Source: UNIV OF IDAHO submitted to
ECONOMIC IMPACTS OF PLANT DISEASES, DROUGHT, ENVIRONMENTAL AND OTHER EXTERNAL FACTORS IN AGRICULTURAL PRODUCTION
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0207414
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Jul 1, 2006
Project End Date
Jun 30, 2012
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIV OF IDAHO
875 PERIMETER DRIVE
MOSCOW,ID 83844-9803
Performing Department
Agri Economics & Rural Sociol
Non Technical Summary
U.S. Agriculture is impacted by such external factors as trade legislation, environmental regulations, weather conditions (drought, floods, freezes, etc.), diseases (wind borne, seed borne, and insect borne) and market structures in sectors or businesses which purchase agricultural products as inputs. Idaho's economy is still largely resource based and therefore the economic health of the state depends in no small measure on the economic health of Idaho agriculture. Economic analysis of impacts on agriculture from changes in these myriad factors can improve society's understanding of how changes in public policies will affect the agricultural sector. Such analysis will also aid in the design of better public policies, since policy makers will possess better information on the outcomes of various proposed policies. On the other side of the policy process, farmers and agribusiness must be aware of possible policy changes and their impacts on their businesses.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
2121310301010%
2122010301010%
6011310301010%
6011543301010%
6011550301010%
6012010301010%
6051599209010%
6091310301010%
6091599209010%
6101599209010%
Goals / Objectives
The overall objective of this project is to examine factors impacting Idaho and Pacific Northwest agriculture through the developing of economic models of production systems. These models will be used to analyze the impacts of changes in external factors affecting the agricultural sector. Several specific external factors to be considered are: 1.changing consumer attitudes toward agricultural products and externalities 2.state and federal environmental regulations 3.diseases, pests, and other pathogens and their impacts on farm income 4.new varieties of crops aimed at niche markets or to counter specific environmental/disease conditions. 5. model validity, level of detail, and simplification Crops/products to be analyzed will include, but not be limited to: 1. potatoes 2. barley 3. wheat 4. sugar beats 5. dairy
Project Methods
Environmental regulations, government commodity policies, incidence of diseases and other pest problems and other external factors affect production patterns, resource allocations, prices received and paid, and net farm income. The effects of such policies will be measured quantitatively and the consequences will be examined using a variety of empirical modeling techniques. Theoretical and empirical models of agriculture and related sectors will be developed analyzed, and tested. Careful attention will be paid to model construction and validity, in order to achieve an accurate representation of agricultural production and resource use. External factors and government policies will be incorporated into behavioral and reduced-form models of agricultural production, price formation, and marketing sectors. These models will allow the measurement of the impact of the external factors on resource allocation, the size of agriculture, and price and income levels. Data will be obtained from primary and secondary sources such as field trials carried out by UI faculty in the Plant, Soil and Entomological Sciences department, and federal and state agency publications. A variety of structural econometric, and time series methods will be used to analyze the data. In some cases, theoretical microeconomic models and/or Monte Carlo simulations techniques will be needed to examine situations in which prior data is not relevant due to significant changes in the policy/market environment governing decision making. Other applications will make use of mathematical programming techniques to find optimal production patterns, rotations, and plans for future production. Because this project is designed to handle applied issues within the State and region as they become important, it is difficult to add further specifics as to the procedures which will be used. Appropriate procedures will be chosen for each study as they arise. Results from research conducted under this project will be communicated primarily through publication in refereed journals and presentation at professional meetings. Results with direct application to crops and/or livestock products will be communicated through the publication of research reports, presentations at commodity schools, and through the popular press. Some examples of previous work published in these outlets are McIntosh and Nolte (2003a and 2003b). Applied work of this type will be pursued under this project and communicated through the appropriate outlets to the stakeholders.

