For example, we have around 450 special exemptions for the sales tax,” said Orazem. "Maybe we should stop giving special deals in general but lower tax rates where they really matter, like property tax rather than income tax.”

Orazem said he hopes the study’s findings will open the discussion but recognizes state tax reform is challenging.

Iowa State University News Service

Contacts:
Peter Orazem, 515-294-8656; pfo@iastate.edu
Rachel Cramer, News Service, 515-294-6136; rcramer@iastate.edu

May 13, 2022
Orazem publishes in American Journal of Agricultural Economics permalink

University Professor Peter Orazem published in the latest issue of American Journal of Agricultural Economics. Orazem co-authored the article "Measuring the Amerian farm size distribtuion" with Katherine Lacy, Teaching Assisstant Professor of Economics at the University of Reno, Nevada, and Skylar Schneekloth of Iowa State's Department of Economics. Their article uses the Share Weighted Size Index to examine evidence of farm consolidation from 1959 to 2017. The article is available here.

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University Professor Peter Orazem published in the latest issue of American Journal of Agricultural Economics. Orazem co-authored the article "Measuring the Amerian farm size distribtuion" with Katherine Lacy, Teaching Assisstant Professor of Economics at the University of Reno, Nevada, and Skylar Schneekloth of Iowa State's Department of Economics. Their article uses the Share Weighted Size Index to examine evidence of farm consolidation from 1959 to 2017. The article is available here.

Measuring the American farm size distribution
Katherine Lacy, Peter F. Orazem, Skyler Schneekloth
American Journal of Agricultural Economics
https://doi.org/10.1111/ajae.12318

May 9, 2022
Harris-Lagoudakis paper wins 2021 FSN Best Paper permalink

A paper by Katherine Harris-Lagoudakis, assistant professor, "Online shopping and the healthfulness of grocery purchases," was selected by the Food Safety and Nutrition judges of the Agricultural & Applied Economics Association as the winner of the FSN Best Paper Award for 2021.

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A paper by Katherine Harris-Lagoudakis, assistant professor, "Online shopping and the healthfulness of grocery purchases," was selected by the Food Safety and Nutrition judges of the Agricultural & Applied Economics Association as the winner of the FSN Best Paper Award for 2021.

In order to be eligible, a paper must have been published in an English-language peer-reviewed journal with a publication date in the year prior to the award. There will be a recognition of her award at a ceremony on Sunday, July 31, at the AAEA meetings.

May 6, 2022
Plastina authors Farm Foundation report permalink

Alejandro Plastina has authored a new report for the Farm Foundation. "The U.S. Voluntary Agricultural Carbon Market: Where to From Here?" sheds light on multiple voluntary agricultural carbon programs and the contractual implications for participating farmers, discusses current and potential barriers to the development of a voluntary market for agricultural carbon credits and steps to overcome them, and presents a simplified analysis of four possible scenarios for voluntary agricultural carbon markets and their implications for farmers and society.

April 28, 2022
Study finds relationships among herbicide-resistant weeds, tillage practices and agricultural greenhouse gas emissions permalink

AMES, Iowa – A new study that combines survey data and cutting-edge computer modeling found a growing trend in tillage intensity in U.S. corn and soybean production in recent years has led to an increase in greenhouse gas emissions from agricultural fields.

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AMES, Iowa – A new study that combines survey data and cutting-edge computer modeling found a growing trend in tillage intensity in U.S. corn and soybean production in recent years has led to an increase in greenhouse gas emissions from agricultural fields.

The study, published recently in the academic journal Nature Food, drew on years of survey data that asked thousands of U.S. farmers about their tillage practices. The researchers then plugged the relevant data into sophisticated ecosystem models to see how tillage decisions affect soil emissions of greenhouse gases, including carbon dioxide and nitrous oxide.

The survey data indicate farmers relied less on tillage during the period between 1998 and 2008, but that trend began to reverse around 2009 when tillage intensity started to rise.

Chaoqun Lu, an Iowa State University associate professor of ecology, evolution and organismal biology and lead author of the study, said the growing resistance of weeds to the common herbicide glyphosate likely contributed to increased tillage. Genetically engineered herbicide-tolerant crops hit the agricultural scene in the late 1990s, and their adoption freed farmers from some of their reliance on tillage as a method of weed control. But growing numbers of weed species with resistance to the herbicide have emerged over the decades, reducing the effectiveness of the herbicide and making tillage a more attractive weed control option once again. And as tillage intensity grows, more carbon and nitrogen stored in the soil release into the atmosphere in the form of greenhouse gases, Lu said.

“One of the interesting pieces that we found in this study is tillage intensity has shifted from a declining trend to an increasing trend since 2008,” Lu said. “Our regression analysis suggests this trend is correlated to the wide adoption of herbicide-tolerant crops before 2008 and emerging weed resistance after 2008. We can’t assert a strict causal relationship, but regression analysis reveals a strong relationship between them.”

The survey asked questions about farmers’ decisions on seed varieties and cultivation practice intensity. Survey topics included no-till, conservation tillage (e.g., ridge till, mulch till), and conventional tillage (e.g., moldboard plow, chisel plow, disk harrow). The data show no-till grew by roughly 12 million acres for corn production and nearly 17 million acres for soybeans between 1998 and 2008. But no-till corn acres declined by nearly a half million acres between 2009 and 2016 and declined by nearly 6 million soybean acres during that period, according to the survey. Corn acreage under conservation tillage and soybean acreage under conservation and conventional tillage showed similar trends, first declining between 1998 and 2008 before climbing back to previous levels by 2016.

Feeding the data into the land ecosystem models shows that gains in tillage intensity since 2009 have offset the greenhouse gas mitigation benefits achieved during the tillage declines from 1998 to 2008.

Lu said the study uncovers a relationship between weed resistance, seed technology and greenhouse gas emissions that could lead to a better understanding of how farm practices can mitigate climate change. Her team’s previous research showed that nitrous oxide emissions from farmland in the U.S. Corn Belt have increased in recent years, largely due to the widespread application of nitrogen fertilizers to agricultural land. The added nitrogen is partially used by crops, but the remainder either stays in soils or is lost to the environment. During this process, microorganisms living in soils consume nitrogen-containing compounds and give off nitrous oxide as a byproduct.

Meanwhile, soil organic matter decomposes and partially converts into carbon dioxide. Both are powerful greenhouse gases that have potential to warm the climate. Intensive tillage practices disturb the soil, alter soil moisture and aeration status, and stir heavy crop residue into soils, which together change the production rates of soil greenhouse gases and allow more of them to escape, Lu said.

Lu pointed to the use of alternative herbicides to combat glyphosate-resistant weeds, or using glyphosate in fewer consecutive years, as well as the diversification of crops beyond corn and soybeans as options to control weeds without increasing greenhouse gas emissions.

“Without an effective strategy to control weeds, tillage intensity could continue to grow in the future and could undermine greenhouse gas mitigation achievements from other agricultural activities,” Lu said.

David Hennessy and Hongli Feng, both of whom are faculty at the Center for Agricultural and Rural Development were involved in the study, as were Zhen Yu at Nanjing University of Information Science and Technology in Nanjing, China, Hanqin Tian at Auburn University, and Dafeng Hui at Tennessee State University.

Iowa State University News Service

Contacts:
Chaoqun Lu, Ecology, Evolution and Organismal Biology, 515-294-7443; clu@iastate.edu
Fred Love, News Service, 515-294-0704; fredlove@iastate.edu

April 26, 2022
Lence receives Faculty Excellence award permalink

Professor Sergio Lence, Marlin Cole Chair of International Agricultural Economics, has been named a 2022 recipient of the Regents Award for Faculty Excellence as a reflection of his commitment to Iowa State University, his professional reputation, and the esteem of his peers.

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Professor Sergio Lence, Marlin Cole Chair of International Agricultural Economics, has been named a 2022 recipient of the Regents Award for Faculty Excellence as a reflection of his commitment to Iowa State University, his professional reputation, and the esteem of his peers.

In addition to the award, he will receive a $1,500 one-time stipend.

Lence will be formally recognized at the University Awards Ceremony.

April 25, 2022
Ma announced as winner of CARD's Best PhD Dissertation Award permalink

CARD Director John Crespi announced Dr. Liyuan Ma as the recipient of the seventh annual CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy. Ma was awarded a $500 prize, and will have her name added to the Dissertation Award winners plaque in the CARD suite in Heady Hall.

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CARD Director John Crespi announced Dr. Liyuan Ma as the recipient of the seventh annual CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy. Ma was awarded a $500 prize, and will have her name added to the Dissertation Award winners plaque in the CARD suite in Heady Hall.

Ma's dissertation is comprised of four chapters focusing on labor economics. The first essay provides theory and evidence about how the traditional marriage expenditure paid by a bride’s parents and groom’s parents affects marriage matches in China. Chapter 2 estimates the relative importance of family background, ability, school quality, and the local labor market on children’s educational attainment and early-career earnings. Chapter 3 studies firm churning, which is the simultaneous entry and exit of firms into a local market. Chapter 4 examines how observed work discrimination and demographic attributes such as gender, education, and marital status relate to employee perceptions of discrimination.

Ma has co-authored three articles that have appeard in CARD's Agricultural Policy Reivew: "What Affects Firm Location and Firm Employment at State Borders?," "Does Rural Broadband Expansion Encourage Firm Entry?," and "Minimum Wages and Rural and Urban Firm Entry and Exit."

April 22, 2022
Feng, Hennessy receive NSF grant permalink

Assistant Professor Hongli Feng received a $257,430 grant from the National Science Foundation as part of the Smart and Connected Communities program. Feng's project is part of the SCC-IRG Track 1: Connecting Farming Communities for Sustainable Crop Production and Environment Using Smart Agricultural Drainage Systems. Professor David Hennessy will also serve as a co-PI on the project, which runs through September 2025.

April 19, 2022
Soil Management and Land Valuation Conference Is May 18 permalink

AMES, Iowa – Record high commodity prices, crop inputs and land values are topics that will drive discussion at the 94th annual Soil Management and Land Valuation Conference, May 18 in Ames.

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AMES, Iowa – Record high commodity prices, crop inputs and land values are topics that will drive discussion at the 94th annual Soil Management and Land Valuation Conference, May 18 in Ames.

The average acre of Iowa farmland increased nearly 30% last year, according to results of the Iowa State University Land Value Survey, released in November. Many variables continue to change in today’s agricultural landscape and will be part of the discussion.

This year’s conference will be offered in person at Iowa State University’s Scheman Building from 8:15 a.m. to 4:30 p.m., as well as virtually via Zoom. The in-person registration fee is $150 and the virtual option costs $175.

“This year’s program will examine several current issues in rural property management, appraisal, and sales and purchases, as well as agricultural policy,” said Wendong Zhang, associate professor in economics and extension economist at Iowa State. “We have lined up a dozen soil land management and land valuation professionals to address these issues.”

A half-dozen current issues and their implications to soil management and land valuation will be discussed. The topics include the U.S. and global agricultural economy outlook, a panel discussion on farmland and equipment values, a weather outlook and its impacts on agricultural production, the skyrocketing fertilizer and other input costs, a panel discussion on conservation easements and land trusts, and an agricultural market outlook focusing on crops.

The conference offers networking opportunities for professionals who have an interest in agricultural land, land management and land valuation. Additionally, participants have the opportunity through an online survey before the conference to “gaze into their crystal balls,” and will be asked to provide their estimates of future land values in Iowa and corn and soybean prices via an online survey distributed before the conference.

Sponsored by Iowa State University’s College of Agriculture and Life Sciences and ISU Extension and Outreach, the Soil Management and Land Valuation Conference is intended for farm managers, rural appraisers, real estate brokers and others interested in the land market in Iowa.

This is the longest running conference at Iowa State in both research and extension, and 2022 will mark the 94th annual meeting in this series. The conference is intended for anyone who has an interest in agricultural land, land management and land valuation. The program is planned each year by the ISU Extension and Outreach economics team within Iowa State’s Department of Economics.

Organizers are applying for 6.5 hours of real estate continuing education credits from the Iowa Real Estate Commission, and at least 6 (possibly 7) hours of appraiser continuing education credits from the Real Estate Appraiser Examining Board, respectively. There will also be three $50 gift card giveaway opportunities for the participants throughout the day.

Other presenters from Iowa State will include Chad Hart, professor in economics and extension grain markets specialist; and Bobby Martens, associate professor and agricultural supply chain specialist with ISU Extension and Outreach.

Register online at www.regcytes.extension.iastate.edu/smlv/register/.

For questions regarding the conference content, contact Wendong Zhang at
515-294-2536 or wdzhang@iastate.edu.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu

April 7, 2022
Lence wins International Mission Award permalink

Professor Sergio Lence has been announced as recipient of the 2022 International Mission Award from Gamma Sigma Delta, The Honor Society of Agriculture. Gamma Sigma Delta presents annual awards to recognize members that help Iowa State University achieve its mission through teaching, research, extension, and international agriculture.

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Professor Sergio Lence has been announced as recipient of the 2022 International Mission Award from Gamma Sigma Delta, The Honor Society of Agriculture. Gamma Sigma Delta presents annual awards to recognize members that help Iowa State University achieve its mission through teaching, research, extension, and international agriculture.

The awards ceremony will be held April 21 at 5:30 p.m. in Curtiss Hall Auditorium.

April 7, 2022
Elobeid to be honored at special event permalink

Amani Elobeid, Teaching Professor, will be honored at a special event marking her inauguration as the Ron and Lynn Deiter Endowed Chair for Sustaining Excellence in Agricultural Business. The event will take place on Tuesday, May 3 at 10:15 a.m. in the Gallery Room of the Memorial Union.

March 31, 2022
Plastina to serve as panelist for Hawkeye Decarbonization Summit permalink

Dr. Alejandro Plastina will serve as a panelist for the University of Iowa Public Policy Center's "Hawkeye Decarbonization Summit 2022." The forum is "A two-day workshop bringing together Decarb2040 partners, the University of Iowa community of researchers, staff and students interested in decarbonization, practitioners, and funding agency representatives to explore the path forward."

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Dr. Alejandro Plastina will serve as a panelist for the University of Iowa Public Policy Center's "Hawkeye Decarbonization Summit 2022." The forum is "A two-day workshop bringing together Decarb2040 partners, the University of Iowa community of researchers, staff and students interested in decarbonization, practitioners, and funding agency representatives to explore the path forward."

Plastina is one of three panelists that will present on how decarbonization can lead to stronger rural communities. The other panelists include Debbie Reed of the Ecosystems Services Market Consortium and Steven Hall, an associate professor in Iowa State's Department of Ecology, Evolution, and Organismal Biology. Marc Lederman of the University of Iowa's Department of Geographical and Sustainability Sciences will serve as moderator.

The forum takes place from 10:30 a.m. to 5 p.m. on April 21 and from 9 a.m. to 12 p.m. on April 22. The forum will be presented both in-person and virtually. You can learn more about the forum and register here.

March 31, 2022
Plastina to serve as panelist for Farm Foundation forum permalink

Dr. Alejandro Plastina will serve as a panelist for Farm Foundation's "Solving the Barriers to Agricultural Carbon Markets" forum on April 12. The forum will cover agricultural carbon market opportunities and pitfalls and where the science and market trends are currently headed.

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Dr. Alejandro Plastina will serve as a panelist for Farm Foundation's "Solving the Barriers to Agricultural Carbon Markets" forum on April 12. The forum will cover agricultural carbon market opportunities and pitfalls and where the science and market trends are currently headed.

Plastina will be joined by Kristine Tidgren, Director of Iowa State's Center for Agricultural Law and Taxation, and Shelby Swain Meyers with American Farm Bureau Federation. Dr. Garth Boyd of The Context Network will serve as moderator.

The forum will take place via Zoom at 9 a.m. (Central) on Tuesday, April 12. You can register here.

March 22, 2022
Plastina, Crespi publish in Applied Economic Perspectives and Policy permalink

Associate Professor Alejandro Plastina and Professor John Crespi published in the latest issue of Applied Economic Perspectives and Policy. Crespi and Plastina co-authored the article "Challenges to voluntary Ag carbon markets" with PhD student Oranuch Wongpiyabovorn. Their article examines the major supply and demand challenges for voluntary agricultural carbon credit programs. The article is available here.

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Associate Professor Alejandro Plastina and Professor John Crespi published in the latest issue of Applied Economic Perspectives and Policy. Crespi and Plastina co-authored the article "Challenges to voluntary Ag carbon markets" with PhD student Oranuch Wongpiyabovorn. Their article examines the major supply and demand challenges for voluntary agricultural carbon credit programs. The article is available here.

Challenges to voluntary Ag carbon markets
Oranuch Wongpiyabovorn, Alejandro Plastina, John M. Crepsi
Applied Economic Perspectives and Policy
https://doi.org/10.1002/aepp.13254

March 9, 2022
Hayes honored for 35 years of service to ISU permalink

Dermot Hayes, professor, Pioneer Chair in Agribusiness, and Charles F. Curtiss Distinguished Professor in Agriculture and Life Sciences, was honored by Iowa State's 25 Year Club for his 35 years with the university. Resuming its annual in-person banquet to honor members reaching notable anniversaries, the 25 Year Club gathered on Feb. 28 at the Scheman Building to celebrate 110 Iowa State faculty and staff -- a group that represents a combined 3,260 years of university service.

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Dermot Hayes, professor, Pioneer Chair in Agribusiness, and Charles F. Curtiss Distinguished Professor in Agriculture and Life Sciences, was honored by Iowa State's 25 Year Club for his 35 years with the university. Resuming its annual in-person banquet to honor members reaching notable anniversaries, the 25 Year Club gathered on Feb. 28 at the Scheman Building to celebrate 110 Iowa State faculty and staff -- a group that represents a combined 3,260 years of university service.

Hayes gave as his notable achievement, acomplishment or milestone as “Teaching Econ 101 to the Ag Business students for more than 30 years," and his favorite memory as "The day I found out I was going to be tenured.”

March 9, 2022
Plastina publishes in Choices permalink

Associate Professor Alejandro Plastina published in the most recent issue of Choices. Plastina authored the article "The Invisible Elephant: Disadoption of Conservation Practices in the United States" with Wendiam Sawadgo, in the Department of Agricultural Economics and Rural Sociology, Auburn University. Their article examines the adoption and disadoption of conservation practices in the United States.

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Associate Professor Alejandro Plastina published in the most recent issue of Choices. Plastina authored the article "The Invisible Elephant: Disadoption of Conservation Practices in the United States" with Wendiam Sawadgo, in the Department of Agricultural Economics and Rural Sociology, Auburn University. Their article examines the adoption and disadoption of conservation practices in the United States.

"The Invisible Elephant: Disadoption of Conservation Practices in the United States"
Wendiam Sawadgo, Alejandro Plastina
Choices
https://www.choicesmagazine.org/choices-magazine/submitted-articles/the-invisible-elephant-disadoption-of-conservation-practices-in-the-united-states

March 3, 2022
Feng receives DOE grant permalink

Assistant Professor Hongli Feng received a $40,132 grant from the University of Michigan for the project "Mapping and Bridging Barriers in Knowledge Flows of How Solar Photovoltaics Affect Rural Community Economies." The award is a sub-award from a Department of Energy Office of Energy Efficiency and Renewable Energy grant. The purpose of the project is to reduce soft costs of and barriers to utility-scale photovoltaic energy and enable its widespread deployment by increasing the prevalence of solar zoning rules.

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Assistant Professor Hongli Feng received a $40,132 grant from the University of Michigan for the project "Mapping and Bridging Barriers in Knowledge Flows of How Solar Photovoltaics Affect Rural Community Economies." The award is a sub-award from a Department of Energy Office of Energy Efficiency and Renewable Energy grant. The purpose of the project is to reduce soft costs of and barriers to utility-scale photovoltaic energy and enable its widespread deployment by increasing the prevalence of solar zoning rules.

The project runs through December 31, 2023.

March 3, 2022
Lence publishes in AJAE permalink

Professor Sergio Lence published in the most recent issue of American Journal of Agricultural Engineering. Lence co-authored the article "When does voluntary coordination work? Evidence from area-wide pest management" with Associate Professor Ariel Singerman of the Food and Resource Economics Department, University of Florida. Their article introduces a tool to assess the likelihood of success of voluntary coordination in situations where, ex ante, the collective action solution provides an appealing alternative (e.g., for pest and disease control).

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Professor Sergio Lence published in the most recent issue of American Journal of Agricultural Engineering. Lence co-authored the article "When does voluntary coordination work? Evidence from area-wide pest management" with Associate Professor Ariel Singerman of the Food and Resource Economics Department, University of Florida. Their article introduces a tool to assess the likelihood of success of voluntary coordination in situations where, ex ante, the collective action solution provides an appealing alternative (e.g., for pest and disease control).

"When does voluntary coordination work? Evidence from area-wide pest management"
Sergio Lence, Ariel Singerman
American Journal of Agricultural Economics
DOI: 10.1111/ajae.12308

March 3, 2022
Crespi, Plastina receive Dean's Citation Award permalink

John Crespi, professor and director of CARD, and Alejandro Plastina, associate professor, have been announced as recipients of the 2022 Dean’s Citation Award for their efforts on the Carbon Report.

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John Crespi, professor and director of CARD, and Alejandro Plastina, associate professor, have been announced as recipients of the 2022 Dean’s Citation Award for their efforts on the Carbon Report.

They will be honored for their achievements at the annual CALS awards program Thursday, March 10, at 4:10 p.m. in the Sun Room, Memorial Union. A wine and cheese reception follows the program.

February 28, 2022
Gassman publishes in IJABE permalink

Research scientist Phil Gassman published in the most recent issue of International Journal of Agricultural and Biological Engineering. Gassman et al.'s article "Simulation of rice paddy systems in SWAT: A review of previous applications and proposed SWAT+ rice paddy module" focuses on making recommended modifications to the Soil and Water Assessment Tool (SWAT) to better model rice paddy production.

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Research scientist Phil Gassman published in the most recent issue of International Journal of Agricultural and Biological Engineering. Gassman et al.'s article "Simulation of rice paddy systems in SWAT: A review of previous applications and proposed SWAT+ rice paddy module" focuses on making recommended modifications to the Soil and Water Assessment Tool (SWAT) to better model rice paddy production.

"Simulation of rice paddy systems in SWAT: A review of previous applications and proposed SWAT+ rice paddy module"
Philip W. Gassman, Jaehak Jeong, Julien Boulange, Balaji Narasimhan, Tasuku Kato, Hiroaki Somura, Hirozumi Watanabe, Sadao Eguchi, Yuanlai Cui, Atsushi Sakaguchi, Le Hoang Tu, Rui Jiang, Min-Kyeong Kim, Jeffrey G. Arnold, Wei Ouyang
International Journal of Agricultural and Biological Engineering 15(1):1-24.
DOI: 10.25165/j.ijabe.20221501.7147

February 28, 2022
Crespi, Hart, Wongpiyabovorn to partner with AG on fertilizer price study permalink

As a part of its market study, the attorney general’s office is partnering with Iowa State University agriculture economists John Crespi, director of ISU’s Center for Agricultural and Rural Development, and Chad Hart, and PhD student Oranuch Wongpiyabovorn, who have agreed to prepare an economic summary of fertilizer markets.

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As a part of its market study, the attorney general’s office is partnering with Iowa State University agriculture economists John Crespi, director of ISU’s Center for Agricultural and Rural Development, and Chad Hart, and PhD student Oranuch Wongpiyabovorn, who have agreed to prepare an economic summary of fertilizer markets.

According to a Feb. 25 Farm Progress story, "Attorney general examining high fertilizer costs," "While speaking at the USDA Agricultural Outlook Forum on Feb. 24, Vilsack says high input costs are slightly less of a challenge with higher commodity prices. However, he supports Miller’s actions to see if the fertilizer companies’ current costs are justified and to make sure the industry understands the history as it relates to the price increases in comparison to other time periods with higher commodity prices. Farmers deserve transparency in the marketplace and to have confidence that their input costs are fair and equitable.”

February 23, 2022
Hayes receives grant to study cattle, hog processing capacity permalink

Professor Dermot Hayes received a $37,500 grant for the project "Cattle and Hog Processing Facility Capacity and Ownership Structure." Hayes was awarded the grant from the University of Missouri, Columbia, and will work closely with Associate Professor Keri Jacobs, a former CARD researcher. Hayes will document the background on disruptions in cattle and hog processing and their economic damages, explore capacity perspectives and relevant considerations, assess the opportunity for adding meaningful capacity via medium-sized plants for cattle and hogs, consider models of producer-ownership of cattle and hog processing facilities, and prepare a case study of EU cattle and hog processing.

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Professor Dermot Hayes received a $37,500 grant for the project "Cattle and Hog Processing Facility Capacity and Ownership Structure." Hayes was awarded the grant from the University of Missouri, Columbia, and will work closely with Associate Professor Keri Jacobs, a former CARD researcher. Hayes will document the background on disruptions in cattle and hog processing and their economic damages, explore capacity perspectives and relevant considerations, assess the opportunity for adding meaningful capacity via medium-sized plants for cattle and hogs, consider models of producer-ownership of cattle and hog processing facilities, and prepare a case study of EU cattle and hog processing.

The project runs through September 30, 2022.

January 31, 2022
Zhang, Hayes, He receive USDA-NIFA grant permalink

Associate Professor Wendong Zhang will serve as principal investigator on a research project that recently received a USDA National Institute of Food and Agriculture grant. The project “Measuring and Forecasting China’s Agricultural Production, Consumption, Stocks, and Imports by Generating Reliable Data and Utilizing Machine Learning Methods” seeks to use machine learning methods to forecast China’s agricultural imports. The researchers note that there is a lack of reliable statistics on China’s key agricultural commodities, which creates price volatility and might reduce the transparency of US and world agricultural markets.

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Associate Professor Wendong Zhang will serve as principal investigator on a research project that recently received a USDA National Institute of Food and Agriculture grant. The project “Measuring and Forecasting China’s Agricultural Production, Consumption, Stocks, and Imports by Generating Reliable Data and Utilizing Machine Learning Methods” seeks to use machine learning methods to forecast China’s agricultural imports. The researchers note that there is a lack of reliable statistics on China’s key agricultural commodities, which creates price volatility and might reduce the transparency of US and world agricultural markets.

USDA-NIFA awarded the project a $649,980 grant. Professor Dermot Hayes and Postdoctoral Research Associate Xi He, both of CARD, Associate Professor Guiping Hu of Iowa State’s Department of Industrial Engineering, and Associate Professor Tao Xiong of China’s of Huazhong Agricultural University will serve as co-PIs. The project runs from June of 2022 to May of 2025.

January 26, 2022
CYtation award to Stephany permalink

Lisa Stephany is a member of The CARES Team (pre-award support) that is the recipient of a 2021 Iowa State University Professional and Scientific Team CYtation Award.

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Lisa Stephany is a member of The CARES Team (pre-award support) that is the recipient of a 2021 Iowa State University Professional and Scientific Team CYtation Award.

The CYtation Team Award honors a team, which includes ISU P&S employees, that: 1) have performed above and beyond the call of duty, 2) have done something extraordinarily well, and 3) have acted in such a way as to make a very real difference in the institution within the past year.

The other members of the winning CYtation Team are Asrun Kristmundsdottir, Kerri Bilsten, Kendra Lee, Natalia Rogovska, Mandy Voyek, Seth Wilmes, Kelly Yohnke, Wenli Su, and Julia Webb.

The Provost will present the team with certificates of recognition at the Professional and Scientific Council CYtation Awards Ceremony, March 24, 2022, in the ISU Alumni Center.

January 14, 2022
Orazem wins Inspiration Award permalink

University Professor Peter F. Orazem has been selected to receive the 2022 Faculty/Staff Inspiration Award. He is among five individuals to be honored with the award this year.

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University Professor Peter F. Orazem has been selected to receive the 2022 Faculty/Staff Inspiration Award. He is among five individuals to be honored with the award this year.

The Alumni Association established this award in 2011 as a way for former ISU students to recognize current or former ISU faculty or staff members who had a significant influence in their lives as students at ISU. Orazem was nominated by former student Deepak Premkumar.

The Faculty/Staff Inspiration Award is funded by earnings from the Nancy and Richard Degner Alumni Association Endowment.

Orazem will be honored and recognized at the ISU Alumni Association Board of Director’s annual meeting and reception held on the evening of Friday, May 20 in the ISU Alumni Center. He will have the opportunity to meet the other Faculty/Staff Inspiration award recipients, the alumni board of directors and members of the ISU Alumni Association staff.

December 14, 2021
Iowa Farmland Values Up 29% permalink

Annual Iowa State University survey finds average nominal value of Iowa farmland per acre reached historic high, but still lower than 2012 and 2013 values in inflation-adjusted terms

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Annual Iowa State University survey finds average nominal value of Iowa farmland per acre reached historic high, but still lower than 2012 and 2013 values in inflation-adjusted terms

Ames, Iowa – After several years of modest gains and losses, the average value of an acre of Iowa farmland skyrocketed 29% in 2021. The nominal value of an acre of farmland is now higher than at any point since Iowa State University began surveying values in 1941, and is 12% higher than the previous peak in 2013; although the current value in inflation-adjusted terms is still lower than that for 2012 and 2013.

The last time farmland values increased more than 25% was in 2011, when values rose 32.5%. “Surging ethanol demand and high commodity prices were two of the significant factors driving the increase in 2011,” said Wendong Zhang, an associate professor of economics at Iowa State’s Center for Agricultural and Rural Development. “The increase this year is in part due to much stronger commodity prices thanks to higher exports, stronger than expected crop yields, and strong ad hoc COVID-19 related government payments,” Zhang said.

Zhang leads Iowa State’s annual Land Value Survey, which found that the average statewide value of an acre of farmland is $9,751, an increase of 29%, or $2,192, since 2020. The $9,751 per acre estimate, and 29% increase in value, represents a statewide average of low-, medium-, and high-quality farmland.

Zhang said that favorable interest rates also contributed to the increases in 2011 and this year; however, he noted that inflation was a very important factor behind the value increase this year as well. Last week, the U.S. Bureau of Labor Statistics reported that the U.S. inflation rate rose 6.8% over the last year, which was the largest increase since 1982.

“Inflation is driving some investors to consider farmland as an alternative investment asset because farmland value tends to rise with higher inflation. The inflation-adjusted average value rose 21% but the nominal value rose 29%, which shows the effect of inflation,” Zhang said.

As for U.S. net farm income, Zhang said it is forecasted to grow $22.0 billion (23.2%) from 2020 levels to $116.8 billion in 2021, which is the highest level since 2013. “The increase in 2021 farm income is largely driven by the rises in commodity prices and the resulting crop and livestock receipts, as opposed to almost solely ad hoc federal government payments as in 2020,” he said.

After the large increase in 2011, farmland prices jumped another 23.7% in 2012, though Zhang said that while 80% of respondents had optimistic views about what the farmland market would look like one year from now, most reported that they expect values to increase less than 10% in 2022.

Looking five years ahead, Zhang said that the number of respondents expecting a decline in farmland values nearly doubled, but over 80% of respondents predicted that farmland values would rise another 10% to 20% over 2021 values.

Land Values by County
All 99 of Iowa’s counties showed an increase in land values. For the ninth consecutive year, Scott and Decatur Counties reported the highest and lowest values, respectively. Land values in Scott County increased 30%, or $3,193 per acre, to $13,852. Land values in Decatur County increased 31.5%, or $1,213 per acre, to $5,062.

Clayton and Allamakee Counties reported the largest percentage increase, 36.4%, while Scott County saw the largest dollar increase, $3,193 per acre. The smallest percentage increase, 23.2%, was reported in Keokuk County, while Taylor County saw the smallest dollar increase, $1,199 per acre.

Land Values by District
Land values across all crop reporting districts increased. The Northwest district reported the highest overall value, $12,164 per acre, while the North Central district reported the largest percentage increase, 34.5%, and the largest dollar increase, $2,737 per acre.

The South Central district reported the lowest values, $6,035 per acre, and the lowest dollar change, $1,377 per acre, while the Southeast district saw the smallest percentage increase, 21.9%.

Land Values by Quality
Statewide, low-quality land now averages $6,397 per acre, an increase of 26% or $1,319 per acre. Medium-quality land now averages $9,071 per acre, an increase of 27.4% or $1,953 per acre. High-quality land now averages $11,834 per acre, an increase of 30.5% or $2,766 per acre.

The Northwest district reported the highest values for low-, medium-, and high-quality land at $8,088, $11,042, and $13,997 per acre, respectively. The South Central district reported the lowest values for low-, medium-, and high-quality land at $4,058, $6,094, and $8,194 per acre, respectively.

Low-quality land in all crop reporting districts, less the Southeast district, saw increases of more than 23%. The North Central district saw the largest percentage increase, 32%, and the largest dollar increase, $1,695 per acre. The Southeast district showed the smallest percentage increase, 14.5%, and the smallest dollar increase, $600 per acre.

Medium-quality land saw increases of more than 30% in the North Central, Northeast, West Central, and South Central districts. The South Central district saw the largest percentage increase, 33.6%, while the North Central district showed the largest dollar increase, $2,291 per acre. The Southwest district reported both the smallest percentage increase, 22.3%, and the smallest dollar increase, $1,302 per acre, in medium-quality land.

High-quality land in the North Central, Northeast, West Central, and East Central districts all saw increases of more than 30%, with the North Central district reporting the highest percentage increase, 35.7%. The East Central district reported the largest dollar increase in high-quality land at $3,304 per acre. The Southeast district reported the smallest percent change in high-quality land, 25%, and the South Central district reported the smallest dollar increase, $1,786 per acre.

Factors Influencing the Land Market
The most frequently mentioned positive factor influencing the land market was higher commodity prices. Favorable interest rates and strong yields were the second- and third-most frequently mentioned factors. Other frequently mentioned factors included limited land supply, strong demand, COVID-related government payments, and a good farm economy.

The most frequently mentioned negative factor affecting land values was higher input costs. Other noted factors included concerns about the sustainability of high land prices, possible changes in interest rates, political uncertainty related to policies, such as tax law changes, and uncertainty related to COVID-19.

Land values were determined by the 2021 Iowa State University Land Value Survey, conducted in November by the Center for Agricultural and Rural Development at Iowa State and Iowa State University Extension and Outreach. Results from the survey are consistent with results by the Federal Reserve Bank of Chicago, the Realtors Land Institute, and the U.S. Department of Agriculture.

The Iowa State Land Value Survey is based on reports by agricultural professionals knowledgeable of land market conditions, such as appraisers, farm managers, agricultural lenders, and actual land sales, and is intended to provide information on general land value trends, geographical land price relationships, and factors influencing the Iowa land market. The 2021 survey is based on 645 usable responses from 455 agricultural professionals. Seventy-five percent of the 455 respondents answered the survey online.

The Iowa State Land Value Survey was initiated in 1941, the first in the nation, and is sponsored annually by Iowa State. The survey is typically conducted every November and the results are released mid-December. Only the state average and the district averages are based directly on the Iowa State survey data. County estimates are derived using a procedure that combines the Iowa State survey results with data from the U.S. Census of Agriculture.

CARD offers a web portal at https://www.card.iastate.edu/farmland/ that includes visualization tools, such as charts and interactive county maps, allowing users to examine land value trends over time at the county, district, and state level.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

December 6, 2021
Lake Recreation Spurred over $1 Billion in Spending in Iowa in 2019 permalink

Ames, Iowa – A new study by Iowa State University economists found that lake recreation activities in Iowa drove over $1 billion in spending in the state in 2019.

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Ames, Iowa – A new study by Iowa State University economists found that lake recreation activities in Iowa drove over $1 billion in spending in the state in 2019.

“In terms of lake expenditures, compared to the $983 million dollars of direct spending in 2014 (equivalent to $1.059 billion in inflation-adjusted 2019 dollars), the estimated total direct spending associated with single-day trip visits to Iowa’s lakes in 2019 was $1.023 billion dollars, with an average total expense per lake of $7.4 million dollars,” said Wendong Zhang, an assistant professor of economics at Iowa State’s Center for Agricultural and Rural Development (CARD) who helped conduct the study.

“$1 billion is a big number—more than half a percent of the Iowa economy,” Zhang said. “The U.S.-China trade tariffs in 2018 resulted in $1 billion to $2 billion in lost state revenue, for comparison,” he said.

“It is quite significant, if you consider the current-dollar outdoor recreation-related GDP for Iowa in 2019 was around $3.6 billion,” said Yongjie Ji. Ji is a research scientist at CARD and was involved in the study along with Zhang and Xibo Wan, a former Ph.D. student of Zhang’s and current postdoctoral research associate at Massachusetts Institute of Technology.

Zhang emphasized that the $1.023 billion in direct spending was only related to single-day trips to Iowa lakes, “so it does not include lodging expenses, and it does not include spending related to overnight trips.”

Wan, Ji, and Zhang worked with the Iowa Department of Natural Resources on the 2019 Iowa Lakes Survey, which provided the data for their study. The survey was previously conducted every year from 2002 to 2005, and in 2009 and 2014. Ji said the 2019 survey was sent to 7,000 households in Iowa and, for the first time, states bordering Iowa.

The study shows that total direct spending on lake recreation and the number of single-day and overnight trips to Iowa lakes were all about the same as in 2014—in 2019 the number of Iowa households making lake trips increased, but the number of trips per household decreased. However, Ji said, “the estimated total household single-day trips across Iowa in 2019 was about nine million, which is about the same as the 2014 estimates.”

The 2019 study found that 65 percent of Iowa respondents took at least one single-day trip and 20 percent took at least one overnight trip to an Iowa lake, with the average being about eight single-day trips and about two overnight trips per household. For out-of-state respondents, about 22 percent took at least one single-day trip and 9 percent took at least one overnight trip, with the average being about two single-day trips and roughly one overnight trip per household.

While the COVID-19 pandemic has changed many aspects of Iowans lives over the past year-and-a-half, it did not have any impact on survey results—the survey focused on lake trips in 2019, and the researchers said that the majority of surveys were returned before the pandemic began in March 2020.

“There is no reason to believe that the pandemic affected the visitation patterns revealed in the survey,” Zhang said. “However, there is evidence that the pandemic affected people's usage of local amenities—lakes, rivers, and state parks included.”

The 2019 survey did reveal some changes in the most popular lakes in Iowa. In 2014, Saylorville Reservoir, Clear Lake, West Okoboji Lake, Grays Lake, and Big Creek Lake were, respectively, the five most popular lakes for trip-takers. However, the 2019 survey showed that Clear Lake overtook Saylorville Reservoir as the most popular, while Ada Hayden Lake and Lake MacBride joined the top-five and West Okoboji Lake and Big Creek Lake dropped out of the top five.

One thing has not changed since the 2014 survey—respondents in 2019 said that water quality is the most important factor when choosing a lake for recreation, even more important than the park facilities available on premises or the lake’s proximity to their household. About 70 percent of respondents said they checked water quality status before visits—83 percent of Iowa respondents said they checked the DNR website and another 32 percent used DNR social media platforms to do so.

The majority of respondents were mostly concerned about agricultural runoff, livestock manure, and urban runoff as pollutant sources. Zhang said the 2019 survey included a new section about harmful algal blooms, which “are a growing concern in Iowa lakes and many US freshwater recreational sites.” A harmful algal bloom is when naturally occurring algae grow out of control, producing harmful and often toxic effects.

“Harmful algal blooms can directly harm humans with algal toxins and they have led to beach closures. It is best to avoid contact with the waterbody when a large harmful algal bloom is present,” Zhang said. About 32 percent of respondents reported seeing a large algal bloom in an Iowa lake in 2019, and of those, about 82 percent reported either moving to a different area of the water body or stopping all water-related activities.

Survey reports, interactive maps, and other lakes-related publications are available at https://www.card.iastate.edu/lakes/.

CARD researchers will conduct a similar lake-recreation survey from January to March 2022 that will focus on the lake trips taken by underrepresented and socially disadvantaged Iowans. The Iowa Water Center is funding that research.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

November 22, 2021
ISU Land Value Survey News Conference to be held December 14 permalink

Ames, IA – A news conference will be held at 10:00 a.m. on Tuesday, December 14 to announce the results of the 2021 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. Please note the change in location from previous years—the conference will take place in room 0009 of Curtiss Hall on the ISU campus in Ames.
For those who can’t attend the conference, a livestream will be available on YouTube at http://bit.ly/LandResults2021.

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Ames, IA – A news conference will be held at 10:00 a.m. on Tuesday, December 14 to announce the results of the 2021 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. Please note the change in location from previous years—the conference will take place in room 0009 of Curtiss Hall on the ISU campus in Ames.
For those who can’t attend the conference, a livestream will be available on YouTube at http://bit.ly/LandResults2021.

Wendong Zhang, associate professor of economics and farm management specialist, will head the news conference and announce the 2021 findings. Printed materials will be provided at the conference, including Iowa land value data from 1950 to present, current land value data from all 99 counties, and a press release summarizing the 2021 results. Dr. Zhang will make himself available to reporters for follow-up questions or one-on-one interviews immediately following the presentation of results.

The ISU Land Value Survey is currently ongoing, if you are an agricultural professional knowledgeable about the farmland market who has not participated in this year’s survey, you can participate in the ISU Land Value Survey online by December 1 at http://bit.ly/LandResults2021. If you have questions regarding the survey please contact Dr. Wendong Zhang at wdzhang@iastate.edu or call 515-294-2536. You can also see the land value trends at the county, district, and state level since 1950 at the interactive Iowa Farmland Value Portal at https://www.card.iastate.edu/farmland/.

An archive of the video and the printed materials available at the conference will be posted on the CARD homepage at https://www.card.iastate.edu soon after the conference.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu

October 27, 2021
Zhang publishes in Journal of Environmental Economics and Management permalink

Associate Professor Wendong Zhang published in the most recent issue of Journal of Environmental Economics and Management. Zhang co-authored the article "Do homeowners benefit when coal-fired power plants switch to natural gas? Evidence from Beijing, China" with Yingdan Mei and Li Gao of China University of Petroleum Beijing and Feng-An Yeng of National Taiwan University. Their article uses data from a 2013 pilot project in Beijing to determine if power plants switching from coal to natural gas affects nearby housing prices.

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Associate Professor Wendong Zhang published in the most recent issue of Journal of Environmental Economics and Management. Zhang co-authored the article "Do homeowners benefit when coal-fired power plants switch to natural gas? Evidence from Beijing, China" with Yingdan Mei and Li Gao of China University of Petroleum Beijing and Feng-An Yeng of National Taiwan University. Their article uses data from a 2013 pilot project in Beijing to determine if power plants switching from coal to natural gas affects nearby housing prices.

Do homeowners benefit when coal-fired power plants switch to natural gas? Evidence from Beijing, China
Yingdan Mei, Li Gao, Wendong Zhang, Feng-An Yang
Journal of Environmental Economics and Management October 2021
https://doi.org/10.1016/j.jeem.2021.102566

October 15, 2021
Schulz publishes in Agribusiness permalink

Associate Professor Lee Schulz published in the most recent issue of Agribusiness. Schulz co-authored the article "Swine Producer Willingness to Pay for Tier 1 Disease Risk Mitigation under Multifaceted Ambiguity" with Jiwon Lee, a PhD job market candidate. Their article seeks to understand whether producers' subjective risk perceptions affect their willingness to pay for interventions that could reduce potential foreign animal disease losses.

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Associate Professor Lee Schulz published in the most recent issue of Agribusiness. Schulz co-authored the article "Swine Producer Willingness to Pay for Tier 1 Disease Risk Mitigation under Multifaceted Ambiguity" with Jiwon Lee, a PhD job market candidate. Their article seeks to understand whether producers' subjective risk perceptions affect their willingness to pay for interventions that could reduce potential foreign animal disease losses.

Swine Producer Willingness to Pay for Tier 1 Disease Risk Mitigation under Multifaceted Ambiguity
Jiwon Lee, Lee Schulz
Agribusiness 37(4):858-875
https://doi.org/10.1002/agr.21694

October 12, 2021
Mutual Interests in Agricultural Collaboration Focus of U.S.-China Policy Paper by Iowa State University Economist permalink

AMES, Iowa — The relationship between the United States and China may be at its lowest point in recent history, but both countries continue to need each other to achieve strategic goals in agriculture, food production and food security.

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AMES, Iowa — The relationship between the United States and China may be at its lowest point in recent history, but both countries continue to need each other to achieve strategic goals in agriculture, food production and food security.

This message reverberates through a new policy report, "Finding Firmer Ground: The role of Agricultural Cooperation in US.–China Relations" by Wendong Zhang, associate professor of economics at Iowa State University, and Dr. Minghao Li, assistant professor of economics, applied statistics and international business at New Mexico State University, previously with the Center for Agricultural and Rural Development (CARD) at Iowa State. Their white paper was commissioned by the U.S. Heartland China Association (USHCA) and the Carter Center with additional support from the Ford Foundation, the Henry Luce Foundation and the U.S. Department of Agriculture National Institute for Food and Agriculture. Zhang is a member of the USHCA Agriculture Committee.

“Finding Firmer Ground” acknowledges threats to U.S.-China relations amidst growing mutual mistrust and an ongoing trade war. Yet, it emphasizes both countries’ strong interests in furthering mutual goals and the importance of maintaining channels through which their relationship can be rebuilt.

“We were thinking about what the agricultural sector can do to improve U.S. – China relations in the current situation and the path forward to cooperate despite the political rhetoric in both countries,” said Zhang, who was born in Shandong Province in China.

The paper outlines four areas of mutual dependence: improving global food security, meeting China’s demand for food quality, addressing climate change and pursuing technological advancement.

“States in the U.S. Heartland are crucial stakeholders in the U.S. China trade relationship,” Zhang said, “As such, agricultural states and entities such as the USHCA have an important mission to foster a positive, productive and beneficial relationship by creating channels for collaboration.”

Zhang and Li describe four channels as particular opportunities for shared economic growth:

  • Normalizing the trade relationship;

  • Reducing regulatory barriers and mutual suspicion;

  • Investing in infrastructure; and

  • Enhancing research collaboration.

The white paper was inspired by the inaugural U.S.-China Agriculture Roundtable held in March 2021, where Zhang moderated a session on agricultural education. The dialogue was attended by former U.S. Ambassador and World Food Prize President Emeritus Kenneth Quinn.

Quinn, who contributed a foreword to the new white paper has long been involved in efforts to nurture agricultural cooperation between the United States and China. Among those experiences, he recounts a pivotal 1980 visit to Iowa State’s Seed Science Center by Governor Xi Zhongxun (father of Chinese President Xi Jinping). At the time, Quinn, an officer in the State Department, was escorting the first delegation of Chinese provincial governors to visit America following establishment of diplomatic relations.

“Since that time, I have been involved in a number of exchanges that have deepened relationships that started then,” Quinn said. “Agricultural cooperation has been at the heart of these events and many more that have elevated the level of exchange between our two countries.”

“I believe this impressive study by Drs. Zhang and Li adds a significant analytical element to the effort to continue Sino-American-Iowan agricultural cooperation, which has such a long and illustrious history.”

Wendong Zhang, originally from China’s Shandong Province, is a co-founder with economist Dermot Hayes of a new China Ag Center within CARD. Among the center’s projects is a new collaboration with the Chinese Academy of Agricultural Sciences to sponsor shared educational exchanges.

“We want to encourage students and faculty at here and at partnering institutions to try to learn more about each other and find potential areas to build goodwill and cooperation,” Zhang said.

He notes that China and the U.S. have recently announced a virtual summit between Presidents Xi Jinping and Joe Biden will be held before year’s end. Zhang predicts some of the issues raised in the USHCA-Carter Center white paper will be topics addressed at the summit.

College of Agriculture and Life Sciences Communications

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Minghao Li, Applied Statistics and International Business Department, New Mexico State University; minghao@nmsu.edu
Min Fin, US Heartland China Association, 970-219-0499; mfan@usheartlandchina.org
Ann Robinson, College of Agriculture and Life Sciences Communications, 515-294-3066; ayr@iastate.edu

October 11, 2021
Iowa State University Researchers part of $10 Million #DiverseCornBelt Project permalink

Ames, IA – Two Iowa State University researchers will join a five-year $10 million project funded by the USDA National Institute of Food and Agriculture that seeks to make Midwestern agriculture more resilient by moving away from the dominant corn-soybean rotation.

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Ames, IA – Two Iowa State University researchers will join a five-year $10 million project funded by the USDA National Institute of Food and Agriculture that seeks to make Midwestern agriculture more resilient by moving away from the dominant corn-soybean rotation.

“Growing only a rotation of corn and soybeans is not necessarily sustainable economically, environmentally or socially. We will be working with farmers in Indiana, Illinois and Iowa to evaluate alternative cropping systems that can be used in the Midwest—we will be evaluating small grains and/or forage crops in rotations, perennial forage or bioenergy crops, agroforestry, horticultural food crops, and grazed livestock,” Linda Prokopy said in a Purdue University press release.

Prokopy is department head and professor of horticulture and landscape architecture at Purdue University and is leading the project, titled “#DiverseCornBelt: Resilient Intensification through Diversity in Midwestern Agriculture.”

Iowa State’s component of the team will include J. Arbuckle, professor and Extension sociologist, and Phil Gassman, research scientist at the Center for Agricultural and Rural Development. Arbuckle will help lead the social science research component of the project including stakeholder listening sessions, surveys and interviews, which will ensure that farmer and stakeholder needs and ideas will guide the diversification efforts. Gassman will play a key role in modeling the potential hydrological and environmental impacts of agricultural diversification.

“This is an exciting effort that will engage farmers and stakeholders across the supply chain to help bring more options to farmers in Iowa and across the Midwest,” Arbuckle said. “The project will focus on facilitating diversification that leads to greater economic stability for farmers and agroecological system resilience.”

Gassman said that research shows that different kinds of cropping systems can have major impacts on water quality and quantity. “Our modeling will simulate potential land use change to help guide transitions toward systems that use water more efficiently and that cause less pollution,” he said.

The research proposal received letters of support from farmers, industry, academic institutions and environmental organizations, including General Mills, Smithfield, Kellogg’s, Red Gold, the Indiana Agriculture Nutrient Alliance, the Indiana State Department of Agriculture, National Association of Conservation Districts, the Hoosier Young Farmers Coalition, the Iowa Soybean Association, and the National Wildlife Federation.

Partner institutions on the project include the American Society of Agronomy, Conservation Technology Information Center, USDA Economic Research Service, USDA Forest Service, Illinois State University, Iowa State University, Montana State University, The Nature Conservancy, Practical Farmers of Iowa, Sustainable Food Lab, University of Illinois at Urbana-Champaign, University of Iowa, University of Minnesota, and University of Wisconsin Madison and Platteville.

Contacts:
J. Arbuckle, 515-294-1497; arbuckle@iastate.edu
Phil Gassman, 515-294-6313; pwgassma@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

October 11, 2021
Study examines economic impacts of closing coal power plants in Iowa permalink

Peter Orazem, university professor, collaborated on a study that looked at the significant but manageable challenges to the seven Iowa communities where coal-fueled power plants are located. The study, titled “The Economic, Fiscal, and Social Impacts of Utility-Owned Coal-Fired Power Plants in Iowa,” commissioned by the Iowa Environmental Council, analyzed the economic impact of the power plants to help local community leaders prepare for the future.

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Peter Orazem, university professor, collaborated on a study that looked at the significant but manageable challenges to the seven Iowa communities where coal-fueled power plants are located. The study, titled “The Economic, Fiscal, and Social Impacts of Utility-Owned Coal-Fired Power Plants in Iowa,” commissioned by the Iowa Environmental Council, analyzed the economic impact of the power plants to help local community leaders prepare for the future.

One of the most important findings of the study was the pay differential between jobs at the plants and available replacement jobs in the area. Dr. Peter Orazem, a professor of economics at Iowa State University, collaborated on the study. “Jobs in electric utilities are generally well-paying and pay better than similar jobs in the area,” explained Dr. Orazem. “When these plants close, it is likely workers will have to move to other plants to find similar pay or take a substantial pay cut to stay in their current location.” Ensuring workers can obtain jobs adequate to support themselves and their families is an important part of transition planning.

“As a statewide organization seeking to drive an equitable and beneficial transition to clean power in Iowa, we’re committed to helping business leaders, community leaders, and locally elected officials where coal-fueled power plants are located plan to effectively manage the changes required to have 100% clean power in Iowa by 2035,” added Kerri Johannsen, Energy Program Director with IEC. “We commissioned this study to ensure that all Iowans benefit from this transition.”

In August, the Iowa Environmental Council set a goal for Iowa to reach 100% clean power by 2035.

October 11, 2021
Zhang, Lence publish in Land Economics permalink

Associate Professor Wendong Zhang and Professor Sergio Lence co-authored an article in the most recent issue of Land Economics with Associate Professor Todd Kuethe of Purdue University. Their article "Are Expert Opinions Accurate? Panel Data Evidence from the Iowa Land Value Survey" uses survey responses from the annual Iowa State Land Value Survey to determine how experts formulate and adjust their opinions over time.

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Associate Professor Wendong Zhang and Professor Sergio Lence co-authored an article in the most recent issue of Land Economics with Associate Professor Todd Kuethe of Purdue University. Their article "Are Expert Opinions Accurate? Panel Data Evidence from the Iowa Land Value Survey" uses survey responses from the annual Iowa State Land Value Survey to determine how experts formulate and adjust their opinions over time.

"Are Expert Opinions Accurate? Panel Data Evidence from the Iowa Land Value Survey"
Wendong Zhang, Sergio Lence, Todd Kuethe
Land Economics
http://le.uwpress.org/content/early/2021/09/28/le.97.4.080820-0124R.full.pdf+html

October 8, 2021
CARD researchers receive new funding awards permalink

CARD researchers John Crespi, Amani Elobeid, Hongli Feng, GianCarlo Moschini, Wendong Zhang, J. Arbuckle, Phil Gassman, and Yongjie Ji are all involved in various projects that have qualified for funding from USDA, the Iowa Nutrient Research Center, and the Iowa Water Center.

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CARD researchers John Crespi, Amani Elobeid, Hongli Feng, GianCarlo Moschini, Wendong Zhang, J. Arbuckle, Phil Gassman, and Yongjie Ji are all involved in various projects that have qualified for funding from USDA, the Iowa Nutrient Research Center, and the Iowa Water Center.

Professor J. Arbuckle and Research Scientist Phil Gassman are team members on the project “#DiverseCornBelt: Resilient Intensification through Diversity in Midwestern Agriculture,” which received a $10 million grant from USDA’s National Institute of Food and Agriculture. The Purdue University-led project seeks to make Midwestern agriculture more resilient by moving away from the dominant corn-soybean rotation.

Adjunct Associate Professor Amani Elobeid will serve as an investigator on the project “Regenerating America’s Working Landscapes to Enhance Natural Resources and Public Goods through Perennial Groundcover.” The project received $9.99 million in funding from USDA’s National Institute of Food and Agriculture to develop and de-risk a transformative method for increasing groundcover on working landscapes.

CARD Director John Crespi received a $97,000 USDA Economic Research Service grant for the project “Swine Production and Carbon Markets.” This project seeks to investigate ways in which swine producers can be incentivized to join carbon markets to lower their overall carbon footprint. The project will also include Professor Dermot Hayes and CARD Faculty Collaborator Jerome Dumortier from Indiana University-Purdue University Indianapolis.

Assistant Professor Hongli Feng will serve as principal investigator on the project “The Effectiveness of Carbon Credit Programs at reducing Nutrient Losses: An Assessment of Public and Private Conservation Programs and Their Interactions.” The project will receive a total of $148,484 from the Iowa Nutrient Research Center to investigate the effectiveness of carbon credit programs at reducing nutrient losses. Assistant Professor Wendong Zhang will serve as a co-pi on the project.

Professor GianCarlo Moschini received two grants from USDA’s Economic Research Service. The project “Industrial Ogranization of Meat Processing: Market Power, Efficiency, and Resiliency” received $299,483 in funding to examine long-standing and recent concerns at the structure of the industry and its operating practices. The project “R&D and Agricultural Productivity Growth in the United States: Patent Data and Knowledge Stocks” also received $31,500 in funding.

Assistant Professor Wendong Zhang and Research Scientist Yongjie Ji will serve as principal investigators on the project “Environmental Justice for All: Nutrient Impacts on Lake-Based Recreation and Tourism by Rural and Socially Disadvantaged Iowans.” The project received $40,749 in joint funding from the Iowa Water Center and the Iowa Nutrient Research Center through a special grant program designed to encourage research on the social dimensions of Iowa water quality.

September 30, 2021
New Research Studying Economics of Water quality on Lake Recreation Focuses on Rural, Lower-income Iowans permalink

AMES, Iowa — A new study underway by economists at Iowa State University aims to better understand nutrient impacts through the lens of local recreation and tourism, with a focus on assessing the economic impacts of water quality improvement on rural and lower-income communities.

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AMES, Iowa — A new study underway by economists at Iowa State University aims to better understand nutrient impacts through the lens of local recreation and tourism, with a focus on assessing the economic impacts of water quality improvement on rural and lower-income communities.

The project is jointly funded by the Iowa Water Center and the Iowa Nutrient Research Center at Iowa State University through a special grant program designed to encourage research on the social dimensions of Iowa water quality.

The project, “Environmental Justice for All: Nutrient Impacts on Lake-Based Recreation and Tourism by Rural and Socially Disadvantaged Iowans,” is being led by Wendong Zhang, associate professor of economics at Iowa State, with co-investigators Yongjie Ji, research scientist with the Center for Agricultural Research and Development (CARD); David Swenson and Liesl Eathington, research scientists, economics; and Xibo Wan and Wenran Fan, doctoral students, economics.

Their main objectives will be to build on historical Iowa Lakes Survey data by examining how water quality influences participation and perceptions related to lake recreation activities.

The IWC-INRC funding will support a new survey of 2,000 Iowans to be conducted early next year as a supplement to the 2019 Iowa Lakes Survey, part of the Iowa Lakes Valuation Project. The data will reflect additional input from rural and low-income households, groups that have been underrepresented in previous surveys. The economists will also analyze the economic impacts of recreation and tourism activities on local economies and use that information to project how different water quality scenarios could influence interest and participation in lake-based recreation.

“The project will contribute to the growing literature on the economics of environmental justice,” said Zhang. “We hope the findings will also be useful to help inform policymakers on approaches that are more inclusive and fair and can improve Iowa’s water quality for all the state’s residents.”

IWC and INRC are continuing the special grant program with a new request for proposals released for projects that will begin in 2022. The research must be led by faculty from Iowa State University, the University of Iowa or the University of Northern Iowa. Other partners can include local communities, utilities, agencies, businesses and landowners. $60,000 is available to support one or multiple projects. Applicants must submit a proposal intention by Nov. 1. Get more details.

“By fostering greater understanding of downstream impacts and social well-being in relation to nutrient issues, IWC and INRC are seeking to address the well-being of all members of society within the larger agroecosystem of the Mississippi River Basin,” said IWC director Rick Cruse.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Rick Cruse, Iowa Water Center, 515-294-7850; rmc@iastate.edu
Matt Helmers, Iowa Nutrient Research Center, 515-294-6717; mhelmers@iastate.edu
Ann Y. Robinson, Iowa Nutrient Research Center, 515-294-3066; ayr@iastate.edu

September 28, 2021
Schulz, Pudenz publish in Journal of Agricultural and Resource Economics permalink

Lee Schulz, Associate Professor, and Christopher Pudenz, PhD student, authored an article in the most recent issue of Journal of Agricultural and Resource Economics. Their article estimates empirical models of fed dairy basis and quantifies important basis determinants.

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Lee Schulz, Associate Professor, and Christopher Pudenz, PhD student, authored an article in the most recent issue of Journal of Agricultural and Resource Economics. Their article estimates empirical models of fed dairy basis and quantifies important basis determinants.

"Packer Procurement, Structural Change, and Moving Average Basis Forecasts: Lessons from the Fed Dairy Cattle Industry"
Christopher Pudenz and Lee Schulz
Journal of Agricultural and Resource Economics 46(3)
https://jareonline.org/articles/packer-procurement-structural-change-and-moving-average-basis-forecasts-lessons-from-the-fed-dairy-cattle-industry

September 20, 2021
Schulz authors Wallaces Farmer article permalink

Lee Schulz, Associate Professor, recently authored an article for Wallaces Farmer. Schulz's article examines how cattle producers know the appropriate time to sell. In the article Schulz says there are many "pertinent questions" producers should consider when choosing an pricing opportunity, including "Is the price acceptable? Is the price likely to move higher or lower? If the price moves, how far and how fast might it move? Can your business withstand a big, possibly abrupt, price move lower? In short — can you survive a volatile market?"

September 16, 2021
Zhang authors white paper on US-China collaboration permalink

Wendong Zhang, in collaboration with Minghao Li, a former CARD postdoc and assistant professor at New Mexico State University, authored a white paper on the role of agricultural collaboration in US-China Relations. Their paper, "Finding Firmer Ground: The Role of Agricultural Cooperation in US-China Relations," was commissioned by the US Heartland China Association and the Carter Center and focuses on how the United States and China can work together to achieve common goals.

September 9, 2021
Zhang publishes in Food Policy permalink

Wendong Zhang, Associate Professor, co-authored a new article in Food Policy with Chen-Ti Chen, a former Iowa State PhD graduate current postdoctoral researcher at Cornell, and Tao Xiong, a former visiting scholar at CARD and current Professor at Huazhong Agricultural University. Their article focuses on how the stock prices of some Chinese hog firms responded to China's outbreak of African swine fever in 2018.

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Wendong Zhang, Associate Professor, co-authored a new article in Food Policy with Chen-Ti Chen, a former Iowa State PhD graduate current postdoctoral researcher at Cornell, and Tao Xiong, a former visiting scholar at CARD and current Professor at Huazhong Agricultural University. Their article focuses on how the stock prices of some Chinese hog firms responded to China's outbreak of African swine fever in 2018.

"A Fortune from misfortune: Evidence from hog firms’ stock price responses to China’s African Swine Fever outbreaks"
Tao Xiong, Wendong Zhang, Chen-Ti Chen
Food Policy
doi.org/10.1016/j.foodpol.2021.102150

August 20, 2021
Zhang invited to serve as JSWC associate editor, serve on AFR editorial advisory board permalink

Wendong Zhang, Assistant Professor of Economics, has been invited to serve as an Associate Editor for the Journal of Soil and Water Conservation. The Journal of Soil and Water Conservation is a multidisciplinary journal covering natural resource conservation research, practice, policy, and perspectives published by the Soil and Water Conservation Society.

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Wendong Zhang, Assistant Professor of Economics, has been invited to serve as an Associate Editor for the Journal of Soil and Water Conservation. The Journal of Soil and Water Conservation is a multidisciplinary journal covering natural resource conservation research, practice, policy, and perspectives published by the Soil and Water Conservation Society.

Zhang has also been invited to serve on the editorial advisory board for Agricultural Finance Review. Agricultural Finance Review covers issues related to agricultural and agribusiness finance.

August 20, 2021
Feng receives Professorship for Excellence in Agricultural Economics permalink

Hongli Feng, Assistant Professor of Economics, will be named as the inaugural recipient of the Professorship for Excellence in Agricultural Economics. Feng will be honored at a special event on Tuesday, August 31 at 3:15 p.m. in the Sun Room of Iowa State's Memorial Union.

August 19, 2021
Iowa Farmland Owners could see Large Tax Increase from American Families Plan permalink

Ames, IA – The American Families Plan, proposed by the Biden administration in April, would provide new social programs to millions of U.S. households. To cover the $1.8 trillion benefits package, the Administration has proposed significant tax changes.

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Ames, IA – The American Families Plan, proposed by the Biden administration in April, would provide new social programs to millions of U.S. households. To cover the $1.8 trillion benefits package, the Administration has proposed significant tax changes.

Specifically, the AFP proposes increasing the top marginal tax rate for ordinary income, taxing some capital gain at ordinary income tax rates, subjecting more income to the 3.8% Medicare tax, and taxing unrealized capital gain at death or upon gift. These changes would mean that some owners of property that has increased in value would pay tax at a rate as high as 43.4% when they sell the property or when they transfer it at death or by gift.

According to a new Iowa State University study, some of Iowa’s farmland owners could face a substantial increase in taxes to pay for the proposed plan. “Because of the proposed increase in rates, we estimate that, on average, a full-time farmer owning 358 acres of farmland would see tax liability from a lifetime sale increase from $475,248 to $860,572, an 81% increase, or from 14.5% to 26% of fair market value,” said Kristine Tidgren, director of Iowa State’s Center for Agricultural Law and Taxation.

Tidgren authored the study with Wendong Zhang, an associate professor of economics at Iowa State’s Center for Agricultural and Rural Development. Zhang said that their study looked at 80% of Iowa’s farmland owners, including those that own land as sole owners, joint tenants, tenants in common, and through a revocable living trust. He said that they did not study other owners that own farmland in corporations, partnerships, life estates, or irrevocable trusts that could face new tax liability as well.

“Among full-time farmers with any ownership interest in a whole farm of 200 acres or more, we estimate that 62% of owners and 79% of acres would be impacted by the AFP tax at death or gift, even with a $1 million exclusion. That number jumps to 99% of owners and 98.2% of acres when the whole farm size reaches 500 acres or more,” said Zhang. These estimates are based solely upon the owner’s interest in farmland.

The authors said that the impact of the AFP depends upon farm size and appreciation. In that way, a small farm that has increased substantially in value since the owner acquired it may be subject to tax while a large farm that was recently inherited would not face the new tax. “Identical farms across the road from each other would have completely different outcomes—one owner might owe $1 million in tax at death, and the other might owe none,” Tidgren said.

Under 100-year-old law, the basis of property transferred at death is adjusted to current value in the hands of the heirs. Called the “step up in basis,” this adjustment means that gain accruing during an owner’s lifetime is not taxed if the property is transferred at death. “If you die with land you purchased for $1,000/acre that’s now worth $8,000/acre, the law adjusts the value in the hands of your heirs to $8,000/acre, the fair market value of the property—that’s called a step up in basis,” Tidgren said. “The AFP proposes taxing those who die with gain greater than $1 million. So the first $1 million would still receive a tax-free step up in basis, but the rest would receive the step up only after paying the tax,” she said.

Tidgren said that the proposal includes a deferral for family owned businesses that pass the business or farm to a family member who continues to operate it. “This would apparently be a delay in payment of the tax, not an exemption from the tax. The impact of the deferral is dependent upon definitions and details that have not been released,” she said. For those required to pay the tax, the proposal suggests a 15-year payment plan, “but if they can’t cash flow that, they would have to sell,” Tidgren said.

Zhang said the proposed plan would “significantly change the estate and transition planning options for farmers and small businesses and impact those with assets that have appreciated during their lifetime.”

The authors noted that 83% of farmland owners would not be impacted by the proposed tax solely because of their ownership in farmland. This is largely because most Iowa farmland owners own fewer than 200 acres. However, ownership of other assets could still make the proposed tax affect those landowners. “Farmers also own many assets other than farmland and buildings—livestock, machinery, grain in the bin, etc. We did not consider these assets because we did not have specific data about them, and it is not clear how the proposal would treat this other property,” Zhang said.

Tidgren said that when they estimated tax liability in the study, they calculated the tax as though the farmer had no income or gain other than that arising from the gain associated with their farmland. “This means our calculated tax liabilities are generally the minimum tax liability for each owner. Additional gain or income would push the tax higher,” she said.

For now, the authors said, the AFP is only a proposal, and no current laws have been changed. “Most legislation doesn’t pass as proposed and we still have no proposed legislative language. These proposals, however, are significant, and farmland owners should begin watching the progress of any legislation in Congress. More specific proposals should be unveiled mid-September,” Zhang said.

The Center for Agricultural Law and Taxation provides timely, objective, unbiased information to producers, professionals, and agribusinesses concerning the application of important developments in agricultural law and taxation, and serves as a primary source of professional educational training in agricultural law and taxation.

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
Kristine Tidgren, 515-294-6365; ktidgren@iastate.edu
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

August 17, 2021
Dumortier, Carriquiry, Elobeid publish in Agricultural Economics permalink

Amani Elobeid, Adjunct Associate Professor, and Jerome Dumortier and Miguel Carriquiry, both CARD faculty collaborators, published in the latest issue of Agricultural Economics. Their article "Impact of climate change on global agricultural markets under different shared socioeconomic pathways" uses four representative concentration pathways, five global climate models, three shared socioeconomic pathways, and enhanced CO2 fertilization to analyze changes in global agricultural markets for maize, rice, soybeans, and wheat due to yield changes triggered by climate change.

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Amani Elobeid, Adjunct Associate Professor, and Jerome Dumortier and Miguel Carriquiry, both CARD faculty collaborators, published in the latest issue of Agricultural Economics. Their article "Impact of climate change on global agricultural markets under different shared socioeconomic pathways" uses four representative concentration pathways, five global climate models, three shared socioeconomic pathways, and enhanced CO2 fertilization to analyze changes in global agricultural markets for maize, rice, soybeans, and wheat due to yield changes triggered by climate change.

Impact of climate change on global agricultural markets under different shared socioeconomic pathways
Jerome Dumortier, Miguel Carriquiry, Amani Elobeid
Agricultural Economics
doi.org/10.1111/agec.12660

August 12, 2021
Zhang, Li publish in Nature Food permalink

Wendong Zhang, Associate Professor, and Minghao Li, Assistant Professor at New Mexico State University and former postdoctoral researcher at CARD, published an invited article in the most recent issue of Nature Food. Li and Zhang's article discusses the environmental implications of trade policies.

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Wendong Zhang, Associate Professor, and Minghao Li, Assistant Professor at New Mexico State University and former postdoctoral researcher at CARD, published an invited article in the most recent issue of Nature Food. Li and Zhang's article discusses the environmental implications of trade policies.

Trade policies have environmental implications
Minghao Li, Wendong Zhang
Nature Food
https://www.nature.com/articles/s43016-021-00342-5

August 5, 2021
Zhang, Ji receive INRC grant permalink

Associate Professor Wendong Zhang and Associate Scientist Yongjie Ji received a $19,705 research grant from the Iowa Nutrient Research Center. Their project, "Environmental Justice for All: Nutrient Impacts on Lake-Based Recreation and Tourism by Rural and Socially Disadvantaged Iowans," seeks to understand nutrient impacts via the lens of local recreation and tourism as well as the economic impact of water quality improvement on rural and lower-income communities. David Swenson, Research Scientist, and Xibo Wan, PhD Candidate, both in Iowa State's Department of Economics, will work with Zhang and Ji on the project.

