In 1952, when T. W. Schultz declared that land had lost its place as a unique factor of production, he was certainly right about U.S. agriculture. For the almost four decades since Schultz's prophetic analysis, output of U.S. agriculture has increased steadily while the exploited land base has slightly decreased. Land has not proved a constraint to production. Many varieties of technical change have kept the marginal product of land from falling, despite its increasingly intensive use.

High rates of commercial fertilizer and animal manure application on cropland have been identified as an important cause of ground and surface water degradation in many areas of the country. Suggested remedies are often based on the idea that fertilization levels are economically irrational for the individual farmer. The received wisdom is that farmers could simultaneously improve their own economic well being and reduce the degradation of the ground and surface waters by fertilizing only to meet crop nutrient needs. Rather than assuming that farmers act irrationally, this study examines the fertilization problem on a mixed crop-livestock farm from the perspective of a risk-averse farmer coping with two key uncertainties: crop yield response to nitrogen applications and the nitrogen content of manure. The effects on fertilization decisions by such a farmer of various policy prescriptions for reducing surface and ground water pollution are examined. The results underscore the importance of understanding producer behavior for the design of economically sound policy.

A model is developed to determine the minimum weed population where a decision to apply a postemergence herbicide would be profitable. The economic threshold model accounts for changing economic conditions, the effect of weeds on crop quality, the effect of multiple weed species on yield and quality, and uncertainty about spraying period length. The model is uncomplicated enough for microcomputer or programmable calculator applications. An example of weed threshold calculations for round white potatoes is given.

The robustness of dynamic dual model results across functional forms is examined for the U.S. dairy industry. Modified generalized Leontief (GL) and normalized quadratic (NQ) functional forms are compared by examining their consistency with properties of the competitive firm, estimated rates of adjustment for cows and labor, tests of technological change, and elasticities. Homogeneity and symmetry are maintained in both models. Convexity is not rejected by the GL and is not seriously violated by the NQ. Absence of technological change is rejected by both models, but quality indexes on labor and cows fully embody technological change occurring within labor and cows in the NQ but not in the GL. Policy-relevant elasticities differ greatly between the functional forms. Dynamic dual models are found to be non-robust in important ways to choice of functional form.

The neoclassical paradigm has proven to be a rich approach for evaluating a variety of issues for individual and social decision-making. However, an increasing body of literature suggests that actual behavior systematically violates the neoclassical utility model. This paper reviews a number of alternative models for decision-making. Results from the literature show several examples of apparently “irrational” behavior that can be explained in terms of these alternative motivations. The paper also extends the received literature by examining in some detail the implications of one such model which is based on the psychological feeling of ambivalence. The paper demonstrates that ambivalence has the potential for explaining the appearance of intransitive choices, the use of rules of thumb in decision-making and the large discrepancies between stated willingness-to-pay and willingness-to-accept, all of which have been observed in various settings. There are potentially great rewards from innovative research that expands the neoclassical paradigm to incorporate additional motivational factors in decision-making.

Ice-nucleating bacteria, which are known to occur naturally on many crops and have been associated with frost damage, may be subject to control with genetically engineered bacteria, dubbed “ice-minus” bacteria. Ice-minus technology is designed to depress the critical temperature at which frost damage begins by displacing the natural population of ice-nucleating organisms. A trial product has been tested in the field with strawberries. Although tests with bacteriacidal compounds have suggested other mechanisms for controlling the critical temperature in deciduous fruit crops, ice-minus may prove to be effective. This analysis examines the possibility of ice-minus being adopted by New York tree-fruit growers and the likelihood of it causing a major economic impact on the state's fruit industry. Based on the climatology, phenology of fruit trees, and the record of actual frost damage in New York, the need for ice-minus is apparently not great enough to conclude that its adoption would cause a significant impact on New York fruit production.

This paper examines the problem of transforming information on fresh fruit and vegetable Arrivals to U.S. Metropolitan Statistical Areas into a distribution of products to larger geographical regions. Three methods for the regional distribution of Florida-grown produce are compared. A new method, which takes into account regional population sizes in the allocation of an area's produce to the region, is shown to produce allocations similar to those obtained through trucker surveys. Finally, the new approach is applied to produce from other areas, and allocations to regions compared to that obtained using the Arrivals data only.

A survey of household decision-makers and an analysis of their garbage was used to suggest factors affecting the weight of household contributions to municipal solid waste. Iterative regression was used to build a model from the data that is hypothesized to explain garbage weight. Food expenditure, environmental attitude, consumption of soft drinks in plastic bottles, and cats in the household were significant for all households. Self-sufficiency and energy-conscious behavioral scales also affected the subgroup with female householders having an educational level of high school graduation or less.

Point-of-use/point-of-entry treatment can provide an affordable means for rural residents on private wells to remedy groundwater contamination. Cooperation among homeowners was hypothesized to be a means of further reducing treatment costs due to quantity discounts and avoidance of dealer mark-ups. Data obtained through a mail survey of water treatment firms was used to test this hypothesis. Individual and group purchase, installation and maintenance costs and manufacturer and dealer costs were compared using analysis of variance. Results indicate a cooperative treatment approach may provide benefits due to quantity discounts but little potential exists for savings via direct manufacturer purchase.

The model of production decision making for the expected utility maximizing firm under output price uncertainty is applied to a panel Pennsylvania dairy operators. The model generalized duality implemented in this paper has the advantage of generating a system of supply and variable factor demand functions that consistently account for the presence of output price risk. The application to Pennsylvania dairy operators indicates that output price risk measured by the second and third moments of individual operators’ historical output price series is not an important factor in production decision making. In addition to not maximizing expected utility, these operators are not expected profit maximizers.

Women authors fare poorly at the hands of referees in some economics journals, especially when the review process is not blind. Using data on the 155 manuscripts submitted to the NJARE for publication during the period 1984–88, we found no evidence of differential referee acceptance rates for manuscripts with female and male lead authors.

To investigate the poor participation rate of cranberry growers in the multiple-peril crop insurance program, a sample of 15 Massachusetts growers was interviewed. According to their risk preferences, a much greater proportion of growers should have insured, than actually did. A possible solution is to match the distribution used by the insurer closer to that believed by the grower. Adjusting each grower's historical yield series for trend brought the historical and subjective mean yields much closer. However, an aggregate test found the effect of adjustment to be insignificant, implying that the avenue for increased participation lies elsewhere.

The welfare costs of deficiency payments for an exported commodity may, under certain conditions, outweigh the gains from trade. The potential welfare impacts of stabilization programs in the hog sector in Quebec are estimated, based on a partial equilibrium framework, and elasticity estimates drawn from other sources. The results indicate that the loss in surplus in Quebec as a result of deficiency payments is very modest at approximately $8.5 million or 1.7% of the value of production. Meanwhile, the net gains from trade remain on the order of $14 million.

Contingent valuation is used to measure the benefits of a proposed public program to control black flies. Respondents’ reported values are analyzed from three perspectives: data outliers, consistency between respondents’ reported values and their perceptions of black flies, and the temporal reliability of the values expressed by respondents. The results suggest that the estimated contingent values are plausible even though a majority of respondents expressed a value of zero dollars for the black fly control program.