A theory for analyzing incidental consumption in a single site recreation demand model is presented. We show that incidental consumption on a recreation trip, such as a visit to see friends or a visit to a second recreation site, can be treated as a complementary good and analyzed using conventional theory. We also show that the analysis applies whether the side trips are incidental or joint. In a simple application we find that failing to account for incidental consumption appears to create little bias in valuing recreation sites.

Land/grant colleges were established to serve the public via a tripartite system of teaching, research, and extension. Agricultural economists have played a key role in this system in meeting agriculture's needs and are expanding this role to better cover the areas of food, natural resources, and the environment. The declining economic importance of agriculture and the growing interest in relegating agriculture to free market forces has resulted in declining formula funding for the land grant system, greater emphasis on competitive funding, demands for greater accountability, and demands for a return to greater focus on public service, problem solving, and stakeholder involvement in the definition of research, teaching, and outreach agenda. Simultaneously, the demand for the traditional “agricultural economics” graduate is declining. This paper reviews the current and long-term issues and trends facing agricultural economics departments, explores the futures of their teaching, research, and outreach programs, and highlights the challenges that will be faced as these departments explore new teaching, research, and service opportunities in the areas of food, natural resources, and the environment. The paper concludes by arguing that for forward thinking agricultural economics departments, these pending changes will represent opportunities for better scholarship, more balance, and more effective service.

Cooperation among players requires a realization of economic benefits to all players and a meeting of efficiency requirements through economically driven allocations. Cooperation among political (and sometimes hostile) players may not meet these requirements. Political considerations, usually ignored in economic analyses, can hinder or even block possible arrangements. A framework is proposed that includes both economic and political considerations for evaluating transfers or trades of scarce resources. This method quantifies both the economic payoffs using n-person game theory and the political likelihood of any of the coalitions actually forming, using the PRINCE Political Accounting System. The economic-political approach is applied to a case of a potential water transfer in the western Middle East. Results suggest that incorporating political considerations in the analysis stabilizes the regional solution suggested by economic-related allocations.

The relevance of graduate training in the Department of Resource Economics at the University of Massachusetts is investigated through a survey of graduates. The survey questionnaire and measures of relevancy are discussed. Results are presented for three cohorts: graduates currently in Ph.D. programs, M.S. graduates currently employed, and Ph.D. graduates currently employed. Results for all cohorts indicate that their graduate training is relevant to their jobs; however, all cohorts also favored increased application and reduced mathematics and theory. In addition, graduates suggested the need to bolster graduate training in economics with applied courses in business to improve competitiveness in private job markets.

Though there are many challenges facing extension economists, there are significant opportunities to serve rural America and fully participate in our profession. National studies have reconfirmed extension as an integral part of our land grant mission, and a survey of chairs of departments of agricultural and resource economics shows that 87% indicate that there is increased or constant pressure by the public for programing by extension economists. Retirement estimates provided by chairs suggest it is likely that at least one-half of new faculty hired over the next five years will have extension appointments. Perhaps most importantly, there are critical societal issues to which extension economists can make valuable contributions.

Formula pricing of eggs is typically based on quotations issued by Urner Barry Publications, and egg producers worry that the quotes are systematically lower than equilibrium levels. Egg Clearinghouse, Inc. (ECI) provides a public forum for cash trading, intended to facilitate price discovery. Evidence from 1994–95 does not suggest that Urner Barry understates producer level prices on average. Granger causality tests indicate a feedback relationship between the Urner Barry quotes and ECI prices, with ECI leading during price upswings. Lead times appear to have fallen since the late 1970s and early 1980s, confirming earlier predictions regarding market efficiency.

This study identifies several socioeconomic and demographic characteristics of individuals who visited farmer-to-consumer direct markets in New Jersey. The analysis was performed for each type of direct marketing facility: pick-your-own farms, roadside stands, farmers’ markets, and direct farm markets. Logit analysis results indicate that various factors affect visitation to each type of facility. Factors examined include consumer's consumption and variety of fruits and vegetables, price expectation, purpose of buying, age, sex, education, race, income, urbanization, and presence of home garden.

Cooperative extension has prided itself on being the outreach of the land grant university. However, with changes in the structure of the population, the economy, and agriculture in particular, extension has had to change as well. Increasingly, extension service providers are reminded that they cannot be all things to all people. There is also increasing competition from other campus units that feel they have an outreach mission. As traditional base funding sources decline, decisions must be made regarding the role and function of extension within the university system. This paper explores these issues using historical data, reports, and six case studies. The case studies provide insights into the ways different extension services have collaborated and partnered in university outreach. The case studies demonstrate that the role of extension reflects such things as past experiences, the level of support for extension, the administrative structure of extension and the university, and the vision of those within and without the extension system.

Studies of recreation congestion generally utilize nonmarket valuation techniques to determine the use level and entrance price that maximize aggregate recreation benefits for a specific recreation area. This paper improves upon these previous studies by relaxing the assumption of homogeneous preferences among visitors of the same recreation area and accounting for visitor expectations of congestion. The results indicate that failing to account for heterogeneous preferences for congestion by time of visit leads to overestimates of the benefits of relieving peak-time congestion, while accounting for expectations raises questions about the validity of the standard optimal use model.

A multiyear regional risk programming model was used in evaluating the impacts of different environmental policies on cropping systems, input use, nonpoint source pollution, farm income, and risk. A direct expected utility maximizing problem (DEMP) objective with a Von Neuman Morgenstern utility function was used in deriving optimal cropping systems. A biophysical simulation model provided input for the optimization. Three types of policies—taxing, regulating the aggregate, and regulating the per acre level—were studied for two farm inputs—nitrogen and atrazine. It was observed that policies had varied and multiple cross-effects on pollutant loads, farm income, and risk. This information is crucial in developing successful policies toward improving water quality. If an appropriate input policy is chosen, both targeted and nontargeted pollutant loads can be managed. The three policies varied in their effects on pollutant loads and involved tradeoffs in water quality and economic attributes.