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Associate Professor Wendong Zhang and Associate Scientist Yongjie Ji received a $19,705 research grant from the Iowa Nutrient Research Center. Their project, "Environmental Justice for All: Nutrient Impacts on Lake-Based Recreation and Tourism by Rural and Socially Disadvantaged Iowans," seeks to understand nutrient impacts via the lens of local recreation and tourism as well as the economic impact of water quality improvement on rural and lower-income communities. David Swenson, Research Scientist, and Xibo Wan, PhD Candidate, both in Iowa State's Department of Economics, will work with Zhang and Ji on the project.

The grant runs from 09/01/2021 to 08/30/2022.

August 5, 2021
Zhang, Jensen recognized by AAEA permalink

Wendong Zhang and Helen Jensen were recognized for their work at the 2021 Agricultural and Applied Economics Association (AAEA) Annual Meeting. The AAEA annual meeting was held from August 1–3 in Austin, Texas.

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Wendong Zhang and Helen Jensen were recognized for their work at the 2021 Agricultural and Applied Economics Association (AAEA) Annual Meeting. The AAEA annual meeting was held from August 1–3 in Austin, Texas.

Jensen Appreciation Club
AAEA announced an Appreciation Club for Professor Emerita Helen Jensen. Appreciation Clubs allow donation to the AAEA Trust in the name of a prominent agricultural or applied economist. Jensen was recognized for her many contributions to the AAEA and the National Academies of Sciences, Engineering, and Medicine. Jensen was elected AAEA Fellow in 2012, and had previously served on the AAEA Board of Directors. She retired from CARD in August 2018 after more than 33 years of research on food and nutrition policy.

Zhang wins Extension Award
Associate Professor Wendong Zhang received AAEA’s prestigious Distinguished Extension/Outreach Program Award, Individual: Less than Ten Years’ Experience Award. The award recognizes achievement of excellence in extension economics education programs. Zhang is the third CARD faculty member to receive the award in the last four years—Alejandro Plastina won in 2019 and Lee Schulz won in 2018.

July 26, 2021
He publishes in American Journal of Agricultural Economics permalink

Xi He, Post-doctoral Research Associate, published in the latest issue of American Journal of Agricultural Economics. He authored the article "Regional Trade Agreements and Excluded Countries." He's article investigates the impact of regional trade agreements on excluded countries' protection for agricultural producers and quantifies the causal impact of an average trading partner's import share from its regional trade agreement members, that is preferential import share, on excluded countries' nominal rate of assistance to agricultural producers.

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Xi He, Post-doctoral Research Associate, published in the latest issue of American Journal of Agricultural Economics. He authored the article "Regional Trade Agreements and Excluded Countries." He's article investigates the impact of regional trade agreements on excluded countries' protection for agricultural producers and quantifies the causal impact of an average trading partner's import share from its regional trade agreement members, that is preferential import share, on excluded countries' nominal rate of assistance to agricultural producers.

Regional Trade Agreements and Excluded Countries
Xi He
American Journal of Agricultural Economics
doi.org/10.1111/ajae.12233

July 9, 2021
Feng, Hennessy receive USDA-NIFA grant permalink

Hongli Feng, assistant professor of economics, and David Hennessy, professor of economics, are recipients of a $499,941 US Department of Agriculture National Institute of Food and Agriculture grant.

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Hongli Feng, assistant professor of economics, and David Hennessy, professor of economics, are recipients of a $499,941 US Department of Agriculture National Institute of Food and Agriculture grant.

Their project aims to enhance classical economic theory with synergies between behavioral economics and psychology to better understand farmers’ insurance choices. The overall project goal is to assess the impacts of policy design and incentives on farmer’s crop insurance participation by evaluating competing decision theories and then testing those theories through psychological and economic experiments and analyses of empirical data.

Jennifer Ifft, Kansas State University, Michel Regenwetter, University of Illinois-Urbana Champaign, and Robert Shupp, Michigan State University will work with Feng and Hennessy as CO-PIs.

The project will run through March 2024.

June 23, 2021
Crespi joins Governor Reynolds' carbon sequestration task force permalink

CARD Director John Crespi has been announced as a member of Governor Reynolds' carbon sequestration task force. On Tuesday, Governor Reynolds created the task force through an executive order to explore carbon sequestration and any possible benefits it may hold for economic development in Iowa.

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CARD Director John Crespi has been announced as a member of Governor Reynolds' carbon sequestration task force. On Tuesday, Governor Reynolds created the task force through an executive order to explore carbon sequestration and any possible benefits it may hold for economic development in Iowa.

“Because of our existing supply chain and emphasis on renewable fuel infrastructure, Iowa is in a strong position to capitalize on the growing nationwide demand for a more carbon free economy,” Governor Reynolds said in a released statement.

Crespi recently authored a CARD policy brief with Kirstine Tidgren, Director of Iowa State's Center for Agricultural Law and Taxation, that examines the Growing Climate Solutions Act of 2021 and how it creates the first legal step to creating an agricultural carbon market.

A Gazette article about the taskforce is available here.

June 1, 2021
Zhang paper wins ICIG award permalink

A paper coathored by Wendong Zhang, assistant professor, "Farmers under Threat: Implications for Attitudes toward China and Perceived Risks from the Trade Dispute," won a Top Paper Award from the Intergroup Communication Interest Group (ICIG) at ICA2020: Gold Coast.

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A paper coathored by Wendong Zhang, assistant professor, "Farmers under Threat: Implications for Attitudes toward China and Perceived Risks from the Trade Dispute," won a Top Paper Award from the Intergroup Communication Interest Group (ICIG) at ICA2020: Gold Coast.

Zhang's coauthors are Shuyang Qu, Minghao Li, Lulu Rodriguez, Guang Han, Erin Cork, and James M. Gbeda. Rodríguez is at ISU Seed Science Center; Qu, Department of Agricultural Education and Studies. Minghao Li was a CARD postdoc and is now assistant professor at New Mexico State University.

Since ICA2021 is a virtual conference, it will not be possible to distribute plaques to Top Paper winners. As a result, Top Paper Award plaques will be distributed at ICA2022: Paris, which will be an in-person conference.

June 1, 2021
CARD economists claim AAEA award three of last four years permalink

In May 2021 Wendong Zhang, assistant professor, was the latest Iowa State University extension economist to bring home the Agricultural & Applied Economics Association's prestigious Distinguished Extension/Outreach Program Award: Less than 10 years’ experience.

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In May 2021 Wendong Zhang, assistant professor, was the latest Iowa State University extension economist to bring home the Agricultural & Applied Economics Association's prestigious Distinguished Extension/Outreach Program Award: Less than 10 years’ experience.

Two of his CARD colleagues have previously won this award for their extension achievements. In spring of 2019, the award was given to Alejandro Plastina, associate professor, while Lee Schulz, associate professor, won in spring of 2018.

Chad Hart, professor and extension economist—who won the award in 2014—is proud of what the extension staff has accomplished.

“Iowa State extension has a very strong history, especially in economics. A lot is expected from faculty members that take on that role. These young men dove right in and made it their own and are recognized for the work that they’re doing,” said Hart.

“When the focus became trade disputes between the U.S. and China, Wendong Zhang became a very critical voice out there, being able to get perspective from both countries,” said Hart. “So that has grown to be a major part of his appointment. It wasn’t originally why we hired Wendong. He was hired to be a land value economist, and here he is talking trade. It just highlights the versatility that he has within his economic training.”

“Plastina’s work focuses on general farm management with an eye specifically toward conservation practices and how those affect not only the farms’ productive capacity but also their economic capacity. His work is being recognized and picked up nationally, and has earlier this year earned him being named the first Farm Foundation Agricultural Economics Fellow,” Hart said.

“Lee Schulz was hired as extension livestock economist in 2012, and immediately became the nation’s hog expert. He has developed into the nation-wide expert when it comes to the livestock industry, specifically pork, but also dealing with beef and all the others.”

Hart says that though these three are covering vastly different topics, they’ve all reached a national status and are seen as respected experts on those topics, not only within academia, but also to the general public.

“And that, from an extension point of view, is probably the most important, that they’re seen as people who can translate not only economic research but also economic story lines that impact world economies. And they can bring those to a level where the general person in the public can understand,” he said.

Extension is in essence a two-way street. Over time it’s adjusted, not only delivering information to farmers, but also gathering information from farmers. A big part of the job is collecting that information from farmers and figuring out the economic pinch points and challenges, the things needing study in research to help continue to foster economic growth within Iowa’s farming communities. These economists are not just doing what their predecessors did, they are continuing to push the boundaries in their research and the ways they work, such as online meetings, direct media contact, and events like Zhang’s Land Value Survey press conferences.

“Them winning the award is not just because they’re here at Iowa State, it’s because of the growth that they have created within their positions, even within an institution like Iowa State, which has a long legacy of economic extension,” said Hart.

May 24, 2021
Schulz authors articles for Beef Magazine and Wallaces Farmer permalink

Lee Schulz recently penned articles for both Beef Magazine and Wallaces Farmer. Schulz' Wallaces Farmer article, available here, examines the CME Group's new Boxed Beef Index that "will provide a benchmark price that both producers and end users of beef can use to track and forecast price."

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Lee Schulz recently penned articles for both Beef Magazine and Wallaces Farmer. Schulz' Wallaces Farmer article, available here, examines the CME Group's new Boxed Beef Index that "will provide a benchmark price that both producers and end users of beef can use to track and forecast price."

Schulz' Beef Magazine article, available here, focuses on how the beef production industry fared through the last year.

May 21, 2021
Zhang wins AAEA extension award permalink

Wendong Zhang, assistant professor, has been selected to receive the Agricultural & Applied Economics Association's prestigious Distinguished Extension/Outreach Program Award: Less than 10 years experience.

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Wendong Zhang, assistant professor, has been selected to receive the Agricultural & Applied Economics Association's prestigious Distinguished Extension/Outreach Program Award: Less than 10 years experience.

The association will honor the award winners at the AAEA Awards & Fellows Recognition Ceremony on Monday, August 2 at 6:00 pm in the Lone Star Ballroom, JW Marriot Austin at the 2021 AAEA Annual Meeting in Austin, TX.

For more information regarding the ceremony contact Hattie Salzman at hsalzman@aaea.org or (414) 231 8117.

May 18, 2021
CARD economist selected as first Farm Foundation Agricultural Economics Fellow permalink

Ames, Iowa — Farm Foundation announced Alejandro Plastina, Associate Professor of Economics at the Center for Agricultural and Rural Development at Iowa State University, as its first Agricultural Economics Fellow.

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Ames, Iowa — Farm Foundation announced Alejandro Plastina, Associate Professor of Economics at the Center for Agricultural and Rural Development at Iowa State University, as its first Agricultural Economics Fellow.

The Agricultural Economics Fellowship is a new program designed to nurture a promising leader in the field. Plastina will be engaged with Farm Foundation for one year, during which he will have the opportunity to provide thought leadership through publications and speaking appearances, expand his professional network and manage high-visibility projects. He will participate in Farm Foundation programs and events, network with and be mentored by staff in the USDA’s Office of the Chief Economist, and mentor and meet with participants in Farm Foundation’s suite of next generation development programs.
Plastina’s area of specialization is agricultural production and technology, with an emphasis on farm business and financial management. His recent publications have addressed the economics of conservation practices such as cover crops and subfield land-use change from corn-soybean rotations into switchgrass, as well as agricultural productivity analyses.

“We are thrilled to welcome Dr. Plastina as our first Agricultural Economics Fellow,” said Shari Rogge-Fidler, President and CEO at Farm Foundation. “We have a long history with agricultural economists, on our board and in our programming, so this is an exciting extension for us. Dr. Plastina’s academic and practical experience brings great value to Farm Foundation’s programs for stakeholders throughout the food and ag value chain to advance their understanding of the economic issues surrounding critical topics such as sustainable agriculture.”

The Agricultural Economics Fellowship is the latest recognition for Plastina, who also received the ISU Office of the President Excellence in Remote Instruction Award in 2021; the ISU Extension and Outreach Creativity in Service to All Iowans Award in 2020; the Agricultural & Applied Economics Association Distinguished Extension Program Award in 2019; the ISU ANR Programming Innovation Award in 2018; and the ISU Extension and Outreach Impacting Iowa Award in 2014. He holds a Master of Science in Statistics and a doctorate in Agricultural Economics from the University of Nebraska-Lincoln.

Contacts:
Alejandro Plastina, 515-294-6160; plastina@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

May 7, 2021
New position for Elobeid permalink

Amani Elobeid, adjunct associate professor, will become the new Ron & Lynn Deiter Endowed Chair for Sustaining Excellence in Ag Business, Teaching Professor – Agricultural Economics, beginning Aug. 16, 2021.

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Amani Elobeid, adjunct associate professor, will become the new Ron & Lynn Deiter Endowed Chair for Sustaining Excellence in Ag Business, Teaching Professor – Agricultural Economics, beginning Aug. 16, 2021.

In her new role, Elobeid will teach undergraduate classes, assist the department in recruiting, advising, and retaining agricultural business majors, encourage and lead continuous improvement in pedagogy and curriculum within the program, cultivate relationships with employers of agricultural business graduates, and work with student clubs. The position is 75% teaching, 15% research, and 10% service.

April 28, 2021
Gassman receives EDF grant permalink

Associate Scientist Phil Gassman was awarded a $27,293 grant from the Environmental Defense Fund. Gassman will work with EDF to determine the best set of appropriate metrics for evaluating flood mitigation efforts at the local and basin scale, whether it is possible to set local and/or basin-wide goals for flood mitigation, and how much and where natural infrastructure should be put on the landscape to achieve water quality improvement and flood reduction goals.

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Associate Scientist Phil Gassman was awarded a $27,293 grant from the Environmental Defense Fund. Gassman will work with EDF to determine the best set of appropriate metrics for evaluating flood mitigation efforts at the local and basin scale, whether it is possible to set local and/or basin-wide goals for flood mitigation, and how much and where natural infrastructure should be put on the landscape to achieve water quality improvement and flood reduction goals.

The project will run through September 30, 2021.

April 22, 2021
Zhang, Plastina publish in Journal of Soil and Water Conservation permalink

Wendong Zhang, Assistant Professor of Economics, and Alejandro Plastina, Associate Professor of Economics, published in the latest issue of Journal of Soil and Water Conservation. Zhang and Plastina co-authored "What drives landowners’ conservation decisions? Evidence from Iowa" with Wendiam Sawadgo, Assistant Professor of Economics at Auburn University. Using a statistically representative survey of Iowa landowners, their article examines the factors driving adoption of four key conservation practices—no-till, cover crops, buffer strips, and ponds/sediment basins. The full article is available here.

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Wendong Zhang, Assistant Professor of Economics, and Alejandro Plastina, Associate Professor of Economics, published in the latest issue of Journal of Soil and Water Conservation. Zhang and Plastina co-authored "What drives landowners’ conservation decisions? Evidence from Iowa" with Wendiam Sawadgo, Assistant Professor of Economics at Auburn University. Using a statistically representative survey of Iowa landowners, their article examines the factors driving adoption of four key conservation practices—no-till, cover crops, buffer strips, and ponds/sediment basins. The full article is available here.

What drives landowners’ conservation decisions? Evidence from Iowa
W.P.M. Sawadgo, W. Zhang and A. Plastina
Journal of Soil and Water Conservation
doi.org/10.2489/jswc.2021.00115

April 22, 2021
Plastina publishes in Renewable Agriculture and Food Systems permalink

Alejandro Plastina, Associate Professor of Economics, published in the latest issue of Renewable Agriculture and Food Systems. Plastina co-authored "Do cost-share programs increase cover crop use? Empirical evidence from Iowa" with Wendiam Sawadgo, Assistant Professor of Economics at Auburn University. Their article examines whether the monetary incentives of cost-share programs effectively increase the area of farmland planted to cover crops in Iowa. The full article is available here.

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Alejandro Plastina, Associate Professor of Economics, published in the latest issue of Renewable Agriculture and Food Systems. Plastina co-authored "Do cost-share programs increase cover crop use? Empirical evidence from Iowa" with Wendiam Sawadgo, Assistant Professor of Economics at Auburn University. Their article examines whether the monetary incentives of cost-share programs effectively increase the area of farmland planted to cover crops in Iowa. The full article is available here.

"Do cost-share programs increase cover crop use? Empirical evidence from Iowa"
Wendiam Sawadgo and Alejandro Plastina
Renewable Agriculture and Food Systems 1–9
doi.org/10.1017/S1742170521000132

April 8, 2021
Schulz: Strong pork demand helps offset production cost hikes permalink

Lee Schulz authored a recent article for Wallaces Farmer. Schulz article, "Strong pork demand helps offset production cost hikes," examines the two types of inflation (demand-pull and cost-push) that can drive up the overall price for pork. Schulz says that "Demand-pull and cost-push factors have combined to lift hog prices. By late March, many cash prices topped $90 per cwt. Futures prices pushed through the century mark for the first time since 2014. Hog cash receipts are forecasted to be the highest since 2014."

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Lee Schulz authored a recent article for Wallaces Farmer. Schulz article, "Strong pork demand helps offset production cost hikes," examines the two types of inflation (demand-pull and cost-push) that can drive up the overall price for pork. Schulz says that "Demand-pull and cost-push factors have combined to lift hog prices. By late March, many cash prices topped $90 per cwt. Futures prices pushed through the century mark for the first time since 2014. Hog cash receipts are forecasted to be the highest since 2014."

The full article is available here.

April 6, 2021
Schulz receives Superior Service award permalink

Lee Schulz, Associate Professor of Economics, received the Superior Service award from the Livestock Marketing Information Center for his exceptional dedication and service to the livestock industry and outstanding contributions to the Livestock Marketing Information Center.

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Lee Schulz, Associate Professor of Economics, received the Superior Service award from the Livestock Marketing Information Center for his exceptional dedication and service to the livestock industry and outstanding contributions to the Livestock Marketing Information Center.

The Livestock Marketing Information Center is a multi-state cooperative effort that supports Extension at Land Grant Universities. Schulz has served on the Executive Committee for the last six years, completing roles of Vice Chair, Executive Chairman, and Past Chair.

April 1, 2021
Schulz: "Ground Beef has Solid Demand" permalink

Lee Schulz authored a recent article for Wallaces Farmer. Schulz article examines the market factors affecting ground beef prices and demand. In his article, Schulz says that "Cow and bull beef production through 2021's first 10 weeks was up 1.8% from a year earlier. This is actually pretty impressive, as weather-related closures and shift cancellations hampered beef production at many processing plants, especially in the Southern Plains, as well as interrupted shipments of beef supplies and cattle."

March 31, 2021
Soil Management Land Valuation Conference to Return in May permalink

AMES, Iowa – The longest-running conference offered by Iowa State University Extension and Outreach will be offered May 19 via Zoom.

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AMES, Iowa – The longest-running conference offered by Iowa State University Extension and Outreach will be offered May 19 via Zoom.

The Soil Management Land Valuation Conference – now in its 93rd year, was canceled last year due to COVID-19 concerns. The conference returns with timely updates for farm managers, rural appraisers, real estate brokers and others interested in the Iowa land market.

“The conference offers networking opportunities for those who have an interest in agricultural land, land management and land valuation,” said Wendong Zhang, assistant professor and extension economist at Iowa State. “Additionally, participants have an opportunity through an online survey before the conference to ‘gaze into their crystal balls,’ and will be asked to provide their estimates of future land values in Iowa and corn and soybean prices via an online survey distributed before the conference.”

The conference is sponsored by the Iowa State University College of Agriculture and Life Sciences and ISU Extension and Outreach and will be held virtually via Zoom on Wednesday, May 19, from 8 a.m. to 3:30 p.m.

Seven current issues and their implications to soil management and land valuation will be discussed. The issues are: agricultural policy priorities in 2021, presented by leading congressional staffers; agricultural carbon credits program for farmers; the weather outlook and its impacts on agricultural production; how Coalition to Support Iowa Farmers is helping livestock producers; agricultural market outlook; the impacts of COVID-19 pandemic on land and asset values; and key developments in agricultural law and regulations, such as the Waters of the United States rule and estate tax reforms.

“We are really excited to bring this conference back and although this year we are offering it through Zoom, participants will still have the chance to talk about the issues affecting land values and farm management,” said Zhang.

Registration, the agenda and a full line of speakers are all available on the event website.

Participants can receive six hours of real estate and appraiser continuing education credits from the Iowa Real Estate Commission and the Real Estate Appraiser Examining Board, respectively. There will also be three $50 gift card giveaway opportunities for the participants throughout the day.

For more information, contact Wendong Zhang at 515-294-2536 or wdzhang@iastate.edu.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu

March 31, 2021
Chen, Luo, Sawadgo receive CARD Dissertation Award permalink

Yulong Chen, Jinjing Luo, and Wendiam Sawadgo were announced as winners of the sixth annual CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy.

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Yulong Chen, Jinjing Luo, and Wendiam Sawadgo were announced as winners of the sixth annual CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy.

Chen was recognized for his dissertation "Three Essays on Human Capital in China," Luo was recognized for her dissertation "Essays on Differentiated Products in Oligopoly Markets," and Sawadgo was recognized for his dissertation "Land Tenure, Agri-environmental Policy, and Land Tenure in Iowa."

Typically, only one winner is chosen; however, this year the selection committee felt that Chen, Luo, and Sawadgo all deserved recognition for their work. Each winner will have their name inscribed on the awards plaque in Heady 578, and each will receive a $500 honorarium.

March 15, 2021
Plastina, Lence publish in Agricultural Economics permalink

Alejandro Plastina, Associate Professor of Economics, and Sergio Lence, Professor of Economics, published in the latest issue of Agricultural Economics. Plastina and Lence authored the article "How weather affects the decomposition of total factor productivity in U.S. agriculture" with Ariel Ortiz-Bobea, Associate Professor of Economics, at Cornell University. The article illustrates and quantifies how overlooking the impact of weather shocks can affect the measurement and decomposition of agricultural total factor productivity change. The full article is available here.

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Alejandro Plastina, Associate Professor of Economics, and Sergio Lence, Professor of Economics, published in the latest issue of Agricultural Economics. Plastina and Lence authored the article "How weather affects the decomposition of total factor productivity in U.S. agriculture" with Ariel Ortiz-Bobea, Associate Professor of Economics, at Cornell University. The article illustrates and quantifies how overlooking the impact of weather shocks can affect the measurement and decomposition of agricultural total factor productivity change. The full article is available here.

"How weather affects the decomposition of total factor productivity in U.S. agriculture"
Alejandro Plastina, Sergio H. Lence, and Ariel Ortiz-Bobea
Agricultural Economics
https://doi.org/10.1111/agec.12615

March 11, 2021
Hayes wins Kolmer excellence award permalink

Dermot Hayes, Charles F. Curtiss Distinguished Professor in Agriculture and Life Sciences in the Department of Economics and professor and Pioneer Hi-Bred International Chair in Agribusiness in the Ivy School of Business, is the recipient of the Dean Lee R. Kolmer Award for Excellence in Applied Research from the College of Agriculture and Life Sciences at Iowa State University.

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Dermot Hayes, Charles F. Curtiss Distinguished Professor in Agriculture and Life Sciences in the Department of Economics and professor and Pioneer Hi-Bred International Chair in Agribusiness in the Ivy School of Business, is the recipient of the Dean Lee R. Kolmer Award for Excellence in Applied Research from the College of Agriculture and Life Sciences at Iowa State University.

His research focus includes U.S. farm policy and international agricultural trade, agribusiness, crop insurance, financial derivatives and the potential impact of China on commodity markets. He is a consulting trade economist for the National Pork Producers Association.

Hayes is often sought after by media to provide insight on farm policy and international trade. In 2020, he was frequently asked for his input on U.S. pork exports and how China trade was challenged by coronavirus, African swine fever, and the fate of farmers as meat packing plants closed. Over a 14-day period in April, his media reach was calculated by the ISU Office of Strategic Relations and Communications to be 871.3 million.

March 11, 2021
Outstanding new professional award to Ji permalink

Yongjie Ji, research scientist in economics with the Center for Agricultural and Rural Development, is the recipient of the Professional and Scientific Outstanding New Professional Award from the College of Agriculture and Life Sciences at Iowa State University.

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Yongjie Ji, research scientist in economics with the Center for Agricultural and Rural Development, is the recipient of the Professional and Scientific Outstanding New Professional Award from the College of Agriculture and Life Sciences at Iowa State University.

Ji’s technical skills, which unite economic expertise, advanced graphic design and innovative computer programming, are highly valued by his colleagues. He is well-trained in economic theory, extremely good at quantitative analysis and data management, and well-positioned for serving the agricultural and environmental interests of the center’s stakeholders, students, constituents and employees of Iowa State.

Of special note is Ji’s work with the Iowa Department of Natural Resources on the Lakes Survey. His work on this project over the last two years contributed to Iowa State maintaining a long, important relationship with the Department of Natural Resources.

March 4, 2021
Provost recommends Winters, Zhang for Promotion permalink

The Provost has recommended to President Wintersteen the promotion of two CARD economists, John Winters and Wendong Zhang. Winters has been recommended for promotion to Professor, and Zhang has been recommended for promotion to Associate Professor with tenure.

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The Provost has recommended to President Wintersteen the promotion of two CARD economists, John Winters and Wendong Zhang. Winters has been recommended for promotion to Professor, and Zhang has been recommended for promotion to Associate Professor with tenure.

Winters joined Iowa State as an Associate Professor in 2018 and Zhang joined as an Assistant Professor in 2015.

February 9, 2021
China nears 75% of U.S. Ag Imports for First Year of Phase One Deal permalink

Ames, Iowa – With just about one week left in the first year of the phase one trade deal, an Iowa State University study estimates that China has reached almost 75% of its obligated U.S. agricultural imports.

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Ames, Iowa – With just about one week left in the first year of the phase one trade deal, an Iowa State University study estimates that China has reached almost 75% of its obligated U.S. agricultural imports.

“Whether China can meet the target by February 15 depends largely on the on-time delivery of the advanced corn and soybean orders,” said Wendong Zhang. “China has ordered large amounts of corn and soybean for delivery for the rest of the 2020/21 marketing year, which ends on August 30, 2021. The exports are not official until transported to China, so whether China can meet the first-year goal depends largely on logistics,” he said.

Zhang is an assistant professor of economics at the Center for Agricultural and Rural Development at Iowa State University. He and his Iowa State colleagues Dermot Hayes and Xi He are the authors of “China’s Agricultural Imports under the Phase One Deal: Is Success Possible?

Since they first authored the report in May, Hayes, Zhang, and He have continually updated their estimates of China’s U.S. agricultural imports under the phase one deal. The previous update, released in November, showed China had secured 52.2% of its obligated imports. The most recent update puts that number at 74.8%.

In November, the researchers noted that China made significant purchases of U.S. agricultural products in August and September, especially soybeans. And, while they say corn and meat products have been the focus of China’s recent purchases, it is likely they will still import a significantly larger amount of soybeans as they push toward the phase one goals.

“Soybeans accounted for 58% of China’s U.S. agricultural purchases in 2017 and only accounted for around 41% in the 2020 calendar year,” Zhang said. “In addition, the United States’ major competitor, Brazil, is experiencing drought and a late soybean harvest, which increases room for U.S. soybean purchases,” he said.

While Hayes said that the United States could choose to terminate the second year of the trade deal, he doesn’t think that’s likely, given the regulatory changes China is making to meet the agreement and the importance of China’s purchase commitments to U.S. agriculture. “Given the importance of healthy U.S.-China trade relations to U.S. farmers and China’s efforts in meeting its purchase targets, at least in the agricultural sector, it’s beneficial for both sides to continue to implement the deal,” he said.

Zhang said that the second year of the trade deal will more than likely be similar to the first year for U.S. agricultural producers. “China’s feed and meat demands are increasing due to rebuilding its hog herd,” he said. An outbreak of African swine fever in 2018 decimated China’s hog industry. “This pattern is very likely to continue in the second year of the trade deal.”

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Dermot Hayes, 515-294-6185; dhayes@iastate.edu
Xi He; xihe@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

February 9, 2021
Zhang, Hart publish in Agricultural Finance Review permalink

Wendong Zhang, Assistant Professor of Economics, and Chad Hart, Professor of Economics, published in the most recent issue of Agricultural Finance Review. Zhang and Hart authored the article "The impacts of interest rate changes on US Midwest farmland values." The article is a joint collaboration with Albulena Basha and is based on her master's thesis. Using state-level farmland values from 1963 to 2018, the article quantifies the effects of Federal Reserve interest rate changes on the US farmland market, focusing on the I-states, Lakes states and Great Plains states. The article is available here.

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Wendong Zhang, Assistant Professor of Economics, and Chad Hart, Professor of Economics, published in the most recent issue of Agricultural Finance Review. Zhang and Hart authored the article "The impacts of interest rate changes on US Midwest farmland values." The article is a joint collaboration with Albulena Basha and is based on her master's thesis. Using state-level farmland values from 1963 to 2018, the article quantifies the effects of Federal Reserve interest rate changes on the US farmland market, focusing on the I-states, Lakes states and Great Plains states. The article is available here.

The impacts of interest rate changes on US Midwest farmland values
Albulena Basha, Wendong Zhang, and Chad Hart
Agricultural Finance Review
doi:10.1108/AFR-11-2020-0163

February 1, 2021
Elobeid, Dumortier publish in Land Use Policy permalink

Adjunct Assistant Professor Amani Elobeid and CARD faculty collaborator Jerome Dumortier published in the most recent issue of Land Use Policy. Elobeid and Dumortier authored the article "Effects of a carbon tax in the United States on agricultural markets and carbon emissions from land-use change." The article examines three US carbon tax scenarios, ranging from $15–$144 per metric ton of carbon dioxide equivalent, and covering a 10-year projection period and find that the production cost for corn and soybeans increase by a maximum of 32.6% and 22.4%, respectively at a carbon tax of $144 t-1 CO2-e. The full article is available here.

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Adjunct Assistant Professor Amani Elobeid and CARD faculty collaborator Jerome Dumortier published in the most recent issue of Land Use Policy. Elobeid and Dumortier authored the article "Effects of a carbon tax in the United States on agricultural markets and carbon emissions from land-use change." The article examines three US carbon tax scenarios, ranging from $15–$144 per metric ton of carbon dioxide equivalent, and covering a 10-year projection period and find that the production cost for corn and soybeans increase by a maximum of 32.6% and 22.4%, respectively at a carbon tax of $144 t-1 CO2-e. The full article is available here.

Effects of a carbon tax in the United States on agricultural markets and carbon emissions from land-use change
Jerome Dumortier and Amani Elobeid
Land Use Policy 103(April 2021):105320
doi:10.1016/j.landusepol.2021.105320

January 28, 2021
Farmers' Beliefs on Climate Change Are Shifting permalink

The results of the 2020 Iowa Farm and Rural Life Poll, also known as the Farm Poll, show that farmers’ beliefs about climate change have shifted since 2011. In 2011, 68% of farmers responded that climate change is occurring, but, as the 2020 poll shows, that number has now increased to 81%. In fact, the number of Iowa farmers that say climate change is occurring exceeds the amount of people in Iowa's general public that believe the samerecent research shows that number to only be 67%.

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The results of the 2020 Iowa Farm and Rural Life Poll, also known as the Farm Poll, show that farmers’ beliefs about climate change have shifted since 2011. In 2011, 68% of farmers responded that climate change is occurring, but, as the 2020 poll shows, that number has now increased to 81%. In fact, the number of Iowa farmers that say climate change is occurring exceeds the amount of people in Iowa's general public that believe the samerecent research shows that number to only be 67%.

“Farmers have experienced a lot of extreme weather since 2011, from droughts to extreme wet, and it’s likely that’s driving some of the changes in perspectives,” said J. Arbuckle. Arbuckle is a professor of sociology and extension sociologist at Iowa State University and directs the annual Farm Poll.

A press release that details more of the poll's findings is available here. The full results of the the poll are available here.

January 22, 2021
Plastina to Present at NAS Workshop permalink

Alejandro Plastina will give a presentation, "Cover Crops by Region: The Good, the Bad, and the Ugly in the Midwest," at a virtual workshop hosted by the Environmental Health Matters Initiative at the National Academy of Sciences, Engineering, and Medicine.

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Alejandro Plastina will give a presentation, "Cover Crops by Region: The Good, the Bad, and the Ugly in the Midwest," at a virtual workshop hosted by the Environmental Health Matters Initiative at the National Academy of Sciences, Engineering, and Medicine.

The virtual workshop will focus on actions that can be taken to address nitrogen contamination in the United States. Nitrogen is a commonly used input in crop farming; however, it can leak into drinking water supplies, which can cause adverse health effects.

The virtual sessions are scheduled to take place from 2:30-5:30 Eastern Standard Time every Thursday from January 28 to February 25, 2021. You can register for the event here.

January 22, 2021
Schulz: "Gains in Pigs per Litter Possible" permalink

Lee Schulz authored a recent article for Wallaces Farmer. Schulz article, "Gains in Pigs per Litter Possible," examines the factors that affected the the US hog industry in 2020 and what the future might look like. Schulz says that "Given continually improving genetics, technology and management practices, it is probably safe to say that litter rates have not topped out."

January 7, 2021
Plastina receives award for Excellence in Remote Instruction permalink

Iowa State University has named Alejandro Plastina, Associate Professor of Economics, the recipient of a COVID-19 Exceptional Effort Award. The award was to recognize exceptional efforts in overcoming the challenges of the COVID-19 pandemic. Plastina was recognized for his efforts in adapting ECON 330: Advanced Farm Business Management "to an exceptional hands-on, but entirely online, format."

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Iowa State University has named Alejandro Plastina, Associate Professor of Economics, the recipient of a COVID-19 Exceptional Effort Award. The award was to recognize exceptional efforts in overcoming the challenges of the COVID-19 pandemic. Plastina was recognized for his efforts in adapting ECON 330: Advanced Farm Business Management "to an exceptional hands-on, but entirely online, format."

You can read about the awards and recipients here.

January 4, 2021
Schulz and Hart Featured in Stories permalink

Chad Hart and Lee Schulz were featured in a Stories article focusing on how Iowa State Extension and Outreach has found new ways to connect with people during the COVID-19 pandemic. Schulz and Hart were featured for their huge local, national, and global media reach during the pandemic.

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Chad Hart and Lee Schulz were featured in a Stories article focusing on how Iowa State Extension and Outreach has found new ways to connect with people during the COVID-19 pandemic. Schulz and Hart were featured for their huge local, national, and global media reach during the pandemic.

In April, Iowa State's Office of Strategic Relations and Communications stated that three CARD faculty members, Lee Schulz, Chad Hart, and Dermot Hayes, had a combined media reach of 1.7 billion people over a fourteen day span. Most of Hart and Hayes' reach came from an Associated Press article that ran in over 200 publications (Virus Closes Some Meat Plants, Raising Fears of Shortages), and most of Schulz' media reach came from an article by the Los Angeles Times (From caviar to apple juice, coronavirus is changing the way the world feeds itself).

The full Stories article is available at https://stories.cals.iastate.edu/2020/12/extension-and-outreach-connects-in-new-ways/

December 15, 2020
Iowa Land Values Show Stability in Turbulent Year permalink

Annual ISU survey finds average value of Iowa farmland per acre increased 1.7% since 2019

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Annual ISU survey finds average value of Iowa farmland per acre increased 1.7% since 2019

Ames, Iowa – Favorable interest rates, a strong demand for land, and substantial government payments helped stabilize Iowa’s farmland market in a year in which Iowa’s farmers faced the destructive onslaught of a derecho, significant uncertainties in US agricultural trade, and a pandemic that significantly altered market demand.

“The land market faced downward pressure initially with the onset of the COVID-
pandemic, which lowered food demand and resulted in declines in livestock and ethanol prices,” said Dr. Wendong Zhang. Zhang is an assistant professor of economics at Iowa State University and is responsible for leading the annual Iowa Land Value Survey.
This year’s survey found that the average statewide value of an acre of farmland is $7,559, an increase of 1.7%, or $127, since 2019. The $7,559 per acre estimate, and 1.7% increase in value, represents a statewide average of low-, medium-, and high-quality farmland.

Statewide, Iowa’s high-quality farmland saw a decline in value of 0.1%. However, Zhang said that it’s important to note that number is more indicative of a flat market, rather than a decline, and that several factors have led to a recent rebound in the market. “The rebound in recent months is due to strong government payments, interest rate cuts, limited land supply, and recent commodity price rallies,” he said.

In mid-November, both US corn and soybeans prices their highest point so far this year. Despite some decline since then, both prices are still higher than at the beginning of the year, especially soybeans. “The export surges related to the phase one deal and China’s efforts to rebuild its hog herd ramped up demand for feed grains,” Zhang said.

“There is definitely concerns and downside risks about the price rallies because post-harvest prices are typically lower,” he said. However, he stressed that China is still at least 10%–15% short of its regular hog inventory, so farmers should continue seeing increased feed grain demand. Additionally, Germany, a key competitor for US pork exports, is now battling with African swine fever, the same disease that decimated China’s hog industry, which could increase US pork exports in the future.

Zhang also said that farm payments in 2020 helped prop up the farmland market “in a big way.” According to the USDA’s Economic Research Service, farm payments will increase 107% in 2020, mostly due to supplemental and ad hoc disaster assistance for COVID-19 relief. They also project net farm income will increase 43.1% in 2020.

Some of the increase in overall value this year is also due to increased demand for low-quality land in certain parts of the state. The overall average increase in farmland value was very modest, but low-quality land in the Northeast, West Central, South Central, and Southeast districts saw increases of 8% or more.

“Strong demand for pasture and timber grounds, which are even more appealing now with social-distancing requirements, contributed to the rise in low-quality land value,” Zhang said. However, he noted that when compared to high-quality land, it doesn’t take a substantial change in the dollar value of low-quality land to constitute a large percent increase in values.

Land Values by County
Seventy-eight of Iowa’s 99 counties showed an increase in land values. For the eighth year, Scott and Decatur Counties reported the highest and lowest values, respectively. Despite having the highest overall value, average land values in Scott County decreased $178 per acre to $10,659. Decatur County, however, saw average values increase $264 per acre to $3,849.

Wayne County reported the largest percentage increase, 7.7%, while Lyon County saw the largest dollar increase, $577 per acre. The largest dollar decrease was reported in Des Moines County, $241 per acre, and the highest percentage decrease, 3.4%, was reported in Henry County.

Land Values by District
The Northwest crop reporting district reported the highest land values, $9,536 per acre, and the South Central district reported the lowest, $4,658 per acre.

In general, land values across crop reporting districts increased—only the Southwest district reported a decline in land values (-0.9%). The largest percentage increases were in the West Central and South Central districts, 3.9% and 3.8%, respectively; however, both the Northeast and Northwest districts reported increases of 2% or higher.

Land Values by Quality
Statewide, low-quality land now averages $5,078 per acre, an increase of 6.7% or $319 per acre. Medium-quality land now averages $7,119 per acre, an increase of 2.6% or $181 per acre. High-quality land now averages $9,068 per acre, a decrease of 0.1% or $10 per acre.

Only low-quality land in the North Central district showed a decline in average prices this year (-0.5%). Low-quality land in the Northeast, West Central, South Central, and Southeast districts, however, all saw increases of 8% or more.

The West Central and South Central districts reported the largest gains in medium-quality land values, 5.0% and 4.4%, respectively. While no districts reported a loss in medium-quality land, the Southwest district only reported a nominal gain of $2 per acre.
High-quality land in five of Iowa’s nine crop districts saw increases of less than 2%, while East Central and Southwest districts reported a decline of more than 2%.

Factors Influencing the Land Market
Favorable interest rates, limited land supply, and recent commodity price rallies were the most frequently mentioned positive factors influencing the land market in this year’s survey. Other positive factors respondents noted included COVID-related payments, government payments, and strong demand for land, especially by farmers.

The most frequently mentioned negative factors affecting were lower commodity prices, uncertainty due to the COVID-19 pandemic and weather. Other negative factors included political uncertainty related to the 2020 election, poor yields, and general economic uncertainty.

Land values were determined by the 2020 Iowa State University Land Value Survey, conducted in November by the Center for Agricultural and Rural Development (CARD) at Iowa State and Iowa State University Extension and Outreach. Results from the survey are consistent with results by the Federal Reserve Bank of Chicago, the Realtors Land Institute, and the US Department of Agriculture.

The Iowa State Land Value Survey was initiated in 1941, the first in the nation, and is sponsored annually by Iowa State. The survey is conducted every November and the results are released mid-December. Only the state average and the district averages are based directly on the Iowa State survey data. County estimates are derived using a procedure that combines the Iowa State survey results with data from the US Census of Agriculture.

The Iowa State Land Value Survey is based on reports by agricultural professionals knowledgeable of land market conditions, such as appraisers, farm managers, agricultural lenders, and actual land sales, and is intended to provide information on general land value trends, geographical land price relationships, and factors influencing the Iowa land market. The 2020 survey is based on 707 usable responses from 484 agricultural professionals. Sixty-seven percent of the 484 respondents answered the survey online.

CARD offers a web portal at https://www.card.iastate.edu/farmland/ that includes visualization tools, such as charts and interactive county maps, allowing users to examine land value trends over time at the county, district, and state level.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

November 24, 2020
Soybeans Still Top China’s U.S. Ag Imports, Even as it Exceeds Corn TRQ permalink

ISU researchers project China will top $31 billion in U.S. ag product imports in first year of trade deal

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ISU researchers project China will top $31 billion in U.S. ag product imports in first year of trade deal

Ames, Iowa – Soybeans will once again top the list of U.S. agricultural exports to China, even as China exceeds its tariff rate quota for corn for the first time since implementing a TRQ system in 1996.

“In November, the World Agricultural Supply and Demand Estimates forecast U.S. soybean production at 4.17 billion bushels, down 98 million bushels due to lower yields in several major producing states including Illinois, Iowa, Indiana, Ohio, and Nebraska,” said Wendong Zhang, an assistant professor of economics at the Center for Agricultural and Rural Development at Iowa State University.

Some of that loss of production was due to a derecho that tore through the Midwest in August. Wind gusts reached 140 mph and flattened crops across both Iowa and Illinois, the two largest soybean-producing states.

However, even with production falling short of estimates, soybeans once again top China’s U.S. agricultural imports. “In the first nine months of the year, soybeans accounted for 31.3% of China’s total agricultural imports from the U.S., so they will remain the single largest export commodity,” Zhang said.

Zhang and his Iowa State colleagues Dermot Hayes and Xi He are the authors of “China’s Agricultural Imports under the Phase One Deal: Is Success Possible?” Zhang, Hayes, and He first authored the report in May and recently updated their estimate of China’s total U.S. agricultural imports under the phase one deal. Using the most recent data, they estimate that China will import just over $31 billion worth of agricultural and related products from the United States in the first year of the deal.

“In August and September, China’s agricultural purchases significantly accelerated, reaching $5.28 billion,” Hayes said. About $2.8 billion worth of those purchases were soybeans, according to Hayes.

Soybeans topping China’s U.S. imports isn’t surprising—as recently as 2016, China was purchasing 25% of the total annual U.S. soybean crop. However, factors other than the phase one deal have led to China accelerating purchases of U.S. corn as well.

According to the Iowa State researchers, China imported 74% of its corn from Ukraine in the first three quarters of 2020, but those purchases may be slowing as Ukraine faces production difficulties. “Ukraine’s corn production is forecast lower this year due to its unfavorable weather conditions and continued poor harvest results,” He said. “USDA’s November WASDE report projects lower corn yield in Ukraine, which could be its lowest since 2012/13—it’s reasonable to infer that China would shift away from Ukraine corn.”

Furthermore, since 2018, China has struggled with an outbreak of African swine fever in its hog production industry. Keeping the infection under control required culling millions of pigs, which led to China increasing both U.S. pork imports to cover the loss in domestic production and U.S. feed grains as it rebuilds its hog industry. “In 2019, animal feed accounted for 70% of China’s corn consumption, with the remaining 30% used for food, seed, and industrial use,” Hayes said.

China’s increased corn needs are reflected in recent data released by China’s General Administration of Customs on November 23, which shows that China imported 7.82 million metric tons of corn from all sources in the first ten months of 2020, exceeding its corn TRQ of 7.2 million metric tons. Furthermore, China has huge U.S. corn orders for delivery in November and December. The researchers also note that, given China’s growing corn needs and export sales commitments, it will greatly exceed its corn TRQ in 2021.

The good news for U.S. farmers is that China’s increased need for corn manifested as $358 million worth of purchases in August and September alone, Zhang said.

Hayes said that this was the first time that China had exceeded its corn TRQ since the system first came into use in 1996, which he said was one of the factors leading to optimism that China will be able to fully meet its $36 billion agricultural obligation under the first year of the phase one deal.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Dermot Hayes, 515-294-6185; dhayes@iastate.edu
Xi He; xihe@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

November 17, 2020
ISU Land Value Survey News Conference to be held December 15 permalink

Ames, IA – A news conference will be held at 10:00 a.m. on Tuesday, December 15 to announce the results of the 2020 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. Please note the change in location from previous years—the conference will take place in room 9 of Curtiss Hall on the ISU campus in Ames.

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Ames, IA – A news conference will be held at 10:00 a.m. on Tuesday, December 15 to announce the results of the 2020 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. Please note the change in location from previous years—the conference will take place in room 9 of Curtiss Hall on the ISU campus in Ames.

If you plan to attend in person, please note that Iowa State requires face coverings in all campus buildings. For those who can’t attend the conference, a livestream will be available on YouTube at http://bit.ly/LandResults2020.

Wendong Zhang, an assistant professor of economics and farm management specialist, will head the news conference and announce the 2020 findings. Printed materials will be provided at the conference, including Iowa land value data from 1950 to present, current land value data from all 99 counties, and a press release summarizing the 2020 results. Dr. Zhang will make himself available to reporters for follow-up questions or one-on-one interviews immediately following the presentation of results.

The ISU Land Value Survey is currently ongoing, if you are an agricultural professional knowledgeable about the farmland market who hasn’t participated in this year’s survey, you can participate in the ISU Land Value Survey online by December 1 at http://bit.ly/landvalue2020. If you have questions regarding the survey please contact Dr. Wendong Zhang at wdzhang@iastate.edu or call 515-294-2536. You can also see the land value trends at the county, district, and state level since 1950 at the interactive Iowa Farmland Value Portal.

An archive of the video and the printed materials available at the conference will be posted on the CARD homepage soon after the conference.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu

November 12, 2020
Reduced Gasoline Demand could Lower Ethanol Demand, Farm Income in the Future permalink

Ames, IA – The United States is the world’s largest producer, consumer, and exporter of ethanol. In 2019, the United States produced about 16 billion gallons of ethanol, about 45% more than Brazil, the world’s second-largest producer.

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Ames, IA – The United States is the world’s largest producer, consumer, and exporter of ethanol. In 2019, the United States produced about 16 billion gallons of ethanol, about 45% more than Brazil, the world’s second-largest producer.

Consumer demand for gasoline is the largest factor in the demand for ethanol in the United States. Ethanol is typically sold to consumers combined with gasoline in blends of 10%, 15%, and 85%, which means that if gasoline demand falls, ethanol demand will fall along with it. This linkage is due to the blend wall—the maximum amount of ethanol the United States needs to mix with gasoline for domestic consumption.

“The blend wall is determined by vehicle technology,” said Jerome Dumortier, associate professor of economics at Indiana University-Purdue University Indianapolis. Dumortier said that vehicles that are model year 2001 or newer are capable of using up to 15% ethanol, but many older vehicles can only use 10% ethanol because a higher ethanol content can damage the engine. “This means that you cannot simply increase the ethanol content in gasoline without changing the vehicle fleet,” he said.

Dumortier is a co-author of a new study “Where does all the biofuel go? Fuel efficiency gains and its effects on global agricultural production,” with Miguel Carriquiry, professor of economics at Universidad de la República (Uruguay), and Amani Elobeid, adjunct associate professor of economics at Iowa State University and the Center for Agricultural and Rural Development. Their study examines a 30% drop in U.S. ethanol demand that the U.S. Energy Information Administration projects will occur by 2050 and how that reduction in demand will affect U.S. and global agricultural production. The U.S. EIA says the projected decline in U.S. gasoline consumption is mostly due to increased fuel efficiency and, to a lesser extent, a larger number of electric vehicles in the U.S. fleet.

Dumortier said that the United States would need policy changes if it wanted to counteract a potential large reduction in ethanol demand in the future. “The policy change right now would not be small—it would need to promote flex-fuel vehicles and the establishment of a nationwide network of gas stations that supply E85, which is common in the Midwest but not elsewhere,” he said.

If U.S. demand for gasoline falls by 30%, and ethanol demand falls accordingly, what will happen to all the biofuels the United States produces? “The ethanol produced will likely not be consumed in the United States, given the current projections,” Dumortier said. “There is a chance for exports, but the question is if other countries are counting on electric vehicles taking off,” he said.

Currently, almost 40% of the corn grown in the United State is used to produce biofuels, so a large change in ethanol consumption will have a noticeable impact on agricultural markets, which is what the study examines. The most notable changes found are a projected 3% drop in global corn planted area and a 6.3% drop in U.S. corn prices, the latter of which could lead to a reduction in farm income.

“We see that there is an almost 10% reduction in profits for corn farmers,” Dumortier said. He hypothesized that would lead to two different issues. “First, farmers who remain in agriculture will see lower profits,” he said. “Second, some farmers not in the Corn Belt will find it unprofitable to continue production and leave farming altogether.”

However, the study also finds benefits for consumers. “The price of corn affects costs of production of a variety of food products,” said Carriquiry. “Lower corn prices will lower feed costs and thus result in reducing the cost of production of meats, dairy products, and eggs. Lower corn prices will also put downward pressure on the prices of products directly based on corn and on other grains and oilseeds,” he said. “All things equal, lower energy prices are expected to further reduce costs of production and crop prices.”

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
Amani Elobeid, 515-294-8122; amani@iastate.edu
Jerome Dumortier, Indiana University-Purdue University Indianapolis, 317-274-1817; jdumorti@iupui.edu
Miguel Carriquiry, Universidad de la República Oriental del Uruguay; mcarriquiry@iecon.ccee.edu.uy
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

October 16, 2020
Schulz authors Wallaces Farmer article permalink

Lee Schulz authored an article for Wallaces Farmer that examines the recent increase in federal spending and how it will affect farm incomes in the near future. Schulz notes that, while USDA projects 2020 net farm income as the highest since 2013, the amount of net farm income attributable to direct transfer payments is increasing. The full article is available at https://www.farmprogress.com/marketing/federal-spending-surge-supports-farm-income

October 14, 2020
Zhang publishes in Applied Economic Perspectives and Policy permalink

Associate Professor of Economics Wendong Zhang published in the most recent issue of Applied Economic Perspectives and Policy.
Zhang authored the article "The Case for Healthy U.S.-China Agricultural Trade Relations Despite Deglobalization Pressures." Zhang's article examines firms' and countries' ongoing deglobalization efforts in relation to US farmers' and the general US public's revealed attitudes toward China.

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Associate Professor of Economics Wendong Zhang published in the most recent issue of Applied Economic Perspectives and Policy.
Zhang authored the article "The Case for Healthy U.S.-China Agricultural Trade Relations Despite Deglobalization Pressures." Zhang's article examines firms' and countries' ongoing deglobalization efforts in relation to US farmers' and the general US public's revealed attitudes toward China.

The article is available here.

The Case for Healthy U.S.-China Agricultural Trade Relations Despite Deglobalization Pressures
Wendong Zhang
Applied Economic Perspectives and Policy
doi.org/10.1002/aepp.13115

October 9, 2020
Crespi, Schulz publish in Agricultural Economics permalink

CARD Director John Crespi and associate professor Lee Schulz published in the most recent issue of Agricultural Economics.
Crespi and Schulz co-authored the article "Long-run impacts of trade shocks and export competitiveness: Evidence from the U.S. BSE event" with Chen-Ti Chen, a PhD student in Iowa State's Department of Economics, William Hahn, an agricultural economist at USDA Economic Research Service, and Fawzi Taha (retired, formerly an agricultural economist at USDA-ERS). Their article examines the long-run impacts of the 2003 bovine spongiform encephalopathy (mad cow disease) outbreak in the United States had on the competitiveness of US beef exports.

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CARD Director John Crespi and associate professor Lee Schulz published in the most recent issue of Agricultural Economics.
Crespi and Schulz co-authored the article "Long-run impacts of trade shocks and export competitiveness: Evidence from the U.S. BSE event" with Chen-Ti Chen, a PhD student in Iowa State's Department of Economics, William Hahn, an agricultural economist at USDA Economic Research Service, and Fawzi Taha (retired, formerly an agricultural economist at USDA-ERS). Their article examines the long-run impacts of the 2003 bovine spongiform encephalopathy (mad cow disease) outbreak in the United States had on the competitiveness of US beef exports.

The article is available here.

Long-run impacts of trade shocks and export competitiveness: Evidence from the U.S. BSE event
Chen-Ti Chen, John M. Crespi, William Hahn, Lee L. Schulz, Fawzi Taha
Agricultural Economics
doi.org/10.1111/agec.12602

October 2, 2020
Artz, Orazem publish in AJAE permalink

Professor Peter Orazem and former associate professor Georgeanne Artz published in the most recent issue of American Journal of Agricultural Economics.
Artz and Orazem co-authored the article "Which Small Towns Attract Start-Ups and Why? Twenty Years of Evidence from Iowa" with Younjun Kim, associate professor of economics at Southern Connecticut State, and Peter J. Han, a social science analyst at the US Department of Housing and Urban Development. Their article examines how various factors influence new firm entry in small towns.

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Professor Peter Orazem and former associate professor Georgeanne Artz published in the most recent issue of American Journal of Agricultural Economics.
Artz and Orazem co-authored the article "Which Small Towns Attract Start-Ups and Why? Twenty Years of Evidence from Iowa" with Younjun Kim, associate professor of economics at Southern Connecticut State, and Peter J. Han, a social science analyst at the US Department of Housing and Urban Development. Their article examines how various factors influence new firm entry in small towns.

The article is available here.

Which Small Towns Attract Start-Ups and Why? Twenty Years of Evidence from Iowa
Georgeanne M. Artz, Younjun Kim, Peter F. Orazem, and Peter. J. Hahn
Applied Economic Perspectives and Policy
doi.org/10.1111/ajae.12144

September 21, 2020
ISU Researchers to Investigate Ag Supply Chain Resiliency permalink

Ames, IA – A new grant will allow Iowa State University researchers to study how the COVID-19 pandemic has impacted the U.S. food supply chain with the goal of finding short- and long-term solutions to increase resiliency against future disruptions.

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Ames, IA – A new grant will allow Iowa State University researchers to study how the COVID-19 pandemic has impacted the U.S. food supply chain with the goal of finding short- and long-term solutions to increase resiliency against future disruptions.

Keri Jacobs, an associate professor of economics at Iowa State, said that the pandemic led to major disruptions in a number of agricultural industries.

“These disruptions were unique because we didn’t experience a shock to the supply of agricultural products—it was largely a shock to our processing capacity through reduced labor,” she said. Jacobs noted that the lack of labor was especially problematic in agricultural industries, as the processing capacity and the entire system was built based on the known biological processes for products, like eggs, milk, beef, and pork.

Furthermore, as the pandemic first spread, restaurants, bars, and schools closed, quickly changing consumers’ food consumption habits and needs, which created further disruptions in the supply chain. “Plants couldn’t make the switch quickly enough to meet the change in demand and had inventory prepared for a market that no longer existed,” Jacobs said.

Consumers staying home en masse also drove down the need for gasoline, and therefore ethanol, which had consequences that fed back into food industries. “Carbon dioxide and distillers grains are by-products in ethanol production and are both important inputs in other supply chains,” Jacobs said. She noted that distillers grains are used to feed livestock, and carbon dioxide is a preservative and key input in packaged liquid products. “When ethanol demand tanked, so did the production of those two by-products. So, in this case, the disruptions seeped into other food processing sectors,” she said.

To help understand how and why COVID-19 disrupted the agricultural supply chain the ways it did, and to help prevent similar things from happening in the future, Jacobs will lead a newly-funded USDA study. The project, “Agricultural Supply Chain Disruptions: Costs and Mitigation Strategies to Enhance Resiliency of Ag Supply Chains” aims to enhance the resiliency of the beef, pork, dairy, and egg supply chains in the Midwest in the face of future disruptions and was recently awarded a two-year, $458,000 National Institute of Food and Agriculture COVID-19 Rapid Response Program grant. The grant is part of more than $14 million in USDA funding announced to help study the most critical issues facing consumers during the pandemic.

The project research team also includes five other Iowa State faculty: John Crespi, Chad Hart and Dermot Hayes, professors of economics; Bobby Martens, associate professor of supply chain management; and Lee Schulz, associate professor of economics.

“Our short-term focus is on developing data visualization tools and forensic price- and volume-based decision tools,” Jacobs said. The visualization tools will help agricultural producers and firms recognize and adapt to stressors in the supply chain system, such as future COVID-19 outbreaks. “We don’t know whether there will be another type of disruption similar to COVID-19, but the COVID-19 disruptions have the potential to flare up again this fall and winter or be compounded with flu season,” she said.

The long-term goal of the research is to explore the risk-return tradeoff in supply system changes to improve future resiliency during disruptions.

“We will, among other things, explore potential risk-mitigating strategies that firms in the beef, pork, egg, and dairy supply chains can use to reduce the impact of the current pandemic or future similar disruptions,” Jacobs said. “Fundamentally, this disruption made it very apparent where we can benefit from better information, and that is what our project aims to do—generate more informed and synthesized market information to aid supply chains.”

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
Keri Jacobs, Center for Agricultural and Rural Development, 515-294-6780; kljacobs@iastate.edu
Nathan Cook, Communications, Center for Agricultural and Rural Development, 515-294-3809; nmcook@iatsate.edu

September 9, 2020
US Ready to Meet China’s Surging Import Demands: ISU Researchers permalink

Ames, IA – China’s demand for U.S. corn is surging. And, according to researchers at Iowa State University’s Center for Agricultural and Rural Development, the U.S. is ready to meet that demand.

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Ames, IA – China’s demand for U.S. corn is surging. And, according to researchers at Iowa State University’s Center for Agricultural and Rural Development, the U.S. is ready to meet that demand.

“The recent derecho caused a great deal of damage to Iowa's corn and soybeans, but total predicted national corn production for the 2020/21 marketing year is still the largest ever,” said Dermot Hayes, a professor of economics at Iowa State. “So, yes, the U.S. has the capability to deliver on China's record-setting demand,” he said.

China’s surging corn demand isn’t the only good news for U.S. farmers either. In May, Hayes, with Xi He and Wendong Zhang, authored a study that found China would import about $18.6 billion worth of U.S. agricultural products in 2020, which would ultimately fall short of phase one trade goals. Now, however, Hayes, He, and Zhang have updated the study, “China’s Agricultural Imports under the Phase One Deal: Is Success Possible?” with the most recently available data, and they now predict that China will import $21.63 billion in agricultural products from the United States in the first year of the phase one trade deal, an increase of nearly $3 billion from May’s prediction.

“Our prediction is still a little behind the $36.5 billion target, but recent market signals indicate that China has record demand for U.S. corn, poultry, and pork,” said Zhang.

China’s increased demand for U.S. corn and pork relates to an outbreak of African swine fever that started in 2018 and has decimated China’s hog inventory. “It's generally believed China has lost around 40%–60% of its hogs since 2018,” said He. “China's surging corn imports as of now are driven by its feed demand while it rebuilds its hog inventory.”

Zhang said it would take about two years for China to rebuild its hog inventory, but U.S. farmers don’t need to worry that China’s demand will slow down significantly after that. “China's national ethanol mandate was suspended earlier this year due to a lack of corn,” Zhang said. He also noted that China purchased large quantities of U.S. corn for ethanol production before the trade war. “If China continues developing its ethanol industry, the demand for U.S. corn will not slow down after its hog inventory is rebuilt,” Zhang said.

China’s increased need for U.S. corn may cause them to increase their corn tariff rate quota, according to Hayes. “Tariff rate quotas are policy instruments that give countries the option of restricting imports if they want,” Hayes said. Simply put, if China increases its corn tariff rate quota that means the U.S. can export more corn to China this year and China won’t impose extra tariffs on it. “China is very likely to exceed its tariff rate quota of 7.2 million metric tons this year,” Hayes said. “U.S. and Ukraine corn farmers will benefit most if China does decide to increase it,” he said.

U.S. soybean farmers are also starting to see increased demand from China, fitting what the researchers note is a seasonal pattern—U.S. agricultural product exports to China are higher from September to March. USDA daily export sales report shows new soybeans sales to China reached a minimum of 13.2 million metric tons for marketing year 2020/21 as of August 31.

China’s farmers are also currently dealing with production troubles that may further extend the need for U.S agricultural products. Since June, severe floods along the Yangtze River have wreaked havoc in China, severely affecting agricultural production in Chongqing, Hubei, Hunan, Anhui, Jiangxi, Jiangsu, and Zhejiang provinces. In 2019, these seven provinces produced just over half of China’s rice, as well as about one-third of its pork and vegetables.

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Dermot Hayes, 515-294-6185; dhayes@iastate.edu
Xi He; xihe@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

August 14, 2020
Jacobs publishes in Applied Economic Perspectives and Policy permalink

Associate Professor Keri Jacobs published in the most recent issue of Applied Economic Perspectives and Policy.
Jacobs co-authored the article "Research Priorities for Agricultural Cooperatives and their Farmer-Members" with Michael Boland of the University of Minnesota, Brian Briggerman of Kansas State University, Phil Kenkel of Oklahoma State University, Gregory McKee of the University of Nebraska-Lincoln, and John Park of Texas A&M University. Their article examines the future of land-grant universities’ extension, applied research, and teaching programs aimed at farmer cooperatives. The article is available here.

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Associate Professor Keri Jacobs published in the most recent issue of Applied Economic Perspectives and Policy.
Jacobs co-authored the article "Research Priorities for Agricultural Cooperatives and their Farmer-Members" with Michael Boland of the University of Minnesota, Brian Briggerman of Kansas State University, Phil Kenkel of Oklahoma State University, Gregory McKee of the University of Nebraska-Lincoln, and John Park of Texas A&M University. Their article examines the future of land-grant universities’ extension, applied research, and teaching programs aimed at farmer cooperatives. The article is available here.

Research Priorities for Agricultural Cooperatives and their Farmer-Members
Michael A. Boland, Brian C. Briggerman, Keri Jacobs, Phil Kenkel, Gregory McKee, and John L. Park
Applied Economic Perspectives and Policy
doi.org/10.1002/aepp.13068

July 22, 2020
COVID-19 web hub accepted by national impact database permalink

The CARD/ Department of Economics Web Hub to Track COVID-19’s Social and Economic Benefits has been accepted as an impact statement by the national Landgrant Impact Database. The web hub, in which researchers in the Department of Economics and the Center for Agricultural and Rural Development examine the impacts of the COVID-19 pandemic on local, regional and global economies, represents ISU–CALS’ work in response to the pandemic.

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The CARD/ Department of Economics Web Hub to Track COVID-19’s Social and Economic Benefits has been accepted as an impact statement by the national Landgrant Impact Database. The web hub, in which researchers in the Department of Economics and the Center for Agricultural and Rural Development examine the impacts of the COVID-19 pandemic on local, regional and global economies, represents ISU–CALS’ work in response to the pandemic.

Find it online with the other Iowa State University 2020 impact statements at https://landgrantimpacts.tamu.edu/impacts/search by searching for the Iowa Agriculture and Home Economics Experiment Station.

July 22, 2020
Moschini wins CAES Publication of Enduring Quality Award permalink

Professor GianCarlo Moschini received the 2020 Publication of Enduring Quality Award from the Canadian Agricultural Economics Society. Moschini was recognized for his journal article “Modeling the Pattern of Structural Change in US Meat Demand,” co-authored with Karl Meilke, which was published in 1989 in the American Journal of Agricultural Economics.

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Professor GianCarlo Moschini received the 2020 Publication of Enduring Quality Award from the Canadian Agricultural Economics Society. Moschini was recognized for his journal article “Modeling the Pattern of Structural Change in US Meat Demand,” co-authored with Karl Meilke, which was published in 1989 in the American Journal of Agricultural Economics.

Throughout his career, Moschini has received numerous awards for outstanding journal articles (https://www.card.iastate.edu/people/profile/cv/giancarlo-moschini-cv.pdf) from organizations such as the International Association of Agricultural Economist, the Agricultural and Applied Economics Association, and the Western Agricultural Economic Association.

June 25, 2020
Economic Analysis Shows how ISU Soybean Trials Generate Value for Farmers permalink

AMES, Iowa – Field trials led by Iowa State University scientists saved farmers and seed companies millions of dollars by helping them select soybean varieties resistant to a major pest, according to a new economic analysis.

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AMES, Iowa – Field trials led by Iowa State University scientists saved farmers and seed companies millions of dollars by helping them select soybean varieties resistant to a major pest, according to a new economic analysis.

The analysis was led by GianCarlo Moschini, Pioneer Chair in Science and Technology Policy in the ISU Department of Economics. The report found the Iowa State University SCN-Resistant Soybean Variety Trials have created a surplus of about $140 million in Iowa and Illinois between 2011 and 2016. The analysis estimates that farmers captured roughly a third of that surplus while seed companies held the rest.

The soybean cyst nematode, a microscopic roundworm that feeds on the roots of soybeans, is the greatest pathogen threat to U.S. soybean yields. Previous estimates showed the pests present in up to 70% of Iowa fields. Plant breeders have developed soybean varieties with genetic resistance to the pests, but the level of resistance and performance of these varieties can vary widely. So ISU scientists, supported by soybean checkoff funds from the Iowa Soybean Association, have conducted field trials every year since 1997 to evaluate hundreds of resistant soybean varieties. Annual reports of the results are published online at isuscntrials.info, and copies of the publications are printed and directly distributed annually to 70,000 to 90,000 households in Iowa and northern Illinois annually.

The economic analysis drew on data generated through the field trials as well as a proprietary dataset of farmers’ seed choices. That dataset included the quantity and price paid for seed of specific soybean varieties. Using economic models, Moschini and doctoral student Seungki Lee determined how willing farmers are to pay a premium for resistant soybean varieties compared to susceptible varieties.

“Our study essentially matched the data produced by the trials over the period from 2011 to 2016 with data about farmers’ specific use of soybean varieties over the same period,” Moschini said.

The analysis found that farmers were willing to pay an additional $0.75 per acre for seed of resistant varieties included in the field trials experiments. Farmers also paid an additional $1.36 per acre for seed of SCN-resistant soybean varieties that performed above the median in terms of yield in the ISU experiments.

The results indicate farmers used the field trial data to inform their decisions of what seeds to plant, said Gregory Tylka, interim associate chair in plant pathology and microbiology who leads the field trials.

“Some farmers think all resistant varieties are created equal, but they’re not, which is why we do the evaluation,” Tylka said. “The analysis shows the value of our research overall but also that farmers value the varieties that perform well in the yield tests.”

The full economic analysis, which was not supported by soybean checkoff funds, is available here.

Iowa State University News Service

Contacts:
GianCarlo Moschini, Center for Agricultural and Rural Development, 515-294-5761; moschini@iastate.edu
Gregory Tylka, Iowa Soybean Research Center, 515-294-3021; gltylka@iastate.edu
Fred Love, ISU News Service, 515-294-0704; fredlove@iastate.edu

June 18, 2020
SMLV Conference Canceled for 2020, Survey Results Project Modest Declines in Land Values permalink

Ames, IA – Iowa State University’s longest-running conference has been canceled for the year due to the ongoing COVID-19 pandemic. The 93rd Soil Management and Land Valuation Conference was originally scheduled for May; however, it was later postponed until August and has now been canceled altogether. This marks the first cancellation of this event since World War II.

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Ames, IA – Iowa State University’s longest-running conference has been canceled for the year due to the ongoing COVID-19 pandemic. The 93rd Soil Management and Land Valuation Conference was originally scheduled for May; however, it was later postponed until August and has now been canceled altogether. This marks the first cancellation of this event since World War II.

“We had hoped a postponement would allow us to continue with the traditional conference at some point this year,” said Wendong Zhang. “But because of ongoing uncertainties and social distancing requirements posed by the pandemic, we’ve decided against it,” he said. Zhang is an assistant professor of economics at Iowa State and has been in charge of the SMLV conference since 2016.

“However, one conference tradition was not broken,” Zhang said. “Since the 1960s we’ve surveyed attendees about land value trends and crop prices. This year we sent the survey electronically and got a similar response rate to previous years.” Zhang said a detailed analysis of survey results will be available in a forthcoming Ag Decision Maker newsletter in July.


Estimated Iowa land values and commodity price forecasts from registered attendees of the 93rd Soil Valuation and Land Management Conference. A full analysis of results will be available in July

Estimated Iowa land values and commodity price forecasts from registered attendees of the 93rd Soil Valuation and Land Management Conference. A full analysis of results will be available in July

Nearly half of the survey respondents were agricultural lenders, according to Zhang. The remaining respondents were farm managers, realtors, brokers, and rural appraisers. “Our average survey respondent has twenty-six years of agricultural experience and provides services in nine counties—these are generally experienced agricultural professionals.”
The survey asked respondents to estimate land values and cash crop prices in their service area at four short-term points and two long-term points. The results generally show that experts are forecasting a modest decline in farmland values over the next eighteen months, but feel generally optimistic about future values. They also anticipate a slight increase in corn and soybean cash prices.

“Overall, survey results show respondents forecast a decline in land values of just over 2% from May to November 2020. They further extend that to an additional decline in land values of just over 1% from May 2020 to November 2021,” Zhang said. However, as the timeline of the estimates increased, respondents provided increasingly positive outlooks. “Nearly 40% of respondents expect higher land values eighteen months from now,” Zhang said. Additionally, the survey results show professionals expect a 10% increase in land values from 2020 to 2025 and a 45% increase from 2020 to 2040.

