This study determines the likely effect of cost-share incentives on participation in the Tennessee forest Stewardship Program and identifies other factors that may contribute to participation. A random utility model is used to determine the probability that a landowner will choose to participate in the program. A binary choice model is specified to represent the dichotomous decision and a logit procedure is used to fit the model. Data are obtained from mail surveys of 4,000 randomly selected landowners. Results indicate that attitudes and knowledge of forestry programs may be more influential in a landowner's decision to participate than monetary incentives.

The federal government program for wetlands regulation is administered by the United States Army Corps of Engineers pursuant to Section 404 of the Clean Water Act. Proposals for amending and/or reforming the Section 404 program are included in Congressional deliberations regarding Clean Water Act reauthorization. Specific issues of public policy include the definition of “waters of the United States”, criteria for delineation of jurisdictional wetlands, definition of activities exempt from regulation, mitigation and classification of wetlands, and issues of property rights.

Little doubt remains that agricultural operations will be increasingly constrained by environmental regulations. In that spirit, each of the foregoing authors has provided a general framework for a specific environmental issue as it impacts agriculturalists. I learned something from each paper (an important criterion). Rather than summarize the points made by the authors, I have chosen to address each paper separately and point out some specific issues which I feel were overlooked in the papers or which seem to follow directly from the discussions in the papers.

Farmer perceptions of extension program delivery methods and an analysis of the relationships of method and farmer characteristics to evaluation scores are presented. Evaluation scores tend to increase with written, interactive and variable-scheduled methods and methods where users determine the agenda. Evaluations tend to be lower for high user cost and “high-tech” methods. Substantial similarity of results exists across groups of farmers differing by age, education levels, farm size and farm type. There are differences, however, in absolute valuation of the method characteristics across the groups.

The three papers presented here made interesting reading, provided much food for thought, and gave evidence of a great deal of effort.

The moderator asked us to pay special attention to how well each paper addresses “the struggle between environmental regulation and the policy of maintaining cheap food”. I will attempt to deal with this and to give my reaction to other related issues that come to mind.

This article develops a conceptual framework for analyzing the role of state-level policies towards the dairy sector in the presence of farmland amenity benefits, and applies it to Connecticut. Milk supply, demand and amenity benefit functions are estimated, and three exogenously determined milk prices are considered. The empirical findings show, under each price scenario, the extent to which land is underallocated to the dairy sector if amenity benefits are ignored. Analysis of policy options reveals that a partial production cost subsidy represents the least-cost alternative for attaining the socially optimal solution for the region.

This study evaluates the attitudes of U.S. (Kansas) farmers regarding “free-trade” and “free-market” policy environments. In contrast to earlier studies, non-specific policy attitudes are evaluated. A direct measure of farm program benefits is also included. Attitudes vary significantly with farm and operator characteristics. Support for free trade was shown to decrease with education and experience, to increase for farms with relatively more rented land, and to increase as total farm wealth increased. Support for free-trade was also higher for crop farms. Farms receiving more government payments are less likely to favor a free-trade policy environment.

In the 1980s, few agricultural economists, particularly from the Southern Region, published works on international trade or the globalization of the world economy. The initiation of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1986 stimulated such writings as the Southern Agriculture in a World Economy series by the Southern Region Extension International Trade Task Force (Rosson et al.). An even smaller number of agricultural economists were writing on policy linkages between trade and the environment. An early effort to remedy this situation was the Workshop on Linkages between Natural Resources and International Trade in Agricultural Commodities (Sutton).

A dynamic model is developed to analyze farmers' irrigation investment and crop choice decisions under alternative water quality protection policies. The model is applied to an empirical example in the Oklahoma High Plains. The choices of crops and irrigation systems and the resulting levels of irrigation, income, and nitrogen runoff and percolation are simulated over a ten-year period. An effluent tax on nitrogen runoff and percolation is shown to be effective in reducing nitrate pollution. The efficacy of cost sharing in adopting modern irrigation technologies and restrictions on irrigation water use depends on soil type. A tax on nitrogen use is shown to be the least effective policy.

This paper introduces and briefly discusses the economics of two important trade and environment policy issues--international harmonization of environmental standards and the use of trade measures for environmental purposes. Both issues are likely to generate lively international debate among environmentalists, industry representatives, and trade negotiators over the next few years. As the international community seeks new multilateral rules in these areas, agricultural producers will want to know how they will be affected. Thus, this paper also examines the potential impacts of environmental policy on the competitiveness of commodities unique to the Southern region of the United States.

