THE ECONOMICS AND BUSINESS OF FOOD SYSTEMS, FOOD SAFETY, AND FOOD TRADE

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: REVISED
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 1006566
• Project No.: NC02557
• Project Start Date: May 15, 2015
• Project End Date: Sep 30, 2019

Project Director
Boys, KA.

Recipient Organization
NORTH CAROLINA STATE UNIV
(N/A)
RALEIGH,NC 27695

Performing Department
Agricultural and Resource Economics

Non Technical Summary
This research program explores the three interconnected areas concerning the benefits and constraints challenging local food systems, issues of food safety, and the international trade of food products.Local Food Systems: The potential economic development benefits available through local food systems are diverse and seemingly large. Small- and medium-sized agricultural producers are thought to benefit by an expanded demand for their products. In turn, those who supply production inputs (including labor), and other industries that support and complement the food system, also benefit from an increase in demand for their products and services. In distilling these benefits, two mechanisms through which these benefits may be generated and assessed emerge. The first is the concept of interfirm networks that are formed through agglomeration, firm clustering, and ultimately regional competitiveness. The second means of benefit generation is through backwards and forwards supply-chain linkages.Small farms are defined as those with annual gross sales less than $350,000 (Hoppe and MacDonald, 2013). These farms, which consumers generally perceive as being the source of products sold through "locally grown" markets (Adams and Salois, 2010), have numerous options of outlets through which they can sell their products. Direct-to-consumer channels such as sales through farmers' markets or roadside stands, direct-to-institution outlets in which farms directly supply schools, hospitals and other institutions, and intermediated outlets where farms supply restaurants, grocers, and regional distributors are primary sales channels for these farms. Total local food sales through direct-to-consumer and intermediated channels in the U.S. were estimated to be $4.8 billion in 2008 (Low and Vogel, 2011). The 2012 Census of Agriculture reported that, nationally, direct-to-consumer farm sales totaled $1.31 billion in 2011.Direct-to-consumer outlets are highly preferred by small and many medium sized farms (Low and Vogel, 2011). Several characteristics of these marketing channels make them appealing for small farms including their relative ease of entry, flexibility in the timing and volume of sale, and the relatively high selling prices which can be commanded through these channels. As such, many small and medium scale farms sell exclusively through these channels. Accessing these channels however, requires additional cost (especially time) and higher risk (of several varieties) than other marketing channels. The marketing alternatives, economic development impacts, and policy and regulatory environment which shape local food systems will be evaluated through Objective 1:Objective 1. To contribute to the understanding of the benefits and constraints facing U.S. food system, particularly as it is related to small-farm, and/or "locally grown" farm specialty-crops and related value-added products.Food Safety: The personal and economic costs of failures in our food safety system are staggering. The USDA Economic Research Service estimates that the 20% of U.S. foodborne illnesses for which a pathogen cause can be identified imposes a burden of at least $15.2 billion on U.S. consumers each year (USDA ERS, 2014). Under perfect liability, all victims would be compensated for all of their costs. But, as it is difficult to link illnesses to a specific food product, a legal environment of imperfect liability has been fostered in which the likelihood of full compensation to victims is greatly diminished. Widely cited research by Buzby et al. (2001, 2002) shows that damage awards are very small in comparison to the damages, and illustrates the extent of imperfect liability in this market.The cost to firms of proactively addressing food safety issues is also substantial and has been increasing with new federal policies (i.e. the Food Safety Modernization Act), and production, processing, and other technology improvements. As food safety improvements are largely a fixed-cost expense, implementing these practices and improved technologies are expected to be relatively costly for small firms. (Among constraints explored in Objective 1.) Further, due to improvements in food supply chain management and traceability practices, the point of origin of foodborne illness can be more precisely determined; this, in turn, increases the potential for injured parties to successfully seek compensation for their damages. These changes may provide incentives for food firms and others in the supply chain to improve their operations and produce safer and better quality foods thereby reducing the costs shared by economic sectors (employers, private health insurers and government). These issues will be explored through Objective 2:Objective 2. To identify and assess the impacts of food safety failures and preventative actions on food consumers, individual agribusinesses, and the food industry more broadly. International Trade: Literature exploring the specific mechanisms by which multilateral, regional, and bi-lateral agreements foster international trade is still in its relative infancy. For example, the issue of to what extent observed increases in trade results from increases in trade along the intensive margin (increased trade of existing goods) or extensive margin (wider set of products) is unclear and is likely to vary across agreements. In addition, increases in trade flows between two partner countries is generated at least in part by substituting away from current trading partners; as such, the impacts of agreements on nations which are not participating is also important. Similar questions can be raised about the market access impacts of the extensive and growing variety of standards, certifications, and labelling schemes (including those related to food safety) which may be adopted by individual firms. These issues will be explored through:Objective 3. To assess the manner and to what extent agreements, policies, and programs affect the international trade of food products.