“Respondents cited lower interest rates, good crop yields and strong demand amid tight land supply as main factors driving up land values,” Zhang said. “Some of our other recent research supports the role of lowered interest rates in land values. It appears the 2020 rate cut will dominate the interest rate impact for the foreseeable future; and, beginning in 2021, the net effects of interest rate changes on farmland values will become positive.”

As for corn and soybean cash prices, the survey shows experts are predicting prices at $3.05/bushel and $8.21/bushel, respectively, this November. Furthermore, they’re expecting those prices to increase slightly to $3.57/bushel and $9.05/bushel, respectively, two years from now, which, Zhang said, may reflect respondents anticipating improvements in soybean trade with China.

The next annual Soil Management and Land Valuation Conference is set for May 12, 2021.

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

June 15, 2020
Restaurants, Grocery Stores, Food Manufacturers Losing Millions of Workers permalink

Ames, IA – As restaurants across the U.S. have started re-opening their dining rooms for service, they’re now facing another consequence of the COVID-19 pandemic—huge numbers of employees are seeking employment in other industries or leaving the workforce altogether.

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Ames, IA – As restaurants across the U.S. have started re-opening their dining rooms for service, they’re now facing another consequence of the COVID-19 pandemic—huge numbers of employees are seeking employment in other industries or leaving the workforce altogether.

“Labor supply has decreased at least somewhat in every industry because some workers may get sick or they may leave the labor market to take care of children displaced from school, etc.” said John Winters, an associate professor of economics at Iowa State University. “While it was expected, closures and reduced consumer demand severely impacted restaurant industry employment—it lost roughly five million jobs from April 2019 to April 2020.”

Winters is an author of a new Iowa State study, “COVID-19 Employment Status Impacts on Food Sector Workers,” along with Seung Jin Cho and Jun Yeong Lee, both Ph.D. students in Iowa State’s Department of Economics.

The purpose of their study, however, wasn’t to find the overall number of jobs lost in each sector, it was to examine current trends in same-industry employment. That is, they wanted to look at whether food-sector workers are leaving their current jobs for employment in different industries, or possibly just leaving the workforce altogether.

“Prior to the coronavirus pandemic, typically more than 80% of workers continued employment in the same industry, but we’re definitely seeing those numbers go down in some food-related sectors,” Winters said. “In April 2019, just over 83% of previous restaurant workers were still employed in the restaurant industry. In April 2020, only about 43% of previous restaurant workers were employed at work in the restaurant industry, which is a significant drop.”

The study also examined same-industry employment in food manufacturing, grocery stores, and crop and animal production. While the restaurant industry was hardest hit by workers leaving the industry altogether, the food manufacturing and grocery store industries are seeing the same trend.

“Between April 2019 and April 2020, the number of previous workers still employed in food manufacturing decreased by about eleven percentage points and the number of previous workers still employed in grocery stores decreased by just over seven percentage points,” Winters said.

Unlike restaurants, the loss in grocery store employees isn’t due to decreased labor demand. “Labor demand in the grocery store industry has remained strong,” Winters said. “When previous grocery store workers exit the labor force it is very unlikely to be because of reduced labor demand. We also looked at hiring of new workers not previously employed in food manufacturing and grocery stores and didn’t find significant evidence of increased hiring, which suggests these industries may struggle to build and retain an effective workforce,” he said.

Winters said it’s very difficult to disentangle the various motives that lead to a reduced labor supply, but their data showed some expected general trends, such as older workers, less-educated workers, and women with children being more likely to leave the workforce. “Eligibility for unemployment insurance, including expanded benefits from the CARES Act, also reduced labor supply,” he said.

Ultimately, the COVID-19 pandemic seems to be driving laborers away from certain industries and high-infection areas. “Workers have not only left their previous industry, but also decided not to look for work in areas with high COVID-19 infection rates,” Winters said.

The only U.S. food sectors examined in the study that didn’t show a reduction in same-industry employment were crop and animal production. However, Winters said that it’s possible that things may look different for those industries in the next few months as the U.S. continues through the primary growing season and fall harvest approaches.

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
John Winters, 515-294-6263; winters1@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

May 28, 2020
‘Cautious Optimism’ in Phase One Trade Goals with China permalink

Ames, IA – On January 15, the U.S. and China signed a partial trade agreement—the phase one deal—to reduce the economic pressures of the trade war that started in 2018. In the first quarter of 2020, progress on the deal has been slow due to the COVID-19 pandemic, which has slowed global demand and disrupted trade, and due to China diversifying away from U.S. agricultural imports because of the trade war.

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Ames, IA – On January 15, the U.S. and China signed a partial trade agreement—the phase one deal—to reduce the economic pressures of the trade war that started in 2018. In the first quarter of 2020, progress on the deal has been slow due to the COVID-19 pandemic, which has slowed global demand and disrupted trade, and due to China diversifying away from U.S. agricultural imports because of the trade war.

However, a new study from the Center for Agricultural and Rural Development (CARD) at Iowa State University, “China’s Agricultural Imports under the Phase One Deal: Is Success Possible?,” finds that China is working in earnest to meet trade targets, and that current market forces and price differences for key commodities might allow it to meet trade obligations.

Based on first quarter exports and the usual seasonal patterns of corn and soybean trade, the study predicts China will import $18.6 billion in U.S. agricultural and related products in 2020. The trade target amount is $36.5 billion, which means that if China is to meet the goal, it will have to increase its U.S. imports later this year.

Historically, China increases its U.S. agricultural imports after corn and soybeans are harvested in the fall, but there are some market signs they are increasing imports now, possibly to help hit upcoming trade goals.

“Over the past few weeks there was an out-of-season uptick in corn and soybean export sales, which suggests that China is trying to make its target,” said Dermot Hayes, a professor of economics at Iowa State and a co-author of the study. Wendong Zhang, an assistant professor of economics at Iowa State, and Xi He, a postdoctoral researcher at CARD, both authored the study with Hayes.

“This cautious optimism is supported by large price differences between key commodities in the U.S. and China documented in the report, as well as China’s recent decision to rebuild national inventories of corn and soybeans,” Hayes said.

China has decided to add 20 million tons of corn to its national inventory, but projections show domestic production falling short of consumption by 15 million tons this year, so it’s likely that China will import more than its 7.2 million ton annual import quota. That could be really good news for the U.S., as the U.S. and Ukraine are the only large exporters eligible to send corn to China.

The uptick in soybean sales is good news for U.S. farmers as well. In recent years, Brazil has accounted for an increasing share of China’s soybean imports. “Brazil’s projected soybean production in 2019/20 was more than 122 million metric tons, up from 115 million tons in 2018/19,” said Zhang. “U.S. market analysts are especially worried, as Brazil sent record monthly soybean exports to China in April and the peak season for U.S. soybean exports won’t start until close to fall harvest.”

On the other hand, a recent surge in COVID-19 cases in Brazil and trade disruptions due to flooding have caused Chinese traders to consider U.S. corn and soybeans at a time they would normally turn to Brazil.

U.S. pork producers have already seen China accepting a record amount of imports in 2020. “From January to April, China imported a record-level 291,609 metric tons of U.S. pork, which is 300% higher than the amount it imported from January to April in 2017,” Zhang said.

Zhang says that the EU’s projected pork production will increase slightly in 2020, but China’s import demand for pork is surging and they will very likely purchase record amounts of U.S. pork. China’s willingness to buy more U.S. pork goes beyond the trade agreement—its domestic producers have been forced to cull tens of millions of pigs due to African swine fever, a highly virulent and deadly pig disease.

“ASF cases are much lower now, but there is no vaccine yet,” Hayes said. “ASF risks are disproportionately higher for small-scale farms that lack strong biosecurity measures, and ‘backyard’ production accounts for about 20% of China’s pork production.”

The trade deal further increases China’s obligations for U.S. agricultural products to $43.5 billion in 2021. Zhang said the COVID-19 pandemic has brought global trade levels down significantly in 2020, but regardless of what happens with the pandemic, they will be extending their study into 2021 trade. “We didn’t examine the 2021 outlook because the phase two deal terms could possibly change following the November elections. However, as of right now, the 2021 targets will be challenging for China to meet,” he said.

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
Wendong Zhang, Center for Agricultural and Rural Development, 515-294-2536; wdzhang@iastate.edu
Dermot Hayes, Center for Agricultural and Rural Development, 515-294-6185; dhayes@iastate.edu
Xi He, Center for Agricultural and Rural Development; xihe@iastate.edu
Nathan Cook, Communications, Center for Agricultural and Rural Development, 515-294-3809; nmcook@iastate.edu

May 20, 2020
New Iowa State Web Hub Offers Resources to Track COVID-19’s Economic Impacts permalink

AMES, Iowa – Tracking COVID-19’s economic impacts, especially in the state of Iowa, is now possible thanks to resources on a new web hub.

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AMES, Iowa – Tracking COVID-19’s economic impacts, especially in the state of Iowa, is now possible thanks to resources on a new web hub.

The webpage, “COVID-19 Pandemic: Research and Resources,” developed by the Center for Agricultural and Rural Development and the Department of Economics at Iowa State University, examines the pandemic’s impacts on the economy, agriculture and business across local, regional and global economies.

“Right now, you can track unemployment. You can see changes in Iowans’ mobility by county since the lockdown began and track changes in their movement patterns as the lockdown lifts. You can see economists answering questions from Iowans who have real concerns about their businesses, and more,” said CARD Director John Crespi, who led the creation of the web hub with Department of Economics Chair Joshua Rosenbloom, as well as both units’ staff and researchers.

The hub includes graphs, tables and maps visually representing the scale and extent of the pandemic's impact and features related press releases and publications, such as “The Impact of COVID-19 on Iowa’s Corn, Soybean, Ethanol, Pork, and Beef Sector” released in April. It also offers an interactive tool to estimate total losses to Iowa’s corn, soybean and ethanol markets due to COVID-19.

“I think it is a very good start to an important project,” Rosenbloom said. “It offers resources that can help producers, businesses and policymakers make informed decisions now and plan for the future during this unprecedented time in our history.”

The web hub’s hot topics include Wendong Zhang and Nick Paulsen’s presentation on COVID-19’s impact on US-China trade. Zhang is an Iowa State assistant professor and Extension economist, and Paulsen is a University of Illinois associate professor of agricultural and consumer economics.

The site also shares relevant queries from Iowans who contact the Department of Economics’ Ask an Economist service. Current questions examine beef prices, the potential devaluation of the dollar, and how to start a pandemic-related business.

“Keep checking back to see what’s new,” Crespi said. “We plan to continue adding resources in upcoming weeks and expect weekly updates to corn, soybean, ethanol, pork and beef markets that will automatically adjust as new data become available.”

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
John Crespi, Center for Agricultural and Rural Development, 515-294-1699; jcrespi@iastate.edu
Joshua Rosenbloom, 515-294-1257; jlrosenb@iastate.edu
Nathan Cook, Communications, Center for Agricultural and Rural Development, 515-294-3809; nmcook@iastate.edu

May 13, 2020
Hayes wins faculty mentor award permalink

Professor Dermot Hayes has been announced as a winner of the 2020 Exemplary Faculty Mentor Award.

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Professor Dermot Hayes has been announced as a winner of the 2020 Exemplary Faculty Mentor Award.

The Exemplary Faculty Mentor Award, given by the Office of the Senior Vice President and Provost, recognizes faculty mentors who go above and beyond the formal expectations of Iowa State’s mentoring program and have demonstrated exemplary mentoring of junior faculty. Hayes was nominated by Wendong Zhang and Lei Gao for the positive impact he has made in their lives and careers.

Throughout his distinguished career, Hayes has won numerous awards for both his teaching and research, including the Iowa State University J.H. Ellis Award for Excellence in Undergraduate Introductory Teaching and the VEISHA Faculty Member of the Year for the College of Agriculture.

May 7, 2020
Moschini wins AAEA "Quality of Research Discovery" award permalink

Professor of Economics GianCarlo Moschini has been named a recipient of the 2020 Quality of Research Discovery Award from the Agricultural & Applied Economics Association (AAEA).

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Professor of Economics GianCarlo Moschini has been named a recipient of the 2020 Quality of Research Discovery Award from the Agricultural & Applied Economics Association (AAEA).

Moschini was nominated with Federico Ciliberto of the University of Virginia and Edward Perry of Kansas State University for their paper "Valuing product innovation: genetically engineered varieties in US corn and soybeans" (Rand Journal of Economics 50(3):615-644).

The Quality of Research Discovery Award is granted to encourage excellent publications in fields consistent with the AAEA Vision Statement. Entries must demonstrate excellence in research methodology.

April 30, 2020
Iowa State University Researchers Tracking COVID-19’s Impact on China’s Economy permalink

Ames, IA – As the COVID-19 outbreak has quickly spread across the globe, it has infected more than three million people and killed over 218,000, as of the time of writing. Worldwide, governments have taken steps to reduce COVID-19’s spread, including mandating social distancing policies and closing nonessential businesses. These policies slow the spread, but they restrict economic output and demand.

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Ames, IA – As the COVID-19 outbreak has quickly spread across the globe, it has infected more than three million people and killed over 218,000, as of the time of writing. Worldwide, governments have taken steps to reduce COVID-19’s spread, including mandating social distancing policies and closing nonessential businesses. These policies slow the spread, but they restrict economic output and demand.

To help understand the economic impact of the outbreak, and the policies used to stop its spread, on China’s economy, researchers at the Center for Agricultural and Rural Development (CARD) at Iowa State University have created a database that shows how impacts propagated across China’s provinces and economic sectors, both during the outbreak and when most of China began returning to work.

China was the first country to confirm a case of COVID-19, and one of the first countries to implement social distancing and lockdown policies to contain its spread. Economic researchers have kept a close eye on China, as it is not only the world’s most populous country, but the world’s second-largest economy, based on nominal gross domestic product. According to the International Monetary Fund, China's 2019 GDP was $14.14 trillion.

“We wanted to understand the impact of COVID-19 on China's economy, and how that impact transmits to other countries through economic and political links,” said Wendong Zhang. Zhang is an associate professor of economics at Iowa State and one of the researchers that created the database.

“Researchers and the general public can use it to explore COVID-19’s impact on China at the national and province level—we found, cleaned, and translated provincial sector-level data that is not easy to find in the national-level data releases,” Zhang said. “As a result, our database is valuable to the research community in quantitative trade and macroeconomic modeling—for example, our database is also aggregated to GTAP-sectors.”

“Due to data limitations, we don't have full coverage for all 900 province-sector combinations—we currently have province by sector-level information for around half of China’s provinces, and we do not provide commodity-specific information for the agricultural sector,” Zhang said.

However, Zhang said the database was constructed from a comprehensive dataset from various sources and shows a basic idea of COVID-19’s initial impacts on China's economy, and researchers can also use it to investigate how the economic shocks affect other countries through economic linkages.

Zhang said the database will be updated monthly, and, in the future, the researchers hope to expand it to increase its coverage to increase usability. The database is available in both English and Chinese.

Other researchers involved in the project include Tao Xiong, a visiting scholar at the Center for China-US Agricultural Economics and Policy at CARD and a professor at Huazhong Agricultural University, and Xi He, a postdoctoral research associate at CARD. The researchers welcome feedback and suggestions.

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
Wendong Zhang, Center for Agricultural and Rural Development, 515-294-2536; wdzhang@iastate.edu
Xi He, Center for Agricultural and Rural Development; xihe@iastate.edu
Nathan Cook, Communications, Center for Agricultural and Rural Development, 515-294-3809; nmcook@iastate.edu

April 29, 2020
Moschini publishes in Journal of Environmental Economics and Management permalink

Professor GianCarlo Moschini published in the most recent issue of Journal of Environmental Economics and Management.

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Professor GianCarlo Moschini published in the most recent issue of Journal of Environmental Economics and Management.

Moschini co-authored the article "Neonicotinoids in U.S. maize: Insecticide substitution effects and environmental risk" with Ed Perry of Kansas State University. Their article uses a novel dataset of more than 89,000 farm-level surveys over a 17-year period to investigate how neonicotinoid seed treatments in maize affect the use of other insecticides. The article is available here.

doi.org/10.1016/j.jeem.2020.102320

April 27, 2020
CARD faculty reach +1.7 billion permalink

In April, Iowa State's Office of Strategic Relations and Communications stated that three CARD faculty members, Lee Schulz, Chad Hart, and Dermot Hayes, had a combined media reach of 1.7 billion people over a fourteen day span. Most of Hart and Hayes' reach came from an Associated Press article that ran in over 200 publications (Virus Closes Some Meat Plants, Raising Fears of Shortages), and most of Schulz' media reach came from an article by the Los Angeles Times (From caviar to apple juice, coronavirus is changing the way the world feeds itself).

April 15, 2020
New Study Projects Dramatic Losses for Iowa’s Hog and Ethanol Industries Due to Virus permalink

AMES, Iowa – A new study by the Center for Agricultural and Rural Development at Iowa State University projects economic impacts of the COVID-19 outbreak will mean steep losses for Iowa agriculture, including over $2 billion each for the hog and ethanol sectors, if the disease and social distancing policy impacts hold throughout the year.

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AMES, Iowa – A new study by the Center for Agricultural and Rural Development at Iowa State University projects economic impacts of the COVID-19 outbreak will mean steep losses for Iowa agriculture, including over $2 billion each for the hog and ethanol sectors, if the disease and social distancing policy impacts hold throughout the year.

As the COVID-19 outbreak lingers, 52 U.S. states and territories are either encouraging or mandating social distancing policies, which often include closings of nonessential businesses. While these policies are necessary to slow the spread of the virus and ensure human safety, they restrict economic output and demand.

The new CARD analysis, “The Impact of COVID-19 on Iowa’s Corn, Soybean, Ethanol, Pork, and Beef Sectors,” shows potential losses in every examined agricultural sector. The study finds potential damage of $34 million for calves and feeder cattle, $213 million for soybean, $658 million for fed cattle, $788 million for corn, $2.1 billion for hogs and over $2.5 billion for ethanol.

“While some of this damage has already been realized, the majority of the impact comes from the continued slowdown of the general economy and the pricing, processing and distribution of future commodities,” according to John Crespi, CARD’s director and an author of the study. “To estimate potential losses in agricultural revenues, we examine the price reactions of various agricultural markets during the pandemic and explore the revenue losses indicated by those price movements.”

The ethanol and hog industries are likely to be especially hard-hit.

“The ethanol industry, in fact, the entire fuel industry, was already in poor economic shape before the COVID-19 outbreak—energy supplies were high, stocks were building, usage was stagnant, and input costs had been rising before the outbreak, squeezing already tight margins,” said Chad Hart, an associate professor of economics and a study co-author. “On top of that, OPEC+ countries (mainly Saudi Arabia and Russia) quarreled about oil supply levels during the first quarter of 2020, which sent energy supplies higher and prices lower. And now, social distancing restrictions are severely limiting fuel consumption,” Hart said.

Ethanol plants are also currently facing a unique situation, in that the plant closures are not due to employee illnesses. “No ethanol plants have noted worker availability problems due to the virus—economic returns are driving the closures,” Hart said.
Other plant closures are being driven by employee shortages, Hart said. “Plants are closing for a variety of reasons, but for meat processing facilities, the virus outbreaks seem to be the main cause, as it limits the number of workers available,” Hart said.

“The COVID-19 outbreak is presenting an unprecedented situation in the way plants are handling employment changes,” Crespi said. “During this economic interruption, as opposed to the financial crisis of 2008, for example, firms are not cutting employees the same ways as before. While unemployment is very high—it has not been this high since the 1930s—some firms are treating this as a temporary change and are keeping employees on half-time or other pay rates,” he said.

It is difficult to predict when an economic recovery will come, or what exactly it will look like, Crespi said. “There is so much uncertainty right now. Many people expect jobs to come back once the pandemic subsides, but no one can predict when or how that will work. A breakthrough on a vaccine, for example, could change the outlook very quickly.”

Other co-authors of the report are Dermot J. Hayes, professor of economics, Keri L. Jacobs, associate professor of economics, and Lee L. Schulz, associate professor of economics. All authors are also affiliated with CARD.

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
John Crespi, Center for Agricultural and Rural Development; 515-294-1699; jcrespi@iastate.edu
Nathan Cook, Communications, Center for Agricultural and Rural Development; 515-294-3809; nmcook@iastate.edu

April 8, 2020
Moschini publishes in Journal of Environmental Economics and Management permalink

Professor GianCarlo Moschini published in the most recent issue of Journal of Environmental Economics and Management.

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Professor GianCarlo Moschini published in the most recent issue of Journal of Environmental Economics and Management.

Moschini co-authored "Firm internal network, environmental regulation, and plant death" with Jingbo Cui of Duke Kunshan University, China. The article examines the role of a firm’s internal network in determining plant shutdown decisions in response to environmental regulations. The article is available here.

Firm internal network, environmental regulation, and plant death
Jingo Cui and GianCarlo Moschini
Journal of Environmental Economics and Management 101 (May 2020, 102319)
doi.org/10.1016/j.jeem.2020.102319

April 8, 2020
Elobeid wins teaching award permalink

Amani Elobeid, adjunct assistant professor in economics, received the Excellence in Teaching by Lecturers and Adjunct Faculty Award. Elobeid teaches classes in macroeconomics, microeconomics, and agricultural markets. She works to incorporate new technologies and has developed a new online introductory economics class based on the latest concepts.

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Amani Elobeid, adjunct assistant professor in economics, received the Excellence in Teaching by Lecturers and Adjunct Faculty Award. Elobeid teaches classes in macroeconomics, microeconomics, and agricultural markets. She works to incorporate new technologies and has developed a new online introductory economics class based on the latest concepts.

Elobeid joined CARD in 2001 as a research assistant. She was promoted to assistant scientist in 2002, associate scientist in 2004, and scientist in 2012. She became a lecturer and academic adviser in 2014. Her research areas at CARD include food security and food aid, international trade, and biofuels markets. Her previous awards include the University Professional and Scientific Research Award and the Professional and Scientific Research Award from the College of Agriculture and Life Sciences.

April 8, 2020
Moschini named Charles F. Curtiss Distinguished Professor permalink

GianCarlo Moschini, a professor of economics and the Pioneer Endowed Chair in Science and Technology Policy, was named a Charles F. Curtiss Distinguished Professor. This distinction is given in gratitude for his contributions to the university and his nationally and internationally recognized contributions to his field of study. Moschini’s research focuses on the economics of R&D activities and the impact of new technologies, problems affecting agricultural and food sectors, the economics of biotechnology innovations in agriculture and, the analysis of intellectual property rights.

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GianCarlo Moschini, a professor of economics and the Pioneer Endowed Chair in Science and Technology Policy, was named a Charles F. Curtiss Distinguished Professor. This distinction is given in gratitude for his contributions to the university and his nationally and internationally recognized contributions to his field of study. Moschini’s research focuses on the economics of R&D activities and the impact of new technologies, problems affecting agricultural and food sectors, the economics of biotechnology innovations in agriculture and, the analysis of intellectual property rights.

GianCarlo joined Iowa State as an assistant professor in 1987 and was promoted to full professor in 1995. He was awarded his endowed chair in 2000. Moschini has won numerous awards for outstanding journal articles and published research from the Agricultural and Applied Economics Association, the Canadian Agricultural Economics Farm Management Society, and the International Association of Agricultural Economists. He was named a fellow of the Agricultural and Applied Economics Association in 2003, and received the same honor from the Western Agricultural Economics Association in 2015.

The Charles F. Curtiss distinction will be part of his university title throughout his tenure at Iowa State and also part of his emeritus title upon his retirement from the university.

Moschini will be formally recognized at the University Awards Ceremony. The details for the event will be provided once they are available.

April 3, 2020
Hart, Plastina promoted permalink

Two CARD economists, Chad Hart and Alejandro Plastina, were recently promoted by Iowa State University. Plastina was awarded tenure and promoted from assistant to associate professor, and Hart was promoted from associate to full professor. Both promotions are effective for the 2020-21 academic year.

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Two CARD economists, Chad Hart and Alejandro Plastina, were recently promoted by Iowa State University. Plastina was awarded tenure and promoted from assistant to associate professor, and Hart was promoted from associate to full professor. Both promotions are effective for the 2020-21 academic year.

Plastina is an Extension and CARD economist specializing in agricultural production and technology, with an emphasis on farm business and financial management. Prior to joining Iowa State University in 2014, he was senior economist at the International Cotton Advisory Committee in Washington, DC.

Hart is an Extension and CARD economist specializing in the interaction between the agricultural commitments within the World Trade Organization (WTO) and the agricultural policies and programs of WTO members, crop insurance, international trade, biofuel policy, federal agricultural policy, and crop marketing. He joined CARD as a postdoctoral research associate in 1999 and has been with the university since.

March 20, 2020
Schulz authors article for Wallaces Farmer permalink

Associate professor Lee Schulz authored an article for Wallaces Farmer about the number of farms and amount of land used for farming in Iowa. Schulz says that "The number of farms in Iowa for 2019 was estimated at 85,300, down 700 farms from the previous year, according to the USDA Farms and Land in Farms 2019 Summary released Feb. 20. This is the smallest number of recorded farms in the history of the Iowa data measured back to 1975."
The full article is available at here.

March 20, 2020
Plastina co-authors Wallaces Farmer article permalink

Assistant professor Alejandro Plastina and Iowa State University Extension program specialist Ann Johanns co-authored an article about custom farming rates for Wallaces Farmer. Plastina and Johanns find that "Subdued commodity prices, lower fuel prices and another year of thin profit margins in crop production on the horizon are setting the tone for overall lower expected custom rates in 2020."
The full article is available here.

March 13, 2020
Zhang, Xiong author article for The Conversation permalink

Assistant professor Wendong Zhang and visiting scholar Tao Xiong authored an article for The Conversation about the coronavirus outbreak and how it may impact the US-China trade deal. Zhang and Xiong assert that "The coronavirus has impacted China’s economic growth and will continue to do so. However, that likely won’t change the long-term trajectory of China’s growing appetite for global food. The need for economic recovery after coronavirus also means that we are unlikely to see the US-China trade war further escalate in 2020."
The full article is available here, here, and here, and a summary is available here.

March 13, 2020
Gassman, Valcu receive UMN WRC grant permalink

Associate scientist Phil Gassman and lecturer Adriana Valcu-Lisman received a $49,000 grant from the University of Minnesota Water Research Center. The funds will be used to evaluate the policy barriers related to aquifer storage and recovery. The project will run through December 30, 2020.

February 28, 2020
Crespi Named New Director for Center for Agricultural and Rural Development at Iowa State University permalink

AMES, Iowa – John Crespi has been named director of the Center for Agricultural and Rural Development at Iowa State University.

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AMES, Iowa – John Crespi has been named director of the Center for Agricultural and Rural Development at Iowa State University.

Crespi, a professor of economics, joined the faculty of Iowa State in 2015 and has served as the interim director of CARD since September 2018.

“I see this as an opportunity to be surrounded by research that I’m interested in,” he said. “CARD is a fantastic research center with some of the smartest people working in food, agricultural and environmental policy, combined with a really gifted staff. I can see why the work people do here has always had an impact on policy.”

Crespi’s past research focused on food marketing and business competitiveness. Some of his recent work at CARD examines the long-run impacts of the 2003 bovine spongiform encephalopathy outbreak in the United States and the vertical coordination of livestock markets. He is also one of the authors of “The Impact of the 2018 Trade Disruptions on the Iowa Economy,” an award-winning research paper that was the first to quantify the effects of the US-China trade war on Iowa’s economy.

Crespi said it’s difficult to guess what research challenges CARD will face in the future, but he has faith that it’s innovative, creative researchers will be up to the challenges ahead.

“CARD has a mission to conduct innovative research on local, regional, and global agricultural issues. That won’t change. Five years ago we weren’t expecting a trade war, but it happened, and CARD responded with some excellent research. Climate change is bringing challenges to agriculture; water policy will continue to need good, independent research; and knowing how farm policies translate into things like crop insurance, land values and SNAP benefits are issues that CARD has always examined, and we will continue to do that. You never know what issues you will get called about tomorrow.”

Crespi has bachelor’s degrees in English and economics from California State University, Sacramento; a master’s degree in economics from Colorado State University; and a doctorate in agricultural and resource economics from the University of California, Davis. Prior to joining Iowa State, he was a professor of agricultural economics at Kansas State University.

For over 60 years, the Center for Agricultural and Rural Development at Iowa State University has conducted innovative public policy and economic research on local, regional, and global agricultural issues, combining academic excellence with engagement and anticipatory thinking to inform and benefit society.

Contacts:
John Crespi; 515-294-1699; jcrespi@iastate.edu
Nathan Cook, Communications, 515-294-3809; nmcook@iastate.edu

February 14, 2020
Schulz: Beef cow herd may continue downward slide permalink

Assistant professor Lee Schulz authored an article for Wallaces Farmer about the outlook for beef cow herds in 2020. Schulz says "Impacts of cold, snow, floods and fires on cattle producers in 2019 made dramatic headlines. The inventory data gathered from producers suggest the total impact on herd size was relatively small. Still, individual operations suffered devastating losses. The loss of animals, fence, pasture and other resources was a significant burden on the families and operations directly involved."

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Assistant professor Lee Schulz authored an article for Wallaces Farmer about the outlook for beef cow herds in 2020. Schulz says "Impacts of cold, snow, floods and fires on cattle producers in 2019 made dramatic headlines. The inventory data gathered from producers suggest the total impact on herd size was relatively small. Still, individual operations suffered devastating losses. The loss of animals, fence, pasture and other resources was a significant burden on the families and operations directly involved."

The full story is available at http://bit.ly/2u4eqs8.

February 7, 2020
Royer announced as research scholarship recipient permalink

Iowa State undergraduate student Connor Royer has been selected as the recipient of a CARD Undergraduate Research Scholarship. Royer's research will examine Iowa's loss of farmers, consolidation of farms, and increasing average age of agricultural producers. The goal of the study is to provide a comparison of the attitudes and motives behind farm succession, focusing on intangible assets rather than physical assets.

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Iowa State undergraduate student Connor Royer has been selected as the recipient of a CARD Undergraduate Research Scholarship. Royer's research will examine Iowa's loss of farmers, consolidation of farms, and increasing average age of agricultural producers. The goal of the study is to provide a comparison of the attitudes and motives behind farm succession, focusing on intangible assets rather than physical assets.

Royer is a senior in Agricultural Business collaborating with CARD economist Wendong Zhang. As part of the scholarship, Royer will receive a $500 honoraria and have her research highlighted as a CARD policy brief.

January 22, 2020
"Major NSF-sponsored grant will help researchers discover ways to improve urban sustainability" permalink

AMES, Iowa – Dense urban areas use up more energy, water and food resources than they can produce themselves, forcing them to rely on external sources. But a team of researchers is imagining bold new ways to make Midwestern cities more self-reliant.

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AMES, Iowa – Dense urban areas use up more energy, water and food resources than they can produce themselves, forcing them to rely on external sources. But a team of researchers is imagining bold new ways to make Midwestern cities more self-reliant.

The Sustainable Cities Research Team recently received a $2.5 million grant from the National Science Foundation to develop a framework for analysis of food, energy and water systems for greater Des Moines, which includes the city and the surrounding six-county area, and to formulate scenarios that could result in a more sustainable city. The team includes scientists from a wide range of disciplines at Iowa State University, the University of Northern Iowa and University of Texas at Arlington.

The group intends for its results to inform decisions about food production, energy use, environmental outcomes and related policies that would apply to a large number of cities in rain-fed climates similar to Des Moines. Their innovative approach could help cities conserve building and transportation energy, reduce environmental impacts and improve city sustainability.

“Urban areas use a disproportionate amount of resources that have to come from far away, and they also tend to produce a disproportionate amount of waste,” said Jan Thompson, Morrill Professor of natural resource ecology and management and principal investigator for the grant. “Our team is going to look at ways we can make food, energy and water systems more sustainable.”

‘Holistic’ approach to urban sustainability

The project will compile and analyze large quantities of data on current and future climate conditions, food production, energy use and associated environmental impacts in Des Moines and the surrounding area. An effort led by Nick Schwab, an associate professor of psychology at Northern Iowa, will conduct focus groups and surveys to gather input from a wide range of additional stakeholders, including consumers, farmers and business owners who produce, distribute and sell food in the area. The team is also working with a group of community leaders and members of local organizations who will serve as an advisory board to the investigators.

Team member Baskar Ganapathysubramanian, professor of mechanical engineering at Iowa State, will lead efforts to run complex computer simulations for scenarios in which more food is produced locally in order to forecast environmental, nutritional and economic impacts for each scenario. The project will take a “holistic” approach to urban sustainability that will “account for a range of systems and how they interact with one another,” said Ulrike Passe, an associate professor of architecture and project coordinator for the research team.

“A city has complex problems with many factors and sources, so we need complex models to provide some clarity,” Passe said. “These systems are all connected.”

Given current and future urban climate conditions/scenarios researchers will analyze the potential for increased urban agriculture, community gardens and other green space within city limits. Passe said such approaches can contribute to urban food security as well as improve energy efficiency in urban buildings. Strategically placed plants near buildings can provide shade and help dissipate heat, thus reducing energy use for cooling and at the same time diminishing the severity of flooding in the area.

“What if we could turn vacant lots into gardens and orchards?” Passe asked.

The research team will identify opportunities and challenges related to making Des Moines, and similarly sized cities in rain-fed Midwestern landscapes, more sustainable. For instance, asking farmers what they would need to consider for producing locally sourced fruits, vegetables and meat will likely uncover potential concerns about equipment purchases and profitable marketing opportunities, said Matt Liebman, Henry A. Wallace Endowed Chair for Sustainable Agriculture and professor of agronomy. All those considerations will factor into the team’s work, Liebman said.

Sustainable Cities Research Team Members
Michael Dorneich, ISU associate professor of industrial and manufacturing systems engineering
Baskar Ganapathysubramanian, ISU professor of mechanical engineering
Philip Gassman, associate scientist at ISU Center for Agricultural and Rural Development
Caroline Krejci, assistant professor of industrial engineering, University of Texas at Arlington
Matt Liebman, ISU professor of agronomy
Mary Losch, professor of psychology, University of Northern Iowa
Ajay Nair, ISU associate professor of horticulture
Ulrike Passe, ISU associate professor of architecture
Kurt Rosentrater, ISU associate professor of agricultural and biosystems engineering
Nick Schwab, associate professor of psychology, University of Northern Iowa
Jan Thompson, ISU professor of natural resource ecology and management
Yuyu Zhou, ISU associate professor of geological and atmospheric sciences

Contacts:
Jan Thompson, Natural Resource Ecology and Management, 515-294-0024; jrrt@iastate.edu
Ulrike Passe, Architecture, 515-294-7142; upasse@iastate.edu
Matt Liebman, Agronomy, 515-294-7486; mliebman@iastate.edu
Fred Love, News Service, 515-294-0704; fredlove@iastate.edu

January 17, 2020
Hart: "Looking for a rebound in international demand" permalink

Chad Hart authored an article for Ag Update about the outlook for farmers in 2020. Hart says crop demand is one of the biggest demands facing farmers in 2020. The full article is available at http://bit.ly/2G0l4BY.

January 13, 2020
Iowa State Survey Shows Farm Owners Make Small Increases in Conservation permalink

A survey of Iowa landowners conducted by Iowa State University suggests that adoption of conservation practices has increased slightly since 2012, and that ongoing trends in land ownership and management are likely barriers to a number of conservation practices.

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A survey of Iowa landowners conducted by Iowa State University suggests that adoption of conservation practices has increased slightly since 2012, and that ongoing trends in land ownership and management are likely barriers to a number of conservation practices.

However, some of these same barriers may contribute to increased use of no-till management on cropland, researchers found.

The The Iowa Farmland Ownership and Tenure Survey has been conducted by Iowa State for more than 70 years. The current survey uses a statistically representative sample of Iowa farm landowners that provides a long-term perspective on many aspects of Iowa land ownership, land tenure and characteristics of landowners, including age, gender and education. It included questions about conservation practices and use of services from cooperatives. Funders included the Iowa Nutrient Research Center, the Leopold Center for Sustainable Agriculture and the CoBank Fund for Excellence in Cooperative Economics.

“We focused on conservation practices credited in the Iowa Nutrient Reduction Strategy as having good potential to reduce nutrient loss, and that are also more popular and familiar to landowners: no-till, cover crops, buffer strips and ponds or sediment basins,” said Wendong Zhang, assistant professor of economics, a co-author of the study, along with Alejandro Plastina, assistant professor in economics, and Wendiam Sawadgo, economics graduate student.

“We know that land tenure affects conservation adoption,” said Zhang, “but not always as expected. For example, 82 percent of farmland was owned debt-free in 2017 — up from 78 percent in 2012 and 62 percent in 1982. But this did not seem to translate to more conservation.”

Gender did not appear to be a factor in conservation program participation or adoption.

“There is a perception that women are more likely to support conservation,” said Plastina, “but we found men had somewhat more land in government conservation programs.”

Iowa farmland owners continue to grow older, said Zhang. Sixty percent of farmland is owned by people 65 years or older and 35 percent is owned by people 75 or older.

“Aging landowners are related to the increasing amount of land in larger tracts, shorter-term leases or cash rental arrangements, and land operated by farm management companies for out-of-state landowners, all of which tend to be associated with lower investment in conservation,” said Zhang.

“On the other hand,” he said, “older farmers participate more heavily in government conservation programs, including the Conservation Reserve Program.” The survey found that landowners 65 years old or older account for two-thirds of the acres in conservation programs.

Based on the survey, cover crops are being grown on approximately 4 percent of Iowa farmland. As with all conservation practices, adoption varied widely across the state, ranging from about 1 percent in the northwest crop reporting district to 12 percent in the southwest. The overall rate represents an increase from 2012 levels, based on estimates in the 2017 USDA National Ag Census. Survey respondents indicated their primary reasons for not growing cover crops were that it was the tenant’s decision, cover crops are too costly to terminate, they require too much labor and time, or the season is too short.

“It is encouraging that landowners indicated strong to moderate interest in increasing cover crop use over the next five years on nearly 60 percent of Iowa cropland,” said Zhang. “Also, about 20 percent expressed willingness to pay a portion of the costs to encourage tenants to plant cover crops.”

Survey respondents indicated that no-till management is used on 31 percent of Iowa cropland acres, up from USDA estimates of 27 percent in 2012.

“We find evidence that the conventional wisdom that adoption is lower on rented land only applies to the use of cover crops, buffer strips, and sediment basins, but not no-till,” said Zhang. “We found that cover crops are used on 4.8 percent of farmland operated by the landowner, but only 3.6 percent of rented-out farmland. In contrast, our results show the adoption rate of no-till is higher on leased-out land than on owner-operated land.”

No-till is also more popular with younger farmers. The survey found almost 70 percent of farmers 35 and younger used no-till, compared with 26 percent of farmers aged 65 to 80.

Researchers found that conservation buffers and ponds or sediment basins for erosion management are used on only about 3 percent and 2 percent of Iowa farm acreage, respectively, and few farmers had land in other types of conservation arrangements, such as easements or private conservation programs. Participation in the long-term Conservation Reserve Program increased to 7 percent from 6 percent in 2012 -- levels that do not directly indicate landowner interest, since federal policy limits acreage that can be enrolled.

“Overall, our survey suggests there is a need to find new incentives that can more effectively encourage Iowa landowners to increase stewardship-oriented practices,” said Plastina.

Researchers asked several questions to gain insights into policy options that could entice Iowa landowners to adopt conservation measures. Tax credits or deductions for implementing conservation practices were of greatest interest — 24 percent of landowners said this would make them very likely to enroll more land in conservation programs. About 11 percent would be more interested if land was excluded from property value for estate tax purposes. Others said they would consider it if tax-free cost-share assistance was available.

In other research supported by the Iowa Nutrient Research Center, Zhang and Plastina are studying the potential for other incentives that might encourage conservation, such as reverse auctions and monetizing improvements in soil health.

“We also need to continue researching ways to refine conservation practices to make them more compatible with farming operations and increase farmers’ perceptions that they can be successful and cost-effective,” said Plastina.

Since 1989, the Iowa Farmland Ownership and Tenure Survey has been conducted every five years, as mandated by the Iowa Code. The latest survey, by the ISU Center for Survey Statistics and Methodology in cooperation with the Center for Agricultural and Rural Development, was conducted via telephone interviews that took place between October 2017 and February 2018. The response rate was 68 percent.

In contrast to a number of studies that focus only on producers, this research provides a statistically representative examination of conservation practice adoption by both operator and non-operator landowners. Detailed analysis of the survey’s findings on conservation practices were shared with the Federal Reserve Bank of Chicago in late November and will be highlighted in an upcoming article in the “Journal of Soil and Water Conservation.”

The Center for Agricultural and Rural Development is a center within the College of Agriculture and Life Sciences at Iowa State University. For 60 years, it has conducted innovative public policy and economic research on local, regional and global agricultural issues. Its key focus areas are biorenewables, resources and the environment, food and nutrition, agricultural risk management, science and technology, and trade and agriculture.

The Iowa Nutrient Research Center was established by the Iowa Board of Regents in response to legislation passed by the Iowa Legislature in 2013. The center pursues science-based approaches to areas that include evaluating the performance of current and emerging nutrient management practices and providing recommendations on implementing the practices and developing new practices. Iowa State University leads the partnership that includes the University of Iowa and the University of Northern Iowa. Since its inception, the center has supported more than 92 projects.

Contacts:
Wendong Zhang; wdzhang@iastate.edu
Alejandro Plastina; plastina@iastate.edu
Ann Y. Robinson; ayr@iastate.edu

January 9, 2020
Schulz authors Wallaces Farmer article about pork expansion permalink

Lee Schulz authored an article about current expansion in the hog industry. Schulz says that several elements, including corn supplies, robust margins, and minimal pressure from disease are leading to expansion in the industry. The article is available at http://bit.ly/37VNkle.

January 9, 2020
Plastina authors article for Ag Update permalink

Alejandro Plastina authored an article for Ag Update about the Iowa Nutrient Reduction Strategy and how it could be made more effective. Plastina ultimately concludes that economic incentives are a missing key element to inducing more farmers to join voluntary conservation programs. The article is available at http://bit.ly/307HGtD.

December 11, 2019
Iowa Farmland Value Grows 2.3% in 2019, but Barely Exceeds Inflation permalink

Iowa’s farmland now valued at $7,432 per acre, an increase of $168 from 2018

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Iowa’s farmland now valued at $7,432 per acre, an increase of $168 from 2018

Ames, Iowa—It’s been a difficult year for farmers—the planting season saw an overabundance of rain and delayed planting, the United States’ trade war with China persisted, skewing both commodity prices and demand, and farm bankruptcies rose to the highest level since 2011. However, favorable interest rates, strong yields, and limited land supply combined to help drive Iowa’s farmland values up for only the second time in six years.

The statewide value of an acre of farmland is now estimated to be $7,432, which represents an increase of 2.3 percent, or $168, since 2018. The $7,432 per acre estimate, and 2.3 percent increase in value, represents a statewide average of low-, medium-, and high-quality farmland.

“The reprieve in the land market, unfortunately, is not driven by a much stronger farm economy,” said Dr. Wendong Zhang. Zhang is an assistant professor of economics at Iowa State University and is responsible for leading the annual Iowa Land Value Survey. “This recent modest increase in land values reflects a lower interest rate environment and slowly improving US farm income. However, we are still faced with significant uncertainty, especially the ongoing US-China trade war, which has significantly affected US agricultural exports, especially soybean exports, and lead to lower commodity prices and weaker farm income,” Zhang said. Stronger than expected crop yields in Iowa, and continuing limited land supply helped contribute to the increase in land values, despite low commodity prices.

While the growth in land values is a positive, Zhang warned that it should not be labeled as a “solid rebound” of the land market. “The Market Facilitation Program payments helped soften the blow and stabilize farm income and the land market; however, a no-deal or further escalation of the US-China trade war on December 15 will further amplify trade uncertainties and put downward pressure on farm income and land values,” Zhang said. “The future of farmland market still hinges on the pace and speed of Federal Reserve moves on interest rates, progress in the trade talks, and the availability of land parcels.”

The United States also saw 580 farm bankruptcies in 2019, the highest number since 2011. However, Zhang said that the overall share of bankrupt farms is still low, “but there are more farms under financial stress due to continued low commodity prices.”

Zhang said the growth in Iowa’s land values was noticeably higher this year in the central crop reporting districts (district hereafter). “The Central districts saw larger increases than other districts due in part to stronger-than-expected crop yields over the past few years and strong urban demand.” He also noted that “strong recreational demand” has helped lift the value of low-quality land.

Land Values by County

Eighty-two of Iowa’s 99 counties reported higher land values, the remaining 17 all saw a decline. For the seventh consecutive year, Scott and Decatur counties reported the highest and lowest values, respectively. Decatur County reported a value of $3,586 per acre, a gain of $97, or 2.8 percent. Scott County reported a value of $10,837 per acre, a gain of $300, or 2.8 percent.

Both Boone and Story Counties reported the largest percent increase at 5.4 percent. Story County also saw the largest dollar increase by county at $455 per acre. Clayton and Allamakee Counties reported the largest percent decrease—both showed a 2.2 percent loss since 2018. Clayton County reported the largest dollar decrease in values at $151 per acre.

Land Values by District

The Northwest district reported the highest overall land values at $9,352 per acre, and the South Central district reported the lowest overall land values at $4,487 per acre.
Land values across districts saw an increase in general, with only the Northeast district reporting a decline in land values (a loss of 2.9 percent). The losses in the Northeast district are due mainly to financial stress in the dairy sector.

The largest percentage increases were in the East Central and Central districts at 5.9 percent and 5.5 percent, respectively. However, the South Central and Southeast districts also reported substantial increases at 3.6 percent and 3.8 percent, respectively.

Land Value by Quality

Low-quality land statewide now averages $4,759 per acre, a 3.3 percent, or $150 per acre, increase; medium-quality land now averages $6,938 per acre, an increase of 2.0 percent, or $133 per acre; and, high-quality land now averages $9,078 per acre, an increase of 2.4 percent or $215 per acre.
Low-quality land in the Central, East Central, and West Central districts all saw increases of 5.0 percent or more, but low-quality land in the Northeast district was a 5.0 percent decline.

All qualities of land in the Northeast district reported a loss, while low-quality land there saw a greater loss than did higher quality lands. High-quality land in the Northwest district is the only other high-quality land that saw a decline in value.

Factors Influencing Land Values

Favorable interest rates, strong yields, and limited land supply were the most frequently noted positive factors influencing land values. The most commonly cited negative factors influencing land values were lower commodity prices, the weather, and tariffs on agricultural commodities.

Land values were determined by the 2019 Iowa State University Land Value Survey, conducted in November by the Center for Agricultural and Rural Development (CARD) at Iowa State University and Iowa State University Extension and Outreach. Results from the survey are consistent with results by the Federal Reserve Bank of Chicago, the Realtors Land Institute, and the US Department of Agriculture.

The ISU land value survey was initiated in 1941, the first in the nation, and is sponsored annually by Iowa State University. The survey is typically conducted every November and the results are released mid-December. Only the state average and the district averages are based directly on the ISU survey data. The county estimates are derived using a procedure that combines the ISU survey results with data from the US Census of Agriculture.

The ISU Land Value Survey is based on reports by agricultural professionals knowledgeable of land market conditions such as appraisers, farm managers, agricultural lenders, and actual land sales. It is intended to provide information on general land value trends, geographical land price relationships, and factors influencing the Iowa land market. The 2019 survey is based on 679 usable responses from 553 agricultural professionals. Fifty-nine percent of the 553 respondents answered the survey online.
CARD offers a web portal at that includes visualization tools, such as charts and interactive county maps, allowing users to examine land value trends over time at the county, district, and state level.

Contacts:
Wendong Zhang; wdzhang@iastate.edu
Nathan Cook; nmcook@iastate.edu

November 19, 2019
ISU Land Value Survey News Conference to be held December 11 permalink

AMES--A news conference will be held at 10:00 a.m. on Wednesday, December 11 to announce the results of the 2019 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. This year’s conference will take place in the Horton Room of the ISU Alumni Center, located on the ISU campus in Ames.

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AMES--A news conference will be held at 10:00 a.m. on Wednesday, December 11 to announce the results of the 2019 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. This year’s conference will take place in the Horton Room of the ISU Alumni Center, located on the ISU campus in Ames.

For those who can’t attend the conference, a livestream will be available on YouTube at http://bit.ly/LandResults2019.

Wendong Zhang, an assistant professor of economics and farm management specialist, will head the news conference and announce the 2019 findings. Printed materials will be provided at the conference, including Iowa land value data from 1950 to present, current land value data from all 99 counties, and a press release summarizing the 2019 results. Dr. Zhang will make himself available to reporters for follow-up questions or one-on-one interviews immediately following the presentation of results.

The ISU Land Value Survey is currently ongoing, if you are an agricultural professional knowledgeable about the farmland market who hasn’t participated in this year’s survey, you can participate in the ISU Land Value Survey online by December 1 at http://bit.ly/landvalue2019. If you have questions regarding the survey please contact Dr. Wendong Zhang at wdzhang@iastate.edu or call 515-294-2536. You can also see the land value trends at the county, district, and state level since 1950 at the interactive Iowa Farmland Value Portal at https://www.card.iastate.edu/farmland/.

An archive of the video and the printed materials available at the conference will be posted on the CARD homepage at https://www.card.iastate.edu soon after the conference.

Contacts:
Wendong Zhang; wdzhang@iastate.edu

November 4, 2019
Zhang publishes in The Conversation permalink

Assistant professor of economics Wendong Zhang recently published an article in The Conversation. Zhang's article examines why recent polls show farmers supporting President Trump while facing economic hardships due to the US-China trade war. The article is available here.

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Assistant professor of economics Wendong Zhang recently published an article in The Conversation. Zhang's article examines why recent polls show farmers supporting President Trump while facing economic hardships due to the US-China trade war. The article is available here.

3 reasons Midwest farmers hurt by the U.S.-China trade war still support Trump
Wendong Zhang, Lulu Rodriguez, and Shuyang Qu
The Conversation

October 30, 2019
Moschini publishes in RAND Journal of Economics permalink

Professor GianCarlo Moschini published in the most recent issue of RAND Journal of Economics.

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Professor GianCarlo Moschini published in the most recent issue of RAND Journal of Economics.

Moschini co-authored "Valuing product innovation: genetically engineered varieties in US corn and soybeans" with Federico Ciliberto of the University of Virginia and Edward D. Perry of Kansas State University. Their article uses a discrete-choice model of differentiated products for US corn and soybean seed demand to study the welfare impact of genetically engineered crop varieties. The article is available online here.

"Valuing product innovation: genetically engineered varieties in US corn and soybeans"
Federico Ciliberto, GianCarlo Moschini, and Edward D. Perry
RAND Journal of Economics, 50(3)(Fall) 615-644.
https://doi.org/10.1111/1756-2171.12290

October 16, 2019
Arbuckle publishes in Journal of Soil and Water Conservation permalink

Professor of Sociology J. Arbuckle was published in the September/October issue of Journal of Soil and Water Conservation. Arbuckle's article "Adoption of agricultural conservation practices in the United States: Evidence from 35 years of quantitative literature" provides a comprehensive review of all published quantitative studies on the adoption of agricultural conservation practices in the United States from 1982 to 2017. The article is available online here.

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Professor of Sociology J. Arbuckle was published in the September/October issue of Journal of Soil and Water Conservation. Arbuckle's article "Adoption of agricultural conservation practices in the United States: Evidence from 35 years of quantitative literature" provides a comprehensive review of all published quantitative studies on the adoption of agricultural conservation practices in the United States from 1982 to 2017. The article is available online here.

Adoption of agricultural conservation practices in the United States: Evidence from 35 years of quantitative literature
Journal of Soil and Water Conservation 74(5): 520-534
doi: 10.2489/jswc.74.5.520

doi: 10.2489/jswc.74.5.520

October 9, 2019
Zhang project receives $2M grant permalink

Wendong Zhang, assistant professor, is a co-PI on a project that has received a $2 million USDA NIFA Organic Agriculture Research and Extension Initiative (OREI) grant. The project, "Resilient Systems for Sustainable Management of Cucurbit Crops," focuses on organic cucurbit crop production in Iowa, Kentucky, and New York.

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Wendong Zhang, assistant professor, is a co-PI on a project that has received a $2 million USDA NIFA Organic Agriculture Research and Extension Initiative (OREI) grant. The project, "Resilient Systems for Sustainable Management of Cucurbit Crops," focuses on organic cucurbit crop production in Iowa, Kentucky, and New York.

The project's goal is to validate two innovative strategies to enable organic cucurbit-crop growers to suppress insect pests, diseases, and weeds while achieving consistently high marketable yields.

August 27, 2019
Kling: Polluting Farmers Should Pay permalink

Dr. Catherine Kling, CARD Faculty Fellow and former CARD Director, penned an opinion piece for the New York Times in which she argues that state governments should have the authority to use regulations to ensure that farmers reduce nutrient pollution. Kling notes that nitrogen and phosphorous pollution are responsible for creating harmful algal blooms in all 50 US states. Her opinion piece can be read here.

August 16, 2019
Balistreri publishes in Environmental and Resource Economics and Economic Modelling permalink

Associate professor Ed Balistreri published in the most recent issues of Environmental and Resource Economics and Economic Modelling.

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Associate professor Ed Balistreri published in the most recent issues of Environmental and Resource Economics and Economic Modelling.

Balistreri co-authored "Optimal Environmental Border Adjustments Under the General Agreement on Tariffs and Trade" with Daniel T. Kaffine of the University of Boulder and Hidemichi Yonezawa of Statistics Norway. Their article examines taxing carbon emissions embodied in imports. The article is available online here.

Balistreri co-authored "Comparison of deep integration in the Melitz, Krugman and Armington models: The case of The Philippines in RCEP" with independent consultant David G. Tarr. Their article estimates the welfare effects of the Regional Comprehensive Economic Partnership with three versions of market structure. The article is available online here.

"Optimal Environmental Border Adjustments Under the General Agreement on Tariffs and Trade"
Edward J. Balistreri, Daniel T. Kaffine, and Hidemichi Yonezawa
Resource and Environmental Economics, August 2019.
https://doi.org/10.1007/s10640-019-00359-2

"Comparison of deep integration in the Melitz, Krugman and Armington models: The case of The Philippines in RCEP"
Edward J. Balistreri and David G. Tarr
Economic Modelling, June 2019.
https://doi.org/10.1016/j.econmod.2019.05.023

July 30, 2019
Jacobs, Hayes, Li win AAEA Best Applied Risk Analysis Paper award permalink

CARD faculty Keri Jacobs and Dermot Hayes, and ISU Department of Economics alum Ziran Li, won the Agricultural and Applied Economics Association's Best Paper Award in Applied Risk Analysis for their paper, "Reference-Dependent Hedging: Theory and Evidence from Iowa Corn Producers." Their paper is available online at https://doi.org/10.1093/ajae/aay035.

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CARD faculty Keri Jacobs and Dermot Hayes, and ISU Department of Economics alum Ziran Li, won the Agricultural and Applied Economics Association's Best Paper Award in Applied Risk Analysis for their paper, "Reference-Dependent Hedging: Theory and Evidence from Iowa Corn Producers." Their paper is available online at https://doi.org/10.1093/ajae/aay035.

Jacobs, K., Z. Li, and D. Hayes. 2018. "Reference-Dependent Hedging: Theory and Evidence from Iowa Corn Producers." American Journal of Agricultural Economics 100(5): 1450-68. https://doi.org/10.1093/ajae/aay035

July 3, 2019
CARD researchers create new corn yield prediction tool permalink

Ames, IA—Researchers at the Center for Agricultural and Rural Development at Iowa State University have created a new online tool to help Corn Belt farmers predict corn crop yields, harvested acreage, and total production. The PSI-CARD Corn Yield Prediction Project provides county-level predictions for South Dakota, Nebraska, Kansas, Minnesota, Iowa, Missouri, Illinois, Michigan, Indiana, and Ohio.

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Ames, IA—Researchers at the Center for Agricultural and Rural Development at Iowa State University have created a new online tool to help Corn Belt farmers predict corn crop yields, harvested acreage, and total production. The PSI-CARD Corn Yield Prediction Project provides county-level predictions for South Dakota, Nebraska, Kansas, Minnesota, Iowa, Missouri, Illinois, Michigan, Indiana, and Ohio.

The daily corn yield predictions are calculated using a deep machine learning method, known as Long Short-Term Memory, which provides a high level of accuracy to predicted corn yields. The model provides predictions that are only .83 bushels per acre lower than actual yields, making it more accurate than the corresponding USDA predictions. Overall, about 80% of the county-level predictions fall within 20 bushels per acre of actual yields. “In four years of out-of-sample testing, the model proved capable of giving accurate yield predictions at the Corn Belt level,” said Dermot Hayes, a professor of economics and one of the lead researchers on the project. “These yield predictions should prove valuable to anyone with a financial stake in national yields, including farmers and anyone trading corn futures,” Hayes said.

The project also includes a harvested acreage map, which uses USDA information to predict the difference in harvested acreage between the previous and current harvest years, and a total production map, which estimates the current year’s total corn production at the county level.

The PSI-CARD Corn Yield Prediction Project is free to use and available online at http://bit.ly/CARDCornYield.

The PSI-CARD Corn Yield Prediction Project was created in cooperation with the Plant Sciences Institute at Iowa State University (https://www.psi.iastate.edu/).

About the Center for Agricultural and Rural Development
For 60 years, the Center for Agricultural and Rural Development (CARD) at Iowa State University has conducted innovative public policy and economic research on agricultural, environmental and food issues. CARD combines academic excellence with engagement and anticipatory thinking to inform and benefit society. Center researchers develop and apply economic theory, quantitative methods and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers, the research community, agricultural, food and environmental groups, individual decision-makers and international audiences.

Contacts:
Dermot Hayes, Center for Agricultural and Rural Development; dhayes@iastate.edu
Yongjie Ji, Center for Agricultural and Rural Development; yongjiej@iastate.edu
Nathan Cook, Communications, Center for Agricultural and Rural Development; nmcook@iastate.edu

July 3, 2019
Lence, Moschini paper named best article permalink

A paper coauthored by Sergio Lence, professor, and GianCarlo Moschini, professor, "Threshold cointegration and spatial price transmission when expectations matter," has been selected the 2018 Best Article in Agricultural Economics. The paper is coauthored by Fabio Gaetano Santeramo, assistant professor at the University of Foggia, Italy.

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A paper coauthored by Sergio Lence, professor, and GianCarlo Moschini, professor, "Threshold cointegration and spatial price transmission when expectations matter," has been selected the 2018 Best Article in Agricultural Economics. The paper is coauthored by Fabio Gaetano Santeramo, assistant professor at the University of Foggia, Italy.

Agricultural Economics is the journal of the International Association of Agricultural Economists (IAAE), which presents the Best Article Award annually.

June 25, 2019
US may want to take "balanced approach" to neonicotinoids permalink

Ames, IA – New research from GianCarlo Moschini at the Center for Agricultural and Rural Development at Iowa State University and Ed Perry at Kansas State University shows that a neonicotinoid ban in the United States may not be a risk free solution to the problem of declining bee populations. In fact, they find that a total agricultural ban in US maize, similar to one introduced in the European Union in 2013, could have unintended consequences.

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Ames, IA – New research from GianCarlo Moschini at the Center for Agricultural and Rural Development at Iowa State University and Ed Perry at Kansas State University shows that a neonicotinoid ban in the United States may not be a risk free solution to the problem of declining bee populations. In fact, they find that a total agricultural ban in US maize, similar to one introduced in the European Union in 2013, could have unintended consequences.

Neonicotinoids, which were first commercially introduced in the early-1990s and gained popularity as an insecticide throughout the 1990s and 2000s, are now the most popular insecticide in the world. Moschini and Perry found that from 1998 to 2014, adoption of neonicotinoids helped drive a significant reduction in traditional insecticide use. “We show that the major observed reduction in traditional insecticide use was driven in large part by the adoption of two new methods for insect control—genetically engineered (GE) insect-resistant traits and neonicotinoid seed treatments,” Moschini said. “What’s more, our results suggest that neonicotinoid seed treatments actually reduced insecticide use by more than GE traits. Specifically, we found that neonicotinoid seed treatments reduced the use of pyrethroids by 52% and organophosphates by 47%.”

Neonicotinoid use has not been without recent controversy, however, as some lab studies have linked neonicotinoids to the decline of bee populations. Similar studies were a driving factor behind the EU’s 2013 decision to ban neonicotinoids. However, that ban has been shown to have some unintended consequences, just as Moschini says could happen in the United States.

“The results of the ban are still playing out, but some recent research has found that, in response to the ban, EU farmers switched to using other types of insecticides such as pyrethroids. Pyrethroids are also highly toxic to bees,” Moschini said. “Whether the ban has been effective in addressing declining bee populations is also still being assessed—some have noted that bee health did not improve following the implementation of the 2013 restrictions.”

Moschini and Perry’s research shows that, were the United States to ban neonicotinoids, a two-step process is likely to play out. First, some farmers would substitute organophosphates and pyrethroids, as some EU farmers did, in place of neonicotinoids. Second, the switch to neonicotinoid alternatives could result in greater toxicity risk for other groups such as fish, mammals, and humans. Neonicotinoids are much less toxic to mammals and humans than organophosphates and have been classified as a reduced-risk alternative by the Environmental Protection Agency since 2001.

Instead of an outright ban that could lead to increased usage of other insecticides, Moschini said the United States should consider a more balanced approach. This approach would not only aim to address bee population declines, but also neonicotinoid insect resistance. “What would a balanced approach look like? One possibility would be to be to use something like refuges, as with GE insect resistant crops. Another possibility is to require farms to not use neonicotinoid seed treatments once every X years,” he said. “Regulators may also want to consider where bee issues are more problematic—thus, restrictions would be location specific.”

Moschini and Perry’s research is based on roughly 89,000 farm-level surveys on pesticide use for US maize farmers from 1998 to 2014—the same underlying pesticide use data the US Geological Survey uses in The Pesticide National Synthesis Project.

Moschini said one caveat for their work is that it only focuses on maize farmers. “While this is the crop with the most neonicotinoid use, there are other crops, such as soybeans, where neonics are frequently used as well. Our results may not apply to these crops, as their insect control options may differ in important ways from those in maize,” he said.
Moschini and Perry’s paper is available at http://bit.ly/CARD19wp590.

The Center for Agricultural and Rural Development, established in 1950, conducts innovative public policy and economic research on agricultural, environmental and food issues. CARD combines academic excellence with engagement and anticipatory thinking to inform and benefit society. Center researchers develop and apply economic theory, quantitative methods and interdisciplinary approaches to create relevant knowledge.

Contacts:
GianCarlo Moschini, Center for Agricultural and Rural Development; moschini@iastate.edu
Ed Perry, Kansas State University; edperry@ksu.edu
Nathan Cook, Communications, Center for Agricultural and Rural Development; nmcook@iastate.edu

June 13, 2019
New economic study shows combination of SNAP and WIC improves food security permalink

AMES, Iowa – Forty million Americans, including 6.5 million children, are food insecure, according to the U.S. Department of Agriculture, which means they do not have enough food for an active, healthy life.

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AMES, Iowa – Forty million Americans, including 6.5 million children, are food insecure, according to the U.S. Department of Agriculture, which means they do not have enough food for an active, healthy life.

Many rely on the Supplemental Nutrition Assistance Program (SNAP) – the largest food assistance program for low-income families – to help make ends meet. Still, 51.2 percent of households receiving SNAP benefits, commonly known as food stamps, were food insecure in 2016.

Given the extent of food insecurity, a team of Iowa State University economists developed a methodology to analyze potential redundancies between SNAP and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC), the third-largest food assistance program in the U.S. Their research, published in the Southern Economic Journal, provides evidence that the programs are in fact complementary, not redundant. They found that participating in both SNAP and WIC compared to SNAP alone increases food security by at least 2 percentage points and potentially as much as 24 percentage points.

“Our findings can help policymakers design more efficient programs to meet food needs,” said Helen Jensen, ISU professor emeritus of economics. “We know low-income families often participate in more than one food assistance program, and we find the combination of SNAP and WIC helps reduce food insecurity for participating households.”

Challenges of measuring program effects
The programs are similar, but serve different needs. WIC covers specific foods to meet the nutritional needs of pregnant women and new mothers as well as infants and young children. Participants also receive nutrition counseling and referrals for health services, such as prenatal programs. In comparison, eligible households can use SNAP benefits to buy most food items. All households included in the study were potentially eligible for both programs, but they chose whether or not to participate.

This “self-selection” is one reason it is difficult for researchers to ascertain whether a program causes a change in food insecurity. WIC and SNAP benefits are not randomly assigned, so any differences in food security outcomes between participants and nonparticipants could be due to actual causal impacts of the programs or unobserved differences between households that apply for benefits and those that do not.

If households at greatest risk of becoming food insecure are most likely to apply – for example, in the case of a job loss – it might falsely appear the programs are ineffective in alleviating food insecurity, the researchers said. In fact, while participants may be less food secure than eligible nonparticipants, participants may still be more food secure than they would have been in a world without the programs.

Another challenge for researchers is that households are known to systematically underreport benefits, often because they don’t want to admit they are receiving government assistance.

“For these reasons, traditional econometric methods lead to misleading estimates,” said Oleksandr Zhylyevskyy, associate professor of economics. “With that in mind, we developed a methodology that allows us to more accurately measure the true effects of WIC and SNAP.”

The researchers applied their methodology to data from the USDA’s National Household Food Acquisition and Purchase Survey or FoodAPS, which provides self-reported household participation in SNAP and WIC and validated data for SNAP participation. The study included 460 households that were income-eligible for both programs. They were surveyed for one week.

On average, these households were families of four with two children, one under the age of 6. The average monthly income was about $1,600. More than 75 percent rented a home or apartment, 26 percent did not own or lease a vehicle and 11 percent had used a food pantry within the past 30 days.

FoodAPS matched survey responses about SNAP participation with official administrative records to identify response errors, but no similar verification was available for WIC. The ISU researchers say the new methodology was specifically designed to handle this type of scenario in which researchers can corroborate answers for some survey questions, but not others.

“Our goal was to strike a balance between making assumptions that are weak enough to be credible, but strong enough to be informative,” said Brent Kreider, professor of economics. “Policymakers may ask whether these programs actually work or merely increase government spending without reducing food insecurity. We find WIC helps even when SNAP is already in place.”

The study was funded by the National Bureau of Economic Research. You can find the paper here.

Contacts:
Helen Jensen, Economics; hhjensen@iastate.edu
Brent Kreider, Economics; bkreider@iastate.edu
Oleksandr Zhylyevskyy, Economics; oz9a@iastate.edu
Angie Hunt, News Service; amhunt@iastate.edu

June 13, 2019
Plastina publishes in Agricultural Systems permalink

Assistant professor Alejandro Plastina published in the most recent edition of Agricultural Systems. Plastina co-authored with Guillermo Marcillo and Fernando Miguez, both also of Iowa State University, Sarah Carlson and Meghan Fillbert of Practical Farmers of Iowa, and Thomas Kaspar of the National Laboratory for Agriculture and the Environment. Their article "Maize system impacts of cover crop management decisions: A simulation analysis of rye biomass response to planting populations in Iowa, U.S.A." examines the benefits of a maize-rye system under different rye planting densities. The article is available online here.

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Assistant professor Alejandro Plastina published in the most recent edition of Agricultural Systems. Plastina co-authored with Guillermo Marcillo and Fernando Miguez, both also of Iowa State University, Sarah Carlson and Meghan Fillbert of Practical Farmers of Iowa, and Thomas Kaspar of the National Laboratory for Agriculture and the Environment. Their article "Maize system impacts of cover crop management decisions: A simulation analysis of rye biomass response to planting populations in Iowa, U.S.A." examines the benefits of a maize-rye system under different rye planting densities. The article is available online here.

"Maize system impacts of cover crop management decisions: A simulation analysis of rye biomass response to planting populations in Iowa, U.S.A."
Guillermo S. Marcillo, Sarah Carlson, Meghan Filbert, Thomas Kaspar, Alejandro Plastina, and Fernando E. Miguez
Agricultural Systems 176, November 2019.
https://doi.org/10.1016/j.agsy.2019.102651

June 10, 2019
Plastina, Zhang publish in Choices permalink

Assistant professors Alejandro Plastina and Wendong Zhang have both published articles in the most recent issues of Choices.

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Assistant professors Alejandro Plastina and Wendong Zhang have both published articles in the most recent issues of Choices.

Kelvin Leibold, also of Iowa State University, and Matthew Stockton of University of Nebraska, Lincoln, co-authored the article with Plastina. "The Farm Management Extension Audience of 2030" focuses on the future needs of farm management extension audiences and how to best serve those needs. The article is available online here.

Mykel Taylor, Kansas State University, co-authored the article with Zhang. "Training the Next Generation of Extension Economists" focuses on the future of extension economics amid dwindling rural populations. The article is available online here.

The Farm Management Extension Audience of 2030
Alejandro Plastina, Kelvin Leibold, and Matthew Stockton
Choices, June 2019

Training the Next Generation of Extension Economists
Mykel Taylor and Wendong Zhang
Choices, June 2019

May 23, 2019
Lade, Keiser receive USDA-NIFA grant permalink

Assistant professors Gabe Lade and David Keiser, along with Jamie Benning and Jacqueline Comito of Iowa State University and Catherine Kling of Cornell University secured a $500,000 research grant from the USDA National Institute of Food and Agriculture. Lade et al. will use the funds to study rural households’ drinking water patterns, pollution avoidance behavior, and willingness to pay for pollution information. The project will run through June 6, 2022.

May 15, 2019
Moschini, Balistreri, Hayes, Zhang, and Li receive USDA-NIFA grants permalink

Professor GianCarlo Moschini, along with Ed Perry of Kansas State University, secured a $236,929 research grant from the USDA National Institute of Food and Agriculture. Moschini and Perry will use the funds to develop and estimate a model of insect control choices by corn and soybean farmers that identifies substitution patterns between neonicotinoid seed treatments, conventional insecticides, and genetically engineered insect resistant traits. The project will run through March 31, 2021.

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Professor GianCarlo Moschini, along with Ed Perry of Kansas State University, secured a $236,929 research grant from the USDA National Institute of Food and Agriculture. Moschini and Perry will use the funds to develop and estimate a model of insect control choices by corn and soybean farmers that identifies substitution patterns between neonicotinoid seed treatments, conventional insecticides, and genetically engineered insect resistant traits. The project will run through March 31, 2021.