Seale and Fairchild cover an ambitious array of issues in their paper on “Trade Agreements, Competition, and the Environment”. Perhaps it is this ambition that leads their discussion to be too generalized in some areas. Their paper is organized into several sections: (1) a review of trade theory and generalizations about resource use (“GATT or NAFTA, Does it matter?”); (2) issues that link trade and environmental policy; (3) observations on shifts in U.S. trade policy behavior; and (4) perspectives on the changes and adjustment facing southern agriculture. I would like to challenge some of their assertions about regional trading blocs, and the environment and resource use.

Previous empirical studies of school choice have been at the national level, or have focussed on northeastern states. We estimate the demand for private education in rural Georgia, using proportion of private school attendance as an indicator variable. We find that income, tuition, race and school quality are important choice determinants. The results provide useful information for rural school administrators, and suggest that a tuition tax credit would have to be substantial to cause a significant exodus from public schools.

A framework was developed in order to specify a model for annual U.S. per capita consumption of cigarettes. Three separate time related variables were utilized to measure the effects of health related information regarding smoking. The empirical results from the post World War II data set reveal that while prices and income are important determinants of cigarette consumption, the estimates for both were in the inelastic range. The age distribution of the adult population is also an important variable. While the development of the filter tip has been successful in stimulating smoking, the low tar and nicotine innovation has not had a statistically significant effect. Health information has repeatedly produced substantial short and long run effects. Current consumption is falling at an annual rate of between 3 to 4 percent.

The southern perspective provided in the Seale and Fairchild paper makes this paper especially interesting as an overview of concerns related to the use of trade policies to advance environmental objectives on a global scale. With the exception of their “World Environmental Bank” idea, it is easy for me to agree with most of their points and their underlying premise that the development of trade policies based on environmental priorities represents an effort to link the inaccurate with the unstable.

The rice stink bug is a major pest of rice in Texas, causing quality related damage. The previous thresholds used for assisting in rice stink bug spray decisions lacked flexibility in economic and production decision variables and neglected the dynamics of the pest population. Using stochastic dynamic programming, flexible economic thresholds for the rice stink bug were generated. The new thresholds offer several advantages over the old, static thresholds, including increased net returns, incorporation of pest dynamics, user flexibility, ease of implementation, and a systematic process for updating.

This paper reports a test of the endowment effect in an economic analysis of localized air pollution. Regression techniques are used to test the significance of perceived property rights on household WTP for improved air quality versus WTA compensation to forgo an improvement in air quality. Our experiment contributes to the research into the WTP/WTA divergence by providing a new basis for supporting the existence of an endowment effect. Our results are in contrast to recent work by Shogren et al. which supports the substitution proposition of Hanemann while rejecting the endowment effect.

The 1990 Farm Bill reduces deficiency payments but also provides more planting flexibility for program participants. In this study, a mean-standard deviation analysis is used to analyze the impacts of planting flexibility provisions on crop selection decisions, farm returns, and farm risk. Results show that gains from the added planting flexibility do not offset the mandatory loss in the deficiency payments for program participants. Planting flexibility will lead to an increase in corn and wheat planted in the Northern Plains and an increase in cotton planted in the Rolling Plains and Coastal Bend, Texas.

This paper identifies optimal combinations of nitrogen in the form of urea, fresh litter and composted litter for rice production. Traditional cost minimization techniques using data from experimental results conducted at three sites in Arkansas during 1991 have been employed. Comparisons between different scenarios indicate that the trade-off between the use of poultry litter and urea nitrogen depends on such factors as soil fertility, the yield response to litter application and the relative prices of nitrogen and litter. The use of litter is more economical at high target yields than at low target yields.

A discrete stochastic programming model is formulated to study the gains from diversification when farming operations are augmented with off-farm financial assets that are not highly correlated with returns from farming. We extend past research by considering the dynamics of accumulating these financial assets and the farm's leverage and tenure position. Results show that farmers' income level and stability can be improved by including nonfarm financial assets in their portfolios.

Factors influencing the adoption of Integrated Pest Management (IPM) techniques are studied using survey data from individual vegetable producers from Florida, Michigan, and Texas. Farmers who adopt IPM tend to be less risk averse and use more managerial time on farm activities than nonadopters. Adopters are also more likely to operate large, irrigated farms and use more family labor. Locational factors and the type of crop grown are also influential in IPM adoption. The analysis uses a logit framework and introduces adopter categories first conceptualized by rural sociologists.