Animal Health Component

0%

Research Effort Categories

Basic

(N/A)

Applied

100%

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
604	6299	3100	40%
712	5010	3010	30%
606	6120	3010	30%

Knowledge Area
712 - Protect Food from Contamination by Pathogenic Microorganisms, Parasites, and Naturally Occurring Toxins; 604 - Marketing and Distribution Practices; 606 - International Trade and Development;

Subject Of Investigation
6120 - International economy and sectors thereof; 6299 - Marketing, general/other; 5010 - Food;

Field Of Science
3010 - Economics; 3100 - Management;

Keywords

international trade

local food systems

specialty crops

food safety

standards

industrial organization

food

wto

sanitary and phytosanitary (sps)

Goals / Objectives
Objective 1. To contribute to the understanding of the benefits and constraints facing U.S. food system, particularly as it related to small-farm, and/or "locally grown" farm specialty-crops and related value-added products.This will be particularly accomplished through studies which:Objective 1a. Consideration of the benefits and challenges, and identify potential solutions to the challenges of small farm and/or local foods marketing; Objective 1b. Explore the economic development potential and impacts of local food systems;Objective 1c. Assess policies, regulations, and tools which affect the efficiency and capacity of the food system - particularly for specialty crops. (i.e. food system processing and transportation infrastructure programs, local foods procurement programs, food certifications)Objective 2. To identify and assess the impacts of food safety failures and preventative actions on food consumers, individual agribusinesses, and the food industry more broadly. The following topics will be included in addressing this objective: Objective 2a. Assess the cost(s) of cases of foodborne illness on agribusinessesObjective 2b. Identify and assess the net benefits and costs to farmers from adopting the proposed food safety strategies. (I.e. Strategies to reduce the transmission of norovirus in school settings, strategies to limit the persistence of specific soil pathogens in vegetable production systems.)Objective 2c. Evaluate the industrial organization of the market for private and public standards, certifications and labelling schemesObjective 3. To assess the manner and to what extent agreements, policies, and programs affect the international trade of food products. In addressing this objective, the following issues will be specifically considered:Objective 3a. Explore the extent and mechanisms through which trade policies (multilateral agreements, domestic policy etc.) are successful at facilitating international trade;Objective 3b. Assess the extent to which, and mechanisms through which, private and public standards, certifications, and labeling schemes facilitate or impede international trade.

Project Methods
A variety of research approaches will be used to accomplish these research objectives. Several of the firm and farm level studies (Obj. 1, 2) will require primary data collection from business owners, buyers, and other industry stakeholders. This data will typically be gathered using a two-stage process. Qualitative research methods (i.e. in-depth interviews, focus groups), will be used to get a general understanding of the issue in question. Information collected through this first research phase will be used as an input into qualitative research instruments (i.e. surveys) which will be used to gather information from a broader number of participants.Studies which consider the impact of policies, regulations, standards, certifications and labelling schemes (Obj. 1c, 2c, 3b), will make use of databases specifically developed for the project in question. For example, a study will be conducted which explores the industrial organization of the food safety certification system (Objective 2c). The basis for this this work will be a unique dataset which will be developed in conjunction with collaborators and which will inventory information about certification bodies that provide accreditation to food safety standards around the world. Over 150 national and international firms which certify to one or more food safety standards have been preliminary identified. The dataset will include the characteristics of each of these organizations, including their annual revenue, scope and location(s) of their business activities, and their legal organizational structure. In all cases, data will be assessed using appropriate analytical techniques to address specific research questions.

Progress 10/01/18 to 09/30/19

Outputs
Target Audience:Target audiences include: • Agri-food system supply chain participants including farms, agri-food firm food processors, and other industry stakeholders • Individuals and organizations that support these agribusinesses including University cooperative extension and NGOs • Government officials, policymakers, and academics. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?This project has provided training and professional development opportunities. Several graduate students have been involved with contributing to research related tothis project during the reporting period. How have the results been disseminated to communities of interest?During the reporting period, results derived from this project have been disseminated through presentations at the 2019 Annual meeting of the Agricultural and Applied Economics Association (AAEA) What do you plan to do during the next reporting period to accomplish the goals?Work on the projects highlighted above will continue during the next reporting period.