Associate professor Ed Balistreri, professor Dermot Hayes, assistant professor Wendong Zhang, and post-doctoral research associate Minghao Li secured a $499,999 research grant, also through USDA-NIFA. The funds will be used to create a modeling system linking commodity-specific agricultural trade models with a global general-equilibrium model to evaluate the impacts of bilateral and multilateral changes in trade policy on U.S. agricultural output, exports, farm income and overall economic performance. The project will run through April 30, 2022.

April 30, 2019
CARD researchers win three AAEA awards permalink

Researchers from the Center for Agricultural and Rural Development at Iowa State University will be presented with three awards from the Agricultural and Applied Economics Association.

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Researchers from the Center for Agricultural and Rural Development at Iowa State University will be presented with three awards from the Agricultural and Applied Economics Association.

Edward Balistreri, Chad Hart, Dermot Hayes, Minghao Li, Lee Schulz, Wendong Zhang, and John Crespi, along with David Swenson of the Department of Economics at Iowa State University, will be presented with the prestigious Bruce Gardner Memorial Prize for Applied Policy Analysis Award. The AAEA presents the Bruce Gardner prize as recognition for “outstanding impact on agricultural and related policy.”

Balistreri et al. are receiving recognition for their work on the CARD Policy Brief The Impact of the 2018 Trade Disruptions on the Iowa Economy,” which examines the effects of recent trade disruptions on Iowa’s economy and finds overall losses in Iowa’s Gross State Product from $1 to $2 billion.

Keri Jacobs, along with Brian Briggeman at Kansas State University, Phil Kenkel at Oklahoma State University, and Greg McKee at the University of Nebraska, Lincoln, will receive AAEA’s Distinguished Extension Program Group Award. The Distinguished Extension Program Group Award recognizes excellence in extension economics education programs for a group of researchers.

Jacobs et al. were nominated for their work researching and developing educational materials about the implications of recent tax reforms for agricultural cooperatives. “In a short amount of time, the nominees built a research-based extension program to handle a current topic of great interest to farmers, ranchers, and producers. As a result of their efforts, cooperative management, boards, and producers were able to ascertain the important and relevant changes and begin planning to adjust to these changes during the 2018 production year,” Allen Featherstone, professor of economics at Kansas State University said in his nomination letter.

Alejandro Plastina will receive AAEA’s Distinguished Extension Program Individual: Less Than 10 Years Award. The Distinguished Extension/Outreach Program Awards recognize achievement of excellence in extension economics education programs for an individual with less than 10 years’ experience.

Plastina was nominated for his extension and research program focusing on the economics of agricultural production and technology. Specifically, his programs focus on farm profitability, Farm Bill programs, farm leasing arrangement, and risk management through crop insurance. Plastina’s work has resulted in two decision tools for assessing net returns to cover crops, 11 decision tools to analyze Farm Bill programs, 195 extension and press articles, and 113 presentations.

All recipients will receive their awards at the 2019 AAEA Annual Meeting, which will be held July 21–23 in Atlanta, GA.

April 19, 2019
China ag center postdoc opening permalink

Drs. Wendong Zhang and Dermot Hayes are recruiting a postdoctoral research associate for the China Ag Center to study Chinese Agricultural Policy and Trade. Funding is available for one year with subsequent years conditional on funding and satisfactory performance.
The full duties and qualification requirements are available at https://www.card.iastate.edu/china/employment-opportunities/.

April 1, 2019
Jiang announced as winner of CARD PhD Dissertation Award permalink

John Crespi, interim director of CARD, has announced Dr. Ginger Zehui Jiang is the recipient of the fifth annual CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy.
Jiang’s dissertation examines the use of Long Short Term Memory, a type of recurrent neural network previously only used in natural language processing, to predict county-level corn yields in the Corn Belt. Jiang’s work is significant for two reasons—it shows the viability of using LSTM for crop yield predictions and it provides accurate county-level corn yield predictions without the use of farm management and corn seed data. The full text of Jiang’s dissertation abstract is included below.
Jiang was awarded a $500 prize, and will have her name added to the Dissertation Award winners plaque in the CARD offices.
Jiang’s program of study committee consists of Dermot Hayes, Chad Hart, Alejandro Plastina, Baskar Ganapathysubramanian, and Soumik Sarkar.
To be considered for the award, graduate students had to submit a copy of their dissertation and a brief summary of how the topic of research related to one of CARD's research areas and complete their final oral examination in 2018.

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John Crespi, interim director of CARD, has announced Dr. Ginger Zehui Jiang is the recipient of the fifth annual CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy.
Jiang’s dissertation examines the use of Long Short Term Memory, a type of recurrent neural network previously only used in natural language processing, to predict county-level corn yields in the Corn Belt. Jiang’s work is significant for two reasons—it shows the viability of using LSTM for crop yield predictions and it provides accurate county-level corn yield predictions without the use of farm management and corn seed data. The full text of Jiang’s dissertation abstract is included below.
Jiang was awarded a $500 prize, and will have her name added to the Dissertation Award winners plaque in the CARD offices.
Jiang’s program of study committee consists of Dermot Hayes, Chad Hart, Alejandro Plastina, Baskar Ganapathysubramanian, and Soumik Sarkar.
To be considered for the award, graduate students had to submit a copy of their dissertation and a brief summary of how the topic of research related to one of CARD's research areas and complete their final oral examination in 2018.

Predicting County Level Corn Yields Using Deep Long Short Term Memory Models in the Corn Belt

Zehui Jiang

Corn yield prediction is beneficial as it provides valuable information about production and prices prior to harvest. Publicly available high-quality corn yield prediction can help address emergent information asymmetry problems and, in doing so, improve price efficiency in futures markets. This paper is the first to predict corn yield using Long Short-Term Memory (LSTM), a special Recurrent Neural Network method. Our prediction is only 0.83 bushel/acre lower than actual corn yields in the Corn Belt, whose difference is lower than the prediction from USDA.
Eighty percent of our LSTM county-level corn yield predictions fall in the +/-20 region. Results show our LSTM model can provide good early prediction and accurate Corn Belt county-level corn yield prediction without farm management and corn seed data. Our LSTM models for county level corn yield prediction in the Corn Belt are an improvement to the USDA prediction. And more importantly, our models provide a publicly available source that will contribute to eliminating the information asymmetry problem that arises from private company crop yield prediction.

April 1, 2019
Jacobs selected as Global Food Challenge ambassador permalink

Keri Jacobs has been selected as a University Ambassador for the Land O'Lakes Global Food Challenge. The challenge is designed to give students an opportunity to expand their understanding of food security and global hunger issues. As an ambassador, Jacobs will travel to Africa with undergraduate students as part of the "Emerging Leaders" program.

February 12, 2019
Plastina, Lence publish in AJAE permalink

An article by assistant professor of economics Alejandro Plastina was published in the most recent issue of American Journal of Agricultural Economics. Sergio Lence, also of Iowa State University, co-authored the article with Plastina. Their article "Theoretical Production Restrictions and Agricultural Technology in the United States" applies Bayesian econometrics to estimate a flexible production function using US agricultural data under alternative restrictions.

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An article by assistant professor of economics Alejandro Plastina was published in the most recent issue of American Journal of Agricultural Economics. Sergio Lence, also of Iowa State University, co-authored the article with Plastina. Their article "Theoretical Production Restrictions and Agricultural Technology in the United States" applies Bayesian econometrics to estimate a flexible production function using US agricultural data under alternative restrictions.

Theoretical Production Restrictions and Agricultural Technology in the United States
Alejandro Plastina and Sergio H. Lence
American Journal of Agricultural Economics, February 2019.

January 18, 2019
Center for China-US Agricultural Economics and Policy featured in STORIES permalink

The Center for China-US Agricultural Economics and Policy, a center housed at CARD, was featured in the most recent issue of STORIES magazine. The article appears in volume 12, number 2 and can be read online at https://stories.cals.iastate.edu/2018/12/collaborating-on-chinas-economy/.

December 19, 2018
CARD hosts visitors from the Chinese Academy of Agricultural Sciences permalink

A group of four researchers led by Dr. Mao from the Institute of Agricultural Economics and Development of (IAED) the Chinese Academy of Agricultural Sciences (CAAS) visited the Center for Agricultural and Rural Development (CARD) at Iowa State University (ISU) from December 10th to December 15th. During their visit, researchers and administrators from CAAS and ISU discussed the next steps for the collaboration between the two institutions. The Iowa hosts also took the visitors to tour a farm and an extension office to learn about the U.S. and Iowa agriculture.

Pictured left to right are: Associate Dean David Acker, Cheng Xiang (visitor), Jing Liu (visitor), Dermot Hayes, Shiping Mao (visitor), Dean Joe Colletti, Wendong Zhang, Minghao Li
Pictured left to right are: Associate Dean David Acker, Cheng Xiang (visitor), Jing Liu (visitor), Dermot Hayes, Shiping Mao (visitor), Dean Joe Colletti, Wendong Zhang, Minghao Li

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A group of four researchers led by Dr. Mao from the Institute of Agricultural Economics and Development of (IAED) the Chinese Academy of Agricultural Sciences (CAAS) visited the Center for Agricultural and Rural Development (CARD) at Iowa State University (ISU) from December 10th to December 15th. During their visit, researchers and administrators from CAAS and ISU discussed the next steps for the collaboration between the two institutions. The Iowa hosts also took the visitors to tour a farm and an extension office to learn about the U.S. and Iowa agriculture.

Pictured left to right are: Associate Dean David Acker, Cheng Xiang (visitor), Jing Liu (visitor), Dermot Hayes, Shiping Mao (visitor), Dean Joe Colletti, Wendong Zhang, Minghao Li
Pictured left to right are: Associate Dean David Acker, Cheng Xiang (visitor), Jing Liu (visitor), Dermot Hayes, Shiping Mao (visitor), Dean Joe Colletti, Wendong Zhang, Minghao Li

Group meeting with the Dean and the Associate Dean of the College of Agriculture and Life Sciences
Group meeting with the Dean and the Associate Dean of the College of Agriculture and Life Sciences

Group photo at the Hansaker Farm
Group photo at the Hansaker Farm

Learning about drainage tile spacing at the Hansaker Farm
Learning about drainage tile spacing at the Hansaker Farm

Examining the Soil Test results map at the Hansaker Farm
Examining the Soil Test results map at the Hansaker Farm

Learning about drainage tile at the Hansaker Farm
Learning about drainage tile at the Hansaker Farm

CAAS visitor Jing Liu driving Case IH tractor at the Hansaker Farm
CAAS visitor Jing Liu driving Case IH tractor at the Hansaker Farm

PhD visiting student Wenting Wang driving Case IH tractor at the Hansaker Farm
PhD visiting student Wenting Wang driving Case IH tractor at the Hansaker Farm

Pictured left to right are: Zongmin Liu (visitor), Cheng Xiang (visitor), Jing Liu (visitor), Shiping Mao (visitor), John Crespi, Wendong Zhang, Minghao Li
Pictured left to right are: Zongmin Liu (visitor), Cheng Xiang (visitor), Jing Liu (visitor), Shiping Mao (visitor), John Crespi, Wendong Zhang, Minghao Li

December 12, 2018
Commodity Prices and Higher Interest Rates Drive Modest Farmland Value Loss permalink

ISU Land Value Survey shows 0.8% decrease statewide since 2017

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ISU Land Value Survey shows 0.8% decrease statewide since 2017

Ames, Iowa—After a reprieve in 2017, commodity prices, interest rates, and trade disruptions drove Iowa farmland values down for the fourth time in five years. The average statewide value of an acre of farmland is now estimated to be $7,264. This represents a decrease of 0.8 percent, or $62 per acre, from the 2017 estimate.

Land values were determined by the 2018 Iowa State University Land Value Survey, which was conducted in November by the Center for Agricultural and Rural Development (CARD) at Iowa State University and Iowa State University Extension and Outreach. Results from the survey are consistent with results by the Federal Reserve Bank of Chicago, the Realtors Land Institute, and the US Department of Agriculture. Dr. Wendong Zhang, Assistant Professor of Economics at Iowa State University, led the annual survey.

The $7,264 per acre estimate, and 0.8 percent decrease in value, represents a statewide average of low-, medium-, and high-quality farmland. The survey also reports values for each land quality type, crop reporting district (district hereafter), and all 99 counties individually.

Farmland values hit an historic peak of $8,716 per acre in 2013; however, they immediately declined by 8.9 percent, 3.9 percent, and 5.9 percent, respectively, the following three years. Farmland owners received a small reprieve in 2017 when the statewide average increased 2.0 percent. While modest when compared to 2014, 2015, and 2016, 2018 marks the fourth time in five years that statewide average farmland values have declined. In nominal value, the statewide average for an acre of farmland has fallen 17 percent since 2013.

Dr. Zhang said that commodity prices were one of the biggest factors driving down farmland values this year. “Lower commodity prices, in part due to the recent trade disruptions, were cited as the most significant negative factor driving down land values,” Dr. Zhang said. He also noted that despite the downturns, farmers don’t need to worry about a sudden collapse of the US agricultural sector similar to the 1980s farm crisis. “Limited land supply and strong demand by farmers still seems to hold up the land market,” he said. “For five consecutive years, survey respondents have reported fewer sales than the year before, and the ag economy is still robust with 82 percent of the land in Iowa fully paid for.”

Land Values by County

Seventy of Iowa’s 99 counties reported lower land values, the remaining 29 reported higher values. For the sixth year in a row, Scott and Decatur counties reported the highest and lowest farmland values, respectively. Decatur County reported a value per acre of $3,488, a gain of $8, or about 0.2 percent, from last year’s report. Scott County reported a value of $10,537, an increase of $40 per acre, or about 0.4 percent.

Hamilton County reported the largest dollar decrease in value, $285 per acre, and Humboldt and Wright Counties reported the largest percentage decrease, 3.3 percent. Floyd and Mitchell Counties reported the largest percent increase in values, 3.1 percent.

Land Values by District

Five of nine crop reporting districts showed an increase in land values. The South Central district reported the largest percentage increase, 3.8 percent. The Central and Southeast districts reported decreases of 2.4 percent and 3.6 percent, respectively. The Northeast and Southwest districts reported no notable change in value. The Northwest and South Central districts reported the highest and lowest averages at $9,311 and $4,329 per acre, respectively.

Land Value by Quality

Statewide, high-, medium-, and low-quality farmland values decreased 0.8 percent, 0.7 percent, and 1.7 percent, respectively. Despite decreases across all other types of land in all districts, low-quality land in the Northeast, South Central, and West Central districts increased in value. Low-, medium-, and high-quality farmland statewide are $4,609, $6,805, and $8,863 per acre, respectively.

Dr. Zhang said that certain factors drive the variations in land value changes across counties and districts in Iowa. “Put simply, land value equals farm income divided by interest rates. Local market competitiveness, local land availability, and local income shocks tend to drive variations in land market changes across districts, counties, and land quality classes,” he said.

Factors Influencing Land Values

The most common positive factors influencing land prices noted by survey respondents were limited land supply, strong yields, and low interest rates. The most commonly cited negative influences were lower commodity prices, higher long-term interest rates, and recent tariffs on US soybeans, pork, and other agricultural products.

The ISU land value survey was initiated in 1941, the first in the nation, and is sponsored annually by Iowa State University. The survey is typically conducted every November and the results are released mid-December. Only the state average and the district averages are based directly on the ISU survey data. The county estimates are derived using a procedure that combines the ISU survey results with data from the US Census of Agriculture.

The ISU Land Value Survey is based on reports by agricultural professionals knowledgeable of land market conditions such as appraisers, farm managers, agricultural lenders, and actual land sales. It is intended to provide information on general land value trends, geographical land price relationships, and factors influencing the Iowa land market. The 2018 survey is based on 793 usable responses from 624 agricultural professionals. Sixty-two percent of the 624 respondents answered the survey online.

CARD offers a web portal at www.card.iastate.edu/farmland that includes visualization tools, such as charts and interactive county maps, allowing users to examine land value trends over time at the county, district, and state level.

Contacts:
Wendong Zhang; wdzhang@iastate.edu
Nathan Cook; nmcook@iastate.edu

December 5, 2018
ISU Land Value Survey News Conference to be held December 12 permalink

Results of the 2018 Iowa Land Value Survey will be released at a press conference at 10 a.m. on Wednesday, December 12. This year’s conference will take place in the Horton Room of the ISU Alumni Center, located on the ISU campus in Ames. For those who can’t attend the conference, a livestream will be available on YouTube.
Wendong Zhang, an assistant professor of economics and farm management specialist, will head the news conference and announce the 2018 findings. Printed materials will be provided at the conference, including Iowa land value data from 1950 to present, current land value data from all 99 counties, and a press release summarizing the 2018 results. Dr. Zhang will make himself available to reporters for follow-up questions or one-on-one interviews immediately following the presentation of results.
An archive of the video and the printed materials available at the conference will be posted on the CARD homepage at https://www.card.iastate.edu soon after the conference.

November 28, 2018
Plastina publishes in Journal of Applied Farm Economics permalink

An article by assistant professor of economics Alejandro Plastina was published in the most recent issue of Journal of Applied Farm Economics. Fangge Liu, a graduate student at CARD, Wendiam Sawadgo, Fernando Miguez, and Guillermo Marcillo of Iowa State University, and Sarah Carlson of Practical Farmers of Iowa co-authored the article with Plastina. Their article "Annual Net Returns to Cover Crops in Iowa" evaluates the changes in net returns resulting from the incorporation of cover crops into a corn or soybean production system.

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An article by assistant professor of economics Alejandro Plastina was published in the most recent issue of Journal of Applied Farm Economics. Fangge Liu, a graduate student at CARD, Wendiam Sawadgo, Fernando Miguez, and Guillermo Marcillo of Iowa State University, and Sarah Carlson of Practical Farmers of Iowa co-authored the article with Plastina. Their article "Annual Net Returns to Cover Crops in Iowa" evaluates the changes in net returns resulting from the incorporation of cover crops into a corn or soybean production system.

Annual Net Returns to Cover Crops in Iowa
Alejandro Plastina, Fangge Liu, Wendiam Sawadgo, Fernando E. Miguez, Sarah Carlson, and Guillermo Marcillo
Journal of Applied Farm Economics Vol. 2, issue 2.

November 27, 2018
Winters wins Hewings Award permalink

Associate professor John Winters was the recipient of the Geoffrey J.D. Hewings Award at the 2018 North American meetings of the Regional Science Association International. The award recognizes distinguished contributions to Regional Science research by scholars who have recently completed doctoral studies.

November 15, 2018
Moschini publishes in Land Economics permalink

An article by GianCarlo Moschini, professor of economics, and Hyunseok Kim, associate fellow at the Korea Development Institute, was published in the most recent issue of Land Economics. Moschini and Kim's article "The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era" estimates U.S. corn and soybean supply responses by exploiting the large exogenous price variations associated with implementation of the Renewable Fuel Standard.

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An article by GianCarlo Moschini, professor of economics, and Hyunseok Kim, associate fellow at the Korea Development Institute, was published in the most recent issue of Land Economics. Moschini and Kim's article "The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era" estimates U.S. corn and soybean supply responses by exploiting the large exogenous price variations associated with implementation of the Renewable Fuel Standard.

The Dynamics of Supply: U.S. Corn and Soybeans in the Bioful Era
Hyunseok Kim and GianCarlo Moschini
Land Economics Vol. 94, issue 4. https://muse-jhu-edu.proxy.lib.iastate.edu/article/705249.

November 6, 2018
Keiser’s Clean Water Act study Science Editor’s Choice permalink

A research article by CARD economist Dave Keiser and Joseph Shapiro of the University of California, Berkely was picked as an Editor’s Choice article by Science magazine. Keiser and Shapiro’s article “Consequences of the Clean Water Act and the Demand for Water Quality” was originally published by Quarterly Journal of Economics in September.
Keiser and Shapiro assembled the most comprehensive set of files ever compiled on U.S. water pollution and its determinants for their study. They found that the Clean Water Act has been effective in reducing pollution. More information about their study can be found here. The Quarterly Journal of Economics article is available here (requires subscription).

November 6, 2018
CARD researchers featured prominently in AAEA “Members in the News” permalink

Several CARD researchers were featured prominently in the Agricultural and Applied Economics Association’s monthly newsletter "Members in the News" section. The AAEA tracks member media contacts throughout the month, and in the November newsletter CARD researchers Keri Jacobs, Chad Hart, Sebastien Pouliot, Dave Keiser, Dermot Hayes, Alejandro Plastina, and Wendiam Sawadgo accounted for forty percent of tracked media contacts.
The AAEA is the largest association of agricultural economists in the world. The newsletter is available for free.

October 31, 2018
Shr publishes in Ecological Economics permalink

Post-doctoral research associate Jimmy Shr was published in the most recent issue of Ecological Economics. Shr's article "How Do Visual Representations Influence Survey Responses? Evidence from a Choice Experiment on Landscape Attributes of Green Infrastructure" examines how images influence survey responses, using a split-sample choice experiment.

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Post-doctoral research associate Jimmy Shr was published in the most recent issue of Ecological Economics. Shr's article "How Do Visual Representations Influence Survey Responses? Evidence from a Choice Experiment on Landscape Attributes of Green Infrastructure" examines how images influence survey responses, using a split-sample choice experiment.

How Do Visual Representations Influence Survey Responses? Evidence from a Choice Experiment on Landscape Attributes of Green Infrastructure
Yau-Huo (Jimmy)Shr, Richard Ready, Brian Orland, and Stuart Echols
Ecological Economics Vol. 156 https://doi.org/10.1016/j.ecolecon.2018.10.015

October 29, 2018
Tang publishes in JEEM permalink

Post-doctoral research associate Chaun Tang was published in the most recent issue of the Journal of Environmental Economics and Management. Tang's article Mercury Pollution, Information, and Property Values examines the impacts of mercury pollution by exploring the relationship between property values and fish consumption advisory designation in New York lakes.

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Post-doctoral research associate Chaun Tang was published in the most recent issue of the Journal of Environmental Economics and Management. Tang's article Mercury Pollution, Information, and Property Values examines the impacts of mercury pollution by exploring the relationship between property values and fish consumption advisory designation in New York lakes.

Mercury Pollution, Information, and Property Values
Chuan Tang, Martin D.Heintzelman, and Thomas M.Holsen
Journal of Environmental Economics and Management https://doi.org/10.1016/j.jeem.2018.10.009

October 29, 2018
2017 Iowa Farmland Ownership & Tenure Survey paper copy available for order permalink

The new, 60-page 2017 Iowa Farmland Ownership and Tenure Survey report is available for order at the Extension Store for only $5 for each paper copy.

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The new, 60-page 2017 Iowa Farmland Ownership and Tenure Survey report is available for order at the Extension Store for only $5 for each paper copy.

This is a unique survey across the nation which provides statistically representative information on many aspects of land ownership, tenure and transitions in Iowa. For example, the survey finds that 60% of Iowa land is owned by people 65 years or older, 82% of Iowa land is owned free of debt, and 29% of all acres is primarily owned for family or sentimental reasons.

October 26, 2018
New tool helps farmers make cover crop decisions permalink

Ames, Iowa — A study funded by the North Central Region of the Sustainable Agriculture Research and Education and the Center for Agricultural and Rural Development at Iowa State University has resulted in a new free online tool that helps farmers make decisions about planting cover crops.

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Ames, Iowa — A study funded by the North Central Region of the Sustainable Agriculture Research and Education and the Center for Agricultural and Rural Development at Iowa State University has resulted in a new free online tool that helps farmers make decisions about planting cover crops.

The tool is intended to help farmers who don’t currently use cover crops evaluate expected annual net returns to cover crop adoption under alternative scenarios, and to serve as a benchmark for farmers who already use cover crops and want to improve the return on their investment.

“The rate of adoption of cover crops in Iowa is low (about three percent of all tillable acres) due to a variety of reasons, including thin windows of opportunity to plant due to weather, uncertainty associated with adoption of new practices, and low corn and soybean prices that limit the ability of farmers to use their own resources in conservation practices,” said Alejandro Plastina, assistant professor of economics and extension economist.

Plastina led the NCR-SARE/CARD funded study that used farmer surveys to evaluate the net returns to cover crops in row crop production in the Midwest. Ultimately, the study found that although some farmers profit from cover crops, the average farmer in the sample incurred annual losses when using cover crops, even after accounting for cost-share payments. “Uncertainty about the net returns to cover crops has been a major barrier to adoption, and this new tool is intended to help farmers evaluate their own net returns, and reduce uncertainty,” he said.

Plastina said he hopes the new tool will promote cover crop use and help farmers identify ways in which they can make cover crops profitable. “I expect that by using this tool farmers will be better able to identify areas in which cost savings are required to generate positive net returns, and increase cover crop use,” he said. “However, the tool might steer some farmers away from using cover crops if they cannot realize the required cost savings. In the end, both groups of farmers should benefit from the tool, one through realizing gains in profits and the other through avoiding losses associated with cover crops.”

Though the initial survey focused on Iowa, Plastina said the new cover crop tool is suitable for farmers anywhere in the United States. “Since the tool allows the user to create his or her own scenario using his or her own data, it can be used by any farmer in the U.S. to evaluate the net returns to cover crops in a corn-soybean rotation,” he said.

The cover crop tool is available online at https://www.card.iastate.edu/conservation/economics-of-cover-crops/net-returns-calculator/.

Contacts:
Alejandro Plastina; plastina@iastate.edu

October 12, 2018
Balistreri to head Trade & Policy Division permalink

John Crespi announced associate professor of economics Ed Balistreri as the new head of CARD's Trade & Policy Division. Ed will begin those duties on January 1, 2019.

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John Crespi announced associate professor of economics Ed Balistreri as the new head of CARD's Trade & Policy Division. Ed will begin those duties on January 1, 2019.

In that capacity, Ed will maintain an active research program in international trade including agricultural trade, construct and maintain a trade model for analyzing policy distortions and provide annual analysis of facets of trade policy on U.S. agriculture.

October 8, 2018
Clean Water Act improves water quality, creates modest changes in housing values permalink

Ames, Iowa — Two new studies shed light on the environmental impacts and economic efficiency of the Clean Water Act.

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Ames, Iowa — Two new studies shed light on the environmental impacts and economic efficiency of the Clean Water Act.

Both studies were conducted by David Keiser, assistant professor of economics at Iowa State University, and Joseph Shapiro, associate professor of economics at University of California, Berkeley. Catherine Kling, professor of environmental, energy, and resource economics at Cornell University, also collaborated on one of the studies.

Examining the environmental effectiveness of the CWA
In 1972, the federal government passed a sweeping series of amendments, commonly known as the Clean Water Act (CWA), amid ever-growing concerns about water quality in the United States. Since that time, the CWA has become one of the most expensive pieces of environmental legislation in U.S. history. To date, the total cost has topped $1 trillion, or more than $100 per person per year.

For decades, researchers and policy makers have noted a lack of empirical evidence about the effectiveness of CWA regulations. The lack of empirical evidence has contributed to a poor understanding of how these regulations have affected water quality and human well-being.

“Even answers to basic questions such as how water pollution has changed since 1972, and how the Clean Water Act contributed to these changes, have been absent,” said Shapiro. “The data required to answer these questions have been notoriously hard to compile—it took several Freedom of Information Act requests and years of effort,” Keiser said.

Keiser and Shapiro collected 50 million pollution readings from 240,000 monitoring sites, a network of all U.S. rivers, and information on over 35,000 grants from the federal government to local municipalities—the most comprehensive set of files ever compiled on U.S. water pollution and its determinants.

This gave them the ability to effectively examine the federal grants program that helps local municipalities upgrade wastewater treatment plants, which is one of the CWA’s main policy levers.

The collected data led them to three main conclusions—water pollution concentrations have fallen substantially in the United States, the CWA’s municipal grants improved water quality downstream of treatment plants, and the municipal grants created modest increases in local housing values.

By examining pollution readings, the authors found evidence of decreases in major indicators of water pollution, including dissolved oxygen deficits, biochemical oxygen demand, and fecal coliforms. They also found that between 1972 and 2001, the share of waters unsafe for fishing fell by 12 percentage points.

When they examined the CWA grant program, which accounts for $650 billion of the program’s total expenditure, not only did they find that the program has resulted in cleaner water downstream of treatment plants, they found it costs about $1.5 million to make one river-mile fishable for one year.

The increase in housing values they found was about one-quarter of the grants’ costs. This estimate, Keiser said, may be low due to several factors, including local residents misperceiving the health benefits from the grants, and the researchers not counting changes in housing values of houses more than 25 miles from a river.

“The benefits we were able to measure were substantially lower than the corresponding costs,” Keiser said. “Surprisingly, this is consistent with other studies that find small benefit-to-cost ratios for water pollution regulations.”

Measuring the economic efficiency of the CWA
Keiser said that CWA policies not passing a cost-benefit analysis is unusual for the U.S. government. “From an economics perspective, environmental policy should pass a cost-benefit analysis,” he said. “However, many prior studies by the Environmental Protection Agency and others, including one we did, have generally found that the measured benefits of the Clean Water Act are near or lower than their costs.”

To determine why many CWA policies don’t appear to pass a cost-benefit analysis, Keiser, Shapiro and Kling examined twenty previous studies of CWA policies to see how those researchers measured costs and benefits. They found that existing evidence of the benefits are limited for a number of reasons, including some studies that undercount certain categories of benefits.

“There are a number of potentially important categories of benefits that have been difficult to measure,” Keiser said. “A big one is understanding how these policies affect human health.”

Keiser noted that most current analyses count little or no health impacts of improved surface water quality. “This could be true since we filter and treat water before we drink it. However, this could also be a false assumption since it’s possible that there are adverse health impacts from pollution at levels below current EPA standards, or from pollutants that we don’t monitor,” he said.

Some studies of Clean Water Act policies also exclude what economists call non-use values. Non-use value is when members of society place value on something even if they never have or never will use it. “For example, some people place value on certain types of fish, even if they will never see them or fish for them,” Keiser said.

Ultimately, Keiser said that a change in the way researchers examine CWA policies could help reveal their true cost-benefit ratio.

“There has been a tremendous amount of work over the last two decades to improve our understanding of climate and air pollution on economic well-being. Using methodological improvements that have been refined for the air pollution and climate change literature could help us better understand the impacts of water pollution on society,” Keiser said.

The analysis by Keiser and Shapiro appears in a study published in the Quarterly Journal of Economics (https://doi.org/10.1093/qje/qjy019). The analysis by Keiser, Shapiro, and Kling appears in the Proceedings of the National Academy of Sciences (https://doi.org/10.1073/pnas.1802870115).

Contacts:
David Keiser; dkeiser@iastate.edu
Nathan Cook; nmcook@iastate.edu

September 24, 2018
CARD Study Reveals Trade Disruption Impacts on Iowa's Economy permalink

Ames, Iowa—A new study by researchers at the Center for Agricultural and Rural Development (CARD) at Iowa State University reveals the impacts that current trade disruptions are having on Iowa’s economy. The study is available here.

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Ames, Iowa—A new study by researchers at the Center for Agricultural and Rural Development (CARD) at Iowa State University reveals the impacts that current trade disruptions are having on Iowa’s economy. The study is available here.

The study examined different scenarios. Overall, the study shows losses to Iowa’s gross state product in the range of $1 billion to $2 billion. Iowa’s 2017 GSP was $190 billion. The U.S. Census Bureau estimates Iowa’s export value for 2017 at about $13.4 billion, or about seven percent of Iowa’s GSP.

John Crespi, interim director of CARD and professor of economics, said that the estimated loss of GSP will be difficult, though Iowa’s farmers have faced worse.

“The farm crisis of the 1980s of course was much worse because it also came at a time of very high interest rates and record farm debt,” Crespi said. “An interesting déjà vu with the farm crisis of the 1980s is that much of the impact was linked to policies out of Washington.”

Crespi said the trade disruptions will be noticeable to Iowa consumers. “Iowans should see prices get lower on some items that once were exported — pork, for example,” he said. “But other prices will get higher. A tariff is a tax. One thing that economists always stress is that whenever you tax a good, only some of that tax will be borne by the person selling the good. American consumers are going to be paying some of that tax as well.”

Crespi said that while the effect the tariffs will have on farmers isn’t easy to predict, commodity prices will be the first place they see it.

The CARD study calculated that Iowa’s soybean industry faces losing between $159 million and $891 million. The state’s corn industry may lose between $90 million and $579 million. The hog industry faces losing $558 million to $955 million. Ethanol producers are estimated to lose approximately $105 million.

“For farmers, the obvious question is where and how much of your product will you sell this year and next year, and for what price?” Crespi said. “But the harder question is what happens in two, three or 10 years if the trade wars continue? You could find that the U.S. loses so much market share that a decade from now, even if you get rid of the tariffs, the U.S. may be a smaller player.”

A major concern in the study is the possibility that Iowa or the United States could be looking at a long-term reduction in world market share for agricultural commodities. The researchers noted two examples — the Russian grain embargo in the 1980s and a 2009 dispute with China.

In the 1980s, the United States enacted a grain embargo against the former Soviet Union. U.S. farmers felt the sting of falling commodity prices and watched as European farmers gained much of the trade the American farmers lost. In 2009, a trade dispute with China resulted in the United States losing a significant portion of its China poultry trade to Brazil and the European Union.

Today, the researchers noted, soybean growers are already facing a similar situation. For decades, U.S. soybeans set the price to which soybeans grown in other countries were marked. Currently, U.S. soybeans are selling on the world market at a discount to Brazilian soybeans.

“History has shown that the world’s farmers don’t just sit back and wait for countries to settle their differences. They ring the doorbell and offer their products,” Crespi said. “The president of the Brazilian grain growers association recently met with Chinese traders and the Chinese embassy in Brazil said discussing a Brazil-China futures contract has merit.”

While Iowa farmers may be currently facing a difficult situation, trade disruptions aren’t uncommon. “American farmers are always on the front lines of trade wars,” Crespi said.

Lost agricultural revenue isn’t the only way trade disputes are taking a toll on Iowa. Revenue losses can translate into additional lost labor income and lost tax revenue.

The CARD study estimated that labor income declines to the corn, soybean and hog industries may range from $245 million to $484 million, enough income to support from 9,300 to 12,300 jobs.

The total labor income and tax revenue losses in Iowa will depend on the available federal offsets and how they are applied. The researchers looked at two types of federal offsets: USDA direct payments to farmers and government spending of collected tariffs.

“The USDA payments are relatively easy to account for,” Crespi said. “The second is harder to see directly because it has to do with what will the federal government do with the tariffs they collect. They’re harder to measure because these are gains to the federal budget, so ultimately it’s up to Congress what happens to them.”

The study estimated Iowa tax revenue losses — personal income and sales taxes — may range from $111 million to $146 million. Federal offsets could reduce the tax losses to $75 million to $110 million.

“Could the rest of the economy grow substantially and offset these losses? It’s possible,” Crespi said. “But don’t forget recessions will happen again. One hundred million dollars might seem affordable when times are good, but when times are bad, that’s when the tough decisions have to be made.”

The Center for Agricultural and Rural Development, established in 1950, conducts innovative public policy and economic research on agricultural, environmental and food issues. CARD combines academic excellence with engagement and anticipatory thinking to inform and benefit society. Center researchers develop and apply economic theory, quantitative methods and interdisciplinary approaches to create relevant knowledge.

Contacts:
John Crespi; jcrespi@iastate.edu
Nathan Cook; nmcook@iastate.edu

September 18, 2018
Shr receives IWC grant permalink

CARD post-doc research associate Jimmy Shr secured a $30,000 grant from the Iowa Water Center. Shr, along with Wendong Zhang, Chuan Tang, and Cathy Kling will use the funds to conduct a comprehensive assessment of the economic benefits of mitigating harmful algal blooms in Iowa. The project will run through February 29, 2020.

September 11, 2018
Interim Director Named for Center for Agricultural and Rural Development at Iowa State University permalink

AMES, Iowa — John Crespi, an economics professor at Iowa State University, has been named the interim director of the Center for Agricultural and Rural Development (CARD).

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AMES, Iowa — John Crespi, an economics professor at Iowa State University, has been named the interim director of the Center for Agricultural and Rural Development (CARD).

Crespi became interim director of the center effective Aug. 16, and will serve for one year. He joined the faculty at Iowa State in 2015.

Dermot Hayes, a professor of economics and finance, served as CARD’s interim director from June to August, succeeding Catherine Kling, who served as director from 2013 to 2018. Kling left Iowa State for a position at Cornell University in Ithaca, New York.

Crespi is an agricultural economist who works in the areas of food marketing and business competitiveness. Some of his recent work has examined livestock contracts how they impact the way firms interact and whether the cattle industry will move towards the higher levels of contracting seen in hog and poultry procurement.

He also has researched issues related to how people react to food labels and is part of the ISU Brain Initiative, a team of faculty and staff dedicated to the acceleration of brain research.

Crespi’s teaching duties include undergraduate classes on agribusiness finance and food markets.

He earned two bachelor’s degrees, in English and economics, from California State University, Sacramento; a master’s degree in economics from Colorado State University; and a doctorate degree in agricultural and resource economics from the University of California, Davis.

The Center for Agricultural and Rural Development, established in 1950, conducts innovative public policy and economic research on agricultural, environmental and food issues. CARD combines academic excellence with engagement and anticipatory thinking to inform and benefit society. Center researchers develop and apply economic theory, quantitative methods and interdisciplinary approaches to create relevant knowledge.

Contacts:
John Crespi; jcrespi@iastate.edu
Nathan Cook; nmcook@iastate.edu
Ed Adcock; edadcock@iastate.edu

September 4, 2018
Artz, Schulz awarded at 2018 AAEA annual meeting permalink

Georgeanne Artz and Lee Schulz, both associate professors of economics, were recognized with awards at the 2018 Agricultural and Applied Economics Association annual meeting, held August 5–7 in Washington, D.C.

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Georgeanne Artz and Lee Schulz, both associate professors of economics, were recognized with awards at the 2018 Agricultural and Applied Economics Association annual meeting, held August 5–7 in Washington, D.C.

Artz has been a co-advisor of the Agricultural Business Club at ISU since 2013. The club was awarded the “Outstanding Chapter Award.” Schulz was presented an award for “Distinguished Extension/Outreach” for an individual with less than 10 years’ experience.

August 22, 2018
Jensen to retire after 33 years with CARD permalink

After more than 33 years of service, Helen Jensen, professor of economics, is set to retire from Iowa State University. “I am ready to shift gears,” Jensen said. “I have had the opportunity to have a career that started with 80 column computer punch cards and now is carried out on hand-held devices. However, today’s economic issues are remarkably similar to those I worked on when I started.”

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After more than 33 years of service, Helen Jensen, professor of economics, is set to retire from Iowa State University. “I am ready to shift gears,” Jensen said. “I have had the opportunity to have a career that started with 80 column computer punch cards and now is carried out on hand-held devices. However, today’s economic issues are remarkably similar to those I worked on when I started.”

Jensen came to Iowa State in 1985, and began her affiliation with CARD in 1986. “My affiliation with CARD came relatively early in my time at Iowa State,” Jensen said. “Stan Johnson became the new director of CARD in 1986. He was looking for someone to help with several initiatives on agricultural and food economics issues.”

Jensen’s knowledge and understanding of food economic issues proved her a good fit at CARD—she was named head of the Food and Nutrition Policy Division in 1986. Through the years, Jensen’s research at CARD garnered her several awards and accolades, including the Board of Regents Faculty Excellence Award, the Dean Lee R. Kolmer Award for Excellence in Applied Research, and being named Fellow of the Agricultural and Applied Economics Association. More importantly, her research received national and international attention, which prompted her inclusion in many high-profile panels and committees, including six with the Institute of Medicine at the National Academy of Sciences, and five with the National Research Council’s Board on Agriculture and Natural Resources.

Jensen’s career in economics has been distinguished; however, she almost took an entirely different path. “My time in college started with the expectation of following a pre-med major,” she said. “After taking a first course in economics (Principles of Macroeconomics), I got interested in studying social sciences—an area that was new to me, and not part of the traditional high school curriculum.”

While her interest in economics was driven by that first college course, her interest in social sciences came about partially due to the cultural changes of the late 1960s. “My time as an undergraduate marked a period of renewed interest in civil rights and the beginning of President Johnson’s War on Poverty. My interest in social programs and policies started at that time and has carried through to today,” Jensen said.

With her career winding down, Jensen said she has fond memories of CARD, and several things she’s looking forward to in retirement. “The students, staff and faculty have been great colleagues. CARD’s environment continues to provide a dynamic opportunity for research on challenging problems related to food, agriculture, and the environment,” she said.

“I look forward to starting each day a bit more slowly and mindfully. Some professional activities and research will be part of that, but I also look forward to more travel—less travel to DC, and more to see family and grandchildren in Alaska and to northern Minnesota for summer lakeside and winter snow-based activities. Ames will be ‘south’ for a while,” she said.

The beginning of the 2018–19 school year marked Jensen’s formal retirement from “active work status,” though she will have a continued presence at CARD for the immediate future.

August 16, 2018
Iowa State Economist says marketing boards should take note of a recent US Supreme Court decision permalink

John Crespi, Iowa State University professor of economics, warns in a recent ARE Update article that marketing programs such as the beef and pork checkoffs may be implicated by a recent U.S. Supreme Court decision that union dues for non-union members in public sector unions violate the First Amendment by compelling participation. The issue for farmers is that such dues are very similar to the billions of dollars in assessments that many farmers are compelled to pay for checkoff programs, in which not every farmer wishes to participate. Marketing boards may have thought the legality of their programs had long been settled, but the recent case of Janus v. AFSCME may lead to future litigation over generic advertising and promotion of agricultural commodities.
source: https://s.giannini.ucop.edu/uploads/giannini_public/8c/cb/8ccbf5e9-97cb-47e0-afe5-33870c3cb855/v21n6.pdf

August 14, 2018
IAM for water quality workshop to be held April 3-5, call for papers open permalink

David Keiser, assistant professor of economics at Iowa State University, Cathy Kling, professor in the Dyson School of Applied Economics and Management at Cornell, and Daniel Phaneuf, professor of agricultural and applied economics at the University of Wisconsin, announce a call for papers for a workshop on the social cost of water pollution. The workshop will be held at the Cornell University David R. Atkinson Center in Ithaca, NY, April 3-5, 2019.

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David Keiser, assistant professor of economics at Iowa State University, Cathy Kling, professor in the Dyson School of Applied Economics and Management at Cornell, and Daniel Phaneuf, professor of agricultural and applied economics at the University of Wisconsin, announce a call for papers for a workshop on the social cost of water pollution. The workshop will be held at the Cornell University David R. Atkinson Center in Ithaca, NY, April 3-5, 2019.

The objective of the workshop is to coordinate and encourage research and policy discussion of Integrated Assessment Models (IAMs) for water quality, and to push forward understanding of the benefits and costs of water quality improvements.

The workshop is part of an ongoing effort to establish a strong interdisciplinary research and policy community to improve understanding of how changes in water quality affect society. The ultimate goal is providing regional and temporal estimates of the social cost of water pollution.

The call for papers can be found at http://bit.ly/2nBAZxf.

The workshop will feature keynote talks from top experts in the following areas:

  • Jeff Arnold, USDA Agricultural Research Service
  • Steve Carpenter, UW-Madison Center for Limnology and Department of Integrative Biology
  • Sheila Olmstead, University of Texas LBJ School of Public Affairs

Authors/teams can contribute papers to the workshop, which will be considered for inclusion in a special issue of Land Economics. Example themes of interest include but are not limited to:

  • Hydrological and biological measuring/modeling for supporting IAMs for water quality.
  • Research on nonmarket valuation needed for water quality integrated assessment.
  • Understanding the role of spatial and temporal dynamics in the context of water quality IAMs.
  • Broader social and ecological science concepts related to IAMs.
  • Applications of integrated assessment for water quality.

One page abstracts should be sent to Dan Phaneuf (dphaneuf@wisc.edu) by October 12, 2018, with full manuscripts deposited two weeks before the workshop.

August 9, 2018
Gassman receives NSF grant permalink

CARD scientist Phil Gassman was announced as the recipient of a National Science Foundation grant that will pair him with researchers from the University of Iowa and the University of Illinois, Urbana-Champaign. The University of Iowa will take the lead on the project.

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CARD scientist Phil Gassman was announced as the recipient of a National Science Foundation grant that will pair him with researchers from the University of Iowa and the University of Illinois, Urbana-Champaign. The University of Iowa will take the lead on the project.

The grant totals $1 million between the three universities, which is to be used for gathering and sharing water quality information from five states along the upper Mississippi River. For his portion of the project, Gassman will receive $100,000 to create a computer model to determine how nutrients flow through the watershed.

The project is set to run from August, 2018 to August 2021.

August 2, 2018
New publication by Xia, Crespi, and Dhuyvetter examines cattle contracts and market power permalink

John Crespi, professor of economics at Iowa State University, Tian Xia, associate professor of agricultural economics at Kansas State University, and Kevin Dhuyvetter of Elanco were published in the most recent issue of the Canadian Journal of Agricultural Economics. Their article, “Could Packers Manipulate Spot Markets by Tying Contracts to Futures Prices? And Do They?” establishes that contract pricing terms tied to a cattle futures price can theoretically reduce the cash price. However, an examination of data from the U.S. cattle market shows that such linkages seem to have had only a small impact on prices thus far.

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John Crespi, professor of economics at Iowa State University, Tian Xia, associate professor of agricultural economics at Kansas State University, and Kevin Dhuyvetter of Elanco were published in the most recent issue of the Canadian Journal of Agricultural Economics. Their article, “Could Packers Manipulate Spot Markets by Tying Contracts to Futures Prices? And Do They?” establishes that contract pricing terms tied to a cattle futures price can theoretically reduce the cash price. However, an examination of data from the U.S. cattle market shows that such linkages seem to have had only a small impact on prices thus far.

Reference:
Xia, T., J. M. Crespi, K.C. Dhuyvetter. Could packers manipulate spot markets by tying contracts to futures prices? And do they? Canadian Journal of Agricultural Economics.
First published: 27 July 2018

July 25, 2018
Lade testifies before House subcommittee permalink

photo of Lade testifying before the House Energy and Commerce Subcommittee on EnvironmentGabe Lade, assistant professor of economics, testified before the House Energy and Commerce Subcommittee on Environment on Wednesday, July 25. Lade was one of several experts selected to discuss the background on Renewable Identification Numbers under the Renewable Fuel Standard. Lade’s written testimony, submitted to the House before his live testimony, is available as a CARD Policy Brief. An archive video of the live testimony is also available.

July 24, 2018
NAS report identifies most promising breakthroughs to improve US food and agriculture systems permalink

Helen Jensen, professor of economics, as part of the executive committee of Science Breakthroughs 2030, helped author a new report from the National Academies of Sciences, Engineering, and Medicine. The report identifies the most promising scientific breakthroughs that are possible to achieve in the next decade to increase the U.S. food and agriculture system’s sustainability, competitiveness, and resilience.

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Helen Jensen, professor of economics, as part of the executive committee of Science Breakthroughs 2030, helped author a new report from the National Academies of Sciences, Engineering, and Medicine. The report identifies the most promising scientific breakthroughs that are possible to achieve in the next decade to increase the U.S. food and agriculture system’s sustainability, competitiveness, and resilience.

Jensen was named to the committee of 13 experts in June, 2017. At the time, she said she was chosen due to her experience in food economics and to provide “a broad perspective on the food and agricultural sector, including related consumptions and nutritional implications.”

The five breakthroughs identified by the committee are:

  1. A systems approach to understand the nature of interactions among the different elements of the food and agricultural system can be leveraged to increase overall system efficiency, resilience, and sustainability.
  2. The development and validation of highly sensitive, field-deployable sensors and biosensors will enable rapid detection and monitoring capabilities across various food and agricultural disciplines.
  3. The application and integration of data sciences, software tools, and systems models will enable advanced analytics for managing the food and agricultural system.
  4. The ability to carry out routine gene editing of agriculturally important organisms will allow for precise and rapid improvement of traits important for productivity and quality.
  5. Understanding the relevance of the microbiome to agriculture and harnessing this knowledge will improve crop production, transform feed efficiency, and increase resilience to stress and disease.

The full report is available on the National Academies Press website.

July 24, 2018
Jacobs appointed to Choices editorial council permalink

Associate professor of economics Keri Jacobs has accepted an invitation to serve on the editorial council of the Agricultural and Applied Economics Association publication Choices. Choices is a highly influential outreach publication that provides peer-reviewed economic analyses of food, farm, resource, and rural community policies and issues.

July 19, 2018
Study: Air Pollution Negatively Associated with U.S. National Park Visitation permalink

More than 300 million visitors travel to U.S. national parks every year to experience America’s iconic landscapes. But poor air quality in parks may negatively affect visitation according to a study published in Science Advances by researchers David Keiser and Gabriel Lade, assistant professors from Iowa State University, and Ivan Rudik, assistant professor, Cornell University.

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More than 300 million visitors travel to U.S. national parks every year to experience America’s iconic landscapes. But poor air quality in parks may negatively affect visitation according to a study published in Science Advances by researchers David Keiser and Gabriel Lade, assistant professors from Iowa State University, and Ivan Rudik, assistant professor, Cornell University.

The researchers studied ozone levels in 33 of the largest national parks in the U.S. The researchers found that from 1990 to 2014 average ozone concentrations in national parks were statistically indistinguishable from those of the 20 largest U.S. metropolitan areas—conditions that previously sparked federal legislation. To protect parks, the Clean Air Act (CAA) Amendments of 1977 and 1990 designated national parks as Federal Class I Areas.

“The U.S. has spent billions of dollars over the last three decades to improve air quality,” said David Keiser. “Given the popularity of national parks, as well as the fact that people go to parks to be outside, we believed it was worth better understanding air quality trends in these areas and whether people, through their actions, respond to changes in air quality in parks.”

Research results

The study found that ozone levels improved in metropolitan areas starting in 1990; however, national parks improvements have only been apparent since the early 2000s, corresponding to the passage of the Regional Haze Rule, a 1999 EPA regulation that strengthened air quality protections for national parks and wilderness areas.

The authors first compiled data from extensive ozone monitoring efforts led by the National Park Service and the EPA. Data show that since 1990, national parks have seen only modest reductions in days with ozone concentrations exceeding 70 parts per billion, levels deemed unhealthy by the EPA.

The researchers then matched the pollution data to monthly park visitation statistics at 33 of the most heavily visited national parks and found that visitation responds most to ozone during months with poor air quality. Unsurprisingly, this response is largest in summer and fall, the seasons when park visitation is highest. They also explored two potential causes for this result: air quality warnings (AQI) issued by parks and poor visibility. They found that the visitation response is more strongly associated with potential health warnings and less correlated with visibility.

"Our research design allowed us to examine how visitation responds to ozone within a park over time. This allowed us to control for many other factors that may influence visitation and remain fixed. For example, this would include the size of the park, its distance from population centers, and its general popularity. Our statistical model also allowed us to flexibly control for factors that may be common across parks in certain months and years, such as popular months to visit parks and general economic conditions that may influence the desire to head to a park," said Keiser.

Visitor health implications

A recent survey found that nearly 90% of respondents had visited a national park area in their lifetime, with one-third of respondents anticipating visiting a park in the coming year. In spite of improvements over the last two decades, air quality in many national parks remains unhealthy for sensitive groups on average for two-and-one-half to three weeks per year.

Indeed, despite the decrease in visitation found by the authors during months with poor air quality, an estimated 35% of all visitor days occurred when ozone exceeded the 55 ppb “Moderate” AQI threshold, and nearly 9% of visitor days when ozone levels exceeded 70 ppb. Exposure to these elevated ozone levels has important health implications—visitors have an increased chance of adverse health outcomes, including hospitalization, respiratory symptoms, and mortality for sensitive individuals.

The number of park visits suggests potentially large human health benefits to further air quality improvements at national parks and elsewhere.

###

Contacts:
David Keiser; dkeiser@iastate.edu
Gabriel Lade; gelade@iastate.edu
Deb Gruca; dgruca@iastate.edu

July 13, 2018
Jacobs, Hayes, Li published in American Journal of Agricultural Economics permalink

Associate professor of economics Keri Jacobs, professor of economics Dermot Hayes, both of Iowa State University, and Ziran Li, assistant professor of economics and finance at Southwestern University, China, were published in the most recent issue of the American Journal of Agricultural Economics. Their article “Reference-Dependent Hedging: Theory and Evidence from Iowa Corn Producers” uses data from a major grain marketing firm to examine why and when hedging activities are triggered.

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Associate professor of economics Keri Jacobs, professor of economics Dermot Hayes, both of Iowa State University, and Ziran Li, assistant professor of economics and finance at Southwestern University, China, were published in the most recent issue of the American Journal of Agricultural Economics. Their article “Reference-Dependent Hedging: Theory and Evidence from Iowa Corn Producers” uses data from a major grain marketing firm to examine why and when hedging activities are triggered.

Reference-Dependent Hedging: Theory and Evidence from Iowa Corn Producers
Keri L Jacobs Ziran Li Dermot J Hayes
American Journal of Agricultural Economics, aay035, https://doi.org/10.1093/ajae/aay035
Published: 27 June 2018.

June 29, 2018
ISU Survey: Iowa’s Farmland Owners Continue to Age permalink

AMES, Iowa — An Iowa State University study shows that the age of Iowa’s farmland owners continues to rise, with those aged 75 years or older owning a record high 35 percent of farmland in 2017.

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AMES, Iowa — An Iowa State University study shows that the age of Iowa’s farmland owners continues to rise, with those aged 75 years or older owning a record high 35 percent of farmland in 2017.

Sixty percent were over the age of 65, which is five percentage points higher than 2007 and twice the level recorded in 1982, say Wendong Zhang and Alejandro Plastina, the Iowa State economists who released results of the 2017 Farmland Ownership and Tenure survey at a press conference Thursday in Ames.

Conducted by Iowa State University since the 1940s, the Farmland Ownership and Tenure Survey — completed every five years — focuses on forms of ownership, tenancy and transfer of farmland in Iowa, and characteristics of landowners. The latest survey was conducted in July 2017.

Aging farmland owners is one of several notable trends found in the latest survey, said Zhang and Plastina, both assistant professors of economics.

“An increasing amount of land is cash rented,” Zhang said. “In 1982, leased farmland was equally divided between cash rent and crop share leases in 1982. However, by 2017, 82 percent of leased farmland was under a cash rent arrangement. Two primary reasons for the trend away from crop share and towards cash rent agreements are that landowners have become more dispersed and the number of landowners per tenant has increased. Both these trends make payment in grain and keeping grain differentiated by owner more difficult.”

More farmland is now owned debt free, the researchers said. In 2017, 82 percent of Iowa farmland was debt free, a significant increase from 62 percent in 1982 and 78 percent in 2012. This could be the result of profits earned during good crop years in 2012 and 2014 and profitable livestock production years like 2014.

The survey found that reasons for owning farmland are changing. “The survey found three primary reasons for owning farmland,” Plastina said. “Almost half — 49 percent — is owned for current income, 19 percent is owned for long-term investment and 29 percent is owned for family or sentimental reasons. The remaining reasons include owning a house with an acreage and for recreation purposes.”

Zhang and Plastina said the data show a trend away from sole ownership and joint tenancy towards institutionalized ownership structures, such as trusts and corporations.

“In 2017, trusts accounted for 20 percent of all acres in Iowa, while three decades ago almost no land was owned in that fashion,” Zhang said. “In contrast, the share of farmland owned by sole owners or joint tenancy declined from 80 percent of farmland in 1982 to only half in 2017.”

Taken together, these major trends have significant implications for when and how farmland is intended to be transferred to the next generation, the Iowa State economists said.

The latest survey found willing or giving land to family remained the most popular method of intended land transfer. The second most popular method of intended land transfer was the establishment of trusts.

“These recent trends reveal that only seven percent of Iowa farmland was intended to be sold to a nonfamily member,” said Zhang. “Recent federal and state tax policy changes, especially the reinforcements of stepped-up basis for farmland transition and 1031 exchanges for farmland, will likely continue making the farmland market tight with limited land sales.”

Complete results of the survey are available at http://bit.ly/2017IFOTSReport. A video of the press conference is available at https://vimeo.com/277524155. Zhang and Plastina’s presentation slides are available at http://bit.ly/2017IFOTSPresentation.

Selected highlights from the 2017 survey include:

• Sixty percent of Iowa farmland is owned by people 65 years or older and 35 percent of farmland is owned by people 75 or older.

• Eighty-two percent of Iowa farmland is owned free of debt, which represents a significant increase from 62 percent in 1982 and 78 percent in 2012.

• Forty-seven percent of farmland is owned by women. Thirteen percent is owned by female landowners over the age of 80.

• Fifty-three percent of farmland is leased, with the majority of farmland leases being cash rental arrangements.

• Twenty-nine percent of Iowa farmland primarily is owned for family or sentimental reasons.

• There is a continuous shift away from sole ownership and joint tenancy to trusts and corporations, which accounted for 20 percent and 10 percent of land, respectively, in 2017.

• Over half of Iowa farmland is owned by someone who does not currently farm: 34 percent is owned by owners with no farming experience and 24 percent by retired farmers.

• Eighty percent of land was owned by full-time Iowa residents, seven percent was owned by part-time residents and 13 percent was owned by those who do not live in the state.

• Cover crops are grown on approximately four percent of Iowa farmland. About 20 percent of farmland owners expressed willingness to pay a portion of planting costs to encourage more adoption of conservation practices on the land they own.

• Approximately 30 percent of Iowa’s land uses inputs purchased from a cooperative, markets products through a co-op and uses custom services of agricultural cooperatives.

The Iowa Farmland Ownership and Tenure survey started in the 1940s. Since 1989, Iowa State University has conducted the survey every five years, as mandated by Iowa Code. This survey series represents the first of its kind in the nation and the only consistent information on ownership, tenure and transitions of farmland at the state level.

##

Contacts:
Wendong Zhang; wdzhang@iastate.edu
Alejandro Plastina; plastina@iastate.edu
Nathan Cook; nmcook@iastate.edu
Brian Meyer; bmeyer@iastate.edu

June 15, 2018
ISU Iowa Farmland Ownership Tenure Survey news conference to be held June 28 permalink

A press conference will be held at 10:00 a.m. on Thursday, June 28 to announce the full results of the 2017 Iowa Farmland Ownership Tenure Survey conducted by Iowa State University Extension and Outreach. The conference will take place in the Horton Room of the ISU Alumni Center, located on the ISU campus in Ames.
Wendong Zhang, assistant professor of economics, and Alejandro Plastina, assistant professor of economics, will head the news conference and announce the 2017 findings.
A YouTube livestream of the conference will be available http://bit.ly/ISU2017owner for those unable to attend in person. The full results of the survey will be available on the CARD website at https://www.card.iastate.edu after the conference.
The Iowa Farmland Ownership Tenure Survey is mandated by the State of Iowa and has been conducted every five or ten years since the 1940s. The survey allows policymakers and researchers to track ownership and leasing trends in Iowa farmland.

June 15, 2018
Kling resigns as director of CARD permalink

After serving as the director of CARD for more than seven years, Cathy Kling announced she will resign her position effective May 1.

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After serving as the director of CARD for more than seven years, Cathy Kling announced she will resign her position effective May 1.

Kling is an environmental economist with a distinguished career. She received a B.B.A. in business and economics from the University of Iowa and a Ph.D. in economics from the University of Maryland. She first came to Iowa State as an assistant professor of economics in 1993. In 1999, she became the head of CARD’s Resource and Environmental Policy Division. In 2011 she accepted a position as interim director, and in 2013 she accepted permanent duties as the director of CARD.

Kling’s distinguished career has garnered her numerous awards and accolades. She’s received several awards from professional associations including the Bruce Gardner Memorial Prize for Applied Policy Analysis. In 2013, she was named Charles F. Curtiss Distinguished Professor, a recognition by the Department of Economics for professors whose contributions to their field of study are recognized nationally or internationally. In 2015, she was named to the National Academy of Sciences and named the President’s Chair in Environmental Economics by the university.

Cathy has accepted a position as Professor of Environmental, Energy, and Resource Economics at Cornell University in Ithaca, NY. “Leaving Iowa State was truly a difficult decision,” Kling said. “I have loved living in Ames and being a faculty member at Iowa State. The college and university administration have been very supportive of me personally and professionally,” she added. “Terry and I will both miss Ames and Iowa State.” Kling is married to Terry Alexander, a senior lecturer in the department of economics.

“Iowa State University provided me with an opportunity to work with top-notch faculty and staff, and Terry and I both met and worked with some amazing students,” she said. “Despite that, we are looking forward to new adventures and experiences. I am excited to meet an outstanding set of new colleagues and continue my work in environmental economics.”

Dermot Hayes, professor of economics and finance, has agreed to act as interim director for two months, at which time John Crespi, professor of economics, will assume duties as interim director.

June 13, 2018
Plastina receives two INRC grants permalink

Alejandro Plastina, assistant professor of economics, was named recipient of two grants from the Iowa Nutrient Research Center. The first project, "Monetizing Soil Health: An Innovative Strategy to Drive Greater Adoption of Cover Crops and No-till" was awarded a $103,334 grant and will run from July 1, 2018 to June 30, 2020. Wendong Zhang, assistant professor of economics, is a Co-PI on that project.
The second project, "Improving Cereal Rye Cover Crop BMPs to Increase Adoption of Cover Crops by Iowa Farmers" was awarded a $348,422 grant and will also run from July 1, 2018 to June 30, 2020.

May 22, 2018
Keiser receives DNR grant permalink

Assistant professor of economics Dave Keiser has been named as the recipient of a $14,850 Iowa Department of Natural Resources grant. The objective of the grant is to create a community fishing survey that will help guide the decision making process for the DNR's Community Fishing Program, which started in 2016.
The project will run from May to December of 2018.

May 15, 2018
Zhang receives INRC grant permalink

Assistant professor of economics Wendong Zhang has been announced as the recipient of a $62,780 grant from the Iowa Nutrient Research Council. The goal of the project “Improving the Effectiveness of Conservation Programs through Innovative Reverse Auctions and Sensible Enrollment Restrictions” is to assess the value of reverse auctions and enrollment restrictions in improving the cost-effectiveness of conservation programs offered to Iowa farmers. The project runs from July 7, 2017 to June 30, 2019.

April 26, 2018
Plastina publishes in AJAE permalink

Assistant professor of economics Alejandro Plastina and professor of economics Sergio Lence, also of Iowa State University, were published in the most recent issue of the American Journal of Agricultural Economics. Their article "A Parametric Estimation of Total Factor Productivity and Its Components in U.S. Agriculture" aims to improve understanding of the individual contribution of the components of total factor productivity change to U.S. agricultural productivity.
The article is available online at https://doi.org/10.1093/ajae/aay010.

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Assistant professor of economics Alejandro Plastina and professor of economics Sergio Lence, also of Iowa State University, were published in the most recent issue of the American Journal of Agricultural Economics. Their article "A Parametric Estimation of Total Factor Productivity and Its Components in U.S. Agriculture" aims to improve understanding of the individual contribution of the components of total factor productivity change to U.S. agricultural productivity.
The article is available online at https://doi.org/10.1093/ajae/aay010.

Alejandro Plastina, Sergio H Lence; A Parametric Estimation of Total Factor Productivity and Its Components in U.S. Agriculture, American Journal of Agricultural Economics, aay010, https://doi.org/10.1093/ajae/aay010

April 23, 2018
Schulz wins AAEA extension award permalink

Lee Schulz, assistant professor, has been awarded the prestigious 2018 Distinguished Extension/Outreach Program, Less than 10 Years Award by the Agricultural & Applied Economics Association (AAEA).

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Lee Schulz, assistant professor, has been awarded the prestigious 2018 Distinguished Extension/Outreach Program, Less than 10 Years Award by the Agricultural & Applied Economics Association (AAEA).

Schulz will be honored for his outstanding contributions at the AAEA Awards & Fellows Recognition Ceremony at 6 p.m., Monday, August 6, 2018, in Salon II at the 2018 AAEA Annual Meeting in Washington, DC. All are invited to attend.

April 23, 2018
Kim named recipient of CARD PhD award permalink

Catherine Kling, director of CARD, announced Hyunseok Kim as the recipient of the fifth annual CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy.
To be considered for the award graduate students had to submit a copy of their dissertation and a brief summary of how the topic of research related to one of CARD’s research areas. Graduate students were required to have completed their final oral examination in 2017 to be considered.
Kim’s dissertation is a collection of three papers dealing with agricultural and environmental economic policies and their effects on relevant industries. The first essay of his dissertation deals with the renewable fuel standard in competitive equilibrium, the second examines corn and soybean dynamic supply response in the renewable fuel standard era, and the third studies voluntary agreements for emission reduction. Kim’s dissertation can be read at https://lib.dr.iastate.edu/etd/15550/.
Kim was awarded a $500 prize, and will have his name added to the Dissertation Award winner plaque at CARD.

March 27, 2018
Zhang publishes in AJAE permalink

Assistant professor of Economics Wendong Zhang and Brent Sohngen of the Ohio State University were published in the latest issue of the American Journal of Agricultural Economics. Their article “Do U.S. Anglers Care about Harmful Algal Blooms? A Discrete Choice Experiment of Lake Erie Recreational Anglers” examines harmful algal blooms in Lake Erie and the willingness of anglers to pay for reductions in HABs.

March 14, 2018
Artz, Kimle, Orazem receive USDA-NIFA grant permalink

Assistant professor of economics Georgeanne Artz, senior lecturer Kevin Kimle, and university professor Peter Orazem have been announced as recipients of a $233,355 USDA National Institute of Food and Agriculture (NIFA) grant. Artz is listed as project director and Kimle and Orazem are listed as co-project directors.
The project “Developing a Research-Based Entrepreneurial Curriculum for Rural Firm Entry and Survival” will help improve the understanding of the factors that influence success and failure of rural start-ups. The project is set to run from March 1, 2018 to February 28, 2022.

March 14, 2018
Pouliot, Schulz receive USDA-NIFA grant permalink

Associate professor of economics Sebastian Pouliot and assistant professor of economics Lee Schulz have been announced as recipients of a $361,234 USDA National Institute of Food and Agriculture (NIFA) grant. Pouliot is listed as project director and Schulz is listed as co-project director.
The goal of the project "A Regional Dynamic Model of U.S. Beef Cattle and the Economic Impacts of Movement Restriction in an Event of Foot and Mouth Disease" is to develop a dynamic model to estimate economic impacts of beef cattle sector policies and how they vary over time and across regions. The project is set to run from May 1, 2018 to April 30, 2021.

March 12, 2018
Iowa State University Study Finds Return on Investment a Stumbling Block for Widespread Adoption of Cover Crops permalink

AMES, Iowa — Despite farmers’ positive perceptions about cover crops and the availability of cost-share programs to incentivize their use, an Iowa State University study shows the return on investment may be the biggest hurdle to overcome for widespread adoption of the practice.

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AMES, Iowa — Despite farmers’ positive perceptions about cover crops and the availability of cost-share programs to incentivize their use, an Iowa State University study shows the return on investment may be the biggest hurdle to overcome for widespread adoption of the practice.

In 2017, Iowa fields planted to cover crops grew to 760,000 acres, with less than half receiving federal or state cost share. But with millions of acres of crops, Iowa — and other Midwestern states — has yet to see widespread adoption of cover crops to reduce nitrates in water from crop fields and to conserve and build healthy soils.

“We have a substantial body of research that shows cover crops have positive long-term benefits for water quality, soil health and the environment,” said Alejandro Plastina, assistant professor of economics and extension economist. “Farmers also have positive perceptions about the value of cover crops and can take advantage of cost-share programs that incentivize their use.”

“But it’s likely that the number of acres planted won’t substantially scale up if the practice doesn’t at least break-even in the short term,” he added.

In the study, Plastina and his colleagues calculated annual net returns to cover crop use by analyzing field data collected through focus groups conducted in Iowa, Illinois, and Minnesota; an online survey with responses from 11 states; and a survey mailed to 1,250 farmers in Iowa. Through the survey and focus groups, conducted in partnership with the Practical Farmers of Iowa organization, the researchers compared each farmer’s costs and revenues from fields where they used cover crops and from fields without cover crops.

Working with Plastina were Fernando Miguez, associate professor of agronomy; Fangge Liu and Wendiam Sawadgo, graduate students in economics; Guillermo Marcillo, graduate student in agronomy; and Sarah Carlson, the strategic initiatives director for Practical Farmers of Iowa.

Using the survey results, the researchers developed partial budgets to evaluate changes in net returns resulting from using cover crops in corn or soybean production.

Overall, the researchers found substantial variability in net returns, driven by the costs of planting and terminating cover crops, feed cost savings from grazing cover crops, cost-share program payments, and the difference in yields obtained in fields with and without cover crops.

“Cost-share payments are a critical incentive to support the practice of cover crops,” Plastina said. “But we found that for most farmers, these payments are insufficient to cover all costs associated with cover crops.”

What can help tilt the balance to a more positive net return?

“We found that farmers who grazed livestock on cover crops or harvested them for forage or biomass generated sufficient additional revenue or cost savings to result in overall positive returns, in addition to receiving cost-share payments,” Plastina said. “Promoting the use of cover crops for livestock grazing or forage would help a farmer’s bottom line.”

“Anecdotally, farmers may find ways to reduce costs and increase revenues, but from our research we can affirm that is not what Iowa farmers are typically experiencing,” he said. Also helpful, he added, would be developing improved guidelines to help farmers minimize yield drag on corn and soybeans while containing cover crop planting and termination costs.

“A less sustainable alternative, due to federal and state budget constraints, would be to consider public policies that provide more incentives to adopt cover crops, like more cost-share payments, subsidized seed, discounted crop insurance premiums or tax credits,” Plastina said.

Plastina admitted that partial budgets derived on survey data do not account for long-term soil and water quality benefits because no market value exists for soil health or water quality, and neither does a generally accepted method to value them. But this information still provides valuable insight for farmers and policy-makers.

“The calculated returns are based on real field data, not experimental plots, from row-crop farmers who manage acres with and without cover crops,” he said. “This information can be a useful benchmark for current and potential cover crop adopters. It also can serve as a reference for discussions on future agricultural and conservation policy.”