Despite the rapid rise in complex carbohydrate consumption over the last twenty-five years, fresh potato consumption has fallen by over 50%. Fresh potato growers and retailers alike need to know whether these changes reflect consumer responses to changing relative prices or incomes, or whether they are due to changes in consumer tastes. This paper uses a linear approximation almost ideal demand system (LA/AIDS) to investigate the effect of relative prices, expenditures, and a set of socioeconomic variables on complex carbohydrate demand. Estimation results show that the socioeconomic variables explain some of the changes in demand, but a significant amount remains as evidence of a change in consumer tastes.

A survey of more than 1200 Pennsylvania dairy farm managers showed that almost 20% of those managers do not have health insurance. Of those farm managers with health insurance, 67% had insurance acquired through the farm business. Farm characteristics and demographic information were used to determine indicators of health insurance coverage. Age, education, net farm income, off-farm income, milk marketing cooperative membership, and intensity of hired labor use all had significant effects on the likelihood of having health insurance and on whether such insurance was provided by the farm business.

A hedonic cost function is used to isolate the operation and maintenance costs for water treatments. For small systems, costs are substantial for some technologies, but not for others. When regional differences in input costs are accounted for, small systems located in rural areas may have a cost advantage over similar systems closer to urban centers; however, costs of water treatment to meet Safe Drinking Water Act amendments may still be substantial.

A labor supply model is used to examine the relationship between farm ownership and operators’ participation in the off-farm labor market for the Northeast region. The results indicate that ownership significantly influences operators’ off-farm employment participation. In particular, part-owners significantly allocate labor services to off-farm activities. The results also show that the participation rate among part-owner operators is high partly because the availability of other income sources accelerates the process of acquiring assets to become full-owner operators.

This paper provides the model, analysis, and results of the investigative research by the U.S. International Trade Commission (USITC) staff on the U.S. lamb market impacts from the countervailing duty (CVD) order imposed on certain U.S. imports of New Zealand lamb meat during 1985–90. Presented here are the monthly three-stage least squares model of the U.S. lamb meat industry at the wholesale or meat-packing level, along with the econometric results and analyses obtained from the USITC investigation. Analysis of model results quantifies average estimated CVD-attributed effects on U.S. lamb price, demand and supply of domestically produced lamb, and U.S. lamb import levels. A number of economic parameter estimates and inference results concerning U.S. wholesale lamb market relationships are reported and are of interest, given the scarce published research on the U.S. lamb industry.

Increasing numbers of freshwater ecosystems have had sportfish consumption advisories posted in recent years. Advisories are sometimes issued in lieu of environmental remediation if they are considered more cost-effective than “cleaning up” the resource, but this approach assumes that anglers adjust behavior in response to the warning. Previous studies, however, suggest that compliance with advisories can be quite low. In contrast, this study measures a statistically significant response by reservoir anglers to consumption advisories. In particular, anglers are less likely to choose to visit a reservoir with an advisory than a similar reservoir without an advisory. Furthermore, the economic losses due to advisories are quantified for anglers in two regions of Tennessee.

The trend toward deregulation and the relatively high prices in the Florida milk market have increased competition for milk supplies between the Florida dairy cooperatives (FDCs) and other cooperatives like Dairymen Incorporated and Southern Milk Sales. Because of the increased competition in the Florida markets, the FDCs may need to implement a discriminatory spatial pricing policy. The discriminatory pricing policy allows the FDCs to expand their membership by absorbing some of the transportation cost of producers in distant locations that would otherwise be independent producers or members of competing cooperatives. Spatial pricing policies are analyzed to determine the effects of discriminatory pricing on the blend price, average aggregate revenue of cooperative members, and total costs and quantity of milk imports. The results of this study show that a nondiscriminatory pricing policy maximizes the cooperative members’ blend price and average aggregate revenue. However, if the FDCs were able to increase the price by $0.50 as a result of using spatial price discrimination to gain market power, spatial price discrimination would maximize average revenue and blend price.

Contract grazing is compared with retained ownership of cattle using two frameworks—decision theory and portfolio analysis. The study area is West Virginia. Contracting is optimal under a wide range of price and weather scenarios and decision criteria. It also dominates other alternatives based on labor efficiency measures. The optimal portfolio consists of contract grazing and pasture rental, with the results insensitive to small changes in contract grazing returns. The decision theory and portfolio analyses are complementary; together, the two sets of results provide a comprehensive view of the optimal production alternative. Because different agents employ different decision criteria, this approach can increase the utility of results to decision makers and contribute to better decisions.

Stochastic dominance analysis of five crop rotations using twenty-one years of experimental yield data returned results consistent with Pennsylvania cropping practices. The analysis incorporated yield risk, output price risk, and rotational yield effects. A rotation of two years corn and three years alfalfa hay dominated for approximately risk neutral and risk averse preferences, as did participation in government programs under the 1990 Farm Bill. Crop rotation selection appeared to impact net revenues more than the decision to participate in government programs.

The interaction of the planting flexibility and conservation compliance provisions from the 1985 and 1990 farm bills was evaluated using an integrated systems model. Results showed that flex and compliance policy in combination reduced net returns and government costs, diluted environmental benefits of conservation compliance, and increased grower responsiveness to market signals, compared with conservation compliance alone. Strict compliance and higher flex levels were the most detrimental to farm income and environmental goals. Decoupling in current and future policy proposals will promote conservation goals. Budgetary reductions in future farm policy could reduce conservation incentives.