Impacts
What was accomplished under these goals? This program generates impacts in three primary areas: Objective 1 - Economics of Local and Regional Food Systems: Through both presentations and publications, this program has contributed to the public dialogue concerning the extent to which, and the economic mechanisms through which, localized and/or regionalized food systems can contribute to regional economic development. This program supports small and medium scale specialty crop (produce) farmers, and those agribusinesses who demand these products, through marketing research and education initiatives aimed at increasing the profitability and sustainability of these businesses. Among on-going work related to this objective is the following projects: a. A Supply Chain Approach to Finding Win-Win Sustainable Solutions for Edible but Unharvested Produce. This research seeks to quantify the amount of fruits and vegetables abandoned by farms (food loss) and to explore alternatives of products can be productively used (and possibly generate additional revenue for farm operations). • This research is partially funded by the USDA Southern Sustainable Agriculture Research & Education b. Connecting NC Agriculture and Healthcare: A Nutrition Education Fruit and Vegetable Prescription Program to Support Healthier Diets and Local Farmers. • This research is funded by the UNC General Administration c. Product Liability and Product Contamination Insurance: Improving Food Safety, Ensuring Market Access, and Boosting Profitability for Specialty Crops Producers. • A grant on this topic was funded by the NIFA AFRI Markets and Trade grant competition during the reporting period. This grant is in early being set-up and work commencing. Objective 2 - Food Safety Economics: Work in this area develops and extend information regarding food safety economics both for individual businesses, and more broadly for the agri-food industry and its subsectors. These efforts seek to assist agricultural producers and other agribusiness in developing and/or implementing improved food safety practices that address regulatory and/or market requirements. A key activity of this program are collaborations with biological scientists (especially food scientists, veterinarians) to integrate economic and business management considerations into multidisciplinary initiatives that develop new technologies to improve food safety in specialty crop and animal production systems. Specific projects related to this goal include: a. Firm Penalties for Foodborne Illness Events: Revisiting Jury Decisions in Personal Injury Lawsuits Medical costs, productivity losses, and the costs of premature deaths due to identified and unspecified cases of foodborne illness have recently been estimated to be $51 billion annually (Scharff, 2012). Under perfect liability, all victims would be compensated for all of their costs. But, it is very difficult to link illnesses to a specific food product in food safety cases, resulting in legal environment of imperfect liability in which the likelihood of full compensation to victims is greatly diminished. Widely cited research by Buzby et al. (2001, 2002) showing that damage awards are very small in comparison to the damages illustrates the extent of imperfect liability. This research updates and extend the analysis presented in Buzby (2002). Work on this project has continued during the current period. b. Persistence of Salmonella Enterica and Listeria Monocytogenes in Agricultural Soils: Focus on Bio-Mitigation Strategies to Expedite Replanting of Leafy Greens and Melons • This research is partially funded by a planning grant from the USDA-NIFA • Data collection and analysis for this project is underway. Objective 3 - Impact of Agreements, Policies, and Programs Affect the International Trade of Agri-food Products: Through this vein of research characterizes and quantifies the mechanisms through which policies and programs impact the international trade of agri-food products. This work particularly contributes to the dialogue concerning the intended and unintended consequences of non-tariff barriers to trade. Findings from this vein of research offer new insights into international trade patterns, factors which facilitate and constrain trade, and how the impact of these factors differ due to the income status and other characteristics of trading partners and other affected countries. Among on-going work related to this objective is the following project: The Effects of the GATT/WTO on the International Trade of Agri-Food Products The failed progress of the Doha Round of trade negotiations, and continued success and interest in establishing preferential trade agreements, have caused many to question the continued relevance of the GATT/WTO. This article offers a holistic and nuanced examination of magnitude and mechanisms through which this organization has potentially facilitated trade. • Work on this and related topics continued during this period.