Plastina is developing a website on the economics of cover crops that will include tools for farmers and others to discern potential costs and benefits. The website will include a downloadable spreadsheet with several budget scenarios for cover crops and a simple web-based decision tool to generate estimated net returns to cover crops.

He also continues to conduct research, including an evaluation of the effectiveness of cost-share programs in promoting adoption of cover crops.

A paper on Plastina’s study will be published by the Journal of the American Society of Farm Managers and Rural Appraisers.

The project was funded by the North Central Region of the Sustainable Agriculture Research and Education (NCR-SARE) and the Center for Agricultural and Rural Development at Iowa State.

About SARE
SARE is a nationwide grants and education program to advance sustainable innovation to American agriculture. NCR-SARE offers competitive grants and educational opportunities for producers, scientists, educators, institutions, organizations and others exploring sustainable agriculture in the Midwest.

About the Center for Agricultural and Rural Development
For 60 years, the Center for Agricultural and Rural Development (CARD) at Iowa State University has conducted innovative public policy and economic research on agricultural, environmental and food issues. CARD combines academic excellence with engagement and anticipatory thinking to inform and benefit society. Center researchers develop and apply economic theory, quantitative methods and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers, the research community, agricultural, food and environmental groups, individual decision-makers and international audiences.

Contacts:
Alejandro Plastina, Economics, 515-294-6160; plastina@iastate.edu
Ed Adcock, Agriculture and Life Sciences Communications Service, 515-294-2314; edadcock@iastate.edu

February 26, 2018
Lade receives energy efficiency study grant permalink

Assistant professor of economics Gabriel Lade, along with associate professor of economics Katrina Jessoe at the University of California, Davis, have been announced as recipients of a $18,794 grant for UC, Davis.
The goal of the project “Energy Savings from Commercial Energy Efficiency Investments” is to understand the reasoning behind low enrollment in commercial energy efficiency programs and the potential energy savings that could be realized by increasing participation. The project is set to run from January 1, 2018 to December 31, 2019.

February 21, 2018
Moschini receives USDA-NIFA grant permalink

GianCarlo Moschini, a professor of economics and Pioneer Endowed Chair in Science and Technology Policy, has been announced as the recipient of a $424,624 USDA National Institute of Food and Agriculture (NIFA) grant. Federico Ciliberto of the University of Virginia and Edward Perry of Kansas State University are listed as Co-Project Directors.
The project “Genetically-engineered traits, cross-licensing and competition in the U.S. corn and soybean industry” will study innovation in the US corn and soybean industry, improve our understanding of genetically engineered trait licensing, and study the welfare implication of genetically engineered trait cross-licensing. The project is funded through February, 2021.

February 21, 2018
Lade publishes in AJAE permalink

CARD researcher Gabriel Lade, along with C-Y Cynthia Lin Lawell of Cornell University and Aaron Smith of the University of California, Davis, were published in the latest issue of the American Journal of Agricultural Economics. Their article “Policy Shocks and Market-Based Regulations: Evidence from the Renewable Fuel Standard” examines the empirical effects of three policy shocks that reduced expected Renewable Fuel Standard mandates in 2013, ultimately decreasing the fuel industries compliance obligation by $7 billion.

February 13, 2018
Iowa State University Economists Outline Benefits of Reducing Nitrates permalink

AMES, Iowa—A study conducted by the Center for Agricultural and Rural Development at Iowa State University explores the potential economic benefits to drinking water, recreation and health through meeting the targets of Iowa’s statewide strategy for reducing nutrients.

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AMES, Iowa—A study conducted by the Center for Agricultural and Rural Development at Iowa State University explores the potential economic benefits to drinking water, recreation and health through meeting the targets of Iowa’s statewide strategy for reducing nutrients.

The study highlights that reducing nitrates and improving water quality in rivers and lakes would increase recreation benefits, and may reduce adverse health outcomes for people exposed to high nitrates in drinking water.

The study was led by Chuan Tang, a postdoctoral researcher, and Gabriel Lade, assistant professor of economics, along with: David Keiser, assistant professor of economics; Catherine Kling, director of the Center for Agricultural and Rural Development and a Charles F. Curtiss Distinguished Professor of Agriculture and Life Sciences in the Department of Economics; Yongjie Ji, an assistant scientist; and Yau-Huo Shr, a postdoctoral researcher.

In 2012, the Iowa Department of Agriculture and Land Stewardship, the Iowa Department of Natural Resources, and Iowa State University College of Agriculture and Life Sciences developed the Iowa Nutrient Reduction Strategy. As part of a broader strategy among the 12 states that border the Mississippi River, the Iowa strategy lays out a framework for reducing nutrient delivery to waterways in Iowa, and ultimately, the Gulf of Mexico.

The strategy’s overall goal is to reduce the amount of total nitrogen and phosphorous leaving the state by 45 percent.

According to the Iowa State researchers, meeting the Nutrient Reduction Strategies targets will lead to substantial benefits to Iowans.

Approximately 90 percent of Iowans rely on public water supplies for drinking water, while the remaining 10 percent rely on private wells. To assess the effectiveness of drinking water nitrate removal and its associated costs, the researchers compiled data from the Iowa groundwater quality monitoring program, the Statewide Rural Well Water Survey, the Environmental Protection Agency and other sources. They also interviewed several public water supply system operators.

The researchers found that, since 2007, more than 90 percent of public water supplies were in compliance with all health-based drinking water standards. However, many utilities dedicate substantial financial resources to removing nitrates.
The study found that 49 public water suppliers serving more than 10 percent of Iowa’s population treat water for nitrates either by blending waters or using nitrate removal equipment. Also, Iowa’s public water supply systems had invested at least $1.8 million in nitrate treatment equipment since 2000.

“Nitrate removal equipment can be cost prohibitive to some small communities, leaving them with few options to meet federal safe drinking water standards,” said Lade. “When we looked at data on private wells, which are not regulated by the EPA as public supplies are, evidence shows that as few as 7 percent and as many as 25 percent may contain unhealthy nitrate levels.”

The researchers also studied benefits to recreation in Iowa. They estimated that improving the quality of Iowa’s lakes by meeting the targets would increase recreational benefits to all Iowans by approximately $30 million per year.

“We also noted that harmful algal blooms linked to excess nutrients have become more of a problem in recent years, which further diminishes recreation values and potentially threatens the health of recreation lovers,” said Lade.

The study compiled much of the available evidence to date on health impacts of nitrates in drinking water. Public health scientists have long documented the health risks to infants drinking water with high nitrates. Other studies suggest that long-term exposure to nitrates in drinking water, even at low levels, may be associated with chronic health effects.

“More research is needed to further study nitrate exposure and health outcomes, and especially in understanding the complex interactions between nitrates and other potential contaminants on human health,” said Lade. “But to the extent nitrates in drinking water have adverse health impacts, we believe there are significant benefits in meeting the Nutrient Reduction Strategy targets in likely reducing Iowans’ exposure and reducing healthcare expenditures.”

The study was funded by the Walton Family Foundation, the Iowa Environmental Council and the U.S. Department of Agriculture’s National Institute for Food and Agriculture.
The report is available online at www.card.iastate.edu/products/publications/texts/water-quality-report.pdf.

###

About the Center for Agricultural and Rural Development
For 60 years, the Center for Agricultural and Rural Development (CARD) at Iowa State University has conducted innovative public policy and economic research on agricultural, environmental and food issues. CARD uniquely combines academic excellence with engagement and anticipatory thinking to inform and benefit society. Center researchers develop and apply economic theory, quantitative methods and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers, the research community, agricultural, food and environmental groups, individual decision-makers and international audiences.

About USDA’s National Institute for Food and Agriculture
USDA’s National Institute for Food and Agriculture (NIFA) invests in and advances innovative and transformative research, education and extension to solve societal challenges and ensure the long-term viability of agriculture. NIFA support for the best and brightest scientists and extension personnel have resulted in user-inspired, groundbreaking discoveries that are combating childhood obesity, improving and sustaining rural economic growth, addressing water availability issues, increasing food production, finding new sources of energy, mitigating climate variability and ensuring food safety.

About the Iowa Environmental Council
The Iowa Environmental Council is an alliance of diverse organizations and individuals working together to protect Iowa's natural environment. Founded in 1995, it is the largest and most comprehensive environmental coalition in the state. Through education, advocacy and coalition building, the Council raises awareness, generates action and creates large-scale change that makes Iowa a better place to live, work and explore.

About the Walton Family Foundation
For nearly three decades, the Walton Family Foundation has continued the philanthropic vision begun by Sam and Helen Walton. Their legacy is more important than ever as the foundation accelerates efforts to improve K-12 education for all students in America, to protect rivers and oceans and the communities they support, and to give back to the region that first gave Sam and Helen Walton opportunity. In 2015, the Walton Family Foundation awarded grants totaling nearly $375 million. Learn more at www.waltonfamilyfoundation.org.

Contacts:
Gabriel Lade, Center for Agricultural and Rural Development, 515-294-5619; gelade@iastate.edu
Nathan Cook, Center for Agricultural and Rural Development, 515-239-3809; nmcook@iastate.edu
Brian Meyer, Agricultural and Life Sciences Communications, 515-294-0706; bmeyer@iastate.edu

January 19, 2018
Dermot Hayes featured in article series permalink

Professor Dermot Hayes was recently interviewed by the editor of AgWeb about his ongoing work in US export policy and the pork industry. Hayes has been studying agricultural economics for more than three decades. In that time, he has proven himself to be an export thought leader and invaluable resource for the US pork industry. The interview has been divided in to several articles covering the importance of NAFTA, the future of pork exports, the US/China export relationship. The articles are available at http://bit.ly/2mV8XwR, http://bit.ly/2EWJkCy, http://bit.ly/2ETVThR, and http://bit.ly/2mROxUB.

January 12, 2018
Lade publishes in AJAE permalink

Gabriel Lade has published an article in the American Journal of Agricultural Economics concerning methods used by the Environmental Protection Agency to project near- and long-term compliance costs under the RFS. The article is available online at https://doi.org/10.1093/ajae/aax092.

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Gabriel Lade has published an article in the American Journal of Agricultural Economics concerning methods used by the Environmental Protection Agency to project near- and long-term compliance costs under the RFS. The article is available online at https://doi.org/10.1093/ajae/aax092.

Lade, G., C-Y Lin Lawell, and A. Smith. 2018. "Designing Climate Policy: Lessons from the Renewable Fuel Standard and the Blend Wall." American Journal of Agricultural Economics aax092.

January 12, 2018
Moschini publishes in AJAE permalink

GianCarlo Moschini has published a new article in the American Journal of Agricultural Economics concerning clean energy mandates and how well they function as incentives for research and development. The article is available online at https://doi.org/10.1093/ajae/aax051.

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GianCarlo Moschini has published a new article in the American Journal of Agricultural Economics concerning clean energy mandates and how well they function as incentives for research and development. The article is available online at https://doi.org/10.1093/ajae/aax051.

Clancy, M.S. and G. Moschini, “Mandates and the Incentive for Environmental Innovation,” American Journal of Agricultural Economics, Volume 100, Issue 1, 1 January 2018, pages 198–219, https://doi.org/10.1093/ajae/aax051.

December 22, 2017
NASEM December Newsletter permalink

The Water Science and Technology Board of the National Academies of Science, Engineering, and Math have released their December issue of Water Currents. CARD Director Cathy Kling is the board chair.

December 14, 2017
Study finds spillover between conserving water and electricity permalink

Associate professor of economics Gabe Lade and Katrina Jessoe, an associate professor of agricultural and resource economics at the University of California-Davis, have released a new working paper that shows a relationship between conserving water and saving on electric bills.

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Associate professor of economics Gabe Lade and Katrina Jessoe, an associate professor of agricultural and resource economics at the University of California-Davis, have released a new working paper that shows a relationship between conserving water and saving on electric bills.

Lade and Jessoe worked with utility companies to send water reports to selected users and monitor changes in utility use. What they found was that as consumers began conserving water, they also began conserving electricity.
“What we found is that the electricity savings we observed far exceed what you would expect to see if it were just coming from reductions in these appliances,” Lade told Radio Iowa in an interview.

December 12, 2017
Iowa Farmland Values Increase After Three Years of Decline permalink

ISU Land Value Survey shows 2.0% increase statewide since 2016

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ISU Land Value Survey shows 2.0% increase statewide since 2016

Ames, Iowa—After having fallen in each of the three previous years, the average value of an acre of farmland in Iowa saw an increase in 2017. The average statewide value of an acre of farmland is now estimated to be $7,326. This represents an increase of 2.0 percent, or $143 per acre, from the 2016 estimate.

Land values were determined by the 2017 Iowa State University Land Value Survey, which was conducted in November by the Center for Agricultural and Rural Development (CARD) at Iowa State University and Iowa State University Extension and Outreach. Results from the survey are consistent with results by the Federal Reserve Bank of Chicago, the Realtors Land Institute, and the US Department of Agriculture. Dr. Wendong Zhang, Assistant Professor of Economics at Iowa State University, led the annual survey.

The $7,326 per acre estimate, and 2.0 percent increase in value, represents a statewide average of low-, medium-, and high-quality farmland. The survey also reports values for each land quality type, crop reporting district (district hereafter), and all 99 counties individually.

Starting in 2004, several factors, including the ethanol boom and historically low interest rates, drove five consecutive years of double-digit growth in average farmland values, culminating in an historic peak of $8,716 per acre by 2013. Average farmland values then began an immediate decline, dropping 8.9 percent, 3.9 percent, and 5.9 percent, in the following three years. Those declines were the first time since the 1980s farm crisis that farmland values had declined three consecutive years.

Dr. Zhang said that limited land supply is the main factor driving this year’s increase in farmland values. “Commodity prices and farm income are still stagnant,” Dr. Zhang said. “I would not consider this a turn of the land market. Given the rising interest rates and stagnant farm income, I would not be surprised to see a continued decline in values in the future. This, to me, is a temporary break in a downward adjustment trajectory.”

Land Values by County

Only four of Iowa’s 99 counties—Fremont, Mills, Montgomery, and Page—reported lower land values this year. Each of those counties reported a decline in value of 0.3 percent. For the fifth year in a row, Scott and Decatur counties reported the highest and lowest farmland values, respectively. Decatur County reported a value per acre of $3,480, a gain of $37, or about 1.1 percent, from last year’s report. Scott County reported a value of $10,497, an increase of $162 per acre, or about 1.6 percent.

Dubuque County reported the largest dollar increase in value with a gain of $335 per acre, and Allamakee and Clayton Counties reported the largest percent increase in values, 4.7 percent. Of the four counties that reported a decrease in value, Mills County had the largest dollar decrease in value, losing about $25 per acre.

Land Values by District

Of the nine crop reporting districts, only the South Central district reported a decrease in average value, with values falling from $4,241 per acre in 2016 to $4,172 in 2017, a loss of 1.6 percent. The Northwest district again showed the highest overall value—$9,388 per acre, up from $9,243 per acre in 2016, a gain of 1.6 percent. The East Central district showed the largest percentage gain in value, 3.8 percent, bringing average value there to $8,218.

Land Value by Quality

Statewide, high-, medium-, and low-quality farmland values increased 2.0 percent, 2.2 percent, and 0.5 percent, respectively. High-quality farmland saw the largest increase in value in the East Central district, 4.2 percent, and the largest decrease in the South Central district, 1.2 percent. Medium-quality farmland increased the most in the Southeast district, 4.2 percent, and the decreased the most in the South Central district, losing 1.2 percent. Low-quality farmland gained the most value in the Northwest district, 3.3 percent, and decreased the most in the Southwest district, where it fell 6.1 percent.

Factors Influencing Land Values

The most common positive factors influencing land prices noted by survey respondents were favorable interest rates, strong crop yields, limited land supply, strong demand, and the availability of cash and credit. The most commonly cited negative influences were lower commodity prices, cash or credit availability, high input prices, weak cash rental rates, an uncertain agricultural future, and strong alternative (stock market, economy).

The ISU land value survey was initiated in 1941, the first in the nation, and is sponsored annually by Iowa State University. The survey is typically conducted every November and the results are released mid-December. Only the state average and the district averages are based directly on the ISU survey data. The county estimates are derived using a procedure that combines the ISU survey results with data from the US Census of Agriculture.

The ISU Land Value Survey is based on reports by agricultural professionals knowledgeable of land market conditions such as appraisers, farm managers, agricultural lenders, and actual land sales. It is intended to provide information on general land value trends, geographical land price relationships, and factors influencing the Iowa land market. The 2017 survey is based on 877 usable responses from 710 agricultural professionals. Sixty-four percent of these 710 respondents answered the survey online.

CARD offers a web portal that includes visualization tools, such as charts and interactive county maps, allowing users to examine land value trends over time at the county, district, and state level.

Contacts:
Wendong Zhang; wdzhang@iastate.edu

December 12, 2017
CARD/CAAS website now live permalink

Researchers at the Center for Agricultural and Rural Development have been working closely with the Chinese Academy of Agricultural Sciences through a joint research project that began in February 2017. That relationship has resulted in the formation of a new research center that focuses on outreach in the areas of trade and agricultural markets, agricultural policy, resource and environmental policy, and science and technology policy. Dermot Hayes, Wendong Zhang, Yongjie Ji, Minghao Li, and visiting scholar Pingping Wang are all involved in research at the center.

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Researchers at the Center for Agricultural and Rural Development have been working closely with the Chinese Academy of Agricultural Sciences through a joint research project that began in February 2017. That relationship has resulted in the formation of a new research center that focuses on outreach in the areas of trade and agricultural markets, agricultural policy, resource and environmental policy, and science and technology policy. Dermot Hayes, Wendong Zhang, Yongjie Ji, Minghao Li, and visiting scholar Pingping Wang are all involved in research at the center.

A new website that provides details of recent activities, publications and presentations, resources, and news relevant to the center is now live at www.card.iastate.edu/china.

November 28, 2017
ISU Land Value Survey News Conference to be held December 12 permalink

A news conference will be held at 10:00 a.m. on Tuesday, December 12 to announce the results of the 2017 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) at Iowa State University and Iowa State University Extension and Outreach. This year’s conference will take place in the Horton Room of the ISU Alumni Center, located on the ISU campus in Ames.

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A news conference will be held at 10:00 a.m. on Tuesday, December 12 to announce the results of the 2017 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) at Iowa State University and Iowa State University Extension and Outreach. This year’s conference will take place in the Horton Room of the ISU Alumni Center, located on the ISU campus in Ames.

For those who can’t attend the conference, a livestream will be available on YouTube.

Wendong Zhang, an assistant professor of economics and farm management specialist, will head the news conference and announce the 2017 findings. Printed materials will be provided at the conference, including Iowa land value data from 1950 to present, current land value data from all 99 counties, and a press release summarizing the 2017 results. Dr. Zhang will make himself available to reporters for follow-up questions or one-on-one interviews immediately following the presentation of results.

The ISU Land Value Survey is currently ongoing, if you are an agricultural professional knowledgeable about the farmland market who hasn’t participated in this year’s survey, you can participate in the ISU Land Value Survey online by December 1. If you have questions regarding the survey please contact Dr. Wendong Zhang at wdzhang@iastate.edu or call 515-294-2536. You can also see the land value trends at the county, district, and state level since 1950 at the interactive Iowa Farmland Value Portal.

An archive of the video and the printed materials available at the conference will be posted on the CARD Land Value page soon after the conference.

Contacts:
Wendong Zhang; wdzhang@iastate.edu

November 3, 2017
CARD researchers working closely with CAAS permalink

Earlier this year, two researchers at CARD, Dermot Hayes and Wendong Zhang, began working closely with the Chinese Academy of Agricultural Sciences through a joint research project. According to Hayes, the idea was brought forth by Steven Leath, who was president of ISU at the time. Hayes said that the memorandum of understanding that established the joint research was finalized in February, and they received the last signatures needed in April.

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Earlier this year, two researchers at CARD, Dermot Hayes and Wendong Zhang, began working closely with the Chinese Academy of Agricultural Sciences through a joint research project. According to Hayes, the idea was brought forth by Steven Leath, who was president of ISU at the time. Hayes said that the memorandum of understanding that established the joint research was finalized in February, and they received the last signatures needed in April.

Currently, the research is focused on studying the impact of corn and ethanol market reforms in China, with the goal of understating the impact on trade and the environment. “CAAS has excellent institutional knowledge and has experts in each commodity area,” Hayes said. Post-doctoral research assistant Minghao Li is the first employee, but Hayes said they are also hosting unpaid visitors from China.

The current agreement with CAAS is for five years.

November 2, 2017
Rudik participates in climate panel permalink

CARD researcher Ivan Rudik was invited to join a panel on climate change issues and solutions on Thursday, Oct. 26. The panel was hosted by Climate Reality Campus Corps and included assistant professor Chaoqun Lu, associate professor J. Gordon Arbuckle, assistant professor Ivan Rudik, and Ames mayoral candidate Victoria Szopinski.

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CARD researcher Ivan Rudik was invited to join a panel on climate change issues and solutions on Thursday, Oct. 26. The panel was hosted by Climate Reality Campus Corps and included assistant professor Chaoqun Lu, associate professor J. Gordon Arbuckle, assistant professor Ivan Rudik, and Ames mayoral candidate Victoria Szopinski.

You can watch a video of the panel on the Climate Reality Campus Corps Facebook page.

October 27, 2017
Balistreri joins CARD as faculty member permalink

Ed Balistreri has joined CARD as an associate professor. Balistreri, who is originally from Denver, Colorado, obtained his undergraduate degree from Arizona State University and has a Master’s and Ph.D. from the University of Colorado-Boulder.
Balistreri said that he was interested in joining CARD because of the tradition of high impact model-based research, sponsored research support, and the support for engaging applied policy research at CARD. Balistreri will be researching integrated assessment of climate policy and impacts as they relate to food and water, and quantitative models of international trade in agricultural products.

October 18, 2017
Depaula joins CARD as faculty member permalink

Gil Depaula has joined CARD as an assistant professor. Depaula received his Ph.D. in Environmental Economics from Yale. He also has a Master’s in Environmental Economics, a Master’s in Environmental Science, a Master’s in Business Administration, and a Bachelor’s in Electrical Engineering.

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Gil Depaula has joined CARD as an assistant professor. Depaula received his Ph.D. in Environmental Economics from Yale. He also has a Master’s in Environmental Economics, a Master’s in Environmental Science, a Master’s in Business Administration, and a Bachelor’s in Electrical Engineering.

Depaula said that climate change policy first interested him in economics. “I first became interested in the economics of climate change, in particular how global warming could affect developing countries and what type of policy or technology solutions are available to mitigate climate change,” he said.
Depaula’s was driven to work for CARD by his interest in investigating practical solutions to developmental and environmental problems in the agricultural sector. “I am interested in studying private and public mechanisms to accelerate the diffusion of agricultural technologies,” he said. “Technological change is an important part of the solution to environmental and development problems and technology policies intersect with environmental and agricultural policies. I also study climate change adaptation and land-use policy in Brazil and intend to contribute to CARD on these research areas.”

Depaula will also be teaching two classes this year, ECON235 and ECON371, as well as serving on two committees and collaborating on development of a new agricultural micro dataset.

October 10, 2017
Farm service agency announces ARC, PLC payments permalink

AMES, Iowa – The official 2016-17 average national commodity prices and the 2016 county yields used in the calculation of Farm Bill payments were released by the Farm Service Agency on Oct. 4. The average corn and soybean prices are $3.36 and $9.47 per bushel, respectively.

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AMES, Iowa – The official 2016-17 average national commodity prices and the 2016 county yields used in the calculation of Farm Bill payments were released by the Farm Service Agency on Oct. 4. The average corn and soybean prices are $3.36 and $9.47 per bushel, respectively.

Some farmers can expect to begin receiving Agriculture Risk Coverage and Price Loss Coverage payments from the Farm Service Agency during the next few weeks. On average, ARC-CO payments (revenue loss coverage at the county level) in Iowa per corn and soybean base acre will amount to $12.47 and $0.41, respectively, and will represent only 37 percent and 3 percent of the payments received in 2016, according to extension economists at Iowa State University.

The geographical distribution of the payments can be visualized online in the Iowa State University Center for Agricultural and Rural Development decision tool “ARC/PLC Payments per Base Acre in Iowa."

“This tool will let farmers know whether they can expect to receive an ARC-CO or PLC payment in the coming weeks, and how much they can expect,” said Alejandro Plastina, assistant professor and extension economist with Iowa State. “This information should aid them in developing a marketing strategy to cover their short-term cash flow needs while targeting a profit for their 2017 crop.”
Although prices were lower in 2016-17 than in 2015-16, corn and soybean yields were, on average, 13.2 and 4.4 bushels higher. Higher yields resulted in lower ARC-CO payment rates. Only 13 counties realized lower corn yields in 2016-17 than in the previous year, and only five counties had lower soybean yields.

All corn base acres enrolled in PLC will receive a payment ranging from $26.40 to $48.47, and averaging $39.27 for the state of Iowa. "Less than 2 percent of all program base acres are enrolled in PLC in Iowa,” said Plastina. “This will be the first time since the inception of the 2014 Farm Bill that PLC payments will be larger than ARC-CO payments in all Iowa counties except for Grundy, Johnson and Mills.”

Soybean base acres enrolled in PLC will not receive a payment in 2017, just like in the previous two years.

Comparing payments across programs over the last three years, Plastina said it is interesting to note:

All Iowa counties have received ARC-CO payments on corn base acres at least once, except the following 13 counties: Appanoose, Clarke, Decatur, Henry, Jefferson, Keokuk, Lucas, Monroe, Ringgold, Van Buren, Warren, Washington and Wayne.
All Iowa counties have received ARC-CO payments on soybean base acres at least once, except the following 14 counties: Adair, Appanoose, Calhoun, Carroll, Cerro Gordo, Davis, Guthrie, Henry, Lucas, Madison, Mitchell, Monroe, Sac and Worth.
All Iowa counties have received some ARC-CO payment except Appanoose, Henry, Lucas and Monroe.
For most counties, the cumulative ARC-CO payments for corn base acres are larger than the cumulative PLC payments for corn base acres, except for the following 26 counties: Appanoose, Calhoun, Clarke, Dallas, Davis, Decatur, Des Moines, Guthrie, Henry, Jasper, Jefferson, Keokuk, Lee, Lucas, Madison, Mahaska, Marion, Monroe, Polk, Ringgold, Union, Van Buren, Wapello, Warren, Washington and Wayne.

“In times of low commodity prices and thin profit margins, cash flowing farm operations becomes increasingly challenging,” said Plastina.

According to a recent Iowa State University Extension and Outreach report, a substantial share of Iowa farms have vulnerable liquidity positions, and solid financial planning will prove critical for the success of farm operations. The report also lists the resources available to Iowa farmers to help them navigate the planning process and cope with stress. This publication, titled “Financial stress in Iowa farms: 2014-2016” is available through the ISU Extension Store.

Alejandro Plastina Iowa State University Extension and Outreach

Contacts:
Alejandro Plastina; plastina@iastate.edu

October 10, 2017
Kling, Keiser receive NRCS grant permalink

Cathy Kling and David Keiser have been announced as recipients of a $150,000 grant from the USDA Natural Resources Conservation Service. Kling and Keiser will work to update meta-analyses of the benefits of water quality improvements, then use those values to examine the benefits of conservation practices supported by the EQIP (Environmental Quality Incentives Program) program. The grant will ultimately result in a report that will be available sometime after the grant ends in July, 2019.

October 9, 2017
Moschini gets lead article in AJAE permalink

An article by GianCarlo Moschini and Harvey Lapan, both of Iowa State University, and Hyunseok Kim of Korea Development Institute, has been featured as the lead article in the American Journal of Agricultural Economics. The article examines alternative biofuel policies using a multi-market equilibrium model. The article is currently available online at https://doi.org/10.1093/ajae/aax041.

October 6, 2017
Wang joins CARD as visiting scholar permalink

Pingping Wang has joined CARD as a one-year visiting scholar.

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Pingping Wang has joined CARD as a one-year visiting scholar.

Wang holds a bachelor’s in E-Commerce from Qingdao Agricultural University in Qingdao, China, a Master’s degree in National Economics from Ocean University of China, and is currently a PhD candidate in Agricultural Economics Management at China Agricultural University.

Wang says that learning about microeconomics in college is what first interested her in studying economics, and that, as she’s learned more, she’s become more interested in the subject. Wang said her interest in spatial econometrics, rural sustainability development, and agricultural economics and environmental resources is what interested her in studying at CARD. “I find a lot of professors at CARD have the same interests as me. In addition, CARD plays an important role in the research field,” she said.

While at CARD, Wang will be working closely with Dermot Hayes, focusing on the efficiency of chemical fertilizer use in agricultural production.

Wang will be at CARD for one year. When she returns to China she will work to finish her PhD at China Agricultural University, after which she hopes to teach at the university level or engage in postdoctoral research.

 

September 22, 2017
Shr, Tang join CARD as postdoctoral research assistants permalink

Yau-Huo (Jimmy) Shr and Chuan Tang have both joined CARD as postdoctoral research associates.

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Yau-Huo (Jimmy) Shr and Chuan Tang have both joined CARD as postdoctoral research associates.

Shr holds both a B.S. and M.S. in Agricultural Economics from National Taiwan University and a Ph.D. in Agricultural, Environmental, and Regional Economics form Pennsylvania State University. Shr says he was initially interested in economics because it teaches him about tradeoffs.

Shr’s research focuses on non-market valuation and environmental attribute preferences associated with water and forest resources. Shr said he was excited to take a position at CARD because it would provide him with the opportunity to work with top-notch scholars at the heart of American agriculture. Shr will be working with Drs. Kling and Keiser, focusing on projects that value nutrient reduction program benefits and conservation practices in Iowa.

Tang holds his Ph.D. in Environmental Science and Engineering from Clarkson University in New York. Tang says he began studying economics because he was interested in how economics can help us understand the interaction of humans and their environment.

Tang says he chose to join CARD because it provides a vibrant research community of economists and researchers. Tang will be working with Drs. Kling and Keiser investigating the social-economic impacts of environmental pollution and mitigation and conducting research on human health issues in terms of drinking water pollution.

August 14, 2017
CARD ag tour provides up-close view of farming permalink


more photos at bottom of article
Approximately 25 employees of the USDA Economic Research Service (ERS) joined researchers, faculty, and staff from CARD on a four-day agricultural tour in Iowa, August 2–5.

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more photos at bottom of article
Approximately 25 employees of the USDA Economic Research Service (ERS) joined researchers, faculty, and staff from CARD on a four-day agricultural tour in Iowa, August 2–5.

CARD Director Cathy Kling said that economists from ERS typically hold an agriculture tour every year following the Agricultural and Applied Economics Association (AAEA) annual meeting, and that she felt it would provide a good opportunity for ERS employees to see behind-the-scenes of Iowa agriculture. “I thought that by having the ERS staff tour Iowa, we could develop closer connections between ISU’s economics faculty, postdocs, and grad students and ERS staff,” Kling said. “Also, I know some CARD grad students, postdocs, and new faculty have not seen much Iowa agriculture up close, that’s an important element as well,” she added.

Kling coordinated with Richard Nehring, who has worked in the ERS Resource and Rural Economics Division for over 20 years, to plan the tour stops. Nehring said he has done eleven such agriculture tours in the past. “I missed a family trip to Italy,” Nehring joked, “so I decided to do farm tours instead.”

En route to Ames from the AAEA annual meeting in Chicago, the tour stopped at the Keltner family’s corn and soybean farm in Pearl City, Illinois. Later in the day, they stopped at Neal Smith Wildlife Refuge, an 8,600+ acre wildlife refuge located just outside Prairie City, Iowa, to learn about Iowa’s native prairie habitat and current restoration efforts.

The second day of the tour started off at the office of Seaboard Foods in Ames. Seaboard Foods is part of the multinational agribusiness conglomerate Seaboard Corporation. In the US, Seaboard Foods is primarily a multi-stage pork producer with operations in six states (Oklahoma, Missouri, Kansas, Colorado, Iowa, and Texas). In Iowa, their operations are mainly focused on hog farming and a feed mill located outside Iowa Falls.

Seaboard employees Kevin Sanders and Steve Huegerich detailed the company’s Iowa operations, and spoke about some of the challenges the company, and Iowa’s pork industry, are facing. Huegerich, noted that in the pork industry trade agreements (such as NAFTA) are often more important than the effects of the farm bill. “Mexico is the largest growth market, and if they started importing pork form somewhere else, it could be devastating to Iowa pork,” he said.

Typically, corn, soybeans, and pork are the elements of Iowa’s agriculture industry that receive the most attention. The next tour stop, however, provided an in-depth look at an egg production facility, an often-overlooked, but vital part of Iowa’s agriculture. Iowa is the nation’s largest egg producer, producing more eggs than the second- and third-largest states combined. Joe Scanlon, the owner/operator of The Good Eggs LLC, guided the tour and discussed the ins and outs of his 1.2 million hen facility. Scanlon discussed challenges of biosecurity, running a 365-day-a-year operation, and how the rise in demand for cage-free eggs has slowly started driving other options out of the market.

At the farm of Al Kadolph, near Hubbard, the group got to see different runoff control measures and Agricultural Research Service (ARS) experiment stations. Kadolph, who serves on the Hardin County Conservation Board and as president of the Southfork Watershed Alliance, said that he gets his conservation mindset from his own father, “It’s about be willing to try the programs and see if they work,” he said. Kadolph is currently using grass buffers in several areas around his corn and soybean fields, and has set aside areas on his farm for ARS experiments.

Jeff Cook, an ARS engineering technician, spoke to the tour about some of the ARS experiments being conducted on Kadolph’s farm, including weather monitoring equipment and filter socks. Filter socks, long mesh tubes filled with wood chips, charcoal, and other materials, are used to help nitrogen from leeching out of crop fields into nearby water sources. Cook said that every farmer has to make a decision for themselves about what type of pollution control to implement. “It all comes down to dollars and cents—what works and what doesn’t,” he said.

Friday’s portion of the tour started off at the AgPartners, LLC feed grinding facility in Ellsworth, before heading to the Handsaker farm in Hardin County. At the Handsaker farm the group learned about drainage tile in farms, and was given the opportunity to see some farming implements, such as row-planters and harvesters.

Kling said that she felt the tour was successful. “I have already heard of two new research projects between ISU faculty and ERS staff, so I would say that’s a big success.”

June 27, 2017
Lence, Hayes article awarded permalink

Professors Sergio Lence and Dermot Hayes (and co-authors Julian M. Alston; John Stephen C. Smith) have won the ‘Outstanding ERAE Journal Article’ award for 2016 for their paper “Intellectual property in plant breeding:comparing different levels and forms of protection” (first article of the first issue of 2016) by the editorial board of the European Review of Agricultural Economics (the journal of the European Association of Agricultural Economists).

June 9, 2017
USDA publishes leafy greens report permalink

CARD researcher Helen Jensen was involved in producing an Economic Information Bulletin (EIB-173) for the USDA ERS, which is now available online. The bulletin provides information about firms voluntarily participating in the California Leafy Greens Marketing Agreement and the costs associated with that program that producers can expect to incur under the Food Safety Modernization Act. The report is available at https://www.ers.usda.gov/publications/pub-details/?pubid=83770

June 2, 2017
Jensen named to National Academies Committee Science Breakthroughs 2030 permalink

Center for Agricultural and Rural Development researcher Helen Jensen is among those named to the National Academies of Sciences, Engineering, and Medicine committee Science Breakthroughs 2030. The committee is part of an initiative to identify scientific opportunities in food and agriculture in the next decade and beyond.

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Center for Agricultural and Rural Development researcher Helen Jensen is among those named to the National Academies of Sciences, Engineering, and Medicine committee Science Breakthroughs 2030. The committee is part of an initiative to identify scientific opportunities in food and agriculture in the next decade and beyond.

According to Jensen, the committee will identify future directions and strategies to foster innovative research in the food and agriculture system. “The committee will consider, broadly, the major challenges, opportunities for advancement, and knowledge gaps,” she said. Of her selection to the committee, she said “Perspectives from various disciplines is critical to this process. I bring the disciplinary focus of economics and am able to provide a broad perspective on the food and agricultural sector, including related consumptions and nutritional implications.”

The committee, Jensen said, has a somewhat shorter than normal timeline, holding its first meeting this month, and providing a final report to be released in March, 2018.

"Farmers are facing more problems at a faster pace than ever before," said Thomas Grumbly, President of the Supporters of Agricultural Research (SoAR) Foundation, which helped conceive and fund Science Breakthroughs 2030. "This is the perfect set of leaders to produce a research agenda to address the challenges of today and tomorrow."

A public launch reception for Science Breakthroughs 2030 is scheduled for 5:30 PM on Wednesday, June 14 at the National Academies of Science headquarters in Washington, DC. For more information on the Science Breakthroughs 2030 study and to sign up for updates, go to: http://nas-sites.org/dels/studies/agricultural-science-breakthroughs

Committee members include:

  • John D. Floros, Co-Chair- Dean of the College of Agriculture and Director of Research and Extension, Kansas State University

  • Susan R. Wessler, Co-Chair- Distinguished Professor of Genetics and Howard Hughes Medical Institute Professor, University of California, Riverside; Home Secretary, National Academy of Sciences

  • David B. Allison- Distinguished Professor and Quetelet Endowed Professor in the Department of Nutrition Sciences School of Health Professions, University of Alabama at Birmingham

  • Corrie C. Brown- Professor of Anatomic Pathology in the College of Veterinary Medicine, University of Georgia

  • Lisa Goddard- Director of the International Research Institute for Climate and Society and Adjunct Associate Professor in the Department of Earth and Environmental Sciences, Columbia University

  • Mary Lou Guerinot- Ronald and Deborah Harris Professor in the Sciences in the Department of Biological Sciences, Dartmouth College

  • Janet Jansson- Chief Scientist for Biology in the Earth and Biological Sciences Directorate, Pacific Northwest National Laboratory

  • Lee-Ann Jaykus- William Neal Reynolds Distinguished Professor in the Department of Food, Bioprocessing, and Nutrition Sciences, North Carolina State University

  • Helen H. Jensen- Professor of Economics in the Center for Agricultural and Rural Development, Iowa State University

  • Rajiv Khosla-Monfort- Professor of Precision Agriculture in the Department of Soil and Crop Sciences, Colorado State University

  • Robin Lougee- Research Lead for Consumer Products and Agriculture, IBM Research, Yorktown Heights, New York

  • Gregory V. Lowry- Walter J. Blenko, Sr. Professor in the Department of Civil and Environmental Engineering, Carnegie Mellon University

  • Alison L. Van Eenennaam- Cooperative Extension Specialist, Animal Genomics and Biotechnology in the Department of Animal Science, University of California, Davis

Contacts:
Helen Jensen; hhjensen@iastate.edu

May 31, 2017
Artz, Jacobs, Boessen publication receives award permalink

Georgeanne Artz, assistant professor, Keri Jacobs, assistant professor, and Christian Boessen, senior lecturer, received notification from the North American Colleges and Teachers of Agriculture (NACTA) that their recent publication in the NACTA Journal is being awarded the E.B. Knight Journal Award, which is chosen annually for the top article published in the journal.

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Georgeanne Artz, assistant professor, Keri Jacobs, assistant professor, and Christian Boessen, senior lecturer, received notification from the North American Colleges and Teachers of Agriculture (NACTA) that their recent publication in the NACTA Journal is being awarded the E.B. Knight Journal Award, which is chosen annually for the top article published in the journal.

The award was established by the NACTA Executive Committee after E.B. Knight’s death in 1965, in recognition of his outstanding contributions to NACTA. Knight received his graduate degrees from the University of Missouri. He taught 1939-1949 at the University of Tennessee and 1949-1964 at the Tennessee Polytechnic Institute. Knight was a charter member of NACTA, served as its first president 1955-56, was editor of the journal from 1958-1960, and author of numerous articles published in it.

The award will be made at the June 2017 Annual Conference at Purdue University.

The paper: Artz, G., K. Jacobs, and C. Boessen. 2016. “The Whole is Greater than the Sum: An Empirical Analysis of the Effect of Team Based Learning on Student Achievement.” NACTA Journal 60(4): 405-411.

May 16, 2017
Soil Management and Land Value Conference Celebrates 90th Anniversary permalink

AMES, Iowa – The 90th annual Soil Management and Land Value Conference was held on Wednesday, May 17 at the Scheman Building at Iowa State University (ISU), and is sponsored by the ISU College of Agriculture and Life Sciences and ISU Extension and Outreach. The conference is designed for anyone who has an interest in agriculture land, land management, and land valuation. This is the longest running conference at ISU in both research and extension. Jim Frevert, a retired farm manager from Hertz Farm Management, is the longest attendee with 53 years of participation.

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AMES, Iowa – The 90th annual Soil Management and Land Value Conference was held on Wednesday, May 17 at the Scheman Building at Iowa State University (ISU), and is sponsored by the ISU College of Agriculture and Life Sciences and ISU Extension and Outreach. The conference is designed for anyone who has an interest in agriculture land, land management, and land valuation. This is the longest running conference at ISU in both research and extension. Jim Frevert, a retired farm manager from Hertz Farm Management, is the longest attendee with 53 years of participation.

“As a new faculty member, I am very humbled and honored to carry on the torch to host the 90th Soil Management and Land Value Conference, the longest running conference at ISU, “said Wendong Zhang, Assistant Professor of Economics, Department of Economics, Iowa State University, and chair of the conference planning committee. “This, to me, is an excellent example of the public-private partnership between ISU and the agriculture industry started 90 years ago!”

This year, the Soil Management and Land Value Conference will look at several current issues in rural property management, appraisal and sale/purchase. “As a professional farm manager, rural appraiser and farm broker for 48 years with Hertz Farm Management, I attended most of the Soil Management and Land Valuation conferences during my career,” said Loyd Brown, long-time conference attendee. “The conference topics were always current, pertinent, helpful and delivered by excellent speakers. The meetings also provided opportunity to network with other farm managers, appraisers, realtors, ag finance professionals and others throughout Iowa. Hopefully, the conference will continue another 90 years and beyond!”

This year’s conference will feature topics on agricultural trade and economy; agricultural financial conditions; farm downturns and populations changes and its impact on rural communities; as well as a panel discussion on the historical focus of the Soil Management and Land Value Conference as it celebrates its 90th anniversary. For more information about the conference, please visit www.register.extension.iastate.edu.

For more information contact:

Julie Kieffer
Manager
Iowa State University Extension and Outreach
Conference Planning and Management
515.294.1775
kiefferj@iastate.edu

Crystal Davis
Communications Manager
Ames Convention & Visitors Bureau
515.232.4032
crystald@amescvb.com

Iowa State University Extension and Outreach Conference Planning and Management

Contacts:
Wendong Zhang; wdzhang@iastate.edu
Julie Kieffer; kiefferj@iastate.edu
Crystal Davis; crystald@amescvb.com

May 5, 2017
Kling gives graduate college commencement speech permalink

CARD Director Cathy Kling was invited to give the commencement speech at the Spring 2017 Graduate College Ceremony on May 4. "Academic principles are needed now more than ever; and you can, and should, be the purveyor of those principles," Kling said. Her full speech can be heard on YouTube.

April 21, 2017
Ramírez wins CARD PhD Dissertation Award permalink

Catherine Kling, director of CARD, today announced María Jimena González Ramírez as the recipient of the fourth annual CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy.

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Catherine Kling, director of CARD, today announced María Jimena González Ramírez as the recipient of the fourth annual CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy.

To be considered for the award graduate students had to submit a copy of their dissertation and a brief summary of how the topic of research related to one of CARD’s research areas. Graduate students were required to have completed their final oral examination in 2016 to be considered.

Ramírez’s dissertation is a collection of three papers dealing with environmental economics and intra-household decision making. The first chapter of her dissertation deals with the creation or modification of environmental markets for pollutants that have complementarities and how this can affect the design and results of pollution policies, the second examines promotion of cover crops as a pollution abatement technology, and the third studies the spouses’ differences in risk preferences.

Ramírez was awarded a $500 prize, and will have her name added to the Dissertation Award winner plaque at CARD.

April 17, 2017
CARD hosts sustainability symposium permalink

CARD hosted the College of Agriculture and Life Sciences Sustainability Symposium on Thursday, April 13. The symposium was designed to bring together representatives of the college’s departments and research centers to discuss sustainable agriculture efforts, including identifying opportunities for research, teaching, and extension.

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CARD hosted the College of Agriculture and Life Sciences Sustainability Symposium on Thursday, April 13. The symposium was designed to bring together representatives of the college’s departments and research centers to discuss sustainable agriculture efforts, including identifying opportunities for research, teaching, and extension.

Approximately 150 experts from across the college attended the symposium, which featured several panel sessions and a poster session with 75 posters detailing research in the college. Catherine Woteki, a former CALS dean and USDA undersecretary, was a featured speaker and focused on the federal government’s sustainability efforts.

An archive of available symposium posters and certain presentations are now online.

Photos

College of Agriculture and Life Sciences dean Wendy Wintersteen delivers open remarks at the symposium
College of Agriculture and Life Sciences dean Wendy Wintersteen delivers open remarks at the symposium

Catherine Woteki discusses agriculture sustainability at the federal level
Catherine Woteki discusses agriculture sustainability at the federal level

Research posters on display at the CALS Sustainability Symposium
Research posters on display at the CALS Sustainability Symposium
Research posters on display at the CALS Sustainability Symposium

(left to right) Jason Ross, Kevin Keener, Cathy Kling, and Patrick Schnable participate in a panel of center directors and extension/outreach
(left to right) Jason Ross, Kevin Keener, Cathy Kling, and Patrick Schnable participate in a panel of center directors and extension/outreach

April 12, 2017
Hayes named Charles F. Curtiss Distinguished Professor permalink

Dermot Hayes, professor of economics and finance and Pioneer Hi-Bred International Chair in Agribusiness has been named a Charles F. Curtiss Distinguished Professor in Agriculture and Life Sciences.

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Dermot Hayes, professor of economics and finance and Pioneer Hi-Bred International Chair in Agribusiness has been named a Charles F. Curtiss Distinguished Professor in Agriculture and Life Sciences.

Dermot has been with CARD since 1990, and in that time he has distinguished himself with awards at the college and university levels. He received a “Publication of Enduring Quality” from the Agricultural and Applied Economics Association in 2006, and was named a fellow of that association in 2007 as well.

The distinction of this special rank has been given in gratitude for Hayes’ many contributions to the university and will be part of his university title throughout his tenure at Iowa State and also part of his emeritus title upon his retirement from the university.

Dr. Hayes will be formally recognized for his significant achievement at the University Awards Ceremony later this spring.

April 6, 2017
Iowa State Ag Econ/Policy ranks #3 worldwide permalink

Iowa State University features in the Top 10 out of 26,000+ degree-granting institutions of higher education worldwide in 2 subjects. The inaugural subjects ranking by the Center for World University Rankings (CWUR), publisher of the largest academic ranking of global universities was released on Monday, April 3rd 2017 (at cwur.org/2017/subjects.php).

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Iowa State University features in the Top 10 out of 26,000+ degree-granting institutions of higher education worldwide in 2 subjects. The inaugural subjects ranking by the Center for World University Rankings (CWUR), publisher of the largest academic ranking of global universities was released on Monday, April 3rd 2017 (at cwur.org/2017/subjects.php).

Iowa State University ranked #3 worldwide in Agricultural Economics & Policy with a score of 97.43, and #8 in Agriculture, Dairy & Animal Science (score: 94.32).

Overall, this ranks Iowa State University #166 among global institutions with the most Top-10 placements. This is an outstanding achievement.

Methodology: The CWUR Rankings by Subject 2017 highlights the world’s elite universities in the sciences and the social sciences, based on the number of research articles in top-tier journals. Data is obtained from Clarivate Analytics (previously the Intellectual Property and Science business of Thomson Reuters). More information about the methodology is available at: cwur.org/methodology/subject-rankings.php

About the Center for World University Rankings: In addition to providing consultation for governments and universities, the Center for World University Rankings provides authoritative global university rankings, which are trusted by students, academics, university administrators, and government officials from around the world.

January 9, 2017
NASEM committee recommends WIC changes permalink

Two Iowa State University professors, Helen Jensen and Alicia Carriquiry, were involved in a National Academies of Sciences, Engineering, and Medicine committee, which issued a congressionally mandated report proposing updates to the Supplemental Nutrition Program for Women, Infants, and Children (WIC). Jensen is a professor of economics and the head of the Food and Nutrition Policy Division at CARD. Carriquiry is a Distinguished Professor of statistics and former post-doctoral research assistant at CARD.

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Two Iowa State University professors, Helen Jensen and Alicia Carriquiry, were involved in a National Academies of Sciences, Engineering, and Medicine committee, which issued a congressionally mandated report proposing updates to the Supplemental Nutrition Program for Women, Infants, and Children (WIC). Jensen is a professor of economics and the head of the Food and Nutrition Policy Division at CARD. Carriquiry is a Distinguished Professor of statistics and former post-doctoral research assistant at CARD.

The committee’s report is intended to provide guidelines that would help better align the WIC program with the Dietary Guidelines for Americans and promote and support breast feeding. They recommended changes such as increasing the amount of whole grains, fruits, vegetables, and other foods, while reducing the amount of milk, juice, peanut butter, and other various foods. To help encourage and support breast feeding, the committee proposed allowing women to receive the formula needed to support any level of breast feeding. The committee’s recommendations will save approximately $220 million from 2018 to 2022.

WIC is one of the largest nutrition education programs in the US, serving approximately 8 million women, infants, and children in 2015 at a total cost of about $6.2 billion. The program is obligated to provide foods that align with the Dietary Guidelines for Americans. The guidelines are revised every five years, and an evaluation of the WIC food packages is congressionally mandated every 10 years.

For more information about the committee’s report, see the NASEM press release at http://bit.ly/2iW4C9w.

December 13, 2016
Farmland Values Show Historic Third Year of Decline permalink

AMES, Iowa – Average Iowa farmland value has shown a decline for the third year in a row—the first time this has happened since the 1980s farm crisis—and is now estimated to be $7,183 per acre. The statewide per acre value declined $450, or 5.9 percent, since November, 2015. Farmland values hit a historic high in 2013, but have steadily declined since then. The statewide average value for an acre of farmland is now about 17.5 percent lower than 2013 values.

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AMES, Iowa – Average Iowa farmland value has shown a decline for the third year in a row—the first time this has happened since the 1980s farm crisis—and is now estimated to be $7,183 per acre. The statewide per acre value declined $450, or 5.9 percent, since November, 2015. Farmland values hit a historic high in 2013, but have steadily declined since then. The statewide average value for an acre of farmland is now about 17.5 percent lower than 2013 values.

Land values were determined by the 2016 Iowa State University Land Value Survey, which was conducted in November by the Center for Agricultural and Rural Development (CARD) at Iowa State University and Iowa State University Extension and Outreach. Results from the survey are consistent with results by the Federal Reserve Bank of Chicago, the Realtors Land Institute, and the US Department of Agriculture. Dr. Wendong Zhang, Assistant Professor of Economics at Iowa State University, led the annual survey.

The $7,183 per acre, and 5.9 percent drop in value, represents a statewide average of low-, medium-, and high-quality farmland. The survey does also report values for each land quality type, crop reporting district (district hereafter), and all 99 counties individually.

Average farmland values hit a historic peak of $8,716 per acre in 2013, but declined 8.9 percent in 2014, 3.9 percent in 2015, and have now fallen an additional 5.9 percent. “The golden era of phenomenal, yet abnormal, growth in farm income and land values, as we saw from 2006 to 2013, is already behind us. The land market is going through an orderly adjustment while the US agricultural sector, a competitive industry, is trying to adjust to the old normal of zero industry-wise net profits,” said Dr. Zhang. “For a pessimist, there are reasons to worry, especially for landowners and/or producers who are over-leveraged. For an optimist, this decline is still modest, and the probability of a replay of the 1980s farm crisis is low.” Zhang said the likelihood of another farm crisis is low due to steady farm income accumulation before the downturn, a stronger government safety net, and an overall lower debt level in the agriculture sector.

Starting in 2004, several factors, including the ethanol boom and historically low interest rates, drove five consecutive years of double-digit growth in average farmland values. By 2008, average values were almost 70 percent higher than 2004, and by 2013, average values were over 230 percent higher than 2004 values. While they have declined three years in a row now, average values are still 173 percent higher than 2004.

The decline didn’t come as a surprise for some—in November 2015, over 75 percent of ISU Land Value Survey respondents thought land values in their territory would continue to decline in 2016. The majority predicted the decline would be either less than 5 percent or between 5 and 10 percent, which is consistent with the 5.9% decrease reported by the 2016 ISU survey.

“Looking ahead, land values might continue to adjust downwards in the next year or two,” said Dr. Zhang. “This is consistent with the stagnant corn and soybean futures prices and potential rise in interest rates; however, many respondents to the ISU survey are hoping for the market to rebound in 3 or 4 years.”

Land Values by County

All 99 counties reported a drop in average land values this year. For the fourth year in a row, Scott and Decatur counties reported the highest and lowest farmland values, respectively. Decatur County reported a value per acre of $3,443, a loss of $71, or about 2 percent, from last year’s report. Scott County reported a value of $10,335, a decrease of $583 per acre, or about 5.3 percent, close to the statewide average decline of 5.9 percent.

Plymouth and Sioux Counties reported the largest dollar decrease in values, $747 per acre, and Monona County reported the largest percent decline in values, 8.4 percent. Decatur County reported the smallest dollar decrease, $70 per acre, and Decatur, Appanoose, Wayne, and Lucas Counties all reported the smallest percent decrease in average values, at 2 percent.

Land Values by District

All nine districts reported a loss in average land values in 2016. The highest average land values were reported in the Northwest district, at $9,243 per acre. The lowest average values were reported in the South Central district, at $4,241 per acre.

The largest district-wide decrease in value was in West Central Iowa, which reported a drop of 8.7 percent, bringing farmland values there down to $7,358 per acre. The smallest decrease was reported in the Southeast district, 2.6 percent, bringing values there to $6716 per acre.

Values by Land Quality

Low-quality land in the Southwest and South Central districts were the only areas to show an increase in average values, reporting gains of 2.9 and 5.2 percent, respectively. Dr. Zhang says that the increase is due to strong recreational demand and high Conservation Reserve Program payments.

Statewide, low-quality land declined the least, $169 per acre, or 3.5 percent. Medium-quality land decline $422 per acre, or 5.9 percent. High-quality land statewide declined the most per acre, losing $606, or 6.5 percent, of its value. The statewide averages per acre for low-, medium-, and high-quality land are now $4,665, $6,705, and $8,758, respectively.

Factors Influencing Land Values

The most common positive factors influencing land prices noted by survey respondents were low interest rates, strong crop yields, limited land supply, and strong demand. The most commonly cited negative influences were lower commodity prices, high input prices, livestock losses, weak cash rental rates, and a weakening global economy and stock market returns.

The ISU land value survey was initiated in 1941, the first in the nation, and is sponsored annually by Iowa State University. The survey is typically conducted every November while the results are released every mid-December. Only the state average and the district averages are based directly on the ISU survey data. The county estimates are derived using a procedure that combines the ISU survey results with data from the US Census of Agriculture.

The ISU Land Value Survey is based on reports by agricultural professionals knowledgeable of land market conditions such as appraisers, farm managers, agricultural lenders, and actual land sales. It is intended to provide information on general land value trends, geographical land price relationships, and factors influencing the Iowa land market. The 2016 survey is based on 518 usable responses providing 711 county land values estimates. Forty-eight percent of respondents answered the survey online.

CARD offers a new web portal that includes visualization tools, such as charts and interactive county maps, allowing users to examine land value trends over time at the county, district, and state level.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu

November 15, 2016
ISU Land Value Survey News Conference to be held December 13 permalink

A news conference will be held at 10:30 a.m. on Tuesday, December 13 to announce the results of the 2016 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) at Iowa State University and Iowa State University Extension and Outreach. This year’s conference will take place in the Horton Room of the ISU Alumni Center, located on the ISU campus in Ames.

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A news conference will be held at 10:30 a.m. on Tuesday, December 13 to announce the results of the 2016 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) at Iowa State University and Iowa State University Extension and Outreach. This year’s conference will take place in the Horton Room of the ISU Alumni Center, located on the ISU campus in Ames.

Wendong Zhang, an assistant professor of economics and farm management specialist, will head the news conference and announce the 2016 findings. Printed materials will be provided at the conference, including Iowa land value data from 1950 to present, current land value data from all 99 counties, and a press release summarizing the 2016 results. Dr. Zhang will make himself available to reporters for follow-up questions or one-on-one interviews immediately following the presentation of results.

The ISU Land Value Survey is currently ongoing, if you are an agricultural professional knowledgeable about the farmland market who hasn’t participated in this year’s survey, you can participate in the ISU Land Value Survey online. If you have questions regarding the survey please contact Dr. Wendong Zhang at wdzhang@iastate.edu or call 515-294-2536. You can also see the land value trends at the county, district, and state level since 1950 at the new, interactive Iowa Farmland Value Portal.

For those who can’t attend the conference, a livestream will be available on YouTube. During the livestream you may submit questions to our Twitter account, @CARD_ISU, using the hashtag #ISUlandvalue. Questions will be addressed following Dr. Zhang’s presentation.

An archive of the video and the printed materials available at the conference will be posted on the CARD homepage soon after the conference.

The ISU Alumni Center is adjacent to Hilton Coliseum and Fisher Theater. Free parking is available on the east side of the Alumni Center.

Contacts:
Wendong Zhang, 515-294-2536; wdzhang@iastate.edu
Catherine L. Kling; ckling@iastate.edu

October 28, 2016
Zhang to administer 2016 land value survey permalink

The Center for Agricultural and Rural Development is preparing for the annual Iowa Land Value Survey. This year's survey will be administered by Dr. Wendong Zhang, who took over as head of the survey when Dr. Mike Duffy retired in 2015. The paper version of the survey will be distributed starting November 1. The survey will close on December 2, and the results will be announced shortly thereafter.

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The Center for Agricultural and Rural Development is preparing for the annual Iowa Land Value Survey. This year's survey will be administered by Dr. Wendong Zhang, who took over as head of the survey when Dr. Mike Duffy retired in 2015. The paper version of the survey will be distributed starting November 1. The survey will close on December 2, and the results will be announced shortly thereafter.

The survey has been conducted every year since 1941. ISU Extension and Outreach and CARD began administering the survey in 2014. The 2015 survey showed a statewide average farmland value of $7,633 per acre, which represented a drop in value for the second consecutive year after hitting a historic peak of $8,716 in 2013.

October 21, 2016
Carriquiry named to National Academy of Medicine permalink

Alicia Carriquiry, an Iowa State University Distinguished Professor of statistics, has been elected to the National Academy of Medicine. She is being recognized for her work in advancing the understanding of nutrition and dietary assessment, and was among the 70 new members and nine international members the academy announced Monday.

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Alicia Carriquiry, an Iowa State University Distinguished Professor of statistics, has been elected to the National Academy of Medicine. She is being recognized for her work in advancing the understanding of nutrition and dietary assessment, and was among the 70 new members and nine international members the academy announced Monday.

Carriquiry began her post-doctoral academic career as a research assistant at the Center for Agricultural and Rural Development. Over the years, she has continued to collaborate with CARD researchers on CARD series papers and journal articles.

James Roth, a Distinguished Professor of veterinary microbiology and preventive medicine, was also selected for induction this year. Roth and Carriquiry join ISU’s two previous professors named to the NAM, Catherine Woteki (1998) and Diane Birt (2015).

October 21, 2016
Iowa State University professors named to environmental protection agency scientific advisory committee permalink

Two Iowa State University professors have been appointed to serve on the Agricultural Science Committee of the Environmental Protection Agency’s Science Advisory Board.

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Two Iowa State University professors have been appointed to serve on the Agricultural Science Committee of the Environmental Protection Agency’s Science Advisory Board.

Catherine Kling, Charles F. Curtiss Distinguished Professor of economics, and Matthew Helmers, professor of agricultural and biosystems engineering, were nominated to the committee and agreed to serve starting Oct. 1.

The committee was created through the Agricultural Act of 2014 to provide advice to the EPA’s Science Advisory Board (SAB) on matters referred to the board, in consultation with the U.S. Secretary of Agriculture, may have a significant impact on farming and agriculture-related industries. The committee sought individuals with expertise in agriculture-related sciences, including economics; chemistry; engineering; agronomy; aquaculture science; biofuels engineering; biotechnology; crop and animal science; environmental chemistry; forestry; and hydrology.

Kling is director of the Center for Agricultural and Rural Development at Iowa State. She was elected to the National Academy of Sciences in 2015.

She earned a bachelor's degree in business and economics from the University of Iowa and a doctorate in economics from the University of Maryland. Her research has contributed to the theory and practice of nonmarket valuation, the design of environmental programs to cost effectively achieve environmental improvement in water quality, air quality, greenhouse gas emissions and other ecosystem services.

Helmers serves as the Dean’s Professor in the College of Agriculture and Life Sciences. He earned a bachelor’s degree in civil engineering from Iowa State, a master’s degree in civil engineering from Virginia Tech and a doctorate in agricultural and biological systems engineering from the University of Nebraska-Lincoln.

Helmers studies the impacts of land, nutrient and water management practices on water quality and water flow from agricultural lands.

October 18, 2016
Study shows whole grains lead to wholesale changes in WIC permalink

Real-life impact shown in program that services more than half of U.S. infants

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Real-life impact shown in program that services more than half of U.S. infants

In the United States more than half of all infants and nearly one-third of children ages one to five participate in USDA’s WIC program (The Special Supplemental Nutrition Program for Women, Infants, and Children).

That’s one reason why the USDA made changes to the program in 2009 to provide foods linked to healthy diets and to include more whole grain food options in the packages families receive. This came on recommendations of a committee of the National Academies’ Institute of Medicine, which included research by AAEA member Helen Jensen of Iowa State University.

“Whole grains have health benefits so if we make changes in the (WIC) foods offered we can increase the amount of whole grains compared to refined grains,” Jensen said. “We want to build healthy eating habits for the long term.”

So what happened after the changes? That’s the focus of a paper by Jensen and her co-authors “Did Revisions to the WIC Program Affect Household Expenditures on Whole Grains?.” The paper was selected to appear in the journal Applied Economic Perspectives and Policy.

“One of the objectives was to introduce people to healthier foods but not turn off participation in the program,” Jensen said. “The opportunity to affect the lives of children and women was apparent.”

And there are more changes than just what participating families received from the program. This nationwide study highlights some of the program effects on purchases in the retail market. To learn more about the study, what could happen next, or to set up an interview with Dr. Jensen, please contact Jay Saunders in the AAEA Business Office.

ABOUT AAEA: Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading professional association for agricultural and applied economists, with 2,500 members in more than 20 countries. Members of the AAEA work in academic or government institutions as well as in industry and not-for-profit organizations, and engage in a variety of research, teaching, and outreach activities in the areas of agriculture, the environment, food, health, and international development. The AAEA publishes two journals, the American Journal of Agricultural Economics and Applied Economic Perspectives & Policy, as well as the online magazine Choices. To learn more, visit www.aaea.org.

September 20, 2016
Gonzalez-Ramirez accepts position at Manhattan College permalink

Jimena Gonzalez-Ramirez, a graduate research assistant at CARD, recently accepted an assistant professor position at Manhattan College in New York. Ramirez is a native of Colombia who attended Loras College in Dubuque, Iowa while obtaining her undergraduate degree, then came to ISU as a PhD candidate. “I chose ISU since it has a well-recognized and very organized program. Since my undergraduate college is not far away from Ames, I was able to visit the department and to talk to different professors and graduate students. After a nice campus visit, I accepted ISU’s admission offer,” she said.

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Jimena Gonzalez-Ramirez, a graduate research assistant at CARD, recently accepted an assistant professor position at Manhattan College in New York. Ramirez is a native of Colombia who attended Loras College in Dubuque, Iowa while obtaining her undergraduate degree, then came to ISU as a PhD candidate. “I chose ISU since it has a well-recognized and very organized program. Since my undergraduate college is not far away from Ames, I was able to visit the department and to talk to different professors and graduate students. After a nice campus visit, I accepted ISU’s admission offer,” she said.

While attending ISU, Ramirez acted as a research assistant for Cathy Kling. “My participation in the Resource and Environmental Policy group improved my research skills as I was able to present my research and to learn from other research projects,” she said. “Thanks to CARD’s generous support, I was able to attend several academic conferences, improving my research and presentation skills. My time at CARD prepared me for a competitive academic job market and taught me important lessons that will be useful as an assistant professor.”

During her time at CARD, Ramirez focused her dissertation on both environmental economics and intra-household decisions, studying different environmental policy instruments for pollutants that are complements, the effectiveness of a cost-share program that promotes the usage of cover crops, differences in risk preferences between husbands and wives within households, a spouse’s relative influence on joint decisions and the way these affect educational and medical expenditure decisions.

Ramirez was awarded her PhD in July, and said she is looking forward to the next chapter in her life. “Beyond continuing my research agenda, I am very excited to teach an environmental economics course for the first time!” She said.

September 20, 2016
CARD researchers to study water quality benefits with EPA grant permalink

Researchers at the Center for Agricultural and Rural Development have secured an $800,000 grant from the US Environmental Protection Agency that will allow them to study the benefits of water quality improvements.

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Researchers at the Center for Agricultural and Rural Development have secured an $800,000 grant from the US Environmental Protection Agency that will allow them to study the benefits of water quality improvements.

“The EPA is interested in understanding how people value water quality improvements related to things other than direct use,” Catherine Kling, director of CARD, said. “We know that people value water quality improvements when it increases fish stocks and catch rates of desirable recreational fishing, or provides cleaner, clearer water for swimming and boating. What is less clear is the value to people of having improved water quality even if they do not directly use the water,” Kling said.

The study will take about three years to complete, and ties into larger water quality issues that have become prevalent in Iowa in the last few years. “The reason for this study and the Des Moines water works lawsuit is that both are parts of the larger issue of water pollution stemming from nutrient enrichment (largely from agricultural land use in Iowa),” Kling said. “The Des Moines Water Works lawsuit is concerned with who pays to clean up the water to assure that our drinking water meets minimum standards. Our work looks at the benefits of those water improvements that extend beyond the drinking component: the value from living near cleaner rivers and streams.”

While the study won’t have any direct impact on water quality, it will help to improve future projects and proposals that will impact water quality. “Our work should help inform these efforts and hopefully guide future policy toward the appropriate balance between water quality improvement, productive agricultural landscapes, and other human uses of the landscape.” Kling said.

“Clean water is a cornerstone of a healthy community. Many communities face challenging decisions about investing in the protection of water resources,” said Thomas Burke, EPA science advisory and deputy assistant administrator of EPA’s Office of Research and Development. “These grants will help measure the costs and benefits of improving water quality, an important step toward protecting the environment and human health.”

The study also includes David Keiser at CARD, Jacques Finlay of the University of Minnesota, Daniel Phaneuf at the University of Wisconsin-Madison, Christian Vossler at the University of Tennessee, and Jinhua Zhao at Michigan State University.

September 20, 2016
Kling, Valcu published in AJAE permalink

CARD researchers Cathy Kling and Adriana Valcu, along with Sergey Rabotyagov of the University of Washington, have published an article in the American Journal of Agricultural Economics. The article, “Resilient Provision of Ecosystem Services from Agricultural Landscapes”, focuses on assessing the tradeoffs and synergies involved in reducing agriculture-generated nutrient loads with different levels of resilience.

September 13, 2016
Moschini, Perry co-author Science Advances article on GE crops and pesticide use permalink

Researchers at the Center for Agricultural and Rural Development (CARD) at Iowa State University have co-authored an article detailing the changes in herbicide and insecticide use among farmers growing genetically engineered (GE) crops.

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Researchers at the Center for Agricultural and Rural Development (CARD) at Iowa State University have co-authored an article detailing the changes in herbicide and insecticide use among farmers growing genetically engineered (GE) crops.

The researchers found that farmers growing GE crops decreased their use of insecticides but increased their use of herbicides.

The article, which was co-authored by GianCarlo Moschini, professor of economics and the Pioneer Chair in Science and Technology Policy, and Edward Perry, a former graduate research assistant at CARD, has just been released in the August 31 issue of Science Advances, a journal of the American Association for the Advancement of Science. David Hennessy of Michigan State University and Federico Ciliberto of the University of Virginia are also co-authors of the article.

GE crops have accounted for more than 80% of planted soybean and maize in the United States since 2008. However, the effects of planting GE crops on pesticide use is not well understood.

In order to shed light on the subject, Moschini, Perry and colleagues assembled farm-level data from more than 5,000 maize and soybean farmers per year, from 1998 to 2011, focusing on directly observed pesticide application rates. “We differ in term of the data we use and the methodology we apply,” Moschini said. “The statistical fixed-effects model that we can estimate, based on these extensive data, permits a useful comparison between the choices of farmers who adopt GE varieties and farmers who plant non-GE varieties, while accounting for many possible confounding effects.”

The data led the researchers to the conclusion that GE crops are affecting herbicide and pesticide application rates, with adopters of GE insect-resistant maize using 11.2% less insecticide than nonadopters. They also found that adopters of GE glyphosate-tolerant soybeans used 28% more herbicide than nonadopters.

“Overall, we confirm the view that GE maize adoption has contributed to reducing insecticide use. Like other studies, we also find that GE varieties have massively increased glyphosate use, while reducing the use of other herbicides,” Moschini said. “But our study is the first to document that these impacts have changed significantly over time. For both soybeans and maize, GE adopters have been using increasingly more herbicide than nonadopters.”

Why are GE adopters using more herbicide than nonadopters? Moschini said there was a lot of factors at work. “One consideration is that glyphosate has become progressively cheaper relative to other herbicides; but possibly the most significant explanation, particularly in the latter part of the period we investigate, is that weeds resistant to glyphosate became more prevalent, and this development has had a greater impact on GE adopters,” Moschini said. “A useful piece of evidence is the number of plots with GE varieties that used exclusively glyphosate. We find that this fraction has declined significantly in recent years. Also, we find that the quantity of herbicides other than glyphosate used by GE adopters significantly increased, relative to the use by nonadopters, over time,” he said.

