This study investigates the relationship between cash and futures prices of soybeans and soybean meal from 1992 to 2013. Error correction models are estimated for the prices of both commodities. An exogenous measure of price variability is included in both models to determine if variability increases the speed with which cash and futures prices return to their long-run equilibrium relationship. This is used to measure the impact of price variability on short-run market efficiency and the price discovery process. The findings indicate that the level of price variability influences market adjustment rates and the price discovery process.

Pollution from fossil fuel use is a global problem. Studies have shown that a worsening of environmental quality has adverse effects on worker productivity and health. In this study, there is an inexhaustible natural resource that deteriorates environmental quality and affects productivity. There also exists a perfect substitute clean backstop, which is initially too costly to operate and whose costs can be reduced through investments in knowledge. Depending on the endowment of environmental quality, the optimal solution shows that the planner should only use the resource or only the backstop until a constant steady state is reached in which the polluting resource and backstop are used in fixed proportions. We show that investments in alternative technologies from the very beginning can help an economy make the eventual switch to clean energy sources, thereby attaining better environmental quality.

Meat goat producers were queried to determine subjective estimates of premiums they would receive for slaughter kids of various selection classes. Market-based predicted premium estimates were obtained via regression using published U.S. Department of Agriculture Agricultural Marketing Service data. Subjective versus market-based predicted premium estimates were compared to determine producer accuracy in predicting premiums. Producers tended to overestimate quality premiums. Producers more accurate in their estimates tended to be larger-scale and older and to hold college degrees, sell more slaughter goats via auction, and manage their goats more intensively. Results contribute to the literature on producer accuracy in predicting prices.

This study investigates the long-term adjustments to drought by crop and livestock sectors using a dynamic partial equilibrium quarterly model of the U.S. agricultural economy. Results show that short-term drought effects including increases in crop and forage prices are in tandem with decreased live cattle prices resulting from drought-induced beef cattle herd liquidation. Crop price increases in the long run cause livestock inventory reductions, leading to fewer animals moving through the U.S. meat supply chain and increased livestock prices. Longer-term market adjustments cause a significant decrease in consumer surplus, and prolonged drought amplifies and extends the model-predicted results.

In the Journal of Agricultural and Applied Economics Volume 47 (Number 1), Equations 7 and 10 were published with errors.