Publications

• Type: Journal Articles Status: Published Year Published: 2019 Citation: K.A. Boys and A.M Fraser. 2019. Linking Small Fruit and Vegetable Farmers with Institutional Foodservice Operations: Marketing Challenges and Considerations. Renewable Agriculture and Foodsystems.34(3):226-238. https://doi.org/10.1017/S1742170518000030
• Type: Conference Papers and Presentations Status: Published Year Published: 2019 Citation: Fraser, A., K.A. Boys. 2019. Perceived Benefits and Barriers to Implementation of a Traceability System in School Foodservice Establishments in North Carolina, South Carolina, and Georgia. Presented at the 2019 AAEA Annual Meeting of the International Association for Food Protection, Louisville, KY, July 21-24, 2019.
• Type: Conference Papers and Presentations Status: Published Year Published: 2019 Citation: Anders, S. and K.A. Boys. 2019. A Review of FDA Import Refusals  US Seafood Trade in the Face of Food Safety Threats. Track session on The Economics of Food Safety along supply chains. Presented at the 2019 AAEA Annual Meeting, Atlanta, GA, July 21-23, 2019.

Progress 10/01/17 to 09/30/18

Outputs
Target Audience:Target audiences include: Agri-food system supply chain participants including farms, agri-food firm food processors, and other industry stakeholders Individuals and organizations that support these agribusinesses including University cooperative extension and NGOs Government officials, policymakers, and academics. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?This project has provided training and professional development opportunities. Three graduate students (one master's, two Ph.D) have been involved with contributing to research conducted under this project. How have the results been disseminated to communities of interest?During the reporting period, results derived from this project have been disseminated through presentations at the following conferences: The 2018Annual Conference of the Agricultural and Applied Economics Association The Annual Meeting of the Rural Sociological Soceity The Allied Social Science Association What do you plan to do during the next reporting period to accomplish the goals?Work on the projects highlighted above will continue during the next reporting period.

Impacts
What was accomplished under these goals? This program generates impacts in three primary areas: Objective 1 -Economics of Local and Regional Food Systems: Through both presentations and publications, this program has contributed to the public dialogue concerning the extent to which, and the economic mechanisms through which, localized and/or regionalized food systems can contribute to regional economic development. This program supports small and medium scale specialty crop (produce) farmers, and those agribusinesses who demand these products, through marketing research and education initiatives aimed at increasing the profitability and sustainability of these businesses. Among on-going work related to this objective is the following projects: a. A Supply Chain Approach to Finding Win-Win Sustainable Solutions for Edible but Unharvested Produce. This research seeks to quantify the amount of fruits and vegetables abandoned by farms (food loss) and to explore alternatives of products can be productively used (and possibly generate additional revenue for farm operations). This research is partially funded by the USDA Southern Sustainable Agriculture Research & Education b. Connecting NC Agriculture and Healthcare: A Nutrition Education Fruit and Vegetable Prescription Program to Support Healthier Diets and Local Farmers. This research is funded by the UNC General Administration c. Product Liability and Product Contamination Insurance: Improving Food Safety, Ensuring Market Access, and Boosting Profitability for Specialty Crops Producers. A grant on this topic was submitted to the NIFA AFRI Markets and Trade grant competition. Objective 2 - Food Safety Economics:Work in this area develops and extend information regarding food safety economics both for individual businesses, and more broadly for the agri-food industry and its subsectors. These efforts seek to assist agricultural producers and other agribusiness in developing and/or implementing improved food safety practices that address regulatory and/or market requirements. A key activity of this program are collaborations with biological scientists (especially food scientists, veterinarians) to integrate economic and business management considerations into multidisciplinary initiatives that develop new technologies to improve food safety in specialty crop and animal production systems. Other efforts in this area educate the agricultural community concerning food safety risk mitigation through private insurance markets such as product liability and product contamination insurance. a. Firm Penalties for Foodborne Illness Events: Revisiting Jury Decisions in Personal Injury Lawsuits Medical costs, productivity losses, and the costs of premature deaths due to identified and unspecified cases of foodborne illness have recently been estimated to be $51 billion annually (Scharff, 2012). Under perfect liability, all victims would be compensated for all of their costs. But, it is very difficult to link illnesses to a specific food product in food safety cases, resulting in legal environment of imperfect liability in which the likelihood of full compensation to victims is greatly diminished. Widely cited research by Buzby et al. (2001, 2002) showing that damage awards are very small in comparison to the damages illustrates the extent of imperfect liability. This research updates and extend the analysis presented in Buzby (2002). After updating the original database of jury verdicts, we follow Buzby et al. (2002) in examining the effects of the defendant, the plaintiff, and case characteristics on jury verdicts of cases that were: (1) won and (2) the plaintiff received an award. Analysis on this project has continued during the current period. b. Persistence of Salmonella Enterica and Listeria Monocytogenes in Agricultural Soils: Focus on Bio-Mitigation Strategies to Expedite Replanting of Leafy Greens and Melons This research is partially funded by a planning grant from the USDA-NIFA Data collection for this project is underway. Objective 3 - Impact of Agreements, Policies, and Programs Affect the International Trade of Agri-food Products:Through this vein of research characterizes and quantifies the mechanisms through which policies and programs impact the international trade of agri-food products. This work particularly contributes to the dialogue concerning the intended and unintended consequences (intended and unintended) of non-tariff barriers to trade. Findings from this vein of research offer new insights into international trade patterns, factors which facilitate and constrain trade, and how the impact of these factors differ due to the income status and other characteristics of trading partners and other affected countries. Among on-going work related to this objective is the following project: The Effects of the GATT/WTO on the International Trade of Agri-Food Products The failed progress of the Doha Round of trade negotiations, and continued success and interest in establishing preferential trade agreements, have caused many to question the continued relevance of the GATT/WTO. This article offers a holistic and nuanced examination of magnitude and mechanisms through which this organization has potentially facilitated trade. Work on this and related topics continued during this period.