June 10, 2016
CARD researchers to join EPA study permalink

Cathy Kling, director of CARD, and David Keiser, assistant professor of economics, will act as two of the principal investigators on a US EPA study examining the value of water quality improvements in Midwestern ecosystems. The project study was awarded an $800,000 grant from the EPA and will include researchers from Iowa State University, Michigan State University, the University of Minnesota, the University of Wisconsin-Madison, and the University of Tennessee-Knoxville.

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Cathy Kling, director of CARD, and David Keiser, assistant professor of economics, will act as two of the principal investigators on a US EPA study examining the value of water quality improvements in Midwestern ecosystems. The project study was awarded an $800,000 grant from the EPA and will include researchers from Iowa State University, Michigan State University, the University of Minnesota, the University of Wisconsin-Madison, and the University of Tennessee-Knoxville.

The three-year study will help to gain insight into how the public understands and values the attainment of water quality criteria and help support efforts to improve the design of federal and state water quality programs.

Water quality issues related to human activities have become more high-profile in the last few years—in 2014 a second “dead zone” was discovered in the Gulf of Mexico, and in August of that same year 400,000 residents of Toledo, Ohio were advised not to drink water originating from Lake Erie due to a toxic algal bloom. Locally, in 2015 excessive nitrate levels in the Des Moines River have led to the Des Moines Water Works bringing a lawsuit against three northwest Iowa counties. The lawsuit, which alleges drainage districts are acting as conduits for nitrates to flow into a Des Moines River tributary, is expected to go to trial in August of 2016.

“Unfortunately, human activities can have an adverse effect on water resources. It’s important to understand the costs and benefits of federal and local water quality programs and make sure those programs are effectively designed and executed. I’m excited to have CARD be part of a project that will have an impact not only on national, but local water quality issues,” Kling said.

May 25, 2016
Gonzalez-Ramirez delivers Loras College commencement speech permalink

CARD graduate student Jimena Gonzalez-Ramirez was invited to be the featured commencement speaker at the 2016 graduation ceremony at Loras College in Dubuque, Iowa, her alma mater. Jimena graduated from Loras College in 2009 with a bachelor’s degree in economics and mathematics before coming to Iowa State as a graduate student. She will defend her dissertation this summer before starting a job as assistant professor in the department of economics at Manhattan College in New York. Jimena’s introduction starts around the 39:00 minute mark, and her speech starts at about the 43:00 minute mark. http://bit.ly/1U8I7aR (YouTube). Jimena at the 2016 Loras College graduation: http://bit.ly/1WjqETm (Facebook).

May 20, 2016
89th annual Soil Management and Land Valuation Conference a success permalink

The 89th Annual Iowa State University Soil Management and Land Valuation Conference, the longest-running conference at Iowa State, was held on May 18, 2016 at the Scheman Building. This year’s conference was organized by assistant professor of economics, Wendong Zhang.

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The 89th Annual Iowa State University Soil Management and Land Valuation Conference, the longest-running conference at Iowa State, was held on May 18, 2016 at the Scheman Building. This year’s conference was organized by assistant professor of economics, Wendong Zhang.

Over 280 farm managers, rural appraisers, real estate brokers, ag lenders and others attended this year’s conference, with 191 attendees participating in the survey of land and commodity price predictions, which projects the Iowa farmland market will continue to soften and commodity prices will be stagnant.

The conference featured discussions on six topics, with ISU Extension and Outreach researchers having a strong presence throughout the event. The overall theme was issues with implications for soil management and land valuation. The topics of conversation for the conference included:

  • Evaluating Hunting Leases: Implications for recreational land values. Presented by Tom Steen, the Hunting Lease Network, Farmers National Company
  • Global Economic Outlook: What does a slowing China and a strong U.S. dollar mean for U.S. agriculture? Presented by Nathan Kauffman, assistant vice president, Omaha Branch executive and economist, Federal Reserve Bank of Kansas City
  • Panel Discussion on Current and Future Cash Rents in Iowa by three agricultural lenders and farm managers. Moderated by Alejandro Plastina, assistant professor and extension economist at Iowa State University. Panelists included Jim Knuth from Farm Credit Service of America, Scott Neff from Wells Fargo Bank and Mike Downey from Hertz Farm Management
  • Excessive Spring Rain Will Be More Frequent (except this year): Weather tools to manage it. Presented by Chris Anderson, assistant director Climate Science Group at Iowa State University
  • Soil Fertility Management with Tight Crop Production Margins. Presented by John Sawyer, professor and extension specialist in soil fertility and nutrient management at Iowa State University
  • Cover Crops, Wetlands and Conservation Drainage: Why we need to adopt and how many acres are needed. Presented by Matt Helmers, professor and extension agricultural engineer in agricultural and biosystems engineering at Iowa State University
2016 Estimated Land and Commodity Prices

May 4, 2016
Kling named to President’s Chair in Environmental Economics permalink

photo of Catherine Kling with President Steven LeathPresident Steven Leath has named Catherine Kling to the President’s Chair in Environmental Economics for her exemplary performance and contributions to natural resources and environmental economics.

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photo of Catherine Kling with President Steven LeathPresident Steven Leath has named Catherine Kling to the President’s Chair in Environmental Economics for her exemplary performance and contributions to natural resources and environmental economics.

Kling was honored on April 15 at a medallion ceremony during the ISU Foundation Governors luncheon. Kling is a Charles F. Curtiss Distinguished Professor in Agriculture and Life Sciences, professor of economics, and director of the Center for Agricultural and Rural Development. Last year, she became Iowa State’s first female faculty member to be elected to the National Academy of Sciences.

The President’s Chair in Environmental Economics was established with support from the Howard T. Lanan and Evelyn M. Lanan Endowment for Excellence. Howard Lanan was a 1938 Iowa State graduate in agriculture; the Lanans farmed for more than 60 years in Illinois.

April 25, 2016
Kling to sign NAS Registry of Membership April 30 permalink

On Saturday April 30, CARD Director Cathy Kling will join the newest members of the National Academy of Sciences by signing her name in the “Registry of Membership.” Signing of the registry is part of the NAS annual meeting taking place from April 30 to May 2 in Washington, D.C. The registry signing will take place at 7 p.m. CST, and can be live streamed at http://bit.ly/NASsigning. Kling is the eleventh ISU professor overall, and first female from the university, to receive this prestigious recognition!

April 15, 2016
Soil Management and Land Valuation Conference registration open permalink

Registration is now open for the 89th annual Soil Management and Land Valuation Conference, the oldest and longest-running conference at ISU. The conference is sponsored by the College of Agriculture and Life Sciences and ISU Extension and Outreach.

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Registration is now open for the 89th annual Soil Management and Land Valuation Conference, the oldest and longest-running conference at ISU. The conference is sponsored by the College of Agriculture and Life Sciences and ISU Extension and Outreach.

This year's conference will be held from 8:30 a.m. to 4:30 p.m. on Wednesday, May 18 in the Scheman Building on the ISU campus. The conference will cover the following topics:

  • Global Economic Outlook: What does a slowing China and a strong U.S. dollar mean for U.S. agriculture? Presented by Nathan Kauffman, assistant vice president, Omaha Branch executive and economist, Federal Reserve Bank of Kansas City
  • Panel Discussion on Current and Future Cash Rents in Iowa by three agricultural lenders and farm managers. Moderated by Alejandro Plastina, assistant professor and extension economist at Iowa State University
  • Excessive Spring Rain Will Be More Frequent (except this year): Weather tools to manage it. Presented by Chris Anderson, assistant director Climate Science Group at Iowa State University
  • Soil Fertility Management with Tight Crop Production Margins. Presented by John Sawyer, professor and extension specialist in soil fertility and nutrient management at Iowa State University
  • Cover Crops, Wetlands and Conservation Drainage: Why we need to adopt and how many acres are needed.Presented by Matt Helmers, professor and extension agricultural engineer in agricultural and biosystems engineering at Iowa State University
  • Evaluating Hunting Leases: Implications for recreational land values. Presented by Tom Steen, the Hunting Lease Network, Farmers National Company

Conference registration can be completed online at http://register.extension.iastate.edu/smlv/register-now.

April 12, 2016
CARD study examines Iowa water quality initiative permalink

Drs. Dermot Hayes, Cathy Kling, and John Lawrence have authored a study examining Governor Brandstad’s $4.7 billion dollar water quality initiative. Brandstad’s plan calls for reallocating some funds from the SAVE sales tax over the next 32 years to address water quality issues related to farm run-off. The ISU sponsored study found that the initiative would generate $691 million in economic activity and create 1,150 full time jobs and 2,800 jobs overall. Watch the video here: http://bit.ly/1q78NRY. The full report can be read here: https://www.card.iastate.edu/products/publications/synopsis/?p=1245.

April 1, 2016
CARD announces two PhD Dissertation Award winners permalink

Catherine Kling, director of CARD, today announced Matthew Clancy and Younjun Kim as the recipients of the third annual CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy.

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Catherine Kling, director of CARD, today announced Matthew Clancy and Younjun Kim as the recipients of the third annual CARD Award for Best PhD Dissertation in Agricultural, Environmental, and Energy Economics Policy.

To be considered for the award graduate students had to submit a copy of their dissertation and a brief summary of how the topic of research related to one of CARD's research areas. Graduate students were required to have completed their final oral examination in 2015 to be considered.

Kim’s dissertation is a collection of four papers, the first two papers focus on regional economic development, particularly, the first focuses on whether broadband improves rural economies, and the second focuses on the existence of agglomeration economies in rural areas. Kim’s third and fourth essays focus on choices under risk. One essay examines risk elicitation methods with a multiple price list format, and the second studies pre-play learning and inconsistent preference ranking between choice and pricing for lotteries.

Clancy’s dissertation uses 8.3 million US patents to create a novel dataset to present an original model of knowledge production and test several predictions of the model. Specifically, Clancy examines how new useful combinations of technology affect the number of patents filed in that particular technology class and how time affects the probability of using a particular combination of technologies.

Both students were awarded a $500 prize, and will have their names added to the Dissertation Award winners plaque at CARD.

The full text of both abstracts is included below.

Essays on firm location decisions, regional development and choices under risk

Younjun Kim

My dissertation consists of four papers. The first two papers study regional economic development. In particular, they focus on broadband Internet and agglomeration economies in rural areas. One paper tests whether broadband improves rural economy and find positive broadband effects on new firm location choices. The other paper explores whether agglomeration economies operate even in rural areas and find that agglomeration economies are important for new firm location choices and commuting decisions. Those findings from the two papers have useful implications to regional economic development policies.

My two other papers study choices under risk. One paper focuses on risk elicitation methods with a multiple price list format, which is widely used in the literature. The paper compares subjects’ choices between the elicitation method and one question selected from the method. The paper finds significant differences in the comparison and show that the differences occur due to reference-dependent preferences. Those results suggest that the elicitation method is not reliable because loss aversion influences elicited risk aversion. The other paper tests whether pre-play learning removes inconsistent preference rankings between choice and pricing for lotteries. Inconsistent preference rankings have been studied last four decades because standard economic theory cannot explain inconsistent preference rankings. Pre-play learning is simple ex-ante lottery learning, where subjects observe playing lotteries before they make decisions. The paper finds that pre-play learning removes inconsistent preference rankings, which suggests that pre-play learning makes preference rankings consistent between choice and pricing as predicted in standard economic theory. Those results from the two papers have meaningful implications to the literature.

Combinatorial innovation, evidence from patent data, and mandated innovation

Matthew Clancy

This paper presents an original model of knowledge production, and tests several predictions of the model using a novel dataset built from 8.3 million US patents. In this model, new ideas are built by combining pre-existing technological building blocks into new combinations. The outcome of research is always stochastic, but firms are Bayesians who learn which sets of technological building blocks tend to yield useful discoveries and which do not. Consistent with this model’s prediction, I show that the number of patents granted in a particular technology class increases in the years after new useful combinations of technology first appear in the class. Moreover, after new combinations first appear, I show subsequent patents are more likely to draw on the same combination of technology, consistent with firms learning the technologies can be fruitfully combined. Patents are also more likely to combine technologies that have already been combined with many of the same (other) technologies, even if they have never been combined with each other. Finally, I show that the probability of using a combination declines over time, and that the total number of patents granted in a technology class also declines over time, if there are not new connections between technologies continuously discovered. This is consistent with the model’s predictions about firms using up all the useful ideas that can be built from a fixed set of technological building blocks.

December 14, 2015
Farmland values fall for second consecutive year permalink

Full results from the Iowa Land Value Survey, including interactive maps and charts are available at https://www.card.iastate.edu/farmland/.

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Full results from the Iowa Land Value Survey, including interactive maps and charts are available at https://www.card.iastate.edu/farmland/.

Ames, Iowa – Average Iowa farmland value is now estimated to be $7,633 per acre—having dropped in value for the second consecutive year. Per acre value declined $310, or 3.9 percent, since last year’s survey. Farmland values have now fallen almost 13 percent from the historically high 2013 values.

Land values were determined by the 2015 Iowa Land Value Survey, which was conducted in November by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. Results from the survey are similar to results by the US Department of Agriculture, the Federal Reserve Bank of Chicago, and the Realtors Land Institute.

The $7,633 per acre, and 3.9 percent drop in value, represents the state as a whole, although values are also determined by crop reporting districts (district hereafter) and each of Iowa’s 99 counties individually according to low-, medium-, and high-quality farmland ratings.

Farmland values hit a historic peak of $8,716 per acre in 2013, but declined 8.9 percent to $7,943 the following year. The drop in value this year is smaller than that of last year, but now marks the third time values have fallen since 2009. The 3.9 percent decline may seem less than what many people speculated, but according to Dr. Wendong Zhang, Assistant Professor of Economics at Iowa State University who led the survey this year, this is not out of line due to a mix of factors, including a lot of cash in hand for many farmers, market expectation of this decline early on, robust livestock returns, and strong recreational demand. Despite decreasing again, farmland values are still more than twice the reported values from 10 years ago, and almost 14 percent higher than 2011 values.

For the third year in a row, Scott and Decatur counties reported the highest and lowest farmland values, respectively. Decatur County reported a value per acre of $3,514, a drop of $73, or about 2 percent, from last year’s report. Scott County reported the highest value at $10,918 per acre, however, values there declined about $700 per acre, higher than this year’s statewide average, and just over 6 percent from last year.

The largest district-wide decrease in farmland value was North Central Iowa, which reported a drop of 6.7 percent, bringing farmland values there down to $7,962 per acre. Mitchell and Floyd Counties, in the Northeast portion of the state, reported the largest percentage drops in value at 8.6 percent; and Black Hawk County, also in the Northeast district reported the largest dollar decrease with a loss of $784 per acre. The district with the highest overall farmland value is Northwest Iowa at $9,685 per acre, and the lowest is South Central at $4,397 per acre.

The value of all qualities of farmland fell across the state, with high-quality farmland losing 5 percent ($490 per acre) of its value, medium-quality land falling 3.2 percent ($232 per acre), and low-quality farmland falling 0.9 percent ($44 per acre). Statewide averages for high-, medium-, and low-quality farmland are now $9,364, $7,127, and $4,834 per acre, respectively.

The only district to show an increase in values as a whole was Northwest Iowa, which reported values 0.7 percent higher than last year. Clayton and Allamakee Counties, located in the Northeastern portion of the state, reported the largest percentage increases with a 2.9 percent gain.

Of respondents that listed positive and/or negative factors influencing farmland values, low interest rates and high yields were the most commonly cited positive factors and lower commodity prices were the most frequently cited negative factor. High input prices, an uncertain agricultural future, and cash/credit availability were also cited as negative factors.

With stagnant commodity prices, declining farm income forecast, a slowing Chinese economy, and a potential increase in interest rates, the Iowa farmland market appears to have peaked for the foreseeable future, and seems to continue drifting sideways to slightly lower. However, as Dr. Zhang put it, “It will most likely be an orderly adjustment as opposed to a sudden bubble burst. Most farmers will be able to weather the storm as the market prices find a new equilibrium, but farmers and land owners who bet on the high commodity prices lasting and aggressively expanded or borrowed heavily will face significant problems in the months ahead.”

In the 2015 survey, over 75 percent of respondents thought land values in their territory would continue to decline next year. The majority predicted the decline would be either less than 5 percent or between 5 and 10 percent. The magnitude of the predicted drop depends on the location—areas relying heavily on corn and soybeans could see a bigger decrease.

The survey was initiated in 1941 and is sponsored annually by Iowa State University. Only the state average and the district averages are based directly on the ISU survey data. The county estimates are derived using a procedure that combines the ISU survey results with data from the US Census of Agriculture.

The Iowa Land Value Survey is based on reports by agricultural professionals knowledgeable of land market conditions such as appraisers, farm managers, agricultural lenders, and actual sales. It is intended to provide information on general land value trends, geographical land price relationships, and factors influencing the Iowa land market. The 2015 survey is based on 514 usable responses providing 708 county land values estimates. The survey was made available online for the first time this year, and 55 percent of participants chose this method as opposed to the traditional paper survey.

A new web-portal has been developed at https://www.card.iastate.edu/farmland/ to pool various sources of Iowa farmland values and offer visualization tools like charts and interactive county maps.

Contacts:
Wendong Zhang; wdzhang@iastate.edu

October 19, 2015
CARD hosts National Science Foundation workshop permalink

Coinciding with World Food Prize week, the Center for Agricultural and Rural Development (CARD) at Iowa State University on Monday hosted a National Science Foundation workshop examining the models used for sustainable food, energy, and water (FEW) systems. The two-day event, part of a $75 million grant program administered by the National Science Foundation, brought together about 80 economists, statisticians, and scientists of various backgrounds to discuss the key scientific, engineering, an data challenges associated with understanding the FEW systems.

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Coinciding with World Food Prize week, the Center for Agricultural and Rural Development (CARD) at Iowa State University on Monday hosted a National Science Foundation workshop examining the models used for sustainable food, energy, and water (FEW) systems. The two-day event, part of a $75 million grant program administered by the National Science Foundation, brought together about 80 economists, statisticians, and scientists of various backgrounds to discuss the key scientific, engineering, an data challenges associated with understanding the FEW systems.

By 2050, the United Nations predicts, the Earth’s population will increase to 9.6 billion, vastly increasing the demand for both food and energy. As the use of biofuel technologies has risen, agricultural production has taken on a dual role of fulfilling demands from both the energy and food sectors. Food and energy production are integral to sustainable land and water use, and therefore sound scientific research and policy decisions are required to assure the usability, stability, and sustainability of both sectors.

“I think our food, energy, and water systems, which are all becoming more integrated and the problems around them are becoming more complex, are going to be one of our greatest challenges in the next 35 years,” Iowa State University President Steven Leath said told workshop participants in his opening remarks. “Through collaboration, we can get a much more meaningful impact in these complex areas of society.”

The NSF hopes to use the grant program to foster innovative approaches to understanding FEW systems and studying technologies that can create resource efficiencies, enhance reuse, and reduce waste. “Understanding interactions between humans and the environment represents a grand scientific challenge, especially in the case of the food-water-energy nexus,” Roger Wakimoto, NSF assistant director for Geosciences, said in a press release. “This scientific challenge also encompasses critical policy and management questions for our future, making it a national priority.”

Participants at the workshop in Ames listened to presentations and held panel discussions on land-use modeling, crop modeling, and water quality modeling, among other related topics. A small group of participants will now start working on a white paper, which could be used to form requests for research proposals in the future.

“The workshop was very successful,” said CARD Director Catherine Kling. “We brought together researchers from universities across the country, as well as representatives from several government agencies—the Department of Energy, USDA, EPA, NSF, and USGS—and had some very in-depth discussions about the methods used to model the FEW systems, the gaps in knowledge we know to exist, and how to reconcile the models we use to study the FEW systems. To be given the opportunity to work on such a challenging and important problem is very exciting.”

August 13, 2015
Moschini selected as 2015 WAEA Fellow permalink

CARD researcher GianCarlo Moschini was selected as a Western Agricultural Economics Association Fellow at the joint WAEA/AAEA meeting in San Francisco, on July 28, 2015. The award grants recognition to WAEA members making contributions to the fields of agricultural, applied, resource, and/or environmental economics.

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CARD researcher GianCarlo Moschini was selected as a Western Agricultural Economics Association Fellow at the joint WAEA/AAEA meeting in San Francisco, on July 28, 2015. The award grants recognition to WAEA members making contributions to the fields of agricultural, applied, resource, and/or environmental economics.

Moschini is a professor of economics and holds the Pioneer Endowed Chair in Science and Technology policy. His current research focuses on the economics of research and development activities and the impact of new technologies affecting the agricultural and food sectors.

July 20, 2015
CARD receives funding for NSF workshop permalink

The Center for Agricultural and Rural Development (CARD) today announced the award of a grant from the National Science Foundation (NSF) that will be used to host a two-day workshop. The workshop will bring together leading scientific minds from the fields of economics, agronomy, and hydrology, as well as several engineering disciplines, for the purpose of discussing the challenges of our increasingly complex food, energy, and water system.

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The Center for Agricultural and Rural Development (CARD) today announced the award of a grant from the National Science Foundation (NSF) that will be used to host a two-day workshop. The workshop will bring together leading scientific minds from the fields of economics, agronomy, and hydrology, as well as several engineering disciplines, for the purpose of discussing the challenges of our increasingly complex food, energy, and water system.

As population increases, so too does the demand for both food and energy. With the introduction of new biofuel technologies and policies, agricultural production now has a dual role in fulfilling demands from both the energy and food sectors. However, food and energy production are integral to sustainable land and water use, and sound scientific research and policy decisions are required to assure the stability and sustainability of both sectors.

Workshop participants will discuss the key scientific, engineering, and data challenges associated with modelling and understanding the food, energy, and water system. The workshop will result in the production of a white paper, which will help guide future agricultural, environmental, and energy policy decisions.

“We’re honored to be given the opportunity to bring together well-known scientists from various disciplines for this workshop,” said Catherine Kling, director of CARD, “and working closely with NSF to produce a white paper that will help influence and guide future research and policy decisions is very exciting.”

June 17, 2015
Jeon recipient of second CARD PhD Dissertation Award permalink

Catherine Kling, director of CARD, today announced Hocheol Jeon as the recipient of the second annual CARD Award for Best Ph.D. Dissertation in Agricultural, Environmental, and Energy Economics Policy.

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Catherine Kling, director of CARD, today announced Hocheol Jeon as the recipient of the second annual CARD Award for Best Ph.D. Dissertation in Agricultural, Environmental, and Energy Economics Policy.

To be considered for the award a graduate student had to submit a copy of their dissertation and a brief summary of how the topic of research related to one of CARD’s research areas. Graduate students were required to have completed their final oral examination in 2014 to be considered.

Jeon’s dissertation focused on three essays in the area of Environmental Economics. The first essay focuses on a framework for revealed and stated preference data; the second essay focuses on obesity and greenhouse gas emissions; and the third essay focuses on Corporate Average Fuel Economy and the rebound effect. The full text of his dissertation summary is included below.

Three Essays on Environmental Economics

Hocheol Jeon

Dissertation Abstract

My dissertation is a collection of three independent studies in environmental and energy economics. The first study focuses on the discrepancy from different data sources in nonmarket valuation. The second study examines the significance of the relationship between two critical concerns—obesity and vehicle emission. The third study investigates the rebound effect in vehicle usage.

The first study, “Combining Revealed Preference Data with Stated Preference Data: A Latent Class Approach,” proposes a new framework to combine revealed and stated preference data when the convergent validity assumption does not hold. While a substantial portion of literature assumes that convergence of the two elicitation approaches in an all-or-nothing proposition (i.e., the RP and SP data are either consistent with each other or they are not), this paper suggests a latent class approach that allows for possible divergence among individuals in terms of the consistency between their RP and SP responses. The empirical results suggest that somewhat less than half the sample exhibits inconsistent preferences. CARD has implemented a project gathering data on recreational trips made by households to about 130 primary lakes in Iowa each year from 2002 to 2005. In particular, the 2004 survey asks respondents to report how frequently they visited lakes in the state during 2004 (RP) and how frequently they intend to visit in 2005 under both current conditions and a proposed water quality improvement (SP). Even though Jeon and Herriges (2010) test the convergent validity using 2004 Iowa Lakes Survey data, and reject the convergence of two sources, they cannot propose any remedies to solve the problem. The econometric method proposed in my first chapter is able to give a more efficient and reliable way to combine two sources of data.

The second study, “Weighing the Effects of Obesity on the Environment,” touches on two prominent social concerns, obesity and GHG emission in the US and throughout the world. A number of studies have suggested that the societal impacts of obesity, which has become a prominent social concern, also extend into the environmental arena. It is argued that obesity can increase gasoline consumption, both directly, through the additional fuel required as passenger weight increases, and indirectly, through the move towards less fuel efficient vehicles by obese and overweight individuals. By adopting panel data and the linkages between obesity on the one hand and both vehicle choice and usage on the other, this study prevents the problem that potentially mask important factors determining vehicle choice and usage from aggregate data analysis. I show that while it has been suggested that obesity may contribute to environmental problems by inducing individuals to by less fuel efficient vehicles, this impact is likely small. One of the CARDs research areas is to investigate food consumption, food safety, nutrition, and food assistance programs. CARD conducts several studies on human nutrition and obesity and their link (e.g., Miao et al. 2013 and Leung et al. 2013). My second chapter shows that obesity belongs is not only a food policy issue, but also an environmental issue.

The third study, “Vehicle Fuel Efficiency and the Rebound Effect: Evidence from US Panel Data,” highlights a drawback of the Corporate Average Fuel Economy (CAFE) standards that have been long centered in US efforts to reduce the carbon footprint of its transportation sector. There is already substantial literature on the rebound effect; however, there remains no consensus regarding its magnitude. Estimates of the rebound effect vary substantially, changing with the empirical methods employed, the types of or time periods covered by the available data, and the specific definition used to characterize the rebound effect. This paper addresses the endogeneity issue, instead, through the use of panel data techniques, controlling for unobserved, but time invariant, household factors with fixed effects. Moreover, I examine the variation in the rebound effect across income docile. While our estimates of the rebound effect vary somewhat with the definition used, from 0.58 to 0.80, we cannot reject the hypothesis that the response to fuel price and fuel economy are the same. The research CARD conducts, in particular the Environment, Science and Technology, and Biorenewables divisions are connected to climate change directly or indirectly. My third chapter is also highly related to climate change issues. The breakthrough of mitigating climate change is to establish energy efficiency policies with the aim of reducing energy consumption. Improving energy efficiency would have a direct and significant effect; however, the assumption behind this is that the economic agents hold their behavior constant. Yet, in the real world, no one can expect this reasonably. For comprehensive assessment and policy, climate change should be considered through the various areas CARD conducts research in, and policy makers and researchers need to consider the unexpected results.

June 15, 2015
Kling named 2014 AERE Fellow permalink

Catherine Kling received a 2014 Association of Environmental and Resource Economists (AERE) Fellow Award on June 4, 2015 at the AERE Summer Conference held at the U.S. Grant Hotel in San Diego, California. An AERE Fellow Award is the highest honor presented by the association to recognize individuals:

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Catherine Kling received a 2014 Association of Environmental and Resource Economists (AERE) Fellow Award on June 4, 2015 at the AERE Summer Conference held at the U.S. Grant Hotel in San Diego, California. An AERE Fellow Award is the highest honor presented by the association to recognize individuals:

Catherine L. Kling has made substantial and continuous contributions to the advancement of environmental economics, both through her research discoveries in several distinct areas of agricultural, natural resource and environmental economics and through her selfless and dedicated service to the profession. Cathy has contributed broadly to the theory and practice of nonmarket valuation and to recreation demand modeling in particular. Her research is characterized by careful attention to the implications of microeconomic theory regarding what can (and cannot) be learned about consumer preferences for public goods from their limited footprints in the marketplace.

Cathy has also made significant contributions to our understanding of the interaction between agricultural and environmental policy. Her ongoing activities around Gulf hypoxia exemplify her ability to blend top quality research, service and policy impact. Her service on EPA’s Hypoxia Advisory Panel (2006-2008) both informed and was informed by her research program. Related research co-authored with Cathy’s graduate students, post-docs and the interdisciplinary team she has built, has appeared in the Proceedings of the National Academies of Sciences, the Review of Environmental Economics and Policy, European Review of Agricultural. Economics, Ecological Applications, and the Journal of Soil and Water Conservation. The breadth of these outlets is indicative of both the value Cathy places on reaching different audiences and her status as one of the most effective environmental economists in trans-disciplinary activities that our field has. This status was confirmed by her recent election to the National Academy of Sciences.

Cathy Kling has contributed substantially to the public good by her tireless support of AERE activities and of the economics profession more broadly. She has served as both President and Vice-President of the Association, as well as on AERE’s Board of Directors. Cathy has also taken on key roles in the policy arena, serving on the U.S. EPAs Science Advisory Board and a wide range of National Research Council committees. Last, but not least, Cathy puts a tremendous amount of time and energy into mentoring graduate students and young faculty in the profession.

May 20, 2015
Keiser receives USDA-NIFA project grant permalink

David Keiser, assistant professor of economics, was among those announced as a grant recipient through USDA National Institute of Food and Agriculture’s National Integrated Water Quality Program. The National Integrated Water Quality Program promotes science-based decision making and management practices that improve the quality and quantity of the nation’s water resources in agricultural, rural, and urbanizing watersheds.

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David Keiser, assistant professor of economics, was among those announced as a grant recipient through USDA National Institute of Food and Agriculture’s National Integrated Water Quality Program. The National Integrated Water Quality Program promotes science-based decision making and management practices that improve the quality and quantity of the nation’s water resources in agricultural, rural, and urbanizing watersheds.

Over the next three years, Keiser will work with six other Iowa State University researchers, John Downing, professor in the Department of Ecology, Evolution, and Organismal Biology, Phil Gassman, associate scientist at the Center for Agricultural and Rural Development (CARD), Matthew Helmers, professor in the Department of Agricultural and Biosystems Engineering, Thomas Isenhart, associate professor in the Department of Natural Resource Ecology and Management, and Catherine Kling, director of CARD. Keiser’s project was awarded $660,000 for development of a hydrologic-economic model that estimates the economic values of water across various uses.

Focusing on the Upper Mississippi and Ohio Tennessee River basins, the researchers hope to use econometric analyses to improve estimates of the economic value of water to agriculture by using new land use and land management data sources. The project, Keiser said, has two main goals—developing an integrated hydrologic-economic model to measure spatially-explicit values of water across uses, and engaging students, farmers, and the general public on the economic value of water and its role in efficient and effective water policies.

April 28, 2015
Kling named to National Academy of Sciences permalink

AMES, Iowa – A Distinguished Professor at Iowa State University was elected to the National Academy of Sciences for her achievements in original research, the academy announced on Tuesday.

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AMES, Iowa – A Distinguished Professor at Iowa State University was elected to the National Academy of Sciences for her achievements in original research, the academy announced on Tuesday.

Catherine Kling, Charles F. Curtiss Distinguished Professor of Agriculture and Life Sciences, professor of economics and the director of the Center for Agricultural and Rural Development at Iowa State, is among 84 new members and 21 foreign associates from 15 countries named to the academy.

“It’s with great pride that I learned of Dr. Kling’s election to the National Academy of Sciences,” said ISU President Steven Leath. “Dr. Kling joins some of the most distinguished scientists in the history of this institution as a member of the academy, and I join the rest of the ISU community in congratulating her on this well-deserved honor.”

“The group of people elected to the National Academy of Sciences is awe-inspiring, and it’s an incredible honor to be among them,” Kling said. “I’ve tried my entire career to emulate the environmental economists in the section of the academy I’ve been elected to. I don’t really have the words to describe what an honor this is.”

Kling has made numerous contributions to natural resource and environmental economics, conducting innovative research throughout her career that melds environmental science with classical economics. She pioneered research on integrated water quality and economic models to help guide the design and implementation of conservation policies in the Midwest.

She developed methods to evaluate how people value environmental amenities and how that translates into support for environmental improvements. With that work, Kling helped to start the Iowa Lakes Valuation Project, a long-running survey of Iowans on the use of Iowa lakes that has informed both citizens and policymakers about the value of the state’s water resources.

Kling, a Bettendorf native, earned a bachelor’s degree in business administration from the University of Iowa in 1981 and her doctorate in economics from the University of Maryland in 1986. She joined the ISU Department of Economics in 1993 and became the director of the Center for Agriculture and Rural Development in 2013. Her husband, Terry Alexander, also is an ISU economist, and both of her children are enrolled at Iowa State.

Election to the academy is among the most prestigious honors given to U.S. scientists and engineers. Donald Duvick, an affiliate professor of agronomy elected to the National Academy of Sciences in 2002, was the last ISU scientist to join the academy. Kling is the eleventh ISU faculty member, and the first woman at the university, to receive the honor.

Those elected on Tuesday bring the total number of active members of the National Academy of Sciences to 2,250 and the total number of foreign associates to 452. Foreign associates are nonvoting members of the academy, with citizenship outside the United States.

The National Academy of Sciences is a private, nonprofit institution that was established under a congressional charter signed by President Abraham Lincoln in 1863. It recognizes achievement in science by election to membership, and -- with the National Academy of Engineering, Institute of Medicine, and National Research Council -- provides science, technology, and health policy advice to the federal government and other organizations.

The following list notes all previous ISU faculty elected to the National Academy of Sciences:

Donald Duvick, agronomy, 2002

John D. Corbett, chemistry, 1992

Harley Moon, veterinary medicine, 1991

Arnel Hallauer, agronomy, 1989

John Bremner, agronomy, 1984

Orville Chapman, chemistry, 1974

Jay Lush, animal science, 1967

Frank Spedding, physics and materials science, 1952

Chester Werkman, bacteriology, 1946

Henry Gilman, chemistry, 1945

Contacts:
Catherine Kling, Economics, 515-294-5767; ckling@iastate.edu
Brian Meyer, College of Agriculture and Life Sciences, 515-294-0706; bmeyer@iastate.edu
Fred Love, News Service, 515-294-0704; fredlove@iastate.edu

April 14, 2015
Kling joins Leopold Center advisory board permalink

Catherine Kling, director of the Center for Agricultural and Rural Development, has joined the Leopold Center advisory board. Kling has collaborated with the Leopold Center for nearly a decade on the costs and impacts of conservations practices.

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Catherine Kling, director of the Center for Agricultural and Rural Development, has joined the Leopold Center advisory board. Kling has collaborated with the Leopold Center for nearly a decade on the costs and impacts of conservations practices.

In her work, Kling has studied the impact of agricultural practices on wildlife and water quality, including well-publicized research on the Gulf of Mexico hypoxic zone and its economic and environmental impact. Her work has earned her many accolades including recognition as Charles F. Curtiss Distinguished Professor of Agriculture and Life Sciences. She is married to Terry Alexander, a fellow economist at Iowa State. The couple has two children, Danny and Maggie.

The Leopold Center is an Iowa State University research and education center created to identify and reduce negative environmental and social impacts of farming and develop new ways to farm profitably while conserving natural resources. The advisory board includes representatives from the Iowa Association of Independent Colleges and Universities, Iowa’s public universities, the Department of Natural Resources, and other various state agencies.

February 10, 2015
Iowa State University Part of Grant to Improve Ag Policy in Ghana permalink

AMES, Iowa — Iowa State University has joined a partnership to improve agricultural policy making, policy analysis and implementation in the African country of Ghana.

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AMES, Iowa — Iowa State University has joined a partnership to improve agricultural policy making, policy analysis and implementation in the African country of Ghana.

The work is funded by the U.S. Agency for International Development (USAID) through its Feed the Future Agriculture Policy Support Project. Iowa State joins Chemonics, an international development company; the Centre for Policy Analysis, a non-governmental think tank in Ghana; and the Ghana Institute of Management and?Public Administration on the four-year, $15 million grant.

The ISU component of the project is led by John Beghin, professor of economics and a researcher in the Center for Agricultural and Rural Development, and Manjit Misra, director of the Seed Science Center who leads the Global Food Security Consortium. Iowa State’s subcontract in the grant is worth $1.145 million.

This project is called the Ghana Feed the Future Agricultural Policy Support Project. It is a capacity building project that will focus on policies affecting seeds and fertilizer use, and smallholder subsistence farming.

Ghana’s agriculture sector represents 30 percent of its gross domestic product and 50 percent of its employment, but is not growing at a pace needed to eliminate food insecurity. This project is designed to complement other USAID efforts by supporting measures where the political will for reform connects with the constraints facing agribusinesses.

January 7, 2015
Study estimates cost of reducing Gulf “dead zone” permalink

A group of national researchers, including Todd Campbell, Philip Gassman, Adriana Valcu, and Catherine Kling from the Center for Agricultural and Rural Development, as well as others from across the country, has quantified the cost of reducing the Gulf of Mexico hypoxic “dead” zone, an area of low oxygen that can’t support marine life. To meet the national policy goal of reducing the hypoxic zone to 5,000 km2, a goal set by the national Gulf of Mexico Task Force, the US would need to invest about $2.7 billion annually, researchers found. The research is detailed in an article published in the Proceedings of the National Academy of Sciences, available at http://bit.ly/PNAShypoxia.

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A group of national researchers, including Todd Campbell, Philip Gassman, Adriana Valcu, and Catherine Kling from the Center for Agricultural and Rural Development, as well as others from across the country, has quantified the cost of reducing the Gulf of Mexico hypoxic “dead” zone, an area of low oxygen that can’t support marine life. To meet the national policy goal of reducing the hypoxic zone to 5,000 km2, a goal set by the national Gulf of Mexico Task Force, the US would need to invest about $2.7 billion annually, researchers found. The research is detailed in an article published in the Proceedings of the National Academy of Sciences, available at http://bit.ly/PNAShypoxia.

The cost of reducing the hypoxic zone was achieved by studying more than 550 agricultural subwatersheds that generate nutrient runoff from agricultural practices into the gulf. The study allowed researchers to determine which subwatersheds would be the most cost-effective to target for conservation investments and determine the actual cost of making the investments.

Currently the hypoxic zone is about 15,000 km2, and can vary in size from year to year. “The size of the zone has varied significantly over the last 20 years, but it has largely been on a steady or upward trend,” said Catherine Kling. “Weather has a large influence on the annual size—drought years create smaller zones and heavy rainfall years produce larger zones as nutrients are carried by the watersheds into the gulf.”

Kling, an environmental economist, has been studying the Gulf of Mexico hypoxic zone for several years. “I was first struck by how small actions in thousands of agricultural fields could collectively contribute to such a large problem area,” she said. “The more I learned the more I realized that this is the end result of a problem affecting streams, rivers, and lakes throughout the Midwest, and that the tools of my trade could help frame some of the issues for policymakers and the general public.”

While the researchers were able to put the $2.7 billion annual price tag on achieving the action plan goal, the study didn’t look into where that money would come from. “There are a number of policies that could be implemented to achieve the reduction in the hypoxic zone. If the policies subsidize conservation practices, then the cost is largely borne by taxpayers. If, on the other hand, the policies require a change in farming practices without compensation, then the cost is initially covered by farmers, but could be passed on through higher food and fuel prices,” Kling said. The cost of the reduction, Kling said, is scalable—the same policies could be implemented on a smaller scale for less money, but with a smaller reduction in the hypoxic zone. “This is an important decision for society to make, and we hope our work will help people consider the tradeoffs between cost and the environment,” Kling said. Lastly, Kling said, the any changes in policy that affect the hypoxic zone will happen over the course of many years. “Realistically, change is not likely to occur very quickly—if it takes decades for land-use change to occur, it will take that long for significant changes in the hypoxic zone,” she said.

December 5, 2014
Jensen, Beghin discuss sugar tax permalink

Voters in Berkeley, California approved a tax on soft drinks in November, making them the first municipality in the US to pass such a measure in an attempt to fight rising obesity rates. While the tax is well-intentioned, two CARD economists, Helen Jensen and John Beghin, say they question whether it will be effective.

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Voters in Berkeley, California approved a tax on soft drinks in November, making them the first municipality in the US to pass such a measure in an attempt to fight rising obesity rates. While the tax is well-intentioned, two CARD economists, Helen Jensen and John Beghin, say they question whether it will be effective.

The duos skepticism of the tax dates back to 2011, when they studied such policies and wrote an article for Contemporary Economic Policy (http://bit.ly/1vYv9Vy) that concluded the tax would be more effective if it were directed at processors, not consumers.

The full story can be found on the ISU News Service http://bit.ly/1u0Wf97, or the Ames Tribune http://bit.ly/1A1MHzf.

December 4, 2014
Land Value Survey News Conference to be held December 18 permalink

A news conference will be held at 10 a.m. on December 18 announcing the results of the 2014 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) at Iowa State University. This year, the conference will take place in Room 004 of the Scheman building on the ISU campus in Ames.

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A news conference will be held at 10 a.m. on December 18 announcing the results of the 2014 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) at Iowa State University. This year, the conference will take place in Room 004 of the Scheman building on the ISU campus in Ames.

Michael Duffy, a retired ISU Extension economist who is helping transition responsibility for conducting the survey from ISU Extension to CARD, will head the news conference and announce the latest findings. Background materials will be available at the conference, and will include Iowa land value data from 1950 to present, current land value data from all 99 counties, and a press release summarizing the 2014 survey results. Dr. Duffy will make himself available to reporters for follow-up questions or one-on-one interviews immediately following the presentation of results.

For those who can’t attend, the conference will be videotaped, and the video and printed materials from the conference will be made available on the CARD homepage at www.card.iastate.edu soon after the conference.

The Scheman building is located next to Hilton Coliseum and Fisher Theater. Maps and directions to Scheman are available at bit.ly/LVSDirections. Free parking is available in the Scheman and Hilton lots.

August 29, 2014
Babcock receives Lee R. Kolmer award permalink

Professor of economics Bruce Babcock was honored by the College of Agriculture and Life Sciences at the college’s fall convocation when he was presented the Dean Lee R. Kolmer Award for Excellence in Applied Research. The award is named for a former college dean and is given to honor significant contributions to improving the welfare of Iowans through application of research.

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Professor of economics Bruce Babcock was honored by the College of Agriculture and Life Sciences at the college’s fall convocation when he was presented the Dean Lee R. Kolmer Award for Excellence in Applied Research. The award is named for a former college dean and is given to honor significant contributions to improving the welfare of Iowans through application of research.

Babcock has been a professor of economics at Iowa State since 1990 and currently holds the Cargill Endowed Chair of Energy Economics and serves as the director of the Biobased Industry Center. He was the director of CARD for 13 years.

Babcock began studying economics as an undergraduate at the University of California, Davis, where he earned both his BS and MS degrees. He went on to study agricultural and resource economics at the University of California, Berkeley, where he earned his PhD. His most recent work has focused on agricultural and bioenergy markets, where his research into corn-based ethanol and crop insurance subsidies, among other topics, have garnered him national attention. The Kolmer award was presented as recognition for work Babcock has done in agricultural economics, including conservation programs and crop insurance programs.

Mark Hanna, a professor of agricultural engineering, was also a recipient of the Kolmer award this year.

August 27, 2014
CARD awarded Iowa DNR funds for lakes survey permalink

The Center for Agricultural and Rural Development (CARD) has been awarded a $130,750 grant by the Iowa Department of Natural Resources (DNR) to renew a study that previously helped shed light on the use of Iowa’s numerous recreational lakes.

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The Center for Agricultural and Rural Development (CARD) has been awarded a $130,750 grant by the Iowa Department of Natural Resources (DNR) to renew a study that previously helped shed light on the use of Iowa’s numerous recreational lakes.

In 2002, CARD, the Department of Economics and the Department of Evolutionary Ecology and Organismal Biology, and the Limnology Laboratory at Iowa State worked together create the Iowa Lakes Valuation Project (https://www.card.iastate.edu/lakes). The Limnology Laboratory had completed a five-year study that provided the DNR with a lake database that included biological analysis, watershed GIS, and water chemistry for 132 recreational lakes across the state. The Lakes Valuation Project took the information one step further by surveying Iowans to determine use and valuation information for the same set of lakes over a comparable time period. “Collecting information on how, where, and when Iowans make use of the state’s recreational lakes allows us to properly analyze and evaluate the return on investment for water quality improvement projects,” said Cathy Kling, Director of CARD.

In all, the survey was sent to 4,000 households to collect information on how frequently they visited one of the 132 recreational lakes including possible future trips, personal perception of water quality, and willingness to pay for improved water quality at the site. Of the households surveyed, 62 percent reported taking at least one trip to one of the 132 lakes in the previous year, with the overall average number of trips per year being closer to eight. When choosing a lake for recreation the largest number of respondents (32 percent) indicated that water quality was the most important deciding factor, with lake proximity being the second most common response. Respondents also indicated that when considering water quality, safety from bacterial contamination and health advisories was the most important factor, with water clarity coming in second.

With the most recent grant, CARD will send surveys to 6,000 households, including some households that responded to the original survey, to determine usage information such as the number of actual trips and anticipated trips of each respondent to one of the 132 lakes, as well as income, gender, education level, and number of children in the household. The surveys will also help collect data to determine demand for visits, analyze visitation patterns, and determine economic impact of lake water quality. “An updated survey will allow the DNR to target its restoration efforts to locations that are the most valuable for Iowans,” Kling said.

Surveys should be mailed to households by early 2015, with data analyzed and presented in a final report by late 2015.

August 26, 2014
CARD students attend ESTIMATE conference permalink

Four CARD graduate students, DongGyu Yi, Mohammad Hoque, Hocheol Jeon, and Jimena Gonzalez-Ramirez, recently attended the ESTIMATE (Early Summer Tutorial In Modern Applied Tools of Econometrics) conference at Michigan State University.

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Four CARD graduate students, DongGyu Yi, Mohammad Hoque, Hocheol Jeon, and Jimena Gonzalez-Ramirez, recently attended the ESTIMATE (Early Summer Tutorial In Modern Applied Tools of Econometrics) conference at Michigan State University.

The yearly conference provides access to econometrics training to students that would normally only be available to students at Michigan State. Participants in the program learn econometric techniques and methods that they can apply to their own graduate research. The program, which was held this June, covered topics from linear and non-linear panel data models to regression with time series data and estimating treatment effects.

August 26, 2014
Meyer receives EPA award for research challenge permalink

Kevin Meyer, a fourth-year PhD student with CARD, has been named as a recipient of a $2,000 prize from the EPA for a proposal on water quality.

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Kevin Meyer, a fourth-year PhD student with CARD, has been named as a recipient of a $2,000 prize from the EPA for a proposal on water quality.

Meyer’s proposal, “Estimating land use effects on water quality using spatial econometrics,” was accepted as part of the National Aquatic Resource Survey (NARS) Campus Research Challenge. To compete in the challenge, students developed a unique or innovative question or hypothesis about water quality then used available NARS data and other relevant information to address the question or hypothesis. The challenge is intended to encourage innovative research in support of enhanced water management.

Meyers received a $2,000 prize for his proposal, and is now eligible for $5,000 prize in phase II of the challenge.

August 18, 2014
Kling interviewed on Jim Engster Show permalink

The Gulf of Mexico hypoxic ("dead") zone varies in size every year depending on a number of factors, but the effects of the dead zone are always detrimental. Cathy Kling, an environmental economist and director of the Center for Agricultural and Rural Development, has spent years studying the Dead Zone, its environmental and economic impacts, and the ways it can be controlled. Recently, Dr. Kling, along with Nancy Rabalais of the Louisiana Marine Consortium and Dr. Eugene Turner of Louisiana State University, was interviewed on Jim Engster's National Public Radio show about the Dead Zone and possible reduction strategies. The interview can be heard in full at http://bit.ly/1AstfNi.

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The Gulf of Mexico hypoxic ("dead") zone varies in size every year depending on a number of factors, but the effects of the dead zone are always detrimental. Cathy Kling, an environmental economist and director of the Center for Agricultural and Rural Development, has spent years studying the Dead Zone, its environmental and economic impacts, and the ways it can be controlled. Recently, Dr. Kling, along with Nancy Rabalais of the Louisiana Marine Consortium and Dr. Eugene Turner of Louisiana State University, was interviewed on Jim Engster's National Public Radio show about the Dead Zone and possible reduction strategies. The interview can be heard in full at http://bit.ly/1AstfNi.

August 8, 2014
CARD at the 2014 AAEA annual meeting permalink

For the first time in several years, CARD staff prepared an informational booth for the Agricultural and Applied Economics Association (AAEA) annual meeting. The 2014 meeting was held in downtown Minneapolis July 27–29, and featured more than 150 educational sessions and high-profile speakers covering topics from climate change to regional economics. CARD staff members talked with attendees, handed out informational brochures, and got a chance to catch up with several CARD alum! Photos from this year’s meeting can be seen on our Facebook page: https://www.facebook.com/card.iastate.

July 24, 2014
Oh, the places they’ll go! permalink

What does RAGBRAI have to do with agricultural economics? Admittedly, not much. But that doesn’t stop any of CARD’s “Cyclaholic” researchers from enjoying themselves or being able to talk economics when the Iowa State News Service tracked them down!

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What does RAGBRAI have to do with agricultural economics? Admittedly, not much. But that doesn’t stop any of CARD’s “Cyclaholic” researchers from enjoying themselves or being able to talk economics when the Iowa State News Service tracked them down!

Cyclaholic group photo

June 20, 2014
Hayes testifies to Ways and Means Subcommittee on Trade permalink

On June 11, Dermot Hayes was invited to testify before the House Ways and Means Subcommittee on Trade about the benefits of expanding agricultural trade. During his testimony, Hayes said the current Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership would both have a large, positive impact on US agriculture. Hayes said the negotiations for the Trans-Pacific Partnership had been going well, until Japan “hijacked” the negotiations. The entire transcript of his testimony is included below.

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On June 11, Dermot Hayes was invited to testify before the House Ways and Means Subcommittee on Trade about the benefits of expanding agricultural trade. During his testimony, Hayes said the current Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership would both have a large, positive impact on US agriculture. Hayes said the negotiations for the Trans-Pacific Partnership had been going well, until Japan “hijacked” the negotiations. The entire transcript of his testimony is included below.

Testimony to the Ways and Means Sub-Committee Hearing on Agricultural Trade

June 11th 2014

Dermot Hayes
Professor of Economics and Finance
Pioneer Chair of Agribusiness
Iowa State University

Chairman Nunes, Ranking member Rangel, and members of the sub-committee: Thank you for the opportunity to speak on agricultural trade. Thank you also for focusing on this issue at such a critical time. The US is currently negotiating free trade deals with countries across the Pacific and with the EU. These negotiations, if successful, will have a profoundly positive impact on US agriculture.

The most rewarding part of my job is teaching economics 101 to incoming students. In the very first class, I contrive to get two copies of my text book into the hands of one student and I then find a student who has yet to purchase the text. The students in class quickly realize that the second copy is worth almost nothing to the first student and they know that it is worth $100 to the second student. I then ask the two students to trade. The book typically changes hands for $50, leaving both students better off by $50. This $100 in wealth is created simply by moving the text from a student who places a low value on it to one who values it highly.

The step from the text book example described above to international trade is straightforward. The US has an abundance of land, capital, and skilled labor and will typically benefit from exporting products that require large amounts of these inputs. Corn, wheat, barley, and soybeans require large amounts of land relative to other inputs, and therefore, the US is a natural exporter of these commodities along with derived products such as beef, pork, poultry, dairy products, and eggs.

Most agricultural trade barriers are used against value added agricultural imports. Countries typically allow free access to feed-grains and other raw materials so that their domestic livestock industries can grow. In the absence of these barriers, transportation economies would favor the export of value added products. Therefore, any liberalization of agricultural trade will involve an increase in meat, poultry, dairy, and possibly fish, production in the US.

As I am sure you all know, many rural areas have been losing population as technologies have allowed farmers to increase the number of crop acres they cultivate. A dramatic increase in value added agricultural production, such as would occur if current negotiations are successful, will allow a repopulation of rural areas.

At this time I will offer some comments on the TPP and T-TIP negotiations.

TPP

Prior to the entrance of Japan, the focus of the TPP negotiations was to eliminate all duties and other non-tariff barriers. Progress towards a high standard free trade deal was surprisingly successful. Unfortunately, Japan has recently hijacked the negotiations by insisting on permanent protection for its beef and pork, dairy, wheat, rice, and sugar sectors. It has announced its intention of using the money generated by these duties to subsidize the relevant sectors. For example, duties collected on imported US pork would be used to subsidize Japanese pork producers.

I sincerely hope that our negotiators will hold out for an agreement that results in eventual free trade in these products. I do so for the following reasons.

  1. The benefits from trade described earlier come from the reallocation of resources. In attempting to protect these sectors and stop any reallocation of resources, Japan is fighting the fundamental economics from which benefits are derived. It is as if Japan is prepared to allow the two students described earlier to trade so long as one student ends up with two text books.

  2. Japan has insisted on this outcome because of food security concerns. This logic is flawed because Japan imports all of its feed grains.

  3. If Japan, gets away with distortion of this sort, then other nations such as China will expect a similar deal from the United States. I view this issue as the most significant trade issue facing US farmers.

TTIP and the Importance of Equivalence

As is true for TPP, I see enormous opportunity for US agriculture from T-TIP.

The US corn market is currently being disrupted by the refusal of Chinese quarantine agency to allow shipments of US corn and distillers grain into China because of the likelihood they would contain a genetically modified variety of corn called MIR 162. This problem would not exist if Chinese regulators recognized the US scientific-regulatory system as equivalent to the Chinese system. In order to reduce problems of this type the US has typically included equivalence in trade deals.

Equivalence works because scientists can eventually form a consensus on what is safe. The process breaks down if non-scientific arguments are introduced. The EU has allowed this to happen and has imposed bans on genetically modified crops and growth enhancers in livestock that scientists all over the world view as being perfectly safe. I realize that some consumers in the US oppose these technologies, but under the US system these consumers have a choice. The EU system eliminates this choice. It is as if the consumers who shop at Whole Foods had a veto power over the rest of society.

In a well-structured T-TIP agreement, the US and EU systems will be viewed as equivalent and EU consumers will have a choice among safe alternatives that they currently lack. Unless this deal results in regulatory equivalence, countries will be able to impose new subjective barriers to replace those that have been eliminated. With equivalence, the US will be able to avoid the type of trade disruption currently roiling the US corn market.

April 25, 2014
Hennessy Receives USDA NIFA Grant permalink

Agriculture Secretary Tom Vilsack has announced that the USDA’s National Institute of Food and Agriculture (NIFA) will be awarding $6 million in grants to 10 universities. According to a USDA press release, the NIFA awards came through its agriculture and Food Research Initiative funding in the Climate Variability and Change challenge area. The overall goal of the NIFA climate work is to promote research focused on reducing greenhouse gasses and increasing carbon sequestration in agricultural and forest production systems the release states.

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Agriculture Secretary Tom Vilsack has announced that the USDA’s National Institute of Food and Agriculture (NIFA) will be awarding $6 million in grants to 10 universities. According to a USDA press release, the NIFA awards came through its agriculture and Food Research Initiative funding in the Climate Variability and Change challenge area. The overall goal of the NIFA climate work is to promote research focused on reducing greenhouse gasses and increasing carbon sequestration in agricultural and forest production systems the release states.

Among those receiving grants are CARD economist David Hennessy and ISU economics adjunct associate professor Hongli Feng, who will join other researchers from the University of Wisconsin-Madison and the universities of North and South Dakota in an interdisciplinary study. The group of researchers was given a $550,000 grant to develop an integrated framework for understanding agroecosystems adaptation to climate change in a production system transition zone.

In short, they will be focusing on an area in North Dakota at the edge of Corn Belt where land use typically transitions from growing corn to growing wheat, grasses, or other uses. Historically, the area has been drought-prone and unsuitable for growing corn, but in recent years, wheat and grasslands have declined and corn acreage has increased. Hennessy’s group will use the area to study how climate change may be affecting land use, and how future policy formation could help agricultural adjustments.

The research will be completed by 2017.

April 11, 2014
Beghin Awarded Grant to Study Impact of Free Trade Agreement permalink

CARD economist John Beghin has been given a grant by the National Institute for Food and Agriculture to study the competitiveness and prosperity of a free trade agreement between the US and EU. Beghin's study, which was awarded a $268,000 grant and will last for 18 months,will examine the potential impact a US/EU free trade agreement would have on each respective regions food and bio-energy markets, bilateral global trade, and welfare.

April 8, 2014
Valcu Recipient of CARD Ph.D. Dissertation Award permalink

Catherine Kling, director of CARD, today announced Adriana Valcu as the recipient of the first CARD Award for Best Ph.D. Dissertation in Agricultural, Environmental, and Energy Economics Policy.

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Catherine Kling, director of CARD, today announced Adriana Valcu as the recipient of the first CARD Award for Best Ph.D. Dissertation in Agricultural, Environmental, and Energy Economics Policy.

To be considered for the award a graduate student had to submit a copy of their dissertation and a brief summary of how the topic of research related to one of CARD's research areas. Graduate students were required to have completed their final oral examination in 2013 to be considered.

Valcu's dissertation focused on nonpoint source water pollution and proposing and evaluating policies to implement water quality trading. The full text of her dissertation summary is included below.

Agricultural Nonpoint Source Pollution and Water Quality Trading: Empirical Analysis under Imperfect Cost Information and Measurement Error

Adriana Valcu

Iowa State University

More than four decades have passed since the passage of the Clean Water Act, which serves as the main US regulatory act for improving water quality. In spite of the numerous nascent programs that have followed, water quality pollution from agricultural activity remains a significant problem, particularly in watersheds dominated by row crop production.1

The goal of my dissertation is to propose and evaluate policies to implement water quality trading among nonpoint sources, where nonpoint sources define the agricultural fields as a source of water pollution. In my dissertation, I present a theoretical model of pollution in which a watershed is impaired by agricultural runoff. My model captures the main aspects of pollution within an agricultural watershed—imperfect information on the abatement costs of individual farms, difficulties in observing pollution or abatement activities at the farm level, and difficulties in measuring the emissions leaving the field. These aspects have all been critical to the policy design of agricultural pollution.

Next, I propose and estimate a simplified proxy for the water quality production function that defines the complex fate and the transport of pollutants, such as nitrogen and phosphorus, across a watershed. I apply this model in a variety of empirical studies to evaluate alternative programs designed to improve water quality and encourage carbon sequestration under different policy approaches. For the empirical evaluation, I use a data-rich, spatially detailed model of land use and water quality for two agricultural watersheds in Iowa: the Boone River Watershed and the Raccoon River Watershed.

The water quality production function is approximated as linear combinations of known field-level emission reductions. Given this linearization, I identify a system of points to approximate both the edge-of-field reductions and the impact on the total ambient level of pollution associated with the abatement actions implemented at the field scale.

The first approach is a command-and-control where a regulator has the ability to mandate specific abatement actions to each farm in the watershed. The second approach is a performance standard where each farm has to meet predetermined farm-level performance requirements by choosing relevant abatement actions. The third approach is a trading program where farmers, conditional on meeting their farm-level performance requirement, can trade points assigned to each abatement action.

The main message that echoes from the conceptual model is that under a linear approximation of the abatement function, policies with more flexibility, like the performance standard or abatement trading program, may outperform a command-and-control program in terms of abatement costs, but they may also result in the non-attainment of the abatement goal. However, the incentive-based policies can overcome, either partially or totally, the issue of cost asymmetries, since the regulator does not need to know the farm-level abatement costs. My modelling framework allows estimation of the magnitude of these efficiency tradeoffs for the first time. Furthermore, the close calibration to two real-world watersheds offers valuable insights for the design of the actual policy.

The proposed point-based trading system has the potential for implementation when there is either a single pollutant (e.g., nitrogen or phosphorus) or multiple pollutants (e.g., nitrogen and phosphorus). I compare the efficiency of the three practice-based approaches, assuming first that the policy approaches are designed only for one of the two pollutants, and next by considering the case where both pollutants are simultaneously targeted. The empirical results show there are no gains from implementing programs that simultaneously target both nitrogen and phosphorus, since phosphorus abatement levels can be achieved through programs targeting reductions in nitrogen.

Soil carbon sequestration is a global ecosystem service that plays an important role in reducing greenhouse gases. The abatement actions that have the potential to improve water quality can also improve soil-carbon sequestration levels. In my dissertation, I analyze the impact of a carbon-offset market on the efficiency of an already established water quality program. The results show that while there is little impact on the total level of nitrogen or phosphorus abatement, a parallel carbon market has the potential to decrease abatement costs of, and increase the amount of, soil carbon sequestration.

Many caveats regarding the assumptions for the conceptual model, the water quality process, and data availability underlie my empirical estimation. Moreover, the approaches presented here are simplified versions of any actual water quality program. However, I believe that these should not hamper the consideration of proxies, such as point coefficients, as efficient tools in implementing incentive-based programs designed for improving water quality in agricultural watersheds.


1"A watershed is the area of land where all of the water that is under it or drains off of it goes into the same place." Watersheds come in all sizes and shapes. In the continental US, there are more than 2,100 watersheds. http://water.epa.gov/type/watersheds/whatis.cfm.

March 7, 2014
Moschini Receives Grant to Study Biofuels Policies permalink

GianCarlo Moschini and Harvey Lapan, both of Iowa State University, were awarded a $260,000 grant through the USDA National Institute of Food and Agriculture. One long-term goal of the study is to develop a framework for the assessment of biofuel policy tools used by major economies, including the United States, Brazil, and the European Union, that explicitly accounts for their international ramifications. “Many countries have active and ambitious biofuels policies with various objectives, including reducing greenhouse gas emissions and fostering energy independence. For large countries, such policies have ‘leakage’ or ‘spillover’ effects on other countries. Yet, in setting (and evaluating) domestic policies, these spillovers are usually ignored. Consequently, the non-cooperative equilibrium that arises when policies are set independently differs from, and is generally inferior to, what would emerge in a cooperative equilibrium when countries coordinate their policies,” the researchers wrote in their proposal. Research work is set to conclude in 2016.

December 5, 2013
Endowed Professorship Presented to Iowa State University Faculty Member permalink

The Iowa Institute for Cooperatives has provided support for an endowed professorship presented to Keri Jacobs, an Iowa State University assistant professor who studies cooperative economics.

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The Iowa Institute for Cooperatives has provided support for an endowed professorship presented to Keri Jacobs, an Iowa State University assistant professor who studies cooperative economics.

“That the cooperatives in Iowa would work together to ensure an ongoing effort aimed at research and education for and of cooperatives is pretty incredible,” Jacobs said, “but not surprising given that they understand and embrace the benefits of cooperation. Their gift, and the position it supports, is about providing the current and future cooperative leaders with the knowledge they need to be successful in their industries.”

Jacobs, who also serves as an extension specialist, was presented the Iowa Institute for Cooperatives Endowed Economics Professorship at the organization’s annual meeting on Nov. 26. The Iowa Institute for Cooperatives provided $1 million to help fund the professorship.

“We look forward to working with Dr. Jacobs in her role as the Iowa Institute for Cooperatives Professorship. We have had a long and valued relationship with Iowa State University and consider this an investment in the university and continuation of that relationship,” said David Holm, the institute’s executive director.

Jacobs joined Iowa State in 2010, the same year she earned a doctorate degree in economics from North Carolina State University. She earned a bachelor’s degree in economics and business administration from Coe College in 1996.

“This professorship represents a partnership to help ensure the best possible extension, research and science-based education exists to serve the needs and priorities of Iowa cooperatives,” said Wendy Wintersteen, endowed dean of the College of Agriculture and Life Sciences at Iowa State.

November 19, 2013
Hart to present at Farm News Ag Show permalink

ISU Extension economist Chad Hart will be a featured speaker at the 12th annual Farm News Ag Show from 3 p.m.-4:15 p.m. on December 5 at the Iowa Community College East Campus in Fort Dodge, Iowa. Hart, a crop market specialist, will discuss the factors that impacted the 2013 corn and soybean crops as well as crop demand factors.

November 13, 2013
Kling to give ADVANCE lecture at University of Maryland permalink

CARD director Cathy Kling will be presenting an ADVANCE lecture “Agricultural Conservation Practices and Gulf of Mexico Hypoxia: Linking Externalities of the Land to their Consequences in the Sea” at the University of Maryland on Wednesday, November 20, 2013. Advance reservations are required and can be made at tinyurl.com/kbfauxe.

September 24, 2013
Beghin to work with USDA on food security permalink

ISU CARD economist John Beghin will help the Food Security and Development Branch (FSDB) of the Economic Research Service of USDA in its annual assessment of food security in 76 low- and middle-income countries. Beghin will identify and incorporate improvements in the modeling framework used for the assessment, which currently has a strong focus on food availability, but is less robust in its ability to analyze the remaining three dimensions of food security--access, utilization, and stability. The primary objective of this agreement is to strengthen the model’s capacity to analyze food access by various income groups and improve the micro economic foundations in the FSDB modeling framework.

July 2, 2013
Economics Professor Named Center for Agricultural and Rural Development Director permalink

AMES, Iowa – Cathy Kling has been named the new director of Iowa State University’s Center for Agricultural and Rural Development (CARD).

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AMES, Iowa – Cathy Kling has been named the new director of Iowa State University’s Center for Agricultural and Rural Development (CARD).

Kling, a Charles F. Curtiss Distinguished Professor of Agriculture and Life Sciences and a professor of economics, has served as interim director of the center for almost two years. She has served as head of CARD’s Environmental and Resource Policy Division since 1999.

She is only the fourth director of CARD since its creation in 1958. She succeeds Bruce Babcock, who left the position to become director of ISU’s Biobased Industry Center and holder of the Cargill Endowed Chair in Energy Economics.

For 55 years, CARD has provided in-depth analysis of agricultural policy issues using modern economic models and tools. CARD conducts innovative public policy and economic research on agricultural, environmental and food issues designed to inform and benefit society. CARD researchers develop and apply economic theory, quantitative methods, and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers; the research community; agricultural, food and environmental groups; individual decision makers; and international audiences.

“It’s terrific to be stepping into this job with such a rich history,” Kling said. “Each director has brought distinct skills and interests that were relevant for the agricultural policy issues of the day. Each left CARD with a stronger academic reputation and credibility in policy analysis.”

Kling’s background in environmental economics is something that differentiates her from previous directors of CARD — everyone who held the position previously had a background in agricultural economics.

“While each director has moved CARD in a unique direction, they all remained focused on addressing the most critical issues of agricultural policy of the day. This flexibility and responsive to the needs of the policy community has been critical to each of their successes, and will be to mine as well,” she said.

Agricultural economics remains a core component of CARD’s mission, Kling said. “Agriculture faces new challenges — the food versus fuel debates, nutrition and dietary concerns, pressures to address environmental concerns both locally and globally, and the role of new technologies in these markets are just a few.”

The largest differences Kling foresees are the same challenges that many campus departments or units have been facing in recent years. “A large difference is likely to come from the different funding environment: changes that all of higher education are facing in terms of sources and continuity of funding,” she said. “A second difference will be driven by the market demand for our work: the different set of topics that it will be important for CARD researchers to investigate and address.”

With new challenges to agricultural policy arising as products such as biofuels become more intertwined with other economic sectors, Kling sees an opportunity to expand the reach of CARD. “The demand for interdisciplinary analysis to help solve problems continues to grow, and reaching across disciplines takes effort,” she said. “I can see CARD becoming a catalyst for such work.”

The following are recent examples of CARD’s research in its core areas:

• Trade policy: The international agricultural sector model developed by CARD and the Food and Agriculture Policy Institute (FAPRI) was used to estimate benefits of free trade agreements with South Korea, Colombia and Panama and the Trans-Pacific Partnership, both to the United States and to U.S. trading partners. Results were used by commodity groups to understand the implications of the U.S.-South Korea free trade agreement, and the Trans-Pacific Partnership results currently are used for the same purpose by commodity groups and unions. CARD’s models have worldwide coverage, with 60 major producing, consuming and trading countries represented, and are uniquely capable of addressing critical trade issues.

• Agricultural policy: CARD-FAPRI models have been used extensively to provide analyses of U.S. farm policy and CARD staff regularly are requested to testify before Congress.

• Energy and biofuels policy: CARD-FAPRI models have been used to evaluate Renewable Fuel Standard waiver requests; the land use impacts of alternative biofuel pathways to meet advanced and conventional biofuels targets; and the effect on commodity and food prices from expansion of biofuels.

• Agriculture and the environment: CARD researchers have developed integrated economic and biophysical models allowing analysis of the effects of conservation programs, carbon markets and economic drivers on local water quality across the central United States, as well as carbon storage, soil erosion and hypoxic conditions in the Gulf of Mexico. CARD-FAPRI models have been used to analyze greenhouse gas implications of fertilizer and biofuel policy.

CALS news service/ISU news service/CARD

Contacts:
Cathy Kling, Center for Agricultural and Rural Development; ckling@iastate.edu
John Schroeter, Economics; johns@iastate.edu
Nathan Cook, CARD Communications; nmcook@iastate.edu
Kristin Senty, Economics Communications; ksenty@iastate.edu
Ed Adcock, Agriculture and Life Sciences Communications Service; edadcock@iastate.edu

June 3, 2013
Kling named Charles F. Curtiss Distinguished Professor permalink

Catherine Kling, professor of economics and interim CARD director, was recently named a Charles F. Curtiss Distinguished Professor in Agriculture and Life Sciences. Kling has been the head of CARD’s Resource and Environmental Policy Division since 1999, and has served as the interim director since 2011.

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Catherine Kling, professor of economics and interim CARD director, was recently named a Charles F. Curtiss Distinguished Professor in Agriculture and Life Sciences. Kling has been the head of CARD’s Resource and Environmental Policy Division since 1999, and has served as the interim director since 2011.

Cathy’s research in environmental policy has made her well known among economists, and has brought her such accolades as receiving the Bruce Gardner Memorial Prize for Applied Policy Analysis, being named a Fellow by American Agricultural Economics Association, and being named in Who’s Who in Economics. Some of Cathy’s most notable research areas include tradable pollution permits, carbon and water sequestration, and environmental amenities.

The title of Charles F. Curtiss Distinguished Professor is given to those whose contributions to their field of study are recognized nationally or internationally.

January 22, 2013
Jensen discusses ‘food deserts’ on River to River permalink

Dr. Helen Jensen, head of Food Nutrition Policy at CARD recently discussed food deserts—areas where residents have limited or no immediate access to healthy foods—on Iowa Public Radio’s River to River.