Progress 07/01/06 to 06/30/12

Outputs
OUTPUTS: Research results were generated for projects examining the impact of various plant disease and insect pressures on crops that are important to Idaho and the Northwest. Additional research on the viability of identity preservation in the marketing of commercial and seed potatoes was undertaken. One graduate student completed a thesis from work associated with this project. Participation in professional meetings was undertaken to discuss and disseminate research results. Results were presented at the Potato Expo in January of 2012 in both poster and invited presentation form. PARTICIPANTS: Graduate Students: Elliott Toevs Sarad Nepal Giri Aryal Gina Greenway Faculty: Joe Guenthner Phil Notle Jonathan Whitworth Aaron Johnson William Bohl Jeff Stark Mike Thornton TARGET AUDIENCES: The agricultural sectors in Idaho and the Northwest are the general target audience of this research effort. This includes, but is not limited to production agriculture, the raw product supply chain, and agribusiness firms PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Seed potatoes with seven different physiological ages were created by storing potato seed tubers for two cultivars Ranger Russet and Russet Burbank in over three different growing seasons in Idaho. Potato seed tubers were stored at seven different temperatures regimes at storage. As seed storage temperature increases, physiological seed age increases along with the number of stems per plant. increases. This result was similar in all three growing season and for both cultivars. The number of stems per plant can be used as an early season predictor of potato yield and size. category based upon its relationship with average tuber size and tubers per plant. Stems per plant of two different cultivars were modeled along with tuber number, average tuber size and marketable yield using ordinary least squares regressions. Marketable yields were not impacted by the increase in stem number but the tuber size profile did shift toward relatively smaller sizes and higher tuber numbers. Determining the yield size categories based upon stem number in early season can help growers achieve higher gross return by managing a production for specific market segments. Historical shipping point prices of Russet Burbank cultivars shipped from Upper Valley, Twin Falls-Burley district Idaho and tuber size incentives was used to calculate the fresh and processed return for both the cultivars in all three locations for commercial growers. Ordinary least square regressions showed that physiological seed aging in long growing season of Idaho should be avoided to obtain higher return in fresh market for both cultivars. But to obtain higher return in processed market, Ranger Russet seed should be aged for Ranger Russet and it, though aging should be avoided for Russet Burbank. In short growing seasons seed aging should be avoided to obtain higher return for in the fresh market for Ranger Russet but to obtain higher return in processed market the seed should be aged. Finally, in medium growing season the relationship of seed aging with growers' economic return is poorly understood difficult to quantify for both cultivars given the data used in this study. Monsanto developed GM potatoes in the 1990s that were a market failure in spite of benefits to growers, processors, consumers and the environment. Concerns that killed the market for GM potatoes are still prevalent, but consumers may perceive all native, marker free technology (All Native GM) more favorably than transgenic technology (Transgenic GM). We surveyed people in the North American potato industry regarding their opinions of GM potato issues. Respondents thought that growers and consumers would accept All Native GM potatoes more readily than Transgenic GM potatoes. Potato growers, females, Canadians and former Monsanto GM potato customers were more likely to be optimistic about All Native GM potatoes. Proactive marketing of a labeled All Native GM potato with consumer attributes, perhaps with the approval of an environmental NGO, could lead to a market success in the future.

Publications

  • Guenthner, J. F., A. J. Johnson and Christopher S. McIntosh. 2012. Seed Variety Mix: An Indicator for GM Potato Identity Preservation. American Journal of Potato Research. 89:172-174


Progress 01/01/11 to 12/31/11

Outputs
OUTPUTS: Research results were generated for projects examining the impact of various plant disease and insect pressures on crops that are important to Idaho and the Northwest. Additional research on the viability of identity preservation in the marketing of commercial and seed potatoes was undertaken. One graduate student completed a thesis from work associated with this project. Participation in professional meetings was undertaken to discuss and disseminate research results. PARTICIPANTS: Sarad Nepal, graduate student Elliot Toevs, graduate student TARGET AUDIENCES: The agricultural sectors in Idaho and the Northwest are the general target audience of this research effort. This includes, but is not limited to production agriculture, the raw product supply chain, and agribusiness firms. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Seed potatoes with seven different physiological ages were created by storing potato seed tubers for two cultivars Ranger Russet and Russet Burbank in over three different growing seasons in Idaho. Potato seed tubers were stored at seven different temperatures regimes at storage. As seed storage temperature increases, physiological seed age increases along with the number of stems per plant. increases. This result was similar in all three growing season and for both cultivars. The number of stems per plant can be used as an early season predictor of potato yield and size. category based upon its relationship with average tuber size and tubers per plant. Stems per plant of two different cultivars were modeled along with tuber number, average tuber size and marketable yield using ordinary least squaresquares regressions. Marketable yields were not impacted by the increase in stem number but the tuber size profile did shift toward relatively smaller sizes and higher tuber numbers. Determining the yield size categories based upon stem number in early season can help growers achieve higher gross return by managing a production for specific market segments. Historical shipping point prices of Russet Burbank cultivars shipped from Upper