Publications

• Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: Lee, D., and K.A. Boys. 2018. Market Incentives for Safe Foods: An Examination of the Effect of Food Recalls on Firms Stock Prices. Poster presented to the 2018 AAEA Annual Meeting, Washington, DC, August 5-7, 2018.
• Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: K.A. Boys. 2018. Food Fraud and International Trade. Presentation to the 2018 AAEA Annual Meeting, Washington, DC, August 5-7, 2018.
• Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: K.A. Boys, K. DuBreuil*, and G. Groover. 2017. AgCache: Fostering Rural Tourism through an Agriculture Focused Geocache Program. Journal of Sustainable Tourism. 25(10):1-20.
• Type: Journal Articles Status: Submitted Year Published: 2018 Citation: A. Sharma, K.A. Boys, and J. Grant. 2019. The Bright Side of the Generalized System of (Trade) Preferences: Lessons from Agricultural Trade.
• Type: Journal Articles Status: Submitted Year Published: 2018 Citation: S. Haque, K. Foster, R. Keeney, K.A. Boys, and B.N. Gopalakrishnan. 2019. Output and Bias Effects of U.S. Direct Payments.
• Type: Journal Articles Status: Submitted Year Published: 2018 Citation: M. Barrowclough, K.A. Boys, and C. Carpio. Benefits, Challenges, and Tradeoffs: An Evaluation of Buyer and Contract Characteristics Valued by Small Farm Suppliers to Wholesale Marketing Channels
• Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: Grant, G. and K.A. Boys. 2018. The Road Not Taken: Agricultural Trade without the GATT/WTO. ASSA Annual Meeting, January 5-7, 2018.

Progress 10/01/16 to 09/30/17

Outputs
Target Audience:Target audiences include: • Agri-food system supply chain participants including farms, agri-food firm food processors, and other industrystakeholders • Individuals and organizations that support these agribusinesses including University cooperative extension and NGOs • Government officials, policymakers, and academics. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?This project has provided training and professional development opportunities. Three graduate students (one master's, two Ph.D) have been involved with contributing to research conducted under this project. How have the results been disseminated to communities of interest?During the reporting period, results derived from this project have been disseminated through presentation at the 2017 Annual Conference of the Agricultural and Applied Economics Association. What do you plan to do during the next reporting period to accomplish the goals?Work on the projects highlighted above will continue during the next reporting period. In addition, the following activities will be undertaken: Commence work on a recently funded project: "Connecting NC Agriculture and Healthcare: A Nutrition Education Fruit and Vegetable Prescription Program to Support Healthier Diets and Local Farmers." Write and submit grant proposal: "Product Liability and Product Contamination Insurance: Improving Food Safety, Ensuring Market Access, and Boosting Profitability for Specialty Crops Producers"