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Dr. Helen Jensen, head of Food Nutrition Policy at CARD recently discussed food deserts—areas where residents have limited or no immediate access to healthy foods—on Iowa Public Radio’s River to River.

According the USDA about 13.5 million Americans live in food deserts, including several identifiable places in Iowa, one of the nation’s top food producers. While food deserts are typically viewed as a low-income problem, they certainly are not exclusive to those areas, occurring in urban, suburban, and rural areas across the nation.

Jensen told River to River host Ben Kieffer that food deserts can develop based on a multitude of reasons—demographics, loss of population in rural areas, and lack of profitability may all drive a company to close a store, forcing residents to travel for access to healthy foods. The problem can be compounded for residents who also lack access to suitable transportation as well.

The full episode of River to River can be heard here: news.iowapublicradio.org/post/iowas-food-deserts.

The USDA has a food desert map that can be accessed here: www.ers.usda.gov/data-products/food-desert-locator/go-to-the-locator.aspx.

December 12, 2012
Could the forthcoming farm bill give the US an unfair advantage? permalink

An ICTSD study says farm bill could hurt US trading partners under the right circumstances

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An ICTSD study says farm bill could hurt US trading partners under the right circumstances

According to a press release issued by the International Centre for Trade and Sustainable Development (ICTSD) in Geneva, Switzerland, the forthcoming US farm bill could provide US farmers with an unfair advantage if prices of key commodities fall.

The study was published by ICTSD and authored by Bruce Babcock, a professor of economics at Iowa State University and Nick Paulson, an assistant professor in the Department of Agricultural and Consumer Economics at the University of Illinois.

While Babcock and Paulson examined outcomes of the proposed farm bill if commodities prices remain at the Congressional Budget Office (CBO) projections, they also examined what would happen if commodities prices fall below those projections. In that situation, the authors found that the proposed farm bill could advantage US farmers to the detriment of some commodity trading partners, such as China, India and Pakistan. The two commodities of the largest concern are wheat and cotton, which under the proposed changes in the farm bill could see an acreage growth of nearly 6 and 13 percent, respectively, under the low-price scenario examined by the authors.

“If US farmers begin to base their planting decisions on government support rather than on the basis of market signals, then it is possible that farmers in developing countries will receive lower prices than they otherwise would because of the supply-enhancing aspects of the new US farm bill,” Babcock and Paulson told ICTSD.

The authors say, however, that the low-price scenario examined isn’t likely to happen for at least a few years, due to the recent drought in the Midwest, which sent corn, soybean, and wheat prices soaring. “This suggests that while it is possible that prices will decline to levels that would cause the proposed farm bill programs to negatively impact developing country farmers, it is not likely to do so until potentially the last three years of the five years to be covered by this farm bill,” the authors conclude.

The full study can be read at http://ictsd.org/i/publications/149058/

October 25, 2012
Journal of Dairy Science highlights article by CARD researchers permalink

An article written by two CARD researchers, David Hennessy and Helen Jensen, along with Fengxia Dong at the University of Wisconsin-Madison, will be highlighted on the Journal of Dairy Science website for the next month.

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An article written by two CARD researchers, David Hennessy and Helen Jensen, along with Fengxia Dong at the University of Wisconsin-Madison, will be highlighted on the Journal of Dairy Science website for the next month.

The article, published by the journal in September, examines factors of somatic cell count in milk produced by US dairies. The US has chosen to retain a less-stringent standard on somatic cell counts than other countries, and the authors use various methods to find characteristics, such as farm location and herd age, that lead to higher somatic cell counts.

The Journal of Dairy Science website can be found at http://www.journalofdairyscience.org

October 10, 2012
Babcock talks farm bill on Talk of Iowa permalink

ISU professor of economics Bruce Babcock spoke with Iowa Public Radio’s Talk of Iowa host Charity Nebbe about this year’s farm bill, or rather the lack thereof, on Tuesday, Oct. 9.

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ISU professor of economics Bruce Babcock spoke with Iowa Public Radio’s Talk of Iowa host Charity Nebbe about this year’s farm bill, or rather the lack thereof, on Tuesday, Oct. 9.

The Food, Conservation, and Energy Act of 2008 officially terminated at midnight on September 30. The current session of Congress, being heralded as one of the most unproductive sessions in recent history by some, failed to pass a new farm bill, or to even offer a short-term extension on the old bill.

Babcock told Nebbe that there would be little current impact with the delay, but it could cause problems in the near future. “I think that there would be a lot of pressure on Congress to get the bill passed in the next session,” Babcock said, noting that without a farm bill there is no authority to enroll new land in conservation areas.

The farm bill also covers a broad range of programs from the federal SNAP (Supplemental Nutrition Assistance Program) to crop insurance and subsidies. “The old rationale for having such a broad farm bill was to get the urban supporters, say of the food stamp program, to vote for subsidies for farmers,” he said. In the future, though, Babcock said the day may come when the farm bill gets split up.

For now, Babcock said that the average non-farmer should be most concerned about the conservation, research, and funding measures included in the farm bill. Babcock said that agriculture will face a lot of challenges over the next 20 years, and research will have a large impact on the price we pay for food in the future.

The full interview can be heard here: http://news.iowapublicradio.org/post/farm-bill-2012.

October 1, 2012
Helen Jensen interviewed on Talk of Iowa permalink

ISU professor of economics Helen Jensen was interviewed on Iowa Public Radio’s Talk of Iowa on Monday, Oct. 1, 2012, about the implementation of new school lunch and breakfast policies. Jensen has long focused her research on food and nutrition policies, which have become a national hot topic as the government looks to offer healthier foods to children at school.

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ISU professor of economics Helen Jensen was interviewed on Iowa Public Radio’s Talk of Iowa on Monday, Oct. 1, 2012, about the implementation of new school lunch and breakfast policies. Jensen has long focused her research on food and nutrition policies, which have become a national hot topic as the government looks to offer healthier foods to children at school.

Jensen told Talk of Iowa host Charity Nebbe that the government is looking to increase at-school consumption of fruits and vegetables, and that there has been moves to increase the whole grain component of grains served, while placing restrictions on saturated and trans fats, and sodium. She also said that schools must follow a minimum and maximum calorie count for meals, as opposed to the former policy that only required minimum calorie counts.

The full transition to the new policies will take about three years, Jensen said. Some schools have already begun making transitions to the new policies, but others have not.

Jensen’s full interview on Talk of Iowa can be heard at http://news.iowapublicradio.org/post/healthy-changes-school-lunches. Jensen also recently published a working paper that examines the effect school policies have on children’s consumption of fruits and vegetables both at school and at home. The full paper is available on the CARD site at https://www.card.iastate.edu/products/publications/synopsis/?p=1173.

September 12, 2012
Research group receives National Science Foundation Grant permalink

Catherine Kling will join researchers from six other US universities in developing a sustainability study framework that will help the National Science Foundation (NSF) understand and predict processes and places in the landscape that are most vulnerable to change.

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Catherine Kling will join researchers from six other US universities in developing a sustainability study framework that will help the National Science Foundation (NSF) understand and predict processes and places in the landscape that are most vulnerable to change.

The project, which was awarded a $4.3 million Water Sustainability and Climate (WSC) grant, will incorporate a unique hypothesis known as Human-Amplified Natural Change (HANC). The HANC hypothesis suggests that areas that are the most susceptible to human and other external changes are also the areas that are undergoing the highest rate of natural change. Researchers hope to use the hypothesis to develop a set of tools that can be used for watershed decision making. “This hypothesis emphasizes the idea that human alteration of the landscape has played a critical part in altering our landscapes and the ecosystem services they provide. If we have a better understanding of how humans alter the natural system, we can better design policies to reduce the impact of those changes,” Kling said.

The research group will develop a framework and use it to test their hypothesis in the Minnesota River Basin, before using it in other watershed areas. According to the research proposal, the river basin has seen significant changes in precipitation levels, temperature, and stream flow levels. The Minnesota River Basin will allow the research group to examine human influence as well, as agricultural land, mostly row crops, borders 92% of the riverbank. “The Minnesota River Basin is a watershed that is heavily influenced by both agricultural and urban land uses,” Kling said.

Kling, an economics professor, has been working with a research group focusing on integrating economic models with water quality and hydrology for many years. “Our previous experience in model integration and development made us somewhat natural partners for others interested in working to integrate models across the social and natural sciences,” she said. “Many other disciplines now see how important human influences on the environment are in altering its functioning. They also recognize that economists, by studying the incentives that people face in how to use natural resources and the environment, can help design policies that protect and restore ecosystems.”

August 13, 2012
ISU Economists’ Research on Water Quality Receives Prestigious AAEA Award permalink

The prestigious Bruce Gardner Memorial Prize for Applied Policy Analysis will be awarded to three Iowa State Department of Economics faculty for their work on water quality preservation and restoration at the upcoming Agriculture & Applied Economics Association (AAEA) annual meeting.

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The prestigious Bruce Gardner Memorial Prize for Applied Policy Analysis will be awarded to three Iowa State Department of Economics faculty for their work on water quality preservation and restoration at the upcoming Agriculture & Applied Economics Association (AAEA) annual meeting.

Department of Economics faculty Joe Herriges, Cathy Kling, and Dan Otto, are joined by Kevin Egan (former ISU economics grad student now at University of Toledo), and John Downing (ISU department of EEOB) for their collective work on "Assessing the Value of Water Quality Preservation and Restoration: The Iowa Lakes and Rivers Projects."

“I was delighted that our research was chosen to receive the Bruce Gardner Policy Award. Professor Gardner was a true inspiration—he continuously demonstrated that excellence in economic research could effectively improve policy analysis, making a real difference in both policy outcomes and human lives,” Kling said.

Their research was in response to the diminishing water quality of Iowa's lakes and rivers, and assessed the economic value of those waterways in terms of their attraction as a source of recreation. The study surveyed Iowans’ perceived value for and recreational use of 132 of Iowa's lakes and 73 of the state’s river segments.

“This was an exciting foray into the interface between research and policy,” Kling said of the multi-year research project. “We leveraged resources from the Iowa Department of Natural Resources and the U.S. Environmental Protection Agency to collect a unique, multi-year data set on how Iowa households use these environmental resources.”

The results showed a sizable economic impact on Iowa's communities, drawing more than 6,350 jobs, $824 million in sales, and $130 million in personal income from the use of rivers alone. The Lakes Valuation project, which stretches as far back as 2002, found that 12 of the 132 lakes generate spending of over $40 million annually. Overall, Iowans spent just over $9 million on direct spending on average per lake.

Lake visitation increased 33 percent from 2002–2009, the years in which lake usage surveys were sent out. Of the four lakes with the largest increase in usage, three had undergone major restoration efforts. “The findings indicate that Iowans value improved water quality, and (the study) provides a means for economically ranking water quality improvement projects at the state level,” Kling said.

Results from the lakes and rivers surveys can be viewed at the following:

www.card.iastate.edu/lakes/

www.card.iastate.edu/research/resource-and-environmental/nonmarket_valuation/iowa_rivers/

The AAEA, formerly the American Agricultural Economics Association, is the main professional association serving the interests of members working in agricultural and broadly related fields of applied economics. Their annual meeting will be held August 12-14 in Seattle, Washington.

July 26, 2012
Babcock interviewed on Colbert Report permalink

The relentless heat and lack of rain may not feel like a joke in Iowa, but that didn’t stop Colbert Report host Stephen Colbert from making light of the situation when he spoke with ISU’s Bruce Babcock on Tuesday, July 24th.

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The relentless heat and lack of rain may not feel like a joke in Iowa, but that didn’t stop Colbert Report host Stephen Colbert from making light of the situation when he spoke with ISU’s Bruce Babcock on Tuesday, July 24th.

Babcock spoke with Colbert, live via satellite from Johnston, about how the drought will have an impact on a large number of agricultural commodities from eggs to ethanol. Babcock indicated that the recent drought would have an effect on a large portion of Iowa’s corn crop, which is a primary ingredient of livestock feed, and would therefore drive up the price on beef, pork, chicken, and chicken eggs.

Babcock is a professor of Agriculture and the former director of the Center for Agricultural and Rural Development (www.card.iastate.edu) at Iowa State. Some of Professor Babcock's research areas include the analysis of agricultural and trade policies, and the impacts of biofuels on agriculture.

You can see Babcock’s interview here: www.colbertnation.com/the-colbert-report-videos/416886/july-24-2012/u-s--agriculture---drought-disaster---bruce-babcock.

September 19, 2011
Canadian Fulbright Scholar Will Research Meat Purchasing at CARD permalink

Ellen Goddard, a professor in the University of Alberta’s Department of Rural Economy, has been granted a Fulbright Scholar Award to conduct research at the Center for Agricultural and Rural Development (CARD) at Iowa State University. Goddard will spend four months, starting in January 2012, researching for a project titled “Is COOL Cool? Differences in U.S. and Canadian Meat Purchasing Behaviour.”

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Ellen Goddard, a professor in the University of Alberta’s Department of Rural Economy, has been granted a Fulbright Scholar Award to conduct research at the Center for Agricultural and Rural Development (CARD) at Iowa State University. Goddard will spend four months, starting in January 2012, researching for a project titled “Is COOL Cool? Differences in U.S. and Canadian Meat Purchasing Behaviour.”

As a Fulbright Scholar with CARD, Goddard will examine consumer preferences for meat products under different regulations and with different production attributes to compare data on purchasing behaviors from across Canada and the United States. Goddard will be working with Helen Jensen, professor of economics and head of the Food and Nutrition Policy Division at CARD.

Goddard received a doctorate in agricultural economics from La Trobe University in Melbourne, Australia. She holds master’s and bachelor’s degrees in agricultural economics and agriculture, respectively, from the University of Guelph. She has been widely published in academic and peer-reviewed journals, and she has presented her research at numerous conferences on agriculture, economics and advertising. Goddard is also the recipient of several teaching prizes, and she has been awarded significant research funding from Agriculture and Agri-food Canada, as well as from a host of private-sector agriculture organizations and consumer groups.

Operating in over 150 countries worldwide, the Fulbright program has long been regarded as the world’s premiere academic exchange. The program is supported by the Canadian Department of Foreign Affairs and International Trade Canada and the United States Department of State.

September 8, 2011
NSF Invests $20 Million in Iowa’s Renewable Energy and Energy Efficiency Research permalink

AMES, Iowa – The National Science Foundation has awarded a $20 million, five-year grant to build Iowa's research capacity in renewable energy and energy efficiency.

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AMES, Iowa – The National Science Foundation has awarded a $20 million, five-year grant to build Iowa's research capacity in renewable energy and energy efficiency.

The Iowa Power Fund, a state program supporting energy innovation and independence, has also granted the project $2 million to pay for research equipment.

The core of the research project will be conducted at Iowa's three public universities - Iowa State University, the University of Iowa and the University of Northern Iowa. The program also includes partnerships with the state's community colleges, private colleges, school districts, government agencies and industries. Iowa State's Robert C. Brown - an Anson Marston Distinguished Professor in Engineering, the Gary and Donna Hoover Chair in Mechanical Engineering, and the Iowa Farm Bureau Director of Iowa State's Bioeconomy Institute - will lead the program. Co-leaders are P. Barry Butler, executive vice president and provost at the University of Iowa; Kevin Nordmeyer, the director of the Iowa Energy Center in Ames; and Chitra Rajan, associate vice president for research at Iowa State.

"This $20 million grant is the latest example of Iowa's public universities working to build an exciting future for the entire state," said Craig Lang, president of the Iowa Board of Regents. "By developing Iowa's capacity to harness alternative renewable energy sources, our universities are promoting economic development for Iowa and enhancing the quality of life for its citizens."

The research program's vision is to establish Iowa as a leader in the worldwide transition from fossil fuels to renewable energy sources. The program will be built on four major platforms:

The bioenergy platform will investigate the challenges of sustainably producing large quantities of biomass (such as corn stalks) and using thermochemical processes to quickly heat the biomass to produce liquid or gas products suitable for generating electric power or upgrading to transportation fuels. Brown will also lead this platform.

The wind energy platform will use advanced engineering principles - including fluid dynamics, machine design and control theory - to improve the reliability of wind turbines. Research initiatives include establishing an outdoor laboratory to collect wind speed and turbulence data, studying the reliability of turbine blades and improving the designs of turbine drivetrains. Butler will lead this platform.

The energy utilization platform will study building energy science and how human behavior influences energy conservation decisions. The platform recognizes the role that the social sciences will play in understanding how people change their energy habits so renewable energy sources can replace fossil fuels. Nordmeyer will lead this platform.

The energy policy platform will explore ways for engineers and economists to collaborate and advise lawmakers on renewable energy and energy efficiency issues. The platform will establish an Energy, Economics, and Engineering (E³) program to train engineering and economics faculty to work together on energy issues. Bruce Babcock, professor of economics and director of the Center for Agricultural and Rural Development at Iowa State, will lead this platform.

The project will also create a statewide Future Leaders in Advancing Renewable Energy (FLARE) Institute designed to develop the careers of junior faculty in renewable energy fields and broaden the participation of women, under-represented minorities and first-generation college students in science, technology, engineering and math (STEM) fields. The goal is to help the state create a workforce that can meet the needs of Iowa's emerging green economy. Rajan will lead the institute.

And, the grant supports:

• Hiring five new faculty members to improve energy research at Regent universities

• Improving Iowa's information technologies for energy studies

• engaging Iowans in energy issues

• transferring campus energy inventions to private companies.

"This project is a unique opportunity for collaboration among all three Regent universities, Iowa's community and private colleges, K-12 schools, state agencies and regional businesses," said Iowa State's Brown, the research program's leader. "I look forward to working with colleagues across the state who are interested in helping build research capacity in renewable energy and energy efficiency in Iowa."

The $20 million grant is part of the National Science Foundation's (NSF) Experimental Program to Stimulate Competitive Research. The program - known as EPSCoR - is targeted at states and regions that have not won as much research and development funding as other areas. The grants are designed to improve the research capacity of eligible states or regions, making them nationally competitive for future grants.

Campus research leaders are excited about the opportunities the program will create for Iowa:

Jordan Cohen, vice president for research and economic development and chair of the Iowa EPSCoR Statewide Governing Committee, University of Iowa

"Winning the NSF EPSCoR grant for the state of Iowa provides a unique opportunity to advance our science, technology and research infrastructure. This uniquely collaborative project links the research and educational assets of the Board of Regents universities with all other components of the educational sector, business and industry and state government and will help us build the human and physical capital we need to stimulate innovation, enhance our competitiveness, attract, grow and retain business and develop a talented and diverse workforce for the 21st century economy."

Gloria Gibson, executive vice president and provost, University of Northern Iowa

"The University of Northern Iowa is excited about Iowa winning the prestigious EPSCoR grant and about our partnership with the other Regent universities and state institutions to improve and expand the scope of STEM in our state. This project will allow us to advance crucial strategic goals related to innovative research, faculty collaboration, and the integration of education and research."

Sharron Quisenberry, vice president for research and economic development, Iowa State University

"This investment in Iowa by the National Science Foundation will position our state as a research and technology leader in renewable energy and energy efficiency. The project's vision of a transition from fossil fuels to sustainable energy systems matches the state's aspirations to use science, technology and human creativity to meet the challenges of the 21st century and to build an innovative Iowa economy."

Iowa State University News Service

Contacts:
Robert C. Brown, Engineering, Iowa State University; rcbrown@iastate.edu
Bruce A. Babcock, Economics and CARD, Iowa State University; babcock@iastate.edu
Mike Krapfl, ISU News Service; mkrapfl@iastate.edu

September 1, 2011
Moschini Edits New Book on Genetically Modified Food permalink

GianCarlo Moschini is the editor, along with Colin A. Carter and Ian Sheldon, of a new book titled Genetically Modified Food and Global Welfare, volume 10 of the Frontiers of Economics and Globalization series, published by Emerald. The volume is meant to provide new insights by bringing together the leading agricultural economists studying the application of biotechnology to food and agricultural production and the challenges surrounding the development and adoption of genetically modified products. GianCarlo Moschini is a professor of economics and Pioneer Hi-Bred International Chair in Science and Technology Policy at Iowa State University.

April 11, 2011
FAPRI-ISU Presents 2011 World Agricultural Outlook, Adds Greenhouse Gas and Fertilizer Projections permalink

New modeling capabilities that give 15-year projections for world greenhouse gas emissions and fertilizer use highlight the 2011 World Agricultural Outlook of the Food and Agricultural Policy Research Institute at Iowa State University.

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New modeling capabilities that give 15-year projections for world greenhouse gas emissions and fertilizer use highlight the 2011 World Agricultural Outlook of the Food and Agricultural Policy Research Institute at Iowa State University.

“This year, FAPRI-ISU developed and implemented a fertilizer model and cellulosic ethanol model and it improved its greenhouse gas emissions accounting model,” said Jacinto Fabiosa, co-director. “This allows us to include world fertilizer use by nutrient, by country, by commodity, and by year. Also, projections of greenhouse gas emissions by source, by country, and by year are reported.”

Results of the greenhouse gas modeling show a 13.6 percent increase in global emissions from agricultural production over the projection period. These increases are mainly due to an increase in crop area and the associated emissions from agricultural soil management.

An increase in per capita meat demand, at 1.2 percent per year, leads to an increase in emissions from livestock products (especially enteric fermentation) but at levels that are still lower than emissions from cropland. Expanding crop area and livestock production put pressure on global forests and grasslands. The presence or absence of idle cropland in countries determines the degree of impact on greenhouse gas emissions and levels of deforestation.

New estimates of greenhouse gas emission efficiency, or GHGee, summarize information about countries’ market outcomes, productivity improvements, and greenhouse gas emissions in a single metric. The aggregate value of agricultural production per ton of greenhouse gas emissions is reported for each country, with higher GHGee values suggesting a more efficient emission performance. The results for 2010 show the European Union and United States at the higher end of efficiency, at $579 and $571, respectively, followed by Argentina at $349, India at $329, China at $324, and Brazil at $212. As productivity improves, these countries improve their GHGee by 9 to 21 percent over the projection period.

FAPRI-ISU projects that world fertilizer use increases 2.29 percent in 2011/12 relative to 2010/11, which reflects the expansion of the world’s agricultural frontier by 1.60 percent and also the more intensive use of fertilizers at the world level in most commodities. China, India, the United States, and the 27 member states of the European Union account for more than two-thirds (65 percent) of the world’s fertilizer consumption in agriculture. U.S. fertilizer use increases by 2.96 percent, dominated by higher use in corn, wheat, and sorghum because of expanded area and higher fertilizer application rates.

In the macroeconomic overview, despite tepid economic recovery in many developed economies, solid economic performance in developing and emerging economies provides a bright spot for a continuing worldwide economic recovery. In 2010, China posted growth of 10.3 percent and India’s economy grew 8.2 percent.

An economic turnaround, continuing population growth and urbanization, and ever-expanding biofuel mandates are key drivers in the recovery and strength of the world commodity markets over the outlook’s 15-year projection.

The United States is projected to import sugarcane ethanol to meet its advanced ethanol mandates at a level of 3.4 billion gallons by 2025, keeping the prices of world ethanol and sugar strong at $2.50 per gallon and 23.2¢ per pound, respectively. Meat demand increases by 9.4 kilograms. Derived corn demand for biofuel feedstock and for animal feeds keeps the corn price above $191 per metric ton in 2025. Food demand and industrial biodiesel demand support an upward trend in vegetable oil prices.

The full outlook, including projections for world food and feed grains, oilseeds, meat, dairy, sugar, and biofuels, is available at www.fapri.iastate.edu/outlook/2011/.

According to Fabiosa, budget constraints prevented the production of a joint baseline with the FAPRI group at the University of Missouri and at other institutions, as has been provided in past years. “These projections for the 2011 World Agricultural Outlook were run solely by the FAPRI staff at Iowa State University,” he said.

The multi-year FAPRI projections provide a starting point for evaluating and comparing scenarios involving macroeconomic, policy, weather, and technology variables in world agricultural trade. More information is available at the website: www.fapri.iastate.edu/.

Contacts:
Jacinto Fabiosa, FAPRI Co-Director; jfabiosa@iastate.edu
Dermot Hayes, FAPRI, Co-Director ; dhayes@iastate.edu
Sandy Clarke, Communications Manager ; sclarke@iastate.edu

February 18, 2011
Iowa State Wins $20 million Grant to Research Impacts of Climate on Corn-based Cropping Systems permalink

AMES, Iowa – The U.S. Department of Agriculture’s National Institute of Food and Agriculture (USDA-NIFA) has awarded a $20 million grant to Iowa State University for regional research on keeping Midwest cornfields resilient in the face of future climate uncertainties.

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AMES, Iowa – The U.S. Department of Agriculture’s National Institute of Food and Agriculture (USDA-NIFA) has awarded a $20 million grant to Iowa State University for regional research on keeping Midwest cornfields resilient in the face of future climate uncertainties.

Iowa State researchers will coordinate a team of 42 scientists from 10 land-grant universities and two USDA Agricultural Research Service institutions in nine states in the north central region. The team will collect and analyze data over the next five years. The region produces 8 billion bushels of corn, which is 64 percent of the annual harvest in the United States.

"This project is an excellent example of how Iowa State provides leadership on a critical issue in collaboration with partners at other institutions," said Iowa State University’s President Gregory Geoffroy. "This grant will allow researchers from many disciplines to work together, share data and review results that will help shape how we think about sustainable cropping systems.”

“The project takes a synergistic approach to understanding the effects of climate variability and impacts on the sustainability of corn-based cropping systems throughout the Midwest," said Lois Wright Morton, Iowa State professor of sociology, interim director of the Leopold Center for Sustainable Agriculture and project director.

Researchers will begin collecting data on carbon, nitrogen and water movement this spring from 21 research sites. Special equipment will be used to monitor greenhouse gas emissions at many of the sites. The team will integrate field and climate data to create models and evaluate crop management practices.

“The goal is to create a database of plot, field, farm and watershed data that can be combined with climate data to develop scenarios based on different practices,” Morton said. “Then, farmers in the region will have opportunities to participate in on-farm research and evaluate research models. The project will also offer training for teachers and the next generation of scientists to better understand the relationships among climate shifts and agriculture.”

Joe Colletti, associate dean of Iowa State’s College of Agriculture and Life Sciences, said the project’s multilevel approach will help researchers, educators, producers and industry identify and define corn-based cropping systems that are productive and resilient in the face of weather uncertainties and risks.

“This type of transdisciplinary research enables us to integrate and coordinate research, extension and education,” Colletti said. “As we gather data for future weather and cropping models, we’ll also be talking to producers and asking if the results are economically viable, socially acceptable and environmentally sensible.”

The USDA-NIFA program is focused on decreasing greenhouse gas emissions and increasing carbon sequestration. The long-term national outcome is to reduce the use of energy, nitrogen and water by 10 percent and increase carbon sequestration by 15 percent through resilient agriculture and forest production systems.

The grant is part of the USDA-NIFA Coordinated Agricultural Program. This project’s researchers include agronomists, agricultural engineers, environmental scientists, hydrologists, soil scientists, sociologists, watershed engineers and natural resource scientists.

The Iowa State grant is one of three grants to be awarded nationally. The grant awards were announced in Washington D.C. on Feb. 18.

Barbara McBreen, College of Agriculture and Life Sciences Communications Service

Contacts:
Lois Wright Morton, Sociology, 515-294-3711; lwmorton@iastate.edu
Joe Colletti, College of Agriculture and Life Sciences, 515-294-1823; colletti@iastate.edu
Barbara McBreen, Communications Service, 515-294-0707 ; barbmc@iastate.edu

January 3, 2011
Babcock to Participate in Orientation for New Members of Congress permalink

Bruce Babcock, professor of economics and director of the Center for Agricultural and Rural Development at Iowa State University, will be part of a panel of experts in agricultural policy brought together for a January orientation of new members of Congress. The program is sponsored by the U.S. House of Representatives and the Congressional Research Service and is part of the official orientation on legislative issues and procedures. The program on agriculture, to be held January 10 in Williamsburg, Virginia, focuses on the most important agricultural issues likely to be addressed during the 112th Congress and gives new members a forum for discussion and access to experts for questions they may have about specific policies. Babcock has provided testimony in previous congressional committee sessions on the farm bill, biofuels policies, and the crop insurance program.

December 9, 2010
Kling to Serve on IFPRI Board of Trustees permalink

Catherine Kling will begin serving a three-year term January 1 on the Board of Trustees of the International Food Policy Research Institute (IFPRI). Kling is a professor of economics and leads the Resource and Environmental Policy Division at the Center for Agricultural and Rural Development at Iowa State University. IFPRI is an international agricultural research organization headquartered in Washington, D.C., with a mission of providing policy solutions that reduce poverty and end hunger and malnutrition worldwide. It has research programs focused on Asia, Latin America, and Africa, covering a range of topics, including global food and natural resources. The 16-member board is selected from nominations and is responsible for setting policies and overseeing and evaluating the institute’s management.

October 28, 2010
Nearly Half of Iowans Surveyed Visit Iowa’s Rivers and Streams permalink

Results of a new statewide representative survey reveal the patterns and preferences of Iowa citizens in their use of the state’s rivers and streams, with nearly half of survey respondents reporting taking trips to one of the 73 listed river or stream segments during 2009.

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Results of a new statewide representative survey reveal the patterns and preferences of Iowa citizens in their use of the state’s rivers and streams, with nearly half of survey respondents reporting taking trips to one of the 73 listed river or stream segments during 2009.

The survey was conducted by researchers in the Department of Economics and Center for Agricultural and Rural Development at Iowa State University, with funding from the Iowa Department of Natural Resources and U.S. Environmental Protection Agency.

Almost 4,800 people responded to the survey mailing of 10,000, first sent in November 2009 and followed up with reminder mailings. The survey asked questions about visitation patterns, activities chosen by those who did visit, attitudes toward factors that affected respondents’ decisions to visit rivers, and demographic information.

Highlights of the survey results:

  • The average number of trips was about six per person.
  • The most visited rivers and streams included segments of the Mississippi, Des Moines and Cedar Rivers, as well as portions of the Missouri, Iowa, and Wapsipinicon.
  • Usage varied by demographic groups, with younger, more educated, and higher-income individuals having the heaviest usage. Men reported more visits than women.
  • The most popular activities reported were relaxation, fishing, trail-related activities, and wildlife viewing, with variation across rivers and demographic groups.
  • The single most important consideration in selecting a river to visit was proximity to the home, with water quality and habitat being the second most important factor.
  • The factors most cited as having a negative influence over respondents’ decisions to visit rivers and streams were related to water quality issues.

Yongjie Ji, a Ph.D. candidate, and economics professors Joseph Herriges and Catherine Kling conducted and tabulated the survey. The researchers commend the results to the funding agencies as a useful tool to guide citizens and policymakers in their decisions about conservation expenditures to improve the outdoor recreation experience of Iowans in the most cost-effective manner.

“Rivers are one of Iowa’s remarkable features, and this survey validates what we’ve seen—Iowans are out there, using their rivers and river corridors for a broad range of activities,” said Nate Hoogeveen, the DNR’s Water Trails Coordinator. “We hope the survey results can help us get more Iowans outdoors and invested in the quality of their rivers and streams.”

Copies of the report and survey are available at www.card.iastate.edu/research/resource-and-environmental/nonmarket_valuation/iowa_rivers/.

Contacts:
Catherine Kling; ckling@iastate.edu
Joseph Herriges; jaherrig@iastate.edu
Sandy Clarke; sclarke@iastate.edu

September 22, 2010
NSF Funding Advances Iowa State Team’s Research on Gulf of Mexico Hypoxia permalink

Researchers at Iowa State University and partner institutions will address Northern Gulf of Mexico hypoxia and its causes with $1.3 million in funding from the National Science Foundation.

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Researchers at Iowa State University and partner institutions will address Northern Gulf of Mexico hypoxia and its causes with $1.3 million in funding from the National Science Foundation.

Principal investigator Catherine Kling, an economics professor and head of Resource and Environmental Policy at the Center for Agricultural and Rural Development (CARD) at Iowa State University, heads up the team of economists, research agricultural engineers and marine biologists that will further measure and model the causes and consequences of the seasonal hypoxic (dead) zone. The zone continues to be large, triple the size targeted as a goal by the U.S. Environmental Protection Agency’s Gulf Hypoxia Task Force.

The project aims to produce the first complete modeling system to trace agricultural land-use decisions to downstream water quality effects in the northern Gulf of Mexico. Previous scientific assessment has suggested that nitrogen and phosphorous loadings from upstream river basins contribute significantly to the problem.

“We need integrated models with a rich amount of data to study how the decisions of the half million farmers in the watersheds affect the health of the Gulf ecosystem,” said Kling. “Through this grant, we hope both to improve our scientific tools and to get a better understanding of how changing conservation practices on the landscape will change the downstream conditions.”

Gulf specialists at Louisiana State University’s Department of Oceanography and Coastal Sciences and the Louisiana Universities Marine Consortium will join researchers at Iowa State, the University of Washington, North Carolina A&T State University, and the Blackland Research and Extension Center and Spatial Sciences Laboratory at Texas A&M University who conduct the watershed modeling and analyze the results.

The project proposal highlights the complex natural and human dynamics of the problem. In order to identify the most cost-effective placement of conservation practices in the Upper Mississippi, Ohio and Tennessee basins, the team will scrutinize both market-based and policy-based factors in farmers’ field management decisions.

A unique aspect of this project, learning how best to “scale up” the impact of individual decisions on a single farm field, will improve the modeling system’s accuracy as a tool for designing better policy to improve water conditions both in the watersheds and in the Gulf.

The National Science Foundation awarded total funding of $1,373,369, including $655,289 to Iowa State’s Center for Agricultural and Rural Development.

Contacts:
Catherine Kling; ckling@iastate.edu
Philip Gassman; pwgassma@iastate.edu
Sandy Clarke; sclarke@iastate.edu

July 20, 2010
CARD Study Shows U.S. Ethanol Production and Corn Demand Will Grow With or Without Subsidy and Tariff permalink

America's growing interest in renewable fuels has spurred a robust discussion about the pros and cons of continuing or changing current U.S. federal government ethanol policies, specifically, (1) mandates to increase the use of renewable fuels like ethanol from approximately 13 billion gallons today to 36 billion gallons by 2022, (2) a 45-cent-per-gallon tax credit for "blenders" who add ethanol to gasoline, and (3) a 54-cent-per-gallon tariff, which increases the price of foreign imports.

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America's growing interest in renewable fuels has spurred a robust discussion about the pros and cons of continuing or changing current U.S. federal government ethanol policies, specifically, (1) mandates to increase the use of renewable fuels like ethanol from approximately 13 billion gallons today to 36 billion gallons by 2022, (2) a 45-cent-per-gallon tax credit for "blenders" who add ethanol to gasoline, and (3) a 54-cent-per-gallon tariff, which increases the price of foreign imports.

A new staff report by Bruce A. Babcock, director of the Center for Agricultural and Rural Development (CARD) and a professor of economics at Iowa State University, projects that allowing the blender credit and tariff to expire would have neither the dramatic, adverse effect U.S. ethanol producers claim nor create the export bonanza foreign producers hope for. The report also projects that American drivers and taxpayers stand to benefit if the supports are allowed to lapse.

Some key highlights from the staff report:

• U.S. ethanol production would increase to some 14.5 billion gallons by 2014 without the tax credit and import tariff; U.S. imports of Brazilian ethanol would rise modestly to about 740 million gallons—less than 5 percent of the total U.S. ethanol market.

• If the mandates are kept in place but the tax credits and trade protection are allowed to expire, no more than 300 jobs would be lost in the ethanol industry in 2014.

• Ending the tax credit and tariff would reduce ethanol prices by 12 cents per gallon in 2011 and by 34 cents per gallon in 2014. Because most gas sold in the United States contains 10 percent ethanol—a limit the Environmental Protection Agency may increase to 15 percent this fall—lower ethanol prices lead to modest savings at the pump: a penny or two per gallon next year and 3 to 5 cents per gallon in 2014.

• Opening the U.S. market to all producers would reduce price volatility by acting as a price shock absorber, meaning that in years when domestic ethanol production is low, imports would lower the consumer cost of meeting blending mandates.

• The Renewable Fuel Standard (RFS) is the primary driver of ethanol demand. The tax credit prompts blenders to use about 900 million gallons of ethanol each year above mandated levels. This costs taxpayers some $6 billion annually (or almost $7 per gallon). Ending the subsidy would save that amount.

The staff report is based on an economic model developed by Dr. Babcock and his staff that randomly drew corn yields and gasoline prices—the two key factors affecting the profitability of U.S. ethanol—and then calculated how the U.S. and Brazilian ethanol markets would react to each draw. The U.S. and Brazil were used because they are the two largest ethanol markets in the world. The calculations were repeated 5,000 times to derive an average market response for each scenario.

Partial funding for this report came from a research grant to CARD from UNICA—the Brazilian Sugarcane Industry Association.

This report, titled "Costs and Benefits to Taxpayers, Consumers, and Producers from U.S. Ethanol Policies," is available online on the CARD Web site: www.card.iastate.edu. Permission is granted to excerpt or quote this information with appropriate attribution to the authors.

Contacts:
Bruce A. Babcock ; babcock@iastate.edu
Sandy Clarke; sclarke@iastate.edu

March 9, 2010
Projected Economic Turnaround Fuels Recovery in Commodity Trade and Prices, According to 2010 FAPRI Outlook permalink

WASHINGTON – Despite the recent slowdown in the world economy and supply response to earlier dramatic price increases, which depresses commodity prices in the short run, the Food and Agricultural Policy Research Institute projects that an economic turnaround and bioenergy mandates will grow demand for food, feed, and fuel, stimulating trade and price recovery over the rest of the decade. FAPRI analysts briefed Congress this week on their 2010 agricultural economic baseline projections, known as the FAPRI Outlook.

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WASHINGTON – Despite the recent slowdown in the world economy and supply response to earlier dramatic price increases, which depresses commodity prices in the short run, the Food and Agricultural Policy Research Institute projects that an economic turnaround and bioenergy mandates will grow demand for food, feed, and fuel, stimulating trade and price recovery over the rest of the decade. FAPRI analysts briefed Congress this week on their 2010 agricultural economic baseline projections, known as the FAPRI Outlook.

According to the Outlook, the slowdown in the world economy in 2009 proved to be deeper and more widespread than originally anticipated, with a negative annual rate of real GDP growth of -1.9 percent. However, significant recovery is projected for 2010, with long-term real GDP growth of 3.3 percent reached by 2011. The Asian economies withstood the economic crisis, posting positive growth in 2009 (for example, China at 8.5 percent and India at 6.4 percent), and thus lead the world economic recovery.

The U.S. dollar made significant gains in 2009 but it resumes its real depreciation over the rest of the decade against the currencies of Australia, the European Union, New Zealand, Argentina, and China.

The economic recovery is accompanied by projected stronger energy prices. FAPRI expects that continuing recovery of crude oil prices and bioenergy mandates will grow demand and strengthen the world price of ethanol through 2019. Global net trade in ethanol is projected to increase by 3.12 billion gallons and reach 4.15 billion gallons by 2019. Biodiesel mandates in the Americas and Europe sustain the high price of biodiesel and vegetable oil, with growth in consumption mostly met by domestic production, as the traditional South American exporters also face domestic mandates.

Other highlights from FAPRI's 2010 world agricultural outlook:

Bumper crop production in key wheat producing and importing countries, coupled with a slow economy, depresses the world wheat price over the next two years. An economic turnaround strengthens prices. The world corn price follows a similar pattern, decreasing in 2009/10 but strengthening thereafter. In the long run, grain prices are expected to remain strong because of growing demand for food, feed, and fuel purposes.

A production shortfall in 2009/10, particularly in India, raises the world price of sugar by almost 60 percent. The price declines by 26 percent in the following year as countries recover. However, it continues to remain high, as more sugarcane is used for ethanol in Brazil, and sugar imports of countries like China and the EU remain strong.

World prices of oilseeds remain relatively stable in 2009/10 as the supply rebound (especially for soybeans) is met with increased demand resulting from the economic recovery. Vegetable oils lead the oilseeds complex, as demand from both food and biodiesel uses expands firmly over the outlook period. Increasing demand for protein meal from the growing and intensifying livestock sector in Asia supports the price of meal despite large supplies due to strong oil-driven crush. Argentina, Brazil, Paraguay, and the United States continue to dominate world soybean production, while China continues to dominate world soybean imports. Palm oil remains the cheapest and most widely traded edible oil.

Food safety concerns continue to affect the world meat market in the short run. However, sustained income and population growth raises per capita meat consumption and fuels expansion in world trade. Over the next decade, meat trade is projected to increase by 22.5 percent, and recovery in demand, coupled with higher grain prices, strengthens all meat prices. Brazil and the United States gain significant shares in the world meat market.

Dairy prices declined significantly in 2008/09 as a result of the economic slowdown. In the long run, growth in population and income continues to put upward pressure on dairy prices. Australia, New Zealand, and the European Union remain the big exporters. While exports from the European Union stagnate, Argentina and Brazil expand their dairy exports. The Asian countries, Russia, and Algeria are the main importers in the world dairy markets.

FAPRI is an economic research group with centers at Iowa State University and the University of Missouri-Columbia. The outlook projections incorporate recent macroeconomic forecasts and currently adopted agricultural policies.

The multi-year FAPRI projections provide a starting point for evaluating and comparing scenarios involving macroeconomic, policy, weather, and technology variables in world agricultural trade. More information is available at the Iowa State (http://www.fapri.iastate.edu) and University of Missouri (http://www.fapri.missouri.edu) FAPRI Web sites.

Contacts:
Jacinto Fabiosa, FAPRI Co-Director, (515) 294-6183; jfabiosa@iastate.edu
Dermot Hayes, FAPRI, Co-Director, (515) 294-6185; dhayes@iastate.edu
Sandy Clarke, Communications, (515) 294-6257; sclarke@iastate.edu

February 17, 2010
Babcock Joins Expert Group on Low Carbon Fuel Standard for State of California permalink

The California Air Resources Board (CARB), part of the California Environmental Protection Agency, has convened a workgroup of experts on land use and indirect effects of transportation fuels. Bruce A. Babcock, director of the Center for Agricultural and Rural Development and a professor of economics at Iowa State University, is one of thirty experts from U.S. and international academic, research, and governmental institutions invited to participate.

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The California Air Resources Board (CARB), part of the California Environmental Protection Agency, has convened a workgroup of experts on land use and indirect effects of transportation fuels. Bruce A. Babcock, director of the Center for Agricultural and Rural Development and a professor of economics at Iowa State University, is one of thirty experts from U.S. and international academic, research, and governmental institutions invited to participate.

The work of the CARB Low Carbon Fuel Standard Expert Workgroup comes on the heels of a ruling by the U.S. Environmental Protection Agency concluding that existing biofuels meet the life cycle greenhouse gas emission limits imposed as part of the federal Renewable Fuel Standard in the 2007 energy act. California's Low Carbon Fuel Standard, initiated in 2007, calculates the carbon intensity of fuel sold in the state and requires manufacturers to start cutting carbon intensity beginning in 2011. CARB's calculation of the carbon intensity of corn-based ethanol has counted indirect land-use change resulting from creating new cropland when existing land is converted to growing corn for fuel.

CARB adopted a resolution to refine and improve its analysis of land use and indirect effects of transportation fuels by bringing together the foremost experts on carbon intensity and impacts of alternative fuels production. The first meeting of the workgroup is February 26.

February 9, 2010
Iowa State University Economist Testifies before Congress on Cap-and-Trade Bill permalink

The current legislation in Congress on controlling carbon outputs, often called cap and trade, could potentially increase corn and soybean prices more than 20 percent, according to an Iowa State University expert.

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The current legislation in Congress on controlling carbon outputs, often called cap and trade, could potentially increase corn and soybean prices more than 20 percent, according to an Iowa State University expert.

With its enormous capacity to absorb carbon, U.S. agriculture will be an important part of any climate change bill. Opportunities for absorbing carbon include using pasture and crop land to grow trees and using soils as a carbon "sink."

Because of the size of this opportunity and the irreversible nature of some key decisions, farmers and the public should fully understand the ramifications of the policies, according to Dermot Hayes, professor of economics and finance at ISU and Pioneer Hi-Bred International Chair in Agribusiness.

According to the U.S. Environmental Protection Agency, one likely outcome of the climate change bill is the conversion of a large amount of poor-quality cropland to forests. This transition would be a boon to some farmers and all landowners, but may not be good for livestock growers or crop growers who rent land, according to Hayes.

Hayes has been working with researchers at ISU's Center for Agricultural and Rural Development as well as the Food and Agricultural Policy Research Institute (FAPRI) to better understand the implications of such a policy on world market prices and net carbon emissions from United States and world agriculture.

"While (commodity) prices would increase, it would be problematic for livestock producers, because feed costs would increase, and it would be bad for some crop growers because they will have less land to farm," said Hayes, who presented his findings to a subcommittee of the U.S. House Committee on Agriculture.

"I looked at the EPA projections and began thinking, if you take 100 million acres of U.S. land out of production, as the EPA analysis projects, you're going to have an impact on prices," said Hayes.

Cap-and-trade legislation is designed to reduce carbon in the atmosphere that may be affecting climate. Opponents say limiting carbon means reducing economic activity.

Hayes says that growing trees to capture the carbon has the potential to offset carbon emissions elsewhere in the economy.

"We will continue to produce carbon because we will still drive our cars and use electricity, but the trees will absorb the carbon, or we will find economic ways to sink carbon into the soil," said Hayes.

Hayes, who is also co-director of FAPRI, says his forecasts are based on calculations that are consistent with those reached independently by experts at Duke University, Durham, North Carolina; Texas A&M University, College Station, and the EPA.

In addition to the 100 million acres needed to convert from crops to growing trees in the United States, an additional 300 million crop acres worldwide would need to be converted to trees in order to offset the United States' carbon reduction promises. Hayes says that other countries may want to grow some trees to meet their own carbon requirements.

When all of these commitments are realized, the impact on the world food prices will be substantial and much greater that the 20 percent price increase that will result from United States-only land conversion, according to Hayes.

The size of that price impact has led to interest in other ways to capture carbon. One method Hayes believes may become more popular is heating biomaterial in a process called pyrolysis, turning part of it into a carbon-rich substance called biochar and incorporating that biochar directly into the soil. This process actually increases yields on soils and achieves many of the carbon benefits of growing trees without the costs associated with reducing world crop acres.

Cap and trade legislation, H.R. 2454: American Clean Energy and Security Act of 2009, passed in the U.S. House of Representatives in June and is awaiting action in the Senate.

Contacts:
Dermot Hayes; dhayes@iastate.edu
Dan Kuester, Iowa State University News Service; kuester@iastate.edu

January 28, 2010
Bushnell, Hart, and Brown Address Climate Change Legislation permalink

Leading economists in energy economics and agricultural policy presented a two-hour ISU Extension webcast Feb. 1 at 7 p.m. Climate change legislation and regulations now making headlines will impact the economy, consumers and agriculture when they are enacted. James Bushnell and Chad Hart, economics, and Tristan Brown, postdoctoral research associate in economics, will be among the speakers to help Iowans better understand the proposed policy and its expected implications for agriculture. More: http://www.extension.iastate.edu/news/2010/jan/161501.htm. See webcast: http://www.agmrc.org/renewable_energy/climate_change/climate_change_policy_webcast.cfm

December 3, 2009
Hayes Addresses U.S. House Agriculture Subcommittee about Impacts to Agriculture of Domestic Offsets permalink

Professor Dermot Hayes made a statement at a hearing on costs and benefits of domestic offsets on December 3 before a subcommittee of the U.S. House Committee on Agriculture. Hayes gave the Subcommittee on Conservation, Credit, Energy, and Research an overview of his analysis on the reaction of crop prices and the resulting conversion of agricultural land due to domestic agricultural offsets of carbon if such a program were instituted.

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Professor Dermot Hayes made a statement at a hearing on costs and benefits of domestic offsets on December 3 before a subcommittee of the U.S. House Committee on Agriculture. Hayes gave the Subcommittee on Conservation, Credit, Energy, and Research an overview of his analysis on the reaction of crop prices and the resulting conversion of agricultural land due to domestic agricultural offsets of carbon if such a program were instituted.

The analysis suggests that by 2023, the price of corn would be about 28% higher and the price of soybeans would be 20% higher in the Corn Belt. The analysis, using models of the Food and Agricultural Policy Research Institute, also suggests that with higher crop prices, about 10 million acres of pasture and land in the Conservation Reserve Program (CRP) would be converted into cropland so that the net price impact would lead to conversion of 40 million acres. Hayes said that limiting the conversion of crop land for domestic offsets and confining it to pasture, CRP, and publically owned lands would be one solution to the challenge to agriculture of cropland conversion. Another would be using other means, such as biochar, to sequester carbon in agricultural soils. Read the full statement.

October 9, 2009
Essay by Brown, Hayes, and Brown Wins in Farm Foundation Policy Competition permalink

An essay by Tristan Brown, Dermot Hayes, and Robert Brown has been selected as a winner in the Farm Foundation's 30-Year Challenge Policy Competition. The essay, "The Embedded Carbon Valuation System: A Policy Concept to Address Climate Change," shared top honors in the climate change category. The competition "sought innovative and promising public policy options to address …agriculture and food system challenges." Tristan Brown is a research associate and Dermot Hayes is a professor, Department of Economics and CARD. Robert Brown is a professor in the Department of Biomechanical Engineering and director of the Bioeconomy Institute. The essay and additional information is available at the Farm Foundation Web site.

September 4, 2009
Hayes Shares Research Findings with EPA Officials at Grassley Event permalink

Dermot Hayes highlighted recent research on the economics of biofuels production at a September 3 visit to the Iowa State University BioCentury Research Farm by two top officials with the U.S. Environmental Protection Agency.

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Dermot Hayes highlighted recent research on the economics of biofuels production at a September 3 visit to the Iowa State University BioCentury Research Farm by two top officials with the U.S. Environmental Protection Agency.

Iowa Senator Chuck Grassley organized and hosted visits to several Iowa agricultural sites for Gina McCarthy and Margo Oge, who are among those in the EPA working on rules to determine the next Renewable Fuels Standard. This policy is expected to have a big impact on ethanol and biodiesel producers in the state and nation.

Hayes, a professor in CARD and the departments of economics and finance, discussed research led by Jerome Dumortier, a graduate research assistant in CARD, analyzing how biotechnology breakthroughs and the resulting yield increases could mitigate any indirect land-use changes worldwide from ramped-up biofuels production. In its assessment of the greenhouse gas impacts of biofuels, the EPA is currently considering whether or not to include projected land-use changes outside of the United States that could be caused indirectly by higher crop prices that stem from increased use of corn and soybeans for biofuels.

The EPA has expressed interest in using the research in their final assessment. The CARD researchers are also in the process of submitting their analysis to scientific journals for review.

May 1, 2009
CARD Announces Research Position Openings permalink

The Center for Agricultural and Rural Development (CARD) is anticipating research activity needs in agricultural trade and policy and is recruiting two post-doc researchers.

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The Center for Agricultural and Rural Development (CARD) is anticipating research activity needs in agricultural trade and policy and is recruiting two post-doc researchers.

Specific duties of the International Grains Analyst position:

  1. Research and analyze policies impacting world agricultural markets withan emphasis in food and feed grains, and publish research results inscholarly journals.
  2. Develop and maintain rigorous econometric models of the world agricultural markets.
  3. Organize and prepare the annual FAPRI baseline projections and associated policy analysis.
  4. Communicate results of the agricultural projections and policy analysesto the U.S. House and Senate agricultural committees, USDA analysts,commodity groups, and the public through oral presentations and writtenpublications.

Specific duties of the U.S. Analyst position are the same in research, modeling, and communication, but with a particular focus on U.S. policy and markets.

Required qualifications: Ph.D. or equivalent experience in economics or agricultural economics. Two years of experience with econometric modeling techniques and statistical analysis of agricultural markets related to agricultural production and trade (can be pre-Ph.D.). Strong computer skills with statistical estimation software and spreadsheet applications. Leadership, research, excellent communication, and interpersonal skills required to work effectively with project teams and professional groups.

Proposed starting date is May 2009 with some flexibility. Salary commensurate with qualifications. These are term appointments. The post-doc in the Grains Analyst position has the possibility of being considered for a professional and scientific (P&S) position. Submit letter of application, resume of qualifications and work experience, and names and addresses of three references to Dr. Jacinto Fabiosa, Center for Agricultural and Rural Development, Iowa State University, 568E Heady Hall, Ames, Iowa 50011-1070, or e-mail to jfabiosa@iastate.edu by May 20, 2009. CARD will also conduct interviews at the AAEA meetings July 26-28, 2009, in Milwaukee, Wisconsin. Iowa State University is an Equal Opportunity/Affirmative Action employer.

April 1, 2009
CARD Receives $600,000 from U.S. EPA to Study Water Quality Trading and Effects on Iowa Watersheds. permalink

Iowa State University's Center for Agricultural and Rural Development (CARD) has received three grants of $200,000 each from the U.S. Environmental Protection Agency to assess the feasibility of water quality trading programs in three watersheds located within the Upper Mississippi River Basin.

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Iowa State University's Center for Agricultural and Rural Development (CARD) has received three grants of $200,000 each from the U.S. Environmental Protection Agency to assess the feasibility of water quality trading programs in three watersheds located within the Upper Mississippi River Basin.

CARD is one of 10 leading organizations chosen to receive funding from EPA's Targeted Watersheds Grant program. The program encourages innovative water quality trading and other market-based programs that will reduce nitrogen, phosphorus, sediment, or other pollutants that contribute to the hypoxic zone in the Northern Gulf of Mexico.

"These grants were designed to encourage successful community-based approaches and management techniques to protect and restore the nation's watersheds" said Art Spratlin, Region 7 director of EPA's Water, Wetlands, and Pesticides Division.

CARD researchers will target the Raccoon River Watershed and Boone River Watershed in central Iowa and the Walnut Creek Watershed in south-central Iowa. They will assess the economic feasibility of using water quality trading and/or reverse auctions, as appropriate to each watershed, for addressing nutrient and sediment reduction goals.

In a water quality trading program, agricultural producers would receive points for implementing various conservation practices, and each producer would be required to meet a "cap" of a fixed number of points. This cap could be satisfied by placing conservation practices on their own land or by purchasing credits from other producers who have exceeded their point requirement.

In contrast, in a reverse auction, an organization or governmental authority directly purchases conservation practices from willing landowners. Both of these incentive systems will be assessed.

"These research efforts will lead to better understanding of incentive-based conservation programs for these three watersheds and other Upper Midwest cropped regions," said Philip Gassman, an environmental scientist at CARD who helped write the proposals.

The Iowa Department of Natural Resources is interested in understanding whether an incentive-based system could be used to implement water quality improvements and is collaborating on the projects. Researchers at the Iowa Geological Survey in Iowa City and at the University of Washington will also take part.

Contacts:
Philip Gassman, CARD; pwgassma@iastate.edu
Kris Lancaster, Region 7 U.S. Environmental Protection Agency, 913-551-7557
Sandy Clarke, CARD communications; sclarke@iastate.edu

March 6, 2009
2009 FAPRI Outlook Shows Impacts of Economic Slowdown but Projects Higher Commodity Prices over the Next Decade permalink

WASHINGTON – After dramatic increases in the prices of most commodities in the last three years, prices retreat in 2009/10, but growing demand for food, feed, and fuel is expected to return them to historically high levels over the rest of the decade, according to analysts with the Food and Agricultural Policy Research Institute (FAPRI), who briefed Congress this week on their 2009 agricultural economic baseline projections.

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WASHINGTON – After dramatic increases in the prices of most commodities in the last three years, prices retreat in 2009/10, but growing demand for food, feed, and fuel is expected to return them to historically high levels over the rest of the decade, according to analysts with the Food and Agricultural Policy Research Institute (FAPRI), who briefed Congress this week on their 2009 agricultural economic baseline projections.

A widespread economic slowdown in 2009 weakens demand for agricultural commodities and, coupled with the high carryover supply from the last two years of high prices, depresses commodity prices in the short run. However, world population growth, recovery in income growth, and bioenergy mandates drive prices back to their historic highs over the rest of the decade.

The recent market turbulence in the advanced economies spreads and slows world economic expansion in 2009. However, recovery is projected in 2010, with long-term real growth in world gross domestic product of 3.5 percent reached by 2011. A bright spot in the outlook is that after the recovery, China, Vietnam, and India still post solid growth of 8.6, 7.7, and 7.5 percent, respectively. After substantial projected appreciation of the U.S. dollar in 2009, the U.S. dollar depreciates (inflation adjusted) over the rest of the decade against the currencies of most trade partners and competitors in international export markets, with the exception of the Brazilian real.

FAPRI expects the world ethanol price to fall in the short run because of weak crude oil prices and large supplies driven by previous oil price increases. However, bioenergy mandates translate into growing demand, which again strengthens the price of ethanol through 2018. Global net trade in ethanol is projected to increase by 3.68 billion gallons and reach 4.90 billion gallons by 2018. Biodiesel mandates in the Americas and Europe sustain the high price of biodiesel, with growth in consumption mostly met by domestic production, as the traditional South American exporters also face domestic mandates.

Other highlights from FAPRI's 2009 world agricultural outlook:

Shortages in many exporting and producing countries and strong import demand drove grain prices up sharply in 2007/08. An adequate response to the demand softened prices in 2008/09. The world wheat price is projected to decrease further in 2009/10 because of high carryover stocks. The world corn price decreased in 2008/09 with the lower import demand in world markets. It is projected to decrease further in 2009/10. In the long run, grain prices are expected to remain strong because of growing demand for food, feed, and fuel purposes.

The world sugar price declines slightly, by 0.7¢ per pound, in 2008/09. Because more sugarcane is used for ethanol in Brazil, and with strong sugar imports from the European Union, China, and India, prices increase by 15 percent over the projection period.

World prices of oilseeds and vegetable oil retreat from their historic highs of 2007/08 because of weaker demand. World trade of soybeans, soy meal, and soy oil grows by 33, 31, and 37 percent, respectively, over the next decade. Argentina, Brazil, Paraguay, and the U.S. account for 85 percent of the 296 million metric tons of world production in 2018/19. China continues to dominate world soybean imports and expands its net trade to 56 million metric tons by 2018/19. Palm oil remains the cheapest and most widely traded edible oil.

Sanitation and food safety concerns in China continued to impact the world meat market, as did issues with traceability. Sustained growth in world population and income raises per capita meat consumption and fuels a 24.3 percent expansion in world trade. Trade is projected to end at 21.1 million metric tons in 2018. A recovery in demand, coupled with strong grain prices, pushes all meat prices to historically high levels. Brazil and the United States gain significant shares in the world meat market.

World dairy prices are retreating from the record-breaking levels posted in mid-2007. With uncertainty about economic conditions as well as increasing supplies, world dairy prices continue to decline in the next couple of years. In the long run, growth in population and incomes continues to put upward pressure on dairy prices. Australia, New Zealand, and the European Union remain the big exporters. But as excess supply from the EU dwindles, Argentina and Brazil expand their dairy exports.

FAPRI is an economic research group with centers at Iowa State University and the University of Missouri-Columbia. The outlook projections incorporate recent macroeconomic forecasts and currently adopted agricultural policies.

The multi-year FAPRI projections provide a starting point for evaluating and comparing scenarios involving macroeconomic, policy, weather, and technology variables in world agricultural trade. More information is available at the Iowa State (http://www.fapri.iastate.edu) and University of Missouri (http://www.fapri.missouri.edu) FAPRI Web sites.

Contacts:
Jacinto Fabiosa; jfabiosa@iastate.edu
Dermot Hayes; dhayes@iastate.edu
Sandy Clarke; sclarke@iastate.edu

January 28, 2009
Hayes Appointed to USDA-DOE Biomass Research Committee permalink

Dermot J. Hayes has been invited to join the Biomass Research and Development Technical Advisory Committee, jointly administered by the U.S. Department of Agriculture and U.S. Department of Energy. The appointment is for three years.

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Dermot J. Hayes has been invited to join the Biomass Research and Development Technical Advisory Committee, jointly administered by the U.S. Department of Agriculture and U.S. Department of Energy. The appointment is for three years.

The committee was established by the Biomass Research and Development Act of 2000 and assists the two departments in meeting the act's "important national goals of a healthier rural economy and improved national security."

As a member of the committee, Hayes will advise the Biomass Research and Development Board, which coordinates research and development activities relating to biofuels. The Technical Advisory Committee lends expertise on strategic planning and direction of requests for proposals issued under the Biomass Initiative and the procedures for reviewing and evaluating the proposals.

The committee also helps connect federal and state agencies, agricultural producers, industry, consumers, and the research community for program work relating to federal biomass research and development.

Hayes holds the Pioneer Hi-Bred International Chair in Agribusiness. He is a professor in both the economics and finance departments at Iowa State University.

November 24, 2008
MATRIC Publishes Book on Feeding Distillers Grains permalink

The Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University has published a book on using distillers grains, a co-product of biofuels production, as a feedstuff for livestock and poultry. The book is only available online at www.card.iastate.edu/products/books/distillers_grains/ and is free for downloading.

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The Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University has published a book on using distillers grains, a co-product of biofuels production, as a feedstuff for livestock and poultry. The book is only available online at www.card.iastate.edu/products/books/distillers_grains/ and is free for downloading.

The book, Using Distillers Grains in the U.S. and International Livestock and Poultry Industries, was edited by Bruce A. Babcock, Dermot J. Hayes and John D. Lawrence, all professors of economics at Iowa State University. The editors invited internationally renowned experts in animal science, economics, trade, and transportation and logistics from Iowa State and six other universities to share their knowledge and the latest research about distillers grains.

Chapters cover nutrition and live animal performance of beef cattle, dairy cattle, swine and poultry when fed various distillers grain products. Storage, shelf life and transportation issues are included, as are new technologies on the horizon and challenges remaining in the use of distillers grains. Two chapters discuss the trade value of U.S. distiller grains in small and large international markets.

A chapter on ingredient value and cost includes an online calculator program. Livestock and poultry producers can use the calculator to determine their best-cost diet in the context of current market supply and demand and balanced nutrient content for a specific animal species. Feed distributors can use the calculator to determine appropriate pricing of a feed ingredient.

"This book is a comprehensive, solid resource on all aspects of distillers grains feeding, handling and marketing," said Lucy Norton, managing director of the Iowa Renewable Fuels Association. "Distillers grains are a valuable source of protein and energy that can be an economical addition to feed rations. Providing Iowa's livestock producers with these guidelines and tools will enhance the feeding of ethanol co-products."

MATRIC is an affiliate of the Center for Agricultural and Rural Development at Iowa State University. MATRIC funds interdisciplinary research projects in agribusiness and trade.

Contacts:
Dermot J. Hayes, Economics, Finance, FAPRI; dhayes@iastate.edu
John D. Lawrence, Economics, Iowa Beef Center; jdlaw@iastate.edu
Bruce A. Babcock, Economics, CARD, MATRIC; babcock@iastate.edu
Sandy Clarke, CARD communications; sclarke@iastate.edu

October 29, 2008
Study Finds Tenuous Link between Farm Subsidies and Intake of Sweets permalink

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.

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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.

Two Iowa State University economists, working along with University of California-Davis researchers on the project, have found that the current link between these subsidies and intake of sweeteners is tenuous at best, although a stronger link could be found in earlier years. Eliminating corn subsidies would do little to decrease the consumption of sweeteners in foods and its extra calories, according to the analysis by Professors John Beghin and Helen Jensen.

Beginning in the 1970s, companies began substituting cheaper high-fructose corn syrup for the more expensive sugars made from cane and beet sugar, and farm subsidies did make the substitute much more competitive. Critics have charged that the cheap corn-based sweetener used in many snack foods and beverages has contributed to high and rising U.S. rates of obesity and diabetes.

The Beghin and Jensen study found that countries with no comparable commodity programs had increasing rates of sweetener consumption similar to those in the United States. Also, the farm share of the value of sweetened food items is so small, at roughly 5 percent or less, that the effect of sweetener ingredient prices has become much less important over time.

The paper describing the study and its findings is "Farm Policies and Added Sugars in US Diets".

Contacts:
Helen Jensen; hhjensen@iastate.edu
John Beghin; beghin@iastate.edu
Sandy Clarke; sclarke@iastate.edu

August 18, 2008
CARD Director Testifies before Senate Ag Committee Hearing on Food, Feed and Fuel Production permalink

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.

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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.

Babcock, a professor of economics and director of the Center for Agricultural and Rural Development at Iowa State University, told the committee that ethanol mandates have created a demand of between 25 and 30 percent of the U.S. corn crop for fuel production.

Babcock said he expects a bright outlook for corn and soybean prices over the next five years, facilitated by tax credits and energy mandates, and as long as crude oil prices remain above $100 per barrel. There is little doubt, said Babcock, that biofuels from corn and vegetable oil will meet levels mandated by Congress.

A copy of Babcock's full statement at the August 18 hearing is available at www.card.iastate.edu/products/presentations/files/babcock.senateag.8-18-08.testimony2.pdf.

July 7, 2008
CARD Releases ACRE Calculators to Help Farmers with New Farm Bill Program permalink

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.

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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.

Farmers can continue to enroll in traditional commodity programs or they can participate in ACRE. Analysis by researchers at the Center for Agricultural and Rural Development (CARD) suggests that most U.S. farmers will find ACRE much more attractive than current commodity programs.

The CARD researchers have created tools to show farmers how they would fare under new and old programs using different price and yield scenarios. Three calculators are offered for three crops: corn, soybeans, and wheat. The calculators are embedded in Microsoft Excel spreadsheets, posted on the CARD Web site at www.card.iastate.edu/tools/farm-bill/acre/ for downloading.

Users of the calculators are instructed to enter specific data about their state, expected commodity price for the 2009/10 marketing year, 2008 marketing year price, and 2008 average yield per planted acre. They can also enter program yields used to calculate direct and countercyclical payments.

The calculator then provides the 2009 ACRE price, ACRE yield, and ACRE revenue guarantee. Further results show users the estimated payments they will receive under ACRE and under older farm programs given their calculator inputs.

A "what if" option allows users to check results of different combinations of expected prices and yield outcomes. According to CARD Director Bruce Babcock, almost all price scenarios favor enrollment in ACRE. "ACRE payments will be double the level of traditional programs even if commodity prices drop back to levels last seen in 2005." Traditional commodity programs generate slightly more payments only if market prices in 2009 through 2012 remain above 2007 and 2008 average levels.

Contacts:
Bruce Babcock; babcock@iastate.edu
Chad Hart; chart@iastate.edu
Sandy Clarke; sclarke@iastate.edu

May 7, 2008
Statement of Bruce A. Babcock before the U.S. Senate Committee on Homeland Security and Government Affairs permalink

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.

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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 Dr. Babcock's full oral statement, available at www.card.iastate.edu/products/presentations/files/babcockoralstatementforposting.05-07-08.senatecommittee.pdf.

May 6, 2008
CARD Director to Testify at Senate Committee Hearing on Fuel Subsidies permalink

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.

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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.

Babcock's testimony will focus on federal ethanol policies and their short- and long-term impacts on the price and availability of ethanol, corn, and other agricultural products.

The hearing will begin at 10 a.m. (EST) in Room 342 of the Dirksen Senate Office Building. The committee is chaired by Senator Joe Lieberman.

Babcock's statement to the committee will be posted to the CARD Web site (www.card.iastate.edu) after the hearing.

March 5, 2008
2008 FAPRI Outlook Shows New Bioenergy Mandates Sustain Historically High Commodity Prices permalink

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.

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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.

Global net trade in ethanol is projected to increase by 2.53 billion gallons, reaching 3.61 billion gallons by 2017. New biodiesel mandates in the Americas and Europe almost double the price of biodiesel, pushing it to $6.00 per gallon with the doubling of net trade over the next decade. In the projection for ethanol, FAPRI expects the world ethanol price to fall over the first half of the decade because of strong supplies encouraged by previous price increases. Thereafter, growing demand strengthens the price again through 2017, and it ends at a projected $1.52 per gallon.

Although recent market turbulence and high crude-oil prices have clouded prospects, the 10-year outlook for the global economy continues to be strong, with a 3.3 percent average annual rate of real growth in gross domestic product. Downside risk in the outlook is seen in the U.S. economy where rising energy and food prices coupled with recent difficulties in the financial and real estate markets restrict growth in 2008 to only 1.90 percent. These problems affect economies in the rest of the world, especially in Western Europe and Latin America.

The brightest spot in the outlook is the exceptionally solid growth expected in Asian economies. The highest growth rates (7.4 to 8.2 percent) are projected for China, Vietnam, and India for the decade. The outlook shows the U.S. dollar depreciating (inflation adjusted) against the currencies of most countries that consume or compete in international export markets, with the exception of the Brazilian real.

The world corn price increased dramatically in 2007/08, to $198.17 per metric ton, because of demand from ethanol and livestock sectors and sustained exports. FAPRI expects that demand will sustain this high price level over rest of the decade. Similarly, all vegetable oil prices soared in 2007/08 with new biodiesel mandates, and they will continue to increase by 1.28 to 3.60 percent annually for the rest of the period.

Other highlights from FAPRI's 2008 world agricultural outlook:

All world grain markets were characterized by higher prices in 2007/08 because of supply shortages and an increase in demand from the emerging biofuels sector. In particular, the world wheat price increased to $313.55 per metric ton because of production losses due to adverse weather. Adjustments in supply and demand settle the wheat price at $264.05 per metric ton in 2017/18.

The price of sugar increases by 10.7 percent over the next decade because exportable surplus is cut significantly in the European Union as a result of its sugar reforms and in Brazil as a result of increased production of ethanol there from sugarcane.

Strong demand coupled with the doubling of biodiesel trade drives up world trade within the soybean complex by 17 to 32 percent. World soybean production reaches 297 million metric tons by 2017/18. Argentina, Brazil, and the United States remain the dominant soybean trio, accounting for 81 percent of world production. China, the world's largest importer of soybeans, expands its import share to 57 percent of total world imports by 2017/18. Palm oil remains the most widely used edible oil, and world consumption increases by 46 percent over the next 10 years.

Sanitary and phytosanitary issues continued to affect the world meat market in 2007. FAPRI expects that recovery from these problems and sustained income and population growth will lead to higher per capita meat consumption. Consequently, projections show meat production reaching 248.5 million metric tons, and meat trade expanding to 20.9 million metric tons by the end of the decade. Recovery in demand, along with strong grain prices, pushes all meat prices to high levels. The outlook shows the United States and Brazil gaining significant market shares compared to their average levels in 2003 to 2007.