Impacts
What was accomplished under these goals? This program generates impacts in three primary areas: Economics of Local and Regional Food Systems Through both presentations and publications, this program has contributed to the public dialogue concerning the extent to which, and the economic mechanisms through which, localized and/or regionalized food systems can contribute to regional economic development. This program supports small and medium scale specialty crop (produce) farmers, and those agribusinesses who demand these products, through marketing research and education initiatives aimed at increasing the profitability and sustainability of these businesses. Food Safety Economics Work in this area develops and extend information regarding food safety economics both for individual businesses, and more broadly for the agri-food industry and its subsectors. These efforts seek to assist agricultural producers and other agribusiness in developing and/or implementing improved food safety practices that address regulatory and/or market requirements. A key activity of this program are collaborations with biological scientists (especially food scientists, veterinarians) to integrate economic and business management considerations into multidisciplinary initiatives that develop new technologies to improve food safety in specialty crop and animal production systems. Other efforts in this area educate the agricultural community concerning food safety risk mitigation through private insurance markets such as product liability and product contamination insurance. Impact of Agreements, Policies, and Programs Affect the International Trade of Agri-food Products Through this vein of research characterizes and quantifies the mechanisms through which policies and programs impact the international trade of agri-food products. This work particularly contributes to the dialogue concerning the intended and unintended consequences (intended and unintended) of non-tariff barriers to trade. Findings from this vein of research offer new insights into international trade patterns, factors which facilitate and constrain trade, and how the impact of these factors differ due to the income status and other characteristics of trading partners and other affected countries. Objective 1.To contribute to the understanding of the benefits and constraints facing U.S. food system, particularly as it related to small-farm, and/or "locally grown" farm specialty-crops and related value-added products. Among on-going work related to this objective is the following projects: a. An Evaluation of Firm and Contract Characteristics Valued by Supply Chain Partners in Specialty Crops Marketing Channels This research examines the relative importance of performance measures and business characteristics to the willingness of firms to enter, and the relative success of, produce supply chain relationships. At this initial stage, research will focus on relationships between farmers and middlemen buyers in the U.S. produce markets. This research is partially funded by the USDA AMS FSMIP program. Key results of this study were presented at that 2015 Annual Meeting of the Agricultural and Applied Economics Association (previous reporting period). A manuscript based on this research is currently in preparation. b. A Supply Chain Approach to Finding Win-Win Sustainable Solutions for Edible but Unharvested Produce. This research seeks to quantify the amount of fruits and vegetables abandoned by farms (food loss) and to explore alternatives of products can be productively used (and possibly generate additional revenue for farm operations). This research is partially funded by the USDA Southern Sustainable Agriculture Research & Education Objective 2. To identify and assess the impacts of food safety failures and preventative actions on food consumers, individual agribusinesses, and the food industry more broadly. Among on-going work related to this objective is the following projects: a. Firm Penalties for Foodborne Illness Events: Revisiting Jury Decisions in Personal Injury Lawsuits Medical costs, productivity losses, and the costs of premature deaths due to identified and unspecified cases of foodborne illness have recently been estimated to be $51 billion annually (Scharff, 2012). Under perfect liability, all victims would be compensated for all of their costs. But, it is very difficult to link illnesses to a specific food product in food safety cases, resulting in legal environment of imperfect liability in which the likelihood of full compensation to victims is greatly diminished. Widely cited research by Buzby et al. (2001, 2002) showing that damage awards are very small in comparison to the damages illustrates the extent of imperfect liability. This research updates and extend the analysis presented in Buzby (2002). After updating the original database of jury verdicts, we follow Buzby et al. (2002) in examining the effects of the defendant, the plaintiff, and case characteristics on jury verdicts of cases that were: (1) won and (2) the plaintiff received an award. This research is partially funded by a co-operative agreement with the USDA-Economic Research Service. Preliminary results have been completed. Additional analysis (requiring additional external data) is underway. b. Persistence of Salmonella Enterica and Listeria Monocytogenes in Agricultural Soils: Focus on Bio-Mitigation Strategies to Expedite Replanting of Leafy Greens and Melons This research is partially funded by a planning grant from the USDA-NIFA Initial work on this project is underway. Objective 3. To assess the manner and to what extent agreements, policies, and programs affect the international trade of food products. Among on-going work related to this objective is the following project: The Effects of the GATT/WTO on the International Trade of Agri-Food Products The failed progress of the Doha Round of trade negotiations, and continued success and interest in establishing preferential trade agreements, have caused many to question the continued relevance of the GATT/WTO. This article offers a holistic and nuanced examination of magnitude and mechanisms through which this organization has potentially facilitated trade.

Publications

• Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: J.A. Caswell, K.A. Boys, A.A. Danilow, and K.E. Lynch. 2017. Food Certification Industry Capacity and Ability to Comply with FSMA Final Rule on Accredited Third-Party Certification. Presentation to the 2017 AAEA Annual Meeting, Chicago, July 30-Aug. 1 2017
• Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: K.A. Boys. 2017. Public Health Consequences of Management Failures: Detection, Incidence, and Mitigation of Fraud in Food Supply Chains. Presentation to the 2017 AAEA Annual Meeting, Chicago, July 30-August 1, 2017.
• Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: Rizwan,N. and K.A. Boys. 2017. Are Remittances Infectious? Evidence of Remittances Causing Dutch Disease. Presentation to the 2017 AAEA Annual Meeting, Chicago, July 30-August 1, 2017.
• Type: Journal Articles Status: Published Year Published: 2017 Citation: A. Wilcock and K.A. Boys. 2017. Improving Quality Management: ISO 9001 Benefits for Agrifood Firms. Journal of Agribusiness in Developing and Emerging Economies. 7(1): 2-20. https://doi.org/10.1108/JADEE-12-2014-0046
• Type: Book Chapters Status: Published Year Published: 2016 Citation: K.A. Boys and S. Blank. 2016. The Evolution of Local Foods: A Retrospective and Prospective Consideration, Chapter 2 in M. Lang and J. Stanton (eds.) The Meaning of Local Foods: A Food Marketing Management Perspective, The Institute of Food Product Marketing, Philadelphia, PA.

Progress 10/01/15 to 09/30/16

Outputs
Target Audience:Target audiences include: Agri-food system supply chain participants including farms, agri-food firm food processors,and other industry stakeholders Individuals and organizations that support these agribusinesses including University cooperative extension and NGOs Government officials, policymakers, and academics. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?This project has provided training and professional development opportunities. Two graduate students (one master's, one Ph.D) have been involved with contributing to research conducted under objectives 1 and 2. How have the results been disseminated to communities of interest?During the reporting period, results derived from this project have been disseminated through presentation at several conferences including: Presentation at the 2015 Agricultural & Applied Economics Association and Western Agricultural Economics Association Annual Meeting, San Francisco, CA Presentation to the 2015 Annual conference of the Food Distribution Research Society, Philadelphia, PA Presentation at the 2015 Annual Meeting of the Society for Risk Analysis, Arlington, VA Presentation to the 2016 AAEA Annual Meeting, Boston, MA What do you plan to do during the next reporting period to accomplish the goals?Work on the projects highlighted above will continue during the next reporting period.

Impacts
What was accomplished under these goals? This project generates impacts in three primary areas: Economics of Local and Regional Food Systems Through both presentations and publications, this program has contributed to the public dialogue concerning the extent to which, and the economic mechanisms through which, localized and/or regionalized food systems can contribute to regional economic development. This program supports small and medium scale specialty crop (produce) farmers, and those agribusinesses who demand these products, through marketing research and education initiatives aimed at increasing the profitability and sustainability of these businesses. Food Safety Economics Work in this area develops and extend information regarding food safety economics both for individual businesses, and more broadly for the agri-food industry and its subsectors. These efforts seek to assist agricultural producers and other agribusiness in developing and/or implementing improved food safety practices that address regulatory and/or market requirements. A key activity of this program are collaborations with biological scientists (especially food scientists, veterinarians) to integrate economic and business management considerations into multidisciplinary initiatives that develop new technologies to improve food safety in specialty crop and animal production systems. Other efforts in this area educate the agricultural community concerning food safety risk mitigation through private insurance markets such as product liability and product contamination insurance. Impact of Agreements, Policies, and Programs Affect the International Trade of Agri-food Products Through this vein of research characterizes and quantifies the mechanisms through which policies and programs impact the international trade of agri-food products. This work particularly contributes to the dialogue concerning the intended and unintended consequences (intended and unintended) of non-tariff barriers to trade. Findings from this vein of research offer new insights into international trade patterns, factors which facilitate and constrain trade, and how the impact of these factors differ due to the income status and other characteristics of trading partners and other affected countries. Objective 1.To contribute to the understanding of the benefits and constraints facing U.S. food system, particularly as it related to small-farm, and/or "locally grown" farm specialty-crops and related value-added products. Among on-going work related to this objective is the following project: An Evaluation of Firm and Contract Characteristics Valued by Supply Chain Partners in Specialty Crops Marketing Channels This research examines the relative importance of performance measures and business characteristics to the willingness of firms to enter, and the relative success of, produce supply chain relationships. At this initial stage, research will focus on relationships between farmers and middlemen buyers in the U.S. produce markets. This research is partially funded by the USDA AMS FSMIP program. A presentation of research findings from Phase I of this project was presented at the 2015 Annual Meeting of the Agricultural and Applied Economics Association. Objective 2. To identify and assess the impacts of food safety failures and preventative actions on food consumers, individual agribusinesses, and the food industry more broadly. Among on-going work related to this objective is the following project: Firm Penalties for Foodborne Illness Events: Revisiting Jury Decisions in Personal Injury Lawsuits Medical costs, productivity losses, and the costs of premature deaths due to identified and unspecified cases of foodborne illness have recently been estimated to be $51 billion annually (Scharff, 2012). Under perfect liability, all victims would be compensated for all of their costs. But, it is very difficult to link illnesses to a specific food product in food safety cases, resulting in legal environment of imperfect liability in which the likelihood of full compensation to victims is greatly diminished. Widely cited research by Buzby et al. (2001, 2002) showing that damage awards are very small in comparison to the damages illustrates the extent of imperfect liability. This research updates and extend the analysis presented in Buzby (2002). After updating the original database of jury verdicts, we follow Buzby et al. (2002) in examining the effects of the defendant, the plaintiff, and case characteristics on jury verdicts of cases that were: (1) won and (2) the plaintiff received an award. This research is partially funded by a co-operative agreement with the USDA-Economic Research Service. A presentation of research findings was presented at the 2015 Annual Meeting of the Agricultural and Applied Economics Association. Objective 3. To assess the manner and to what extent agreements, policies, and programs affect the international trade of food products. Among on-going work related to this objective is the following project: The Effects of the GATT/WTO on the International Trade of Agri-Food Products The failed progress of the Doha Round of trade negotiations, and continued success and interest in establishing preferential trade agreements, have caused many to question the continued relevance of the GATT/WTO. This article offers a holistic and nuanced examination of magnitude and mechanisms through which this organization has potentially facilitated trade. A presentation of research findings was presented at the 2015 Annual Meeting of the Agricultural and Applied Economics Association.