Because of strong global demand and limited growth in supplies from major exporters, the world prices of butter, cheese, nonfat dry milk, and whole milk powder increased to record-breaking levels in 2007. Strong prices encourage production growth in many countries. World dairy prices taper in the mid-term, but strong economic growth and rising population favor higher dairy demand, which puts upward pressure on dairy prices in the long term. Australia, New Zealand and the European Union remain the big players in export markets, and Argentina and Brazil expand their dairy exports to substitute for exports that are declining in the European Union due to policy reforms.

FAPRI is an economic research group with centers at Iowa State University and the University of Missouri-Columbia. The outlook projections incorporate recent macroeconomic forecasts and currently adopted agricultural policies.

The multi-year FAPRI projections provide a starting point for evaluating and comparing scenarios involving macroeconomic, policy, weather, and technology variables in world agricultural trade. More information is available at the Iowa State (http://www.fapri.iastate.edu) and University of Missouri (http://www.fapri.missouri.edu) FAPRI Web sites.

Contacts:
Jacinto Fabiosa; jfabiosa@iastate.edu
Dermot Hayes; dhayes@iastate.edu
Sandra Clarke; sclarke@iastate.edu

February 22, 2008
Updated Web Site Shows Economic Potential of Lake Water Cleanup permalink

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/.

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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/.

The Iowa Lakes Valuation Project is a collaboration of Iowa State University economists and ecologists to estimate the benefits and economic impacts of water quality improvement in Iowa's lakes. The project is funded by the Iowa Department of Natural Resources and the U.S. Environmental Protection Agency.

Catherine Kling and Joseph Herriges, professors in the economics department at Iowa State, have led the project. Herriges explains that this approach is meant to put solid scientific data and analysis into the hands of public officials and citizens. "We hope the Web site and reports we've provided will help those who are faced with questions about the condition of Iowa lakes," says Herriges, "including what attracts visitors, and whether investments in improving water quality will be worth the effort."

Visitors to the Web site can browse over 130 lakes in the system through a regional map of Iowa, choose a specific lake in a drop-down menu, or find lakes listed by county.

A new feature of the Web site estimates the ripple effects of expenditures on water quality to local economies. The feature uses an estimate of average trips to each lake taken from survey data and calculates potential economic values such as the average spending, labor income, and job effects that could result if a cleanup project were undertaken for the lake. This analysis was provided by Iowa State economics professor Daniel Otto.

The average number of trips used in the economic assessment comes from the now completed survey series. From 2002 to 2005, more than 4,000 respondents answered questions about their trips to Iowa lakes, what lake qualities were most important to them, and how much they would be willing to pay for water cleanup. This data is available in the "Usage and Resources" section for each lake listing.

The researchers found that the survey respondents ranked clean water above all else in determining which Iowa lakes they would visit.

On the Web site, physical measurements of lake quality are available at the "Water Quality" section for each lake. Measures include chlorophyll, cyanobacteria, phospherous, and a secchi depth measure of water clarity. These data were collected by a team led by John Downing, professor of ecology, evolution and organismal biology at Iowa State.

The Web site was created and is maintained by a team at the Center for Agricultural and Rural Development. The research is ongoing, and new information will be added to the Web site as it becomes available.

Contacts:
Catherine Kling; ckling@iastate.edu
Joseph Herriges; jaherrig@iastate.edu
Sandy Clarke; sclarke@iastate.edu

February 1, 2008
Fabiosa, FAPRI Co-Director, Awarded Fulbright Grant permalink

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.

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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.

Fabiosa will study the fundamental drivers of Egypt's emerging food consumption patterns from March through July of 2008.

"This award is timely and significant to FAPRI," says Fabiosa," as it will further strengthen the institute's capability in providing relevant market intelligence to U.S. policymakers and stakeholders, especially about countries for which this information is currently lacking."

Regions of North Africa and the Middle East are experiencing rising incomes, continuing population growth, and rapid urbanization, according to Fabiosa, but they have limited potential for expanding agricultural production. Thus, they have strengthened world agricultural markets recently by increasing their imports. Fabiosa's work will focus on trends in these import markets.

Fabiosa is one of approximately 800 U.S. faculty and professionals who will travel abroad through the Fulbright Scholar Program this year to fulfill the program's mission to build mutual understanding between the people of the United States and the rest of the world.

The Fulbright Program is sponsored by the United States Department of State, Bureau of Educational and Cultural Affairs. Recipients are selected on the basis of academic or professional achievement, as well as demonstrated leadership potential in their fields.

Contacts:
Jacinto F. Fabiosa; jfabiosa@iastate.edu
Sandy Clarke; sclarke@iastate.edu

November 9, 2007
New Report Says Iowa’s Conservation Investments Make a Difference in Water Quality permalink

How have existing on-farm conservation efforts affected Iowa's water quality and what value do they have?

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How have existing on-farm conservation efforts affected Iowa's water quality and what value do they have?

Seven major conservation practices used on Iowa farms are estimated to remove 11 to 38 percent of the total nitrogen, 6 to 28 percent of the nitrate and 25 to 58 percent of the phosphorus that otherwise would be present in 13 large-scale watersheds that cover most of the state. Those are the findings from a new report prepared by researchers at Iowa State University's Center for Agricultural and Rural Development (CARD). The study estimates that Iowans invest about $435 million annually in these agricultural conservation practices.

The complete study findings are contained in "Conservation Practices in Iowa: Historical Investments, Water Quality and Gaps," which takes a detailed look at the cumulative costs and environmental benefits of conservation practices on Iowa farms.

The research and analysis were conducted by a team of researchers from CARD, with funding provided by the Leopold Center for Sustainable Agriculture, Iowa Farm Bureau Federation, Iowa Soybean Association and the Iowa Corn Growers Association.

The study was designed to help provide a benchmark for current conservation practices to help establish viable solutions for future conservation efforts. Specifically, it sought to answer three questions:

  • What is the value of major conservation practices currently in place on Iowa farms?
  • What are the effects of these practices on water quality?
  • What would it take to improve water quality to obtain specific standards?

The estimated $435 million investment includes average statewide costs of about $37 million for selected Iowa conservation structures (terraces and grassed waterways), annual payments of about $175 million to farmers for acres set aside as part of the Conservation Reserve Program, plus contour farming, contour strip cropping, no-till and mulch-till conservation practices in farming operations. The data sets used in the analysis represent conservation practices and their costs in place in 1997, except for conservation tillage, which is based on 2004 coverage and costs.

To answer the second question on the effectiveness of these practices, CARD researchers relied on a widely used water quality model, the Soil and Water Assessment Tool (SWAT). They looked at 13 large-scale watersheds that cover most of Iowa, and modeled the impact of seven major conservation practices on the quality of both surface water and groundwater, measured by the predicted levels of nitrogen and phosphorus in each watershed.

The extent of the practices used, land use and environmental conditions in each watershed affected the predicted outcomes. However, the seven conservation practices were responsible for statewide nitrogen, nitrate and phosphorus reductions. Nitrates loadings in the western Iowa watersheds were reduced by the greatest amount.

To answer the third question, researchers considered three scenarios using the SWAT model: to reduce phosphorus loadings by 40 percent, to reduce nitrate loading by 25 percent, and to reduce both phosphorus and nitrate by 40 percent and 25 percent, respectively.

They looked at a variety of land use options – from land retirement to conservation tillage and fertilizer reduction – and used computational tools known as evolutionary algorithms to search for the lowest costs of reaching targets in each scenario. The options did not include longer or more varied crop rotations, use of buffers or manure in place of fertilizer inputs.

According to the model outputs, a scenario that would target a 40 percent reduction for phosphorus would simultaneously result in a 31 percent reduction in nitrate loadings. However, the annual estimated cost to implement a variety of conservation practices would be $613 million statewide. These costs are in addition to funding existing conservation practices.

"This study does not provide a single solution on how to improve Iowa's water quality," said Catherine Kling, head of CARD's Resource and Environmental Policy Division and lead researcher in the study. "Our results indicate that the most cost-effective measures to improve water quality are different across different watersheds, and that targeting different pollutants will mean different land use options. One message for stakeholders is that they must have a good knowledge of their watersheds before adopting policies to bring about change in land use."

Jeri Neal, who leads the Leopold Center's ecological systems research initiative, agreed that the study results provide a good start for discussion.

"We are impressed with these baseline numbers as an indicator of how much Iowans invest in conservation practices because clearly, Iowans care," she said. "The models show we also can get a lot more, but that it's going to take a lot more dollars. So from the Leopold perspective, it's important that we really need to work past single solutions to produce maximum ecological and economic benefits - yield plus, if you will."

The full report is on the web at www.card.iastate.edu/research/resource-and-environmental/..

Contacts:
Catherine Kling; ckling@iastate.edu
Hongli Feng; hfeng@iastate.edu
Philip Gassman; pwgassma@iastate.edu

August 23, 2007
CARD Researcher Publishes Transactions of the ASABE Soil and Water Division Inaugural Invited Paper permalink

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.

August 14, 2007
Iowa State Economists Receive Awards and Honors at International Meeting permalink

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.

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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.

The theme of this year's international meeting, with 1,470 in attendance, was "Applied Economics for Global Issues."

Dermot J. Hayes, professor of economics and of finance and Pioneer Hi-Bred International Chair in Agribusiness, was inducted as an AAEA Fellow at the opening event of the meeting. The designation is reserved for those members who have made "continuous contribution to the advancement of agricultural economics," with only a select few chosen each year.

The CAES Outstanding Journal Article Award went to an article by Catherine Kling and Jinhua Zhao, coauthored with North Carolina A&T State University colleague Lyubov Kurkalova. The article, "Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior," was published in the June 2006 issue of the Canadian Journal of Agricultural Economics.

A poster on "Spatial Competition and the Location of the U.S. Ethanol Industry" by Tun-Tsiang (Edward) Yu and Frank Fuller, researchers at the Center for Agricultural and Rural Development, took first place in the poster competition. Second place went to a poster titled "Measuring the Impact of Livestock Operations Using a Hedonic Model: What Kind of Distances Matter?" by former graduate student Tao Ran, Jinhua Zhao, and Louisiana State University colleague Huizhen Niu. Third place went to graduate student Ofir Rubin for his poster, "Assessing the Response of Farm Households to Dairy Policy Reform in Israel."

Chengyan Yue, who finished her doctorate in economics in December, received honorable mention in the AAEA Outstanding Doctoral Dissertation Award category for her "Three Essays on Food Quality and Transactions Costs."

Contacts:
Arne Hallam; ahallam@iastate.edu
Sandy Clarke; sclarke@iastate.edu

July 2, 2007
Fabiosa and Hayes to Lead Iowa State’s Food and Agricultural Policy Research Institute permalink

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.

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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.

Jacinto Fabiosa has served as FAPRI’s livestock and poultry analyst since 1997. In addition, he became technical director of FAPRI in 2002. Fabiosa came to Iowa State as a Fulbright Academic Enrichment Scholar from the Philippines and finished his Ph.D. in economics at Iowa State with the Center for Agricultural and Rural Development (CARD) in 1993. Previously he worked at the International Rice Research Institute in the Philippines and at the World Bank in Washington, D.C.

Dermot Hayes joined the economics department at Iowa State in 1986. He was head of the Trade and Agricultural Policy Division at CARD from 1990 through 1998, and he will return as head of the division beginning July 1. He obtained his degree in agriculture science from the University College in Dublin in 1981 and his Ph.D. from the University of California, Berkeley, in 1986 with a major in international trade. Hayes is the Pioneer Hi-Bred International Chair in Agribusiness and a professor in both the economics and finance departments at Iowa State University.

FAPRI was established in 1984 with a special appropriation of the U.S. Congress. It was created as a joint effort of Iowa State University and the University of Missouri at Columbia to build an econometric modeling system capable of providing quantitative analysis of agricultural commodity markets to Congress, the U.S. Department of Agriculture, and other public policy groups. FAPRI’s modeling system is considered the most comprehensive for agricultural policy and trade analysis outside the USDA. FAPRI analysts are using the most recent modeling component to evaluate the impacts of diverting corn and other commodities to producing biofuels.

Contacts:
Bruce Babcock; babcock@iastate.edu
Jacinto Fabiosa; jfabiosa@iastate.edu
Dermot Hayes; dhayes@iastate.edu
Sandy Clarke; sclarke@iastate.edu

May 4, 2007
CARD Director Testifies Before House Oversight Committee on Crop Insurance Program permalink

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.

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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.

Bruce Babcock, director of the Center for Agricultural and Rural Development at Iowa State University and professor of economics, testified before the House Oversight and Government Reform Committee on May 3 about why the program has not eliminated disaster assistance and how policy could be reformed to make both farmers and taxpayers better off.

He told the Committee that "too much crop insurance money is spent on program administration and not enough is spent on supporting financially stressed farmers." Babcock told Chairman Henry Waxman and Committee members that "every dollar in net payments provided to farmers through crop insurance costs taxpayers that dollar plus another 78 cents to deliver."

Much of the reason for this inefficiency, he explained, comes from the way Congress subsidizes the program to keep costs low for farmers. "This premium subsidy is now so large that the average farmer in the program can expect a rate of return on producer-paid premium of 143 percent," he said.

However, when there are systemic events, such as drought, these losses still trigger disaster assistance packages such as the one funded in the Iraq funding bill. Babcock recommended to the Committee that crop insurance be integrated with farm bill programs so that the two can work in tandem.

He said that replacing current farm programs with a crop insurance program based on either county yield or county revenue would "directly transfer risk from the crop insurance program to the federal government, thereby reducing excessive underwriting gains paid to companies."

Babcock's full statement to the Committee is available on the CARD Web site at www.card.iastate.edu/products/presentations/.

Contacts:
Bruce Babcock; babcock@iastate.edu
Sandy Clarke; sclarke@iastate.edu

March 9, 2007
CARD Director speaks at Oxfam and German Marshall Fund Events permalink

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.

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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.

Babcock, along with colleague Bruce Gardner, an economist at the University of Maryland, participated in a Capitol Hill farm bill discussion sponsored by Oxfam, a development, advocacy, and relief agency. Specifically, the Oxfam briefing focused on empirical evidence that calls into question whether reforming the commodity title of the farm bill would hurt consumers through price hikes or threaten national food security through increased reliance on food imports. Oxfam is hosting a series of such briefings to generate discussion and debate around key issues of the 2007 farm bill.

Babcock then spoke at a luncheon of the German Marshall Fund, titled "Expanding Ethanol Production in the United States: Benefits and Challenges." The discussion was the first in a series on "Transatlantic Approaches to Biofuels" sponsored by the GMF, a public policy and grantmaking institution dedicated to promoting greater cooperation and understanding between the United States and Europe. Babcock spoke on the socio-economic impacts of an expanding corn-based ethanol production. Other speakers focused on challenges for a new U.S. transportation fuel, environmental impacts, and the role of biofuels in the European Union.

March 6, 2007
2007 FAPRI Outlook Shows Impact of Bioenergy Expansion and Trade Resumption in Meat Products permalink

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.

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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.

Following a large price increase in 2006 for ethanol, FAPRI expects the world ethanol price to fall to $1.50/gallon in 2007 in response to a 2.4 percent decline in the price of crude oil, and with declining U.S. ethanol net imports. Projections show the ethanol price continuing to fall throughout the decade, dropping to $1.35/gallon by 2016 as production growth outpaces growth in consumption. Global net trade is projected to increase by 26.4 percent over the decade, approaching 1.3 billion gallons by 2016.

The 10-year outlook for the global economy is strong, with a 3.3 percent average annual rate of real GDP growth expected, despite crude-oil prices exceeding $50 a barrel. Real GDP growth is projected to average 7.8 percent per year in China and 6.9 percent per year in India. Income in East Asia is also expected to grow strongly. In the coming decade, the U.S. dollar depreciates (inflation adjusted) against the currencies of most consumers of U.S. exports and competitors, with the exception of the Brazilian real.

The world corn price increased dramatically in 2006/07, to $159.44 per metric ton, because of demand from ethanol and livestock sectors and sustained exports. FAPRI expects this increase in demand and price to continue until 2009/10, after which production growth catches up with growth in utilization.

Sanitary and phytosanitary issues continued to affect the world meat market in 2006. Although some recovery is assumed, opening of some markets has been interrupted by suspected violations of strict new export standards. However, FAPRI expects sustained income and population growth to lead to higher per capita meat consumption. Consequently, meat production is projected to reach 251.8 million metric tons and trade grows to 22.8 million metric tons by the end of the decade. Recovery in demand coupled with strong grain prices pushes all meat prices to high levels. The outlook shows the United States and Brazil gaining significant market share from their 2002-2006 base period.

Other highlights from FAPRI's 2007 world agricultural outlook:

All world grain markets were characterized by higher prices in 2006/07 because of supply shortages and an increase in demand from the emerging biofuels sector. The increase in the world wheat price to $208.35 per metric ton came after production losses due to adverse weather conditions. The projected recovery in production in 2007/08 meets the growing demand and therefore the price adjusts downward.

Strong demand for protein and oil drives up world trade of soybeans (+33 percent), soy meal (+29 percent), and soy oil (+43 percent) over the next decade. World soybean production reaches 280 million metric tons by 2016/17. Argentina, Brazil and the United States remain the dominant soybean trio, accounting for 83 percent of world production. China, the world's largest importer of soybeans, expands its import share to 55 percent of total world imports by 2016/17. Palm oil remains the most widely used edible oil, and world consumption increases by 46 percent over the next 10 years.

Because of ample world supplies, world butter and cheese prices decreased in 2006. In contrast, world milk powder prices remained high, with strong demand in Asia and low exports from Australia and the European Union. Steady growth in import demand, along with gradual growth in global supplies, pushes world dairy prices higher initially and dairy production responds by expanding in many countries. World dairy prices then taper in the mid-term, but long-term income and population growth push prices back up. Australia, New Zealand and the European Union remain the big players in export markets. As Common Agricultural Policy reforms in the European Union affect exports, Argentina and Brazil expand their dairy exports.

FAPRI is an economic research group with centers at Iowa State University and the University of Missouri-Columbia. The projections incorporate recent macroeconomic forecasts and currently adopted agricultural policies.

The multi-year FAPRI projections provide a starting point for evaluating and comparing scenarios involving macroeconomic, policy, weather, and technology variables in world agricultural trade. More information is available at the Iowa State (http://www.fapri.iastate.edu) and University of Missouri (http://www.fapri.missouri.edu) FAPRI Web sites.

Contacts:
John Beghin; beghin@iastate.edu
Jacinto Fabiosa; jfabiosa@iastate.edu
Sandra Clarke; sclarke@iastate.edu

February 15, 2007
Webcast on Alternative Crops, Policies for Bioenergy Set for March 5 permalink

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.

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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.

"Biofuels will become a larger and larger part of the energy sector over time," said Arne Hallam, chair of the Department of Economics. "The speed at which alternative energy sources replace fossil fuels will be as important to Iowa consumers, manufacturing and transportation firms as to producers and distributors of these products."

"Alternative Crops and Alternative Policies for Bioenergy" is scheduled for Monday, March 5, from 10 a.m. to 1 p.m., and can be viewed at several Iowa Extension offices; call your local office for details.

ISU economists and bioeconomy experts will address five issues and wrap up with a question and answer session.

First, Robert Brown, head of ISU's Office of Biorenewables Programs, will look at the potential to produce liquid fuels from cellulosic feedstocks. He will examine the various feedstocks being researched, the production processes needed to turn those feed stocks into ethanol, and competitive advantage of those feedstocks.

Next, Cathy Kling, head of the Resource and Environmental Policy Division at the Center for Agricultural and Rural Development (CARD), will talk about the environmental effects of alternative feedstocks and the impact of the systems needed to grow those feedstocks on such things as erosion, water quality, and carbon sequestration.

This will be followed by a discussion of the farm-level economics of growing alternative energy feedstocks. Chad Hart, head of CARD's Biorenewable Policy Division, will talk about the costs and returns of producing those feedstocks, including a look at the issue of residue removal.

Then, ISU economists John Miranowski and David Swenson will examine the effect of biofuel production and processing on community, regional, and statewide development.

Finally, CARD Director Bruce Babcock, will look at bioenergy policy options. With given market realities, what are the costs and benefits of alternative policies such as energy taxes, cap and trade policies, and targeted subsidies?

Materials from the program will also be available after March 12 on the ISU Extension Bioeconomy Web page (www.extension.iastate.edu/bioeconomy).

Contacts:
Arne Hallam; ahallam@iastate.edu
Bruce Babcock; babcock@iastate.edu
Sandy Clarke; sclarke@iastate.edu

January 8, 2007
CARD Director Briefs USDA Secretary on Biorenewables permalink

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.

November 1, 2006
Federal Energy Initiative Supports ISU Research on Effects of Ethanol Expansion permalink

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.

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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.

The grant, awarded to research partner Southern Illinois University, recently was announced as part of the $17.5 million Biomass Research and Development Initiative, administered jointly through the U.S. Department of Agriculture and the U.S. Department of Energy.

The project is a collaborative effort between Southern Illinois University's Department of Agribusiness and ISU's Center for Agricultural and Rural Development, Department of Economics and Department of Statistics. Iowa State scientists will investigate how corn-based ethanol production can be designed and implemented efficiently to achieve both economic and environmental benefits in this major agricultural region.

The study is considered the first to attempt a simultaneous assessment of the impacts of corn-based ethanol expansion on crop prices, cropping patterns, water quality and regional economic indicators.

The study will capitalize on resources developed at Iowa State, including pricing models for corn, which will be applied to ethanol plants and markets; models that estimate the effects of changing land use and management practices on water quality and the environment; and methods for estimating economic benefits of ethanol production in terms of created jobs, increased household income, and tax revenue generated.

ISU economics professor Catherine Kling, one of the lead investigators, says it is important to have science-based information to guide decisions as demand continues to grow for alternative and sustainable energy sources.

"While the Midwest has some great opportunities when it comes to growing biomass for energy, we also need to understand more about the interplay between crops, energy and our environment," said Kling. "This project is meant to improve that understanding with some solid scientific measures."

The collaboration of experts in various disciplines and among different agencies is a hallmark of the research funded under this USDA-DOE initiative. The funding is intended to accelerate discovery and implementation of bio-based fuels and reduce U.S. dependence on fossil fuels.

Contacts:
Catherine Kling; ckling@iastate.edu
Silvia Secchi; ssecchi@iastate.edu
Sandy Clarke; sclarke@iastate.edu

October 26, 2006
CARD to Study Impacts of More Energy Production from Agriculture permalink

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.

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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.

"This research is critical for national leaders who are making decisions about investments in renewable fuels," said Bruce Babcock, director of CARD and professor of economics. "Right now people are asking how high the price of corn is going to go and what higher corn prices mean for the competitiveness of U.S. livestock producers and our ability to meet export demand. This research will help to provide answers to these questions."

Currently, estimates of how much energy can be obtained from agricultural sources are based simply on projections of trends and estimates of current and planned biofuel facilities. The approach taken by CARD analysts and collaborators will be to calculate the break-even prices of energy feedstocks and then use these prices to determine the amount of feedstock that will be produced in the long run.

For example, for any given price of crude oil, the expected market value for unleaded gasoline can be calculated. The analysts can find the market price that would make E85 ethanol an equal substitute to gasoline for flex-fuel vehicle owners. Using this ethanol price, they can calculate the corn price that ethanol facilities can pay while still covering their costs of production. Then they can estimate how much corn U.S. agriculture would produce at the given corn price.

With this method, the analysts intend to estimate supply curves for cellulosic feedstock and biodiesel derived from oilseeds, as well as for corn-based ethanol. The resulting information should be useful in determining which agricultural energy sources would be profitable to develop under a given set of incentives and energy prices and which resources would not be profitable for energy development under those conditions.

The project also includes an assessment of how shifts of agricultural commodities to energy sources might affect trade and what the implications may be of financial investment in ethanol and biodiesel facilities for income and employment in rural America.

Contacts:
Bruce A. Babcock; babcock@iastate.edu
Sandy Clarke, CARD communications; sclarke@iastate.edu

October 25, 2006
Federal Energy Initiative Supports ISU Research on Effects of Ethanol Expansion permalink

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.

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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.

The grant, awarded to research partner Southern Illinois University, recently was announced as part of the $17.5 million Biomass Research and Development Initiative, administered jointly through the U.S. Department of Agriculture and the U.S. Department of Energy.

The project is a collaborative effort between Southern Illinois University's Department of Agribusiness and ISU's Center for Agricultural and Rural Development, Department of Economics and Department of Statistics. Iowa State scientists will investigate how corn-based ethanol production can be designed and implemented efficiently to achieve both economic and environmental benefits in this major agricultural region.

The study is considered the first to attempt a simultaneous assessment of the impacts of corn-based ethanol expansion on crop prices, cropping patterns, water quality and regional economic indicators.

The study will capitalize on resources developed at Iowa State, including pricing models for corn, which will be applied to ethanol plants and markets; models that estimate the effects of changing land use and management practices on water quality and the environment; and methods for estimating economic benefits of ethanol production in terms of created jobs, increased household income, and tax revenue generated.

ISU economics professor Catherine Kling, one of the lead investigators, says it is important to have science-based information to guide decisions as demand continues to grow for alternative and sustainable energy sources.

"While the Midwest has some great opportunities when it comes to growing biomass for energy, we also need to understand more about the interplay between crops, energy and our environment," said Kling. "This project is meant to improve that understanding with some solid scientific measures."

The collaboration of experts in various disciplines and among different agencies is a hallmark of the research funded under this USDA-DOE initiative. The funding is intended to accelerate discovery and implementation of bio-based fuels and reduce U.S. dependence on fossil fuels.

Contacts:
Catherine Kling; ckling@iastate.edu
Silvia Secchi; ssecchi@iastate.edu
Sandy Clarke; sclarke@iastate.edu
Alicia Carriquiry, Statistics; alicia@iastate.edu

September 26, 2006
Ethanol Trade and Prices: What Would They Look Like in a Free Market? permalink

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.

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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.

A recent analysis by Amani Elobeid and Simla Tokgoz , associate scientists at Iowa State University's Center for Agricultural and Rural Development, addresses the question, What would happen to fuel ethanol prices and trade in a U.S. market free of trade distortions and taxes?

The study looks at the two largest ethanol producers: Brazil (ethanol from sugarcane) and the U.S.(ethanol primarily from corn). The analysis was based on mathematical simulations using an international ethanol model and country-specific models. The simulations were performed for two U.S. policy reform scenarios: one for trade liberalization alone and the other adding removal of the U.S. 51cent-per-gallon tax credit to refiners blending ethanol.

"Our study suggests that U.S. trade barriers have kept domestic prices strong," Elobeid said. "Removing trade distortions would decrease the price for U.S. ethanol, while the world price would increase, as U.S. demand – and ethanol imports – would increase."

According to the economists' analysis, Brazil would likely capitalize on this demand, especially in the U.S. coastal regions where transportation costs are high for Midwestern ethanol. Removal of the federal tax credit translates into only a small price reduction for consumers, because most U.S. ethanol is blended with gasoline at 10 percent.

"The effects of the removal of U.S. trade and price distortions extend well beyond the ethanol market to corn and its by-products and sugar markets," Tokgoz said.

The full report, "Removal of U.S. Ethanol Domestic and Trade Distortions: Impact on U.S. and Brazilian Ethanol Markets," is available online on the CARD Web site.


Contacts:
Amani Elobeid; amani@iastate.edu
Simla Tokgoz; stokgoz@iastate.edu
Sandy Clarke; sclarke@iastate.edu

September 19, 2006
CARD Director Reviews Farm Policy with House Subcommittee permalink

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.

June 28, 2006
CARD Initiates Biorenewables Policy Division permalink

The Center for Agricultural and Rural Development (CARD) at Iowa State University is launching a new Biorenewables Policy Division effective July 1.

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The Center for Agricultural and Rural Development (CARD) at Iowa State University is launching a new Biorenewables Policy Division effective July 1.

The new research division will focus on the many policy questions surrounding expansion of biorenewables in the United States and the shifting playing field this creates for midwestern producers.

Dr. Chad Hart, an economist and U.S. agricultural policy analyst, will lead the new division. Hart has been with CARD since 1999.

Rapid expansion of biorenewable products, including ethanol and biodiesel, has sparked talk of an upcoming golden era for agriculture, as society seeks alternatives to petroleum-based products. If the boom continues, ethanol may one day supplant feed as the number one use of corn.

The effects of these structural shifts will have profound implications for farmers, as well as for consumers and taxpayers. The new division will examine the long-term costs and benefits for stakeholders.

For instance, increased ethanol production has already increased corn prices, making corn acres more profitable relative to soybeans and wheat. Iowa livestock producers will thus face higher corn prices and lower prices for distillers grains, an ethanol by-product. This shift in feed prices could result in more cattle and fewer hogs in Iowa.

The Biorenewables Policy Division aims to build upon the center's strength in economic modeling and collaborative analysis. For example, a new international ethanol model will be used to project ethanol production, usage, prices, and trade. This model covers Brazil, China, the European Union, Japan, and the United States. It incorporates government policy, such as the U.S. Energy Act and Brazilian fuel mandates.

CARD Director Bruce Babcock has set the following immediate priority areas for the Biorenewables Policy Division:

  • outlook for biofuels and crops used for biofuels production
  • analysis of policy changes such as the 2007 farm bill on production and price of biofuels
  • impact of biofuels growth on the level and volatility of crop prices
  • analysis of potential for value to be captured by emergence of carbon markets
  • impact of biofuels growth on mix and location of livestock
  • impacts on local basis for corn and soybeans

Contacts:
Bruce Babcock; babcock@iastate.edu
Chad Hart; chart@iastate.edu
Sandy Clarke; sclarke@iastate.edu

February 8, 2006
CARD Economists Calculate Potential for Group Risk Income Protection permalink

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.

December 15, 2005
FAPRI Analyzes Global Effects of Recent U.S. Proposal for WTO Agriculture Negotiations permalink

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.

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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.

The U.S. proposal includes radical changes in export competition, market access, and domestic support. It reduces the permitted current U.S. aggregate measures of support to $7.64 billion and limits so-called blue box support to $4.77 billion. The proposal lowers EU domestic support to €11.4 billion, implying large reductions in actual domestic support in sugar, dairy, cereals, fruits, and vegetables.

The proposal also includes significant tariff reductions or tariff rate quota (TRQ) expansions, which would open protected rice, sugar, and dairy markets. Products declared "sensitive" would face smaller tariff cuts but would also face a definite increase in TRQs. All export subsidies would be eliminated, mostly affecting EU production and trade of sugar, rice, meat, and dairy products.

Highlights of the projected outcomes for major commodities are detailed below.

  • Reforms moderately increase world prices for most commodities, with larger increases for sugar, rice, and dairy. Dairy and livestock sectors are directly impacted, which in turn affects feed sectors. U.S. export expansion is large for pork, beef, and rice and moderate for corn and wheat. U.S. cotton exports decline under the proposal.

  • In many cases, the removal of coupled domestic support in the European Union and the United States is not fully compensated by world price increases and gains in world markets. Decoupled payments could be put in place to balance the loss of farm income from coupled payments and would not have to be as large since distortions would be removed and world prices would be higher.

  • U.S. corn exports and feed consumption both increase, contributing to a modest increase in U.S. corn prices, driven by larger net imports by the European Union and South Korea. World wheat prices increase by almost 3 percent because of higher export demand from Japan and China and reduced export supplies of Canada, Russia, and Ukraine. Higher prices result in a slight increase in wheat production, limited by the increase in returns for feed grains.

  • World prices for rice increase by 8 to 25 percent, depending on the variety, driven by greater market access in Japan and South Korea. China, the United States, Australia, and Egypt gain market shares in medium-grain rice trade, and long-grain rice exports increase for all major producers. Decreased livestock production in Japan and the European Union causes a reduction in U.S. soybean meal exports. This is offset by an increase in domestic soybean meal consumption driven by expanding U.S. livestock production. The world price of soybean oil increases by 4 percent by 2014. World consumption of all protein meal declines in tandem with animal production.

  • World prices of pork and beef products increase significantly while poultry price changes are moderate. World trade of pork increases the most, followed by beef and then poultry (7, 6, and 3 percent). Japanese imports of U.S. meat expand under lower import duties. The elimination of export subsidies and increased market access result in an increase in EU meat imports. In many importing countries, lower domestic prices resulting from tariff reduction are more than offset by the higher world meat prices. Brazil, Argentina, Australia, Canada, and the United States expand their meat exports.

  • Major dairy changes occur in the European Union, Canada, and Japan. Without an export subsidy and with reduced intervention prices, EU dairy production and exports decrease substantially. Domestic EU consumption increases because of lower domestic prices. The European Union becomes a marginal player in world markets for nonfat dry milk and butter. Australia, New Zealand, Argentina, Ukraine, and India partially make up for the decline in EU exports, which leads to higher world prices for butter, cheese, nonfat dry milk, and whole milk powder. Canada becomes a net importer of nonfat dry milk as export subsidies disappear and tariffs are lowered.

  • The EU would declare sugar as sensitive, creating a larger TRQ and reduced tariffs. The world sugar price increases by an average of 24 percent. The European Union becomes a net importer of sugar. Net exporting countries, such as Brazil, Australia, Colombia, Argentina, and Cuba, respond to the higher world price with increased sugar production, lower sugar consumption, and increased exports.

  • World cotton prices increase by 2 percent. Given other countries' modest policy adjustments, the primary impact in the sector comes through a reduction in domestic supports, which lowers U.S. production and exports. Larger exports out of Africa, Brazil, and Central Asia partially offset the lower volume of U.S. cotton exports.

For more details, see "U.S. Proposal for WTO Agriculture Negotiations: Its Impact on U.S. and World Agriculture," a working paper available at http://www.fapri.iastate.edu/. Companion analyses by the FAPRI consortium providing detailed looks at the effects of the U.S. proposal on U.S. agriculture are available from the FAPRI University of Missouri site at http://www.fapri.missouri.edu/.

Contacts:
Chad Hart, Food and Agricultural Policy Research Institute, (515) 294-9911; chart@iastate.edu
Sandra Clarke, Center for Agricultural and Rural Development, (515) 294-6257; sclarke@iastate.edu

December 15, 2005
Two New Water Quality Projects at Iowa State Receive Funding permalink

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).

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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).

A $590,000 grant will fund a three-year project in the Boone River Watershed that includes research, education and extension. Catherine Kling, professor of economics and division head of the Center for Agriculture and Rural Development's resource and environmental policy division, will lead the project. The Leopold Center for Sustainable Agriculture is a partner.

"We chose the Boone River Watershed because there are a number of complementary water quality projects already underway there and active community groups that can provide local expertise and knowledge," Kling said.

Results of several ongoing projects were presented at a meeting Dec. 13 in the watershed. "One of the most exciting parts of this project is the involvement of stakeholders in the design and execution of the research. We'll use their input to develop a list of watershed problems and possible solutions, such as putting more land into perennial crops or adopting more conservation tillage," she said.

A model that incorporates various data sets also will be developed to assess the costs and water quality benefits of possible changes. Additional meetings will be held with stakeholders to get feedback and other suggestions for land use changes. Kling said the final result will be a new Boone River Watershed management plan that should lead to measurable improvement.

The educational component includes the development of a Web-based curriculum designed for undergraduates, and a multidisciplinary workshop series where graduate students will share the results and methods of the project.

The second project receiving new CSREES funding will study how landscape and weather patterns influence the growth of cyanobacteria, commonly known as blue-green algae. Jennifer Fraterrigo, a post-doctoral fellow in the Department of Ecology, Evolution, and Organismal Biology, will lead the two-year, $115,000 project.

"The excessive growth of cyanobacteria is a primary cause of impaired water quality in Iowa's lakes and rivers," Fraterrigo said. "Other research, both in the field and in the lab, has shown that landscape and weather patterns may affect the growth of this bacteria, but no method for predicting growth has been developed."

Fraterrigo is using data from the Iowa Lakes Survey, led by John Downing, professor in the ecology, evolution, and organismal biology department. The five-year survey has led to the development of a database of 132 Iowa lakes that includes details on water chemistry, biological analyses and watershed land-cover composition.

Fraterrigo is developing empirical models based on the lake survey data, incorporating three aspects of landscape pattern that she believes could be important in determining the amount of nutrients flowing into water bodies.

"I'm interested in the abundance of land-cover types, such as agriculture or residential, as well as where patches of land cover are located relative to the study lakes," she said. "And I'm looking at the variability within land-cover types. For example, agricultural lands may vary greatly in terms of phosphorus content. This factor could be important for determining how much phosphorus is exported from a particular patch of agricultural land."

Once these models are complete, they will be expanded to examine how different weather patterns interact with the three landscape patterns. "I'll be looking at precipitation amount and precipitation timing, with the goal of developing models that will show how landscape and weather work together to affect water quality," Fraterrigo said.

Contacts:
Catherine Kling, Economics, (515) 294-5767; ckling@iastate.edu
Susan Thompson, Communications Service, (515) 294-0705; sander@iastate.edu

July 8, 2005
Researchers Provide Tool for Assessing Water Policy Options permalink

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.

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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.

Water pollution from nonpoint sources, the diffuse runoff from farms and other areas, represents a large and pervasive portion of Iowa's water quality problems. But because of its diffuse nature, nonpoint source pollution is difficult to address. State policymakers need to quantify the contributions of agriculture to the problem and what effect different land-use decisions might have on meeting water quality objectives. This new research, funded by the Iowa Department of Natural Resources, is a first step in a more comprehensive assessment of Iowa's options.

The approach is cutting-edge because it combines economic models and data on land use and conservation practices with a physical-based model, the Soil and Water Assessment Tool, that predicts stream flow, sediment, and nutrient loads (phosphorous and nitrogen) for 13 watersheds in Iowa based on selected conservation practices. Using this combination of models and data, the researchers were able to test the effects of such practices as grassed waterways, terracing, contouring, conservation tillage, land set-asides (such the Conservation Reserve Program), and nutrient management strategies.

The opportunity cost–the minimum compensation necessary for voluntary adoption–was estimated for each of the conservation practices. It includes the direct costs of implementation, as well as any lost revenue, increased risk, or undesirable consequences associated with the practice relative to conventional practices.

The annual costs of the conservation practices ranged from about $300 million to $320 million. Land set-aside and conservation tillage were found to be the most costly practices (with terracing costs spread out over 25 years). The environmental effects of the practices varied among the watersheds. Sediment decreases ranged from 6 percent in the Little Sioux River Watershed to 65 percent in the Turkey River Watershed. The majority of the watersheds had a predicted decrease in phosphorous of over 40 percent, and nitrate reductions ranged from 6 to 20 percent. The results suggest a targeted approach as the most cost-effective, matching a specific watershed to its most effective conservation practice or mix of practices.

A report, "The Cost of Clean Water: Assessing Agricultural Pollution Reduction at the Watershed Scale," is available online at www.card.iastate.edu/research/resource-and-environmental/.

Contacts:
Cathy Kling; ckling@iastate.edu
Silvia Secchi; ssecchi@iastate.edu
Sandy Clarke; sclarke@iastate.edu

May 17, 2005
Branded Beef Demonstration Project Underway at Iowa State permalink

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.

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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.

"Iowa's high-quality beef is the result of the state's abundance of corn for feeding beef animals and the use of genetics that result in well-marbled, tender beef at a young age," said John Lawrence, director of the Iowa Beef Center. The beef center and the Center for Agricultural and Rural Development (CARD) at Iowa State are collaborating on the project.

"Our goal is to create a premium branded product that will increase the profitability of Iowa beef producers," said Roxanne Clemens, managing director of CARD's Midwest Agribusiness Trade Research and Information Center. "We'll also document the steps producers and processors must take to design and implement a USDA process-verified production system and obtain a brand for their product."

Iowa-80 Beef was chosen as the brand name for the project. "Members of Japan's beef industry often refer to corn-fed U.S. beef as I-80 beef because Interstate 80 is a landmark where beef is produced using rations based on corn or corn co-products," Clemens said. "We chose Iowa-80 Beef as the brand name to build on this association with beef quality."

Developing and branding Iowa-80 Beef involves two government agencies. One part of the process is to document the production and processing systems for Iowa-80 Beef and gain certification through the USDA Agricultural Marketing Service.

"The specifications for this system are set intentionally high to ensure production of a differentiated product of consistently high quality," Lawrence said. "Beyond marbling and tenderness, Iowa-80 Beef will include additional attributes consumers want such as individual animal identification and source and age verification."

The second part of the process is to register a certification mark with the U.S. Patent and Trademark Office (USPTO). "For Iowa-80 Beef, a certification mark will be more useful than a standard trademark because it can be used to label beef from any Iowa producer willing to follow the production specifications," Clemens said. "It will protect producers from product infringement and allow consumers to readily identify and purchase Iowa-80 Beef."

Applications have been submitted to both the USDA and the USPTO. Once the necessary approvals are received, project personnel will help identify niche markets, work with producers to become certified and match Iowa beef producers with processors and buyers.

More information about this project is online at https://www.card.iastate.edu/iowa80beef/.

Contacts:
Roxanne Clemens, MATRIC, 515-294-8842; rclemens@iastate.edu
John Lawrence, Iowa Beef Center, 515-294-6290; jdlaw@iastate.edu
Susan Thompson, Communications Service, 515-294-0705; sander@iastate.edu

April 27, 2005
CARD Study Analyzes Factors Behind County Economic Growth permalink

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.

April 20, 2005
New ISU Research Shows Rice Eaters Have Healthier Diets permalink

Findings Indicate That Rice Eaters Have Diets More Consistent with 2005 U.S. Dietary Guidelines for Americans

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Findings Indicate That Rice Eaters Have Diets More Consistent with 2005 U.S. Dietary Guidelines for Americans

AMES, Iowa – People who eat rice have healthier diets, eat more fruits and vegetables, consume less added sugar and fat and are likely to have a lower body mass index than non-rice eaters, according to a new study presented for the first time today at a meeting of two key member groups of the American Dietetic Association. The data suggest that including rice as part of a healthy, balanced diet can be linked to overall healthier eating patterns. The data also indicate that the rice eaters are more likely to eat a diet consistent with the 2005 U.S. Dietary Guidelines.

"What our study shows is that rice consumers choose diets that include more fruits and vegetables, less added fat and less sugar than those whose diets do not include rice," says Helen Jensen, a professor of economics at Iowa State University who led the study. "The data show that rice eaters also consume more nutrients, such as folic acid, potassium and iron that are contained in rice products, and that they appear to manage their weight better than non-rice consumers. " This is good news for Americans looking to make a change in their diet because it suggests that adding rice to the diet may promote healthier food choices.

The study was conducted by Patricia Batres-Marquez, research associate in the Center for Agricultural and Rural Development, along with Jensen, and was partially funded by the USA Rice Federation. It looked at the 2001-2002 National Health and Nutrition Examination Survey (NHANES), the most current nationally representative government data, along with the most recent Continuing Survey of Food Intake of Individuals (CSFII), from 1994-1996. The data from both surveys included over 14,000 adults, to obtain a representative sample of the U.S. population. The study identified those who consumed at least half a serving of white or brown rice and how rice consumers' diets differ from the diets of non-rice eaters. The data indicate that

  • Over 40% of rice consumers ate diets containing no more than 30% of calories from fat compared to 30% of non-rice consumers
  • Compared to non-rice consumers, rice eaters' diets had
    • More grains
    • More vegetables
    • More fruit
    • Less added fat
    • Less added sugar
  • Rice consumers are less likely to have a body mass index score classified as obese
  • Rice consumers ate just over ½ serving more of vegetables per day and ¼ serving more of fruit per day
  • Rice consumers ate over 4 grams less fat per day and nearly 2 teaspoons less added sugar. (That equals 54 calories per day, which could translate to a savings of up to 5.5 pounds that could be avoided because of excess sugar and fat calories consumed over the course of a year.)

The diets of rice eaters are more consistent with the 2005 Dietary Guidelines which recommend that Americans eat a healthy balance of nutrient-dense foods, increase consumption of vegetables and fruits, limit saturated and trans fats, sodium and cholesterol, and watch their caloric intake. The Guidelines also recommend that people consume three or more ounce-equivalents of whole grain products, such as brown rice, per day, with the rest of the recommended grains coming from enriched or whole-grain products, such as white rice. A half cup of brown or white rice equals one ounce-equivalent.

Contacts:
Helen Jensen, 515-294-6253; hhjensen@iastate.edu
Sandy Clarke, CARD communications, 515-294-6257; sclarke@iastate.edu

March 16, 2005
FAPRI Report Projects Rebounding U.S. Meat Exports and More Soybean Concentration permalink

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.

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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.

FAPRI, an economic research group with centers at Iowa State University and the University of Missouri-Columbia, prepares 10-year baseline projections intended for use by policymakers and other planners in the agricultural sector.

Other highlights from FAPRI's 2005 agricultural outlook:

In 2004, with strong grain and livestock prices, total U.S. agricultural exports recovered from earlier downturns and increased by nearly 5 percent in volume and nearly 11 percent in value. This year, export volumes increase by 2.5 percent but weaker wheat and oilseed prices and low meat exports bring the total value down by 4 percent. The value of U.S. exports increases 20 percent by 2014 with a long-term shift to high-value exports and a rebound in meat exports.

The loss of major meat export destinations after a U.S. case of bovine spongiform encephalopathy (BSE) was confirmed sent beef exports down by 83 percent and dropped the U.S. share of total meat trade to a record low. Despite the lost markets, the close of Canadian borders to meat and live animal trade has kept U.S. meat prices high.

Because the United States took quick measures to restore consumer confidence in the safety of U.S. beef, beef markets are expected to reopen beginning in 2005. FAPRI expects trade to reach pre-crisis levels after three years. Continuing strong growth in pork and poultry exports, coupled with the beef market reopening, enable the United States to regain its meat trade share at a level near that of the early 2000s.

Benefiting from trade shocks from BSE in beef and from avian flu in the broiler industry, world pork production and trade reach 110 and 4.24 million metric tons, respectively, by 2014/15. The European Union loses market share, going from 45 percent to 33 percent, because of higher feed costs, appreciating currency, and strict animal welfare and environmental regulations. All other major competing exporters, including Canada, the United States, and Brazil, gain market share.

The depreciation of the U.S. dollar against most other currencies in industrialized countries tapers off and ends by 2008. Australia, Canada, and the European Union recover from weather-related stresses and become strong competitors in crop markets. Further, the United States loses competitiveness relative to Latin American countries as the U.S. dollar appreciates against most Latin American currencies. The effects are especially acute in meat markets, since the Latin America region has benefited from the BSE crisis in North America.

Grain prices remain high, given strong import demand on world markets, especially in China (where wheat imports were 7 million metric tons in 2004). Wheat prices remain above $145 per metric ton. Corn prices steadily increase, from $95 to $114 per metric ton. The United States, Argentina, and Hungary are among the countries benefiting from strong world market conditions and increases in grain use. The U.S. corn market share increases from 64 to 73 percent over the projection period.

FAPRI foresees greater concentration in soybean production. Argentina, Brazil, and the United States increase their combined production share from 82 percent to 85 percent of world production. World soybean production reaches 273 million metric tons by 2014/15, an 18 percent increase from 2004/05. Brazil overtakes the United States as the largest soybean producer and exporter in the world, holding a 35 percent share of world production and a 51 percent share of world trade by the end of the period. U.S. production and trade shares drop to 30 and 28 percent, respectively. China, the world's largest importer of soybeans, expands its imports from 35 to 47 percent of total world imports by 2014/15, whereas imports of the EU-15 remain stable at around 16 million metric tons.

The multi-year FAPRI projections provide a starting point for evaluating and comparing scenarios involving macroeconomic, policy, weather, and technology variables in world agricultural trade. More information is available at the Iowa State (http://www.fapri.iastate.edu) and University of Missouri (http://www.fapri.missouri.edu) FAPRI Web sites.

Contacts:
John Beghin, FAPRI, (515) 294-5811; beghin@iastate.edu
Jacinto Fabiosa, FAPRI, (515)-294-6183; jfabiosa@iastate.edu
Sandra Clarke, Center for Agricultural and Rural Development, (515) 294-6257; sclarke@iastate.edu

March 3, 2005
"Smart Reform" of Crop Insurance Could Help Trim Ag Budget permalink

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.

January 11, 2005
ISU Professor Leads Report on Agricultural Trade Reforms for World Bank permalink

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.

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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.

The resulting report, Global Agricultural Trade and Developing Countries, released on January 10, points to agricultural protection as a continuing problem in ongoing global trade negotiations, especially for developing countries.

John Beghin, the Martin Cole Endowed Chair in the Department of Economics and Center for Agricultural and Rural Development (CARD) at Iowa State University, edited this new report on agricultural trade reforms, along with colleague Ataman Aksoy.

"The World Bank has been challenged by many critics to provide a deeper and more relevant assessment of farm and trade policy and their effects than they have done previously," says Beghin. The organization provides loans, policy advice, and technical assistance to low- and middle-income countries.

A key finding of the report is that agricultural protection, in the form of border protections and domestic subsidies, continues to be a major factor affecting world markets. Protection remains high in industrial countries, while many developing countries have liberalized their agricultural sectors.

"Rural income opportunities for the lowest-income countries are reduced because the policies of higher-income countries depress world prices," says Beghin. "Agricultural trade liberalization would induce significant price increases for most commodities."

The report shows the detrimental effects of multilateral trade liberalization for some countries, as a result of lost preferential trade agreements and higher prices of commodities for consumers. Given the complexities of specific issues in agriculture, the report calls for a global solution for market liberalization.

"Rather than being self-contained, agricultural trade negotiations should involve concessions on other sectors and issues to identify overall reform packages that are palatable to all parties," says Beghin.

The report presents first an investigation of the major cross-cutting issues in agricultural and food trade. This is followed by specific studies of nine commodities that feature distorted policy regimes among industrial and developing countries or that are important exports of developing countries. Several of the studies relied on earlier analysis of the Food and Agricultural Policy Research Institute at CARD.

The studies document the magnitude of distortions in the current policy regimes and estimate the winners and losers of trade and domestic policy reforms. This information is important for policymakers as they approach global negotiations and evaluate their domestic policies.

Beghin says he hopes the report sheds light on the pernicious effects of distortions in agricultural markets. The studies attempt to show the implications of leveling the playing field in agricultural trade.

"It took eight rounds of World Trade Organization negotiations to dismantle protection in manufacturing," he says "and it may take as long to remove protectionism in agriculture and food markets. So the intellectual debate on agricultural distortions will last for a while!"

Beghin has joined others involved in the project on an informational tour, with stops at the World Trade Organization headquarters in Geneva, Food and Agriculture Organization in Rome, and the Organization for Economic Cooperation and Development in Paris.

More information on this report is available at the World Bank Web site.

Contacts:
John Beghin, Martin Cole Endowed Chair and professor of economics, (515) 294-5811; beghin@iastate.edu
Sandy Clarke, CARD communications; sclarke@iastate.edu

September 16, 2004
New CARD Web Tool Calculates Premiums for Livestock Gross Margin Insurance permalink

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/tools/.

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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/tools/.

LGM insurance, available in all 99 Iowa counties, is a policy that bundles hog price and feed costs to provide protection against the loss of gross margin, calculated as the market value of livestock minus feed costs. The market value is obtained from futures prices, not from local market prices. Coverage is backed by the Federal Crop Insurance Corporation of the U.S. Department of Agriculture.

Users of the new CARD tool can estimate insurance premiums for 85, 90, 95, or 100 percent coverage for three different swine types, finish, farrow-to-finish, or segregated early weaning. The user needs to enter the number of head expected to be marketed for each month in the insurance period. The term of coverage is a rolling six-month period but there is no coverage the first month of the period. The calculator then estimates the expected gross margin, the insured gross margin, and the premium.

Producers can sign up for LGM twelve times a year and the policy can be tailored to the size of the operation. The sales period begins after validation of market data on the last business day of each month and ends at 9 a.m. the following day. For this reason, the calculator should prove to be a useful tool. "Producers basically have a 12-hour window to decide whether or not to pull the trigger on the insurance product," says CARD Director Bruce Babcock. "We designed the calculator to help put all of the available data in the hands of producers and their crop insurance agents to help them make good decisions about managing risk."

LGM insurance sales resume October 1. Sales were suspended late last year after a case of mad-cow disease disrupted livestock markets. Changes in livestock risk protection policies have been made. Sales periods have been shortened, and provisions have been added to suspend sales if catastrophic events disrupt futures market prices.

Contacts:
Chad Hart, CARD, 515-294-9911; chart@iastate.edu
Bruce Babcock, CARD, 515-294-6785; babcock@iastate.edu
Sandy Clarke, CARD communications, 515-294-6257; sclarke@iastate.edu

September 1, 2004
MATRIC Examines Implications of Geographical Indications for U.S. Agriculture permalink

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.card.iastate.edu.

August 12, 2004
Twenty Years of Agricultural and Trade Policy Research permalink

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.

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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.

Researchers from the two universities meet regularly to analyze alternative agricultural policies and present their findings to senior staff of the U.S. Senate and House of Representatives agriculture committees.

Economic models developed by FAPRI researchers are used to evaluate trends and changes in agricultural commodity markets. Keeping abreast of those trends and changes is critical. Agricultural and food markets change. Some countries expand production. Others decrease production. Some countries have dramatically expanding incomes while others have shrinking incomes. FAPRI researchers continually monitor these sorts of changes and make sure they are reflected in their models.

FAPRI has created national and international models for grains, oilseeds, livestock and dairy. Also available are U.S. models for sugar and crop insurance and an international model for cotton.

Each year, FAPRI researchers prepare baseline projections for the U.S. agricultural sector and international commodity markets. The process begins with a preliminary baseline that is reviewed by a panel of experts, including employees of several agencies in the U.S. Department of Agriculture, experts from international organizations, individuals throughout the land grant and other university systems, as well as extension specialists and industry experts.

The reviewers' comments and suggestions are taken into consideration in the final baseline. The multi-year projections then are published as FAPRI Outlooks, which provide a starting point for evaluating and comparing scenarios involving macroeconomic, policy, weather and technology variables. The projections are used by farmers, government agencies and officials, agribusinesses and others who do medium-range and long-term planning.

FAPRI's first year of operation focused on providing Congress with analysis of alternative proposals for the 1985 farm bill. Since then, FAPRI analysis of farm bill policy options has been widely cited and used during farm bill deliberations.

FAPRI was involved in an ongoing analysis of the General Agreement on Tariffs and Trade from 1989 to 1994, publishing a series of special reports for policymakers. With the Doha Round of trade negotiations now underway, FAPRI researchers continue to be a critical source of information, providing thoughtful analysis of the trade policy options being considered.

From "Agriculture in Action: Notes from ISU" by Susan Thompson

Contacts:
John Beghin, FAPRI, 515-294-5811; beghin@iastate.edu
Susan Thompson, Ag Communications, Iowa State University College of Agriculture, (515) 294-0705; sander@iastate.edu

August 4, 2004
New Web Site Offers Detailed Information on Iowa Lakes permalink

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.

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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.

The new Web site opens with a map of Iowa divided into nine regions. Visitors have the option of clicking on the map, or selecting from alphabetical lists of 135 lakes or Iowa's 99 counties. Once a lake is chosen, visitors get a general overview including such things as the lake's size, shoreline miles, depth, how many acres drain into it, boat access, boat restrictions and facilities and amenities available. Photos and maps of the surrounding area often are provided.

Visitors can find out if the lake is on the EPA's list of impaired waterways. Sixty-six of the lakes currently fall into that category. They also can learn if beaches at the lake are monitored on a regular basis and if advisories have been posted that caution against swimming.

The Iowa Lakes Valuation Project also involves sending surveys to about 8,000 Iowans each year for four years. Survey results for 2002 are on the Web site. That year, about 62 percent of those surveyed said they visited one of the lakes, making about eight trips per year.

Saylorville Lake in Polk County had the most single-day trips by Iowans in 2002 at nearly 600,000. Slip Bluff Lake in Decatur County was at the opposite end of the spectrum, with fewer than 1,600 day trips. West Okoboji had the most multi-day trips at nearly 265,000. Data from the 2003 survey will be added to the Web site in the near future.

For 130 of the lakes, physical water quality measurements of clarity, phosphorus levels and chlorophyll levels are provided. A team led by John Downing, professor of ecology, evolution and organismal biology, has been gathering this data. Phosphorus levels provide an indication of the amount of nutrients in the lake, while chlorophyll levels are an indication of the amount of living algae in a lake.

"It is our hope this new Web site will help Iowans better understand the water quality and lake amenities we have in the state," said Catherine Kling, economics professor and head of the resource and environmental policy division of the Center for Agricultural and Rural Development. Kling and others are conducting the four-year survey of Iowans.

"We anticipate this new resource will be used by anyone interested in water quality, facilities and recreational opportunities at Iowa's lakes, including environmental organizations, watershed groups and the thousands of Iowans who use our lakes for fishing, boating or other activities," Kling said. The Web site is at https://www.card.iastate.edu/lakes/.

From "Agriculture in Action: Notes from ISU" by Susan Thompson

Contacts:
Catherine Kling, CARD, 515-294-5767; ckling@iastate.edu
Susan Thompson, Ag Communications, Iowa State University College of Agriculture, (515) 294-0705; sander@iastate.edu

July 1, 2004
Bringing Customers Back to the Farm permalink

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.

June 17, 2004
Handling of Specialty Crops Studied by ISU Economists permalink

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.

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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.

Increasingly, traits that add value to corn and beans are being introduced into several feed and food markets. These products must be kept segregated from the commodity corn and soybeans that are typically handled in the same marketing channels.

John Miranowski and Helen Jensen, both Iowa State University economics professors, have been studying issues that arise in the handling of specialty crops. The research is funded by the U.S. Department of Agriculture and the Agricultural Marketing Resource Center at Iowa State. To help with the research, a survey was conducted in April 2003. Responses were received from 380 of the 460 firms that handle grain in Iowa.

Officials at 68 firms said they handled one or more corn and soybean specialty crops in 2002 or planned to do so in 2003. The highest number of specialty crops reported by a single firm was seven, but the average was about two. The most frequently reported specialty crops were high-oil corn, non-genetically modified corn and non-genetically modified soybeans.

One important issue for grain-handling firms is the added costs of differentiating products. On average, firms reported it cost about 32 cents per bushel more to handle specialty crops than to handle commodity crops. Interestingly, half of the 68 firms said they did not have to make any additional capital investments before handling specialty crops.

The survey also looked at the organizational structure of the firms handling specialty crops. About 30 percent of the firms surveyed were cooperatives. Yet cooperatives accounted for 44 percent of those handling specialty crops in 2002 and 47 percent of those planning to do so in 2003. Private firms and corporations made up 70 percent of the sample. Fifty-six percent of those handled specialty crops in 2002 and 53 percent planned to do so in 2003.

Another issue the survey addressed is how grain-handling firms contract with the farmers they buy from and with the processors or other end users they sell to. For instance, the survey showed more than 90 percent of the high-oil corn they handle is produced under contract with farmers. At the same time, the firms have about 70 percent of that corn forward contracted with buyers.

More analysis of the survey data is underway to help sort out the industry effects of providing new systems for segregating specialty crops. A paper describing the preliminary study, "Product Differentiation and Segregation in Agricultural Systems," is available online at www.card.iastate.edu/products/publications/synopsis/?p=512.

(Susan Thompson is a communications specialist with the Iowa State University College of Agriculture.)

From "Agriculture in Action: Notes from ISU"

Contacts:
John Miranowski, Professor of Economics, 515-294-6132; jmirski@iastate.edu
Susan Thompson, Ag Communications, Iowa State University College of Agriculture, (515) 294-0705; sander@iastate.edu

May 1, 2004
CARD Economists Take a First-Hand Look at Brazilian Agriculture permalink

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.

April 27, 2004
FAPRI Director Comments on WTO Ruling on Cotton Subsidies permalink

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.

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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.

Third World nations contend that U.S. and European farm subsidies undermine their prospects for successfully trading agricultural products on the world market, says John Beghin, professor of economics and head of the Food and Agricultural Policy Research Institute at Iowa State University. "The WTO rule against U.S. cotton subsidies is an important victory for developing economies in their quest to level the playing field in world markets," he says.

Beghin is available to comment on the implications of the WTO ruling. He is an expert in trade and agricultural policy and the political economy of agricultural and food policies in developing economies. He can be reached at (515) 294-5811, or beghin@iastate.edu.

Contacts:
John Beghin, FAPRI-CARD, (515) 294-5811
Teddi Barron, ISU News Service, (515) 294-4778
Sandra Clarke, CARD communications, (515) 294-6257

April 1, 2004
ISU Economists Use Survey of Iowa Grain Handlers to Study Crop Segregation Costs permalink

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.

March 5, 2004
FAPRI Report Highlights Excellent Prospects for U.S. and South American Ag Exports permalink

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.

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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.

A moderate depreciation of the U.S. dollar keeps U.S. products cheaper in export markets relative to those of industrialized competitors. This competitive edge and 3 percent growth in the global economy, especially in Latin America, Asia, and transitional economies, push the value of agricultural exports up by 27 percent by 2013. Grain and feed exports account for 25 percent of this increase. The value of animal and meat exports are expected to rise 42 percent over the 10-year period, provided that sanitary and phytosanitary (SPS) problems are quickly overcome.

According to the report, export prospects are even stronger for Latin American competitors because of their successful control of SPS concerns, low production costs, and depreciation of their currencies against the U.S. dollar. Brazil and Argentina gain higher export market shares in grains and oilseed products and an increased presence in meat markets. As a result, the U.S. share of world crop exports decreases through 2013.

Though grain prices decrease from their 2002/03 peaks, they are expected to remain high, given strong import demand on world markets, especially in China. Wheat prices remain close to $140 per metric ton, and corn prices stay above $100 per metric ton throughout the 10-year period. The United States, Argentina, and Hungary are among the countries that stand to benefit from these strong world market conditions.

The long-run outlook for U.S. corn and other feed grains, embodied in meat exports, is excellent following the resolution of SPS issues. Oilseed prices are expected to decrease significantly from their 2003 peaks but level off at around $250 per metric ton through 2013. The U.S. share of crop exports decreases over the projection period.

The European Union enlarges by 10 new members in 2004. Reforms of the Common Agricultural Policy in 2005, including decoupling of subsidy payments, decrease beef production in member countries, resulting in more E.U. beef imports throughout the period.

Identification of bovine spongiform encephalopathy (BSE) in Canada resulted in the closing of some of its export markets. BSE problems compromised U.S. beef exports in 2003/04. FAPRI expects U.S. beef exports to resume their long-term growth by 2005/06.

FAPRI, a policy research group with centers at Iowa State University and the University of Missouri-Columbia, prepares baseline projections each year for the U.S. agricultural sector and international commodity markets. The multi-year projections are published as FAPRI Outlooks, which provide a starting point for evaluating and comparing scenarios involving macroeconomic, policy, weather, and technology variables. These projections are intended for use by policymakers and others who do medium-range and long-term planning. Information is available at the Iowa State University (www.fapri.iastate.edu) and University of Missouri (www.fapri.missouri.edu) FAPRI Web sites.

Contacts:
John Beghin, Food and Agricultural Policy Research Institute, (515) 294-5811
Jay Fabiosa, Food and Agricultural Policy Research Institute, (515) 294-6183
Sandra Clarke, Center for Agricultural and Rural Development communications, (515) 294-6257

December 11, 2003
Four-Year Study of Lake Use Underway at ISU permalink

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.

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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.

"We hope to provide information for policymakers, environmental groups, farmers and the general public that will help frame the issues surrounding water quality in Iowa," said Catherine Kling, an economics professor and head of CARD's resource and environmental policy division. "We want to learn how people use Iowa lakes and what they might be willing to spend or do to improve water quality."

The focus of the first year of the Iowa Lakes Valuation Project was to provide a baseline of information on use and attitudes towards water quality measures and economic development. A combination of mail and phone surveys drew responses from about 4,700 Iowans.

Participants were asked how often they visited lakes during 2001 and 2002, plus planned visits for 2003. About 60 percent reported taking or planning at least one trip to an Iowa lake during that time period, with an average of eight visits per year. Picnicking was the most popular activity on lake visits, followed by fishing, nature appreciation, boating, beach use and camping.

Participants also were asked about lake features that are most important to them. Water quality topped the list of factors people consider when choosing a lake for recreation. Proximity to where they live ranked second.

The survey asked respondents to think about the lake closest to them and indicate how important it is to their community. Large percentages felt their lake was either very important or somewhat important to their community.

They then were told to consider the importance of that lake if its water quality was significantly improved. A slightly higher percentage said the lake would be either very important or somewhat important to their community with a significant improvement in water quality.

Kling says surveys will be sent to the same people each of the next three years, with questions about lake usage asked each year. "Since efforts to improve water quality typically entail significant costs, additional information about their willingness to pay for lake clenup or to support changes in land use also will be gathered," she says.

The first-year survey and a summary are online at www.card.iastate.edu/research/resource-and-environmental/.

From "Agriculture in Action: Notes from ISU" by Susan Thompson

Contacts:
Cathy Kling, CARD-ISU, (515) 294-5767
Susan Thompson, Ag Communications, Iowa State University College of Agriculture, (515) 294-0705; sander@iastate.edu

October 9, 2003
Japanese Meat Quality Assurance Programs Analyzed permalink

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.

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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.

Roxanne Clemens is managing director of the Midwest Agribusiness Trade Research and Information Center at Iowa State University. She took part last spring in the Iowa Department of Economic Development's Japan Meat Mission 2003. Other participants included Iowa Secretary of Agriculture Patty Judge and representatives from the Iowa Pork Producers Association, the Iowa Beef Industry Council, Iowa Farm Bureau Federation and several Iowa agribusinesses.

While in Japan, Clemens gathered information on domestic meat production, plus government and private programs that provide consumers with information about the meat they buy.

"Recent domestic and international food safety crises elevated the importance of meat safety among Japanese consumers," Clemens says. "The Japanese government and food industry are implementing new policies and systems to assure them the food supply is safe and wholesome."

The Japanese government is developing a new Food Safety Commission and laws have been passed that will require new types of labeling in the future. "In the meantime, supermarkets have taken on the role of assuring consumers about food safety and quality," Clemens says.

The Jusco supermarket chain has implemented one of the most comprehensive systems. A computer is available in the meat sales area. Customers enter a 10-digit code into the computer from the product label on individual meat trays. That allows them to view and print a host of information on how the animal was raised, the plant where it was delivered for harvesting, health tests - even the name of the meat inspector at the plant.

And the consumer can see a photograph of the producer who delivered the animal to the harvesting plant. "Japanese consumers equate such a photograph with knowing the producer and feel more comfortable with the safety of the product," Clemens says. Other supermarkets are offering similar systems to provide a story of the meats they sell. Country-of-origin labeling is mandatory at retail outlets, but the Japanese government currently does not require traceability for imported meats. "However, most industry experts believe that U.S. exporters with traceability systems already in place might do very well in Japan because so few suppliers have implemented such systems," Clemens says.

For more information, see "Meat Traceability and Quality Assurance in Japan," MATRIC briefing paper 03-MBP 5, available for download on the CARD and MATRIC Web sites.

From "Agriculture in Action: Notes from ISU" by Susan Thompson

Contacts:
Roxanne Clemens, MATRIC, 515-294-8842; rclemens@iastate.edu
Susan Thompson, Ag Communications, Iowa State University College of Agriculture, (515) 294-0705; sander@iastate.edu

October 1, 2003
ISU Team Studies Cattle Identification System in Canada permalink

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.

August 15, 2003
CARD Publishes Study of Livestock Operations and Property Values permalink

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.

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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.

CARD economists Bruce Babcock and Silvia Secchi and Joe Herriges, ISU economics professor, conducted the study. They wanted to know if living near large livestock confinements has a measurable impact on home property values. According to Babcock, if this effect could be quantified, perhaps damage assessments could be used as starting points for negotiations between owners of large livestock facilities and their residential neighbors.

Overall, the study shows livestock facilities can affect property values. The closer the residence is to the facility, the greater the effect, but the estimated effect is zero unless the residence is downwind.

Specifically, the analysis found that a distance of one-quarter mile to the nearest large livestock facility leads to a decrease in property values of 11 percent if downwind to the northwest and 7 percent if downwind to the south. At a distance of one-half mile, property values drop 8 and 5 percent, respectively. At one-and-one-half miles, the declines fall to 3 and 2 percent, respectively. A comparable study conducted in North Carolina found similar results.

Data for the analysis included information on every rural owner-occupied home sold in Webster, Humboldt, Hamilton, Franklin and Hardin counties from the mid-1990s to the summer of 2002. The researchers collected information about sales prices and amenities that might affect the value of the homes.

Data about large livestock facilities came from the Iowa Department of Natural Resources. This included each home's distance to the nearest livestock operation, the operation's size, and whether the home was downwind of the operation during the winter (northwest) or summer (south) seasons. The number of operations within a three- and 10-mile radius of each home also was included.

The research measured average effects on property values, not specific effects on individual residences. The study's estimates offer a prediction of average damages.

Having found a moderate effect on property values, the study's authors conclude there is room for negotiation in rural Iowa. They suggest livestock producers who wish to build new facilities might consider paying neighbors for potential declines in property values. "The size of payments would need to provide the operation the opportunity to be profitable. Agreements also would have to include good-faith provisions in which producers agree to follow management practices shown to reduce damage. In return, rural residents would agree to allow the facility to operate," said Babcock.

According to the report, "the limited size of the estimated effects suggests that common sense rules - such as not locating feeding operations close to and upwind of residences - combined with modest compensatory payments could help rural residences co-exist with modern feeding operations."

The full report, "Living with Hogs in Iowa: The Impact of Livestock Facilities on Rural Residential Property Values," is available on CARD's Web site at https://www.card.iastate.edu/products/publications/synopsis/?p=492.

Contacts:
Bruce Babcock, CARD, (515) 294-6785
Joe Herriges, Economics, (515) 294-4964
Sandy Clarke, CARD Communications, (515) 294-6257
Susan Thompson, Ag Communications Service, (515) 294-0705

June 1, 2003
Economic Impacts of a Ban on Feed-Grade Antibiotics - The Danish Experience permalink

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.