Publications

• Type: Conference Papers and Presentations Status: Published Year Published: 2015 Citation: Boys, K.A. , O. Mahndu*, and M. Ollinger. Examining Jury Decisions and Awards in Foodborne Illness Lawsuits. Presentation to the 2015 Annual conference of the Food Distribution Research Society, Philadelphia, PA, October 9-13.
• Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Hughes, D.W. , D.B. Willis, and K.A. Boys. Evaluating the determinants of self-employed income across regional economies: An initial assessment. Presentation at the Western Regional Science Association, 55th Annual Meeting, Big Island, Hawaii, February 14-17, 2016.
• Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Kandilov, I.T. , and K.A. Boys. Strategic Acquisitions: Determinants of Chinese Outward Direct Investment in the Agrifood Industry. Presentation to the 2016 AAEA Annual Meeting, Boston, MA, July 31-August 2.
• Type: Journal Articles Status: Published Year Published: 2015 Citation: D. Hughes and K.A. Boys. 2015. What We Know and Dont Know About the Economic Development Benefits of Local Food Systems. Choices. 30(1): 1-6.
• Type: Journal Articles Status: Published Year Published: 2015 Citation: K.A. Boys, M. Ollinger, and L. Geyer. 2015. The Food Safety Modernization Act: Implications for U.S. Small Scale Farms. American Journal of Law and Medicine. 41(2-3):395-405.

Progress 05/15/15 to 09/30/15

Outputs
Target Audience:Economists, government officials, agribusiness owners and managers, and other food industry stakeholders. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?Results from one study have been presented at a conference which is well-attended by academic researchers in this field.Work on other projects is still underway and, as such, has not yet been disseminated to communities of interest. What do you plan to do during the next reporting period to accomplish the goals?Research projects have been proposed (and proposals are underway) related to this project's objectives. The success (or not) of these proposals will shape the specific portfolio of projects which will be undertaken during the course of the next reporting period.

Impacts
What was accomplished under these goals? As this project was only recently iniatiated, there has been little time to make progress on this project's goals. It is anticipated that by the next reporting period there will be good progress towards achieving these goals.

Publications

• Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Boys, K , J. Caswell, S. Hoffmann and S. Colarusso. The Business of Safe Food: An Assessment of the Global Food Safety Certification Industry. Presentation at the 2015 Agricultural & Applied Economics Association and Western Agricultural Economics Association Annual Meeting, San Francisco, CA, July 26-28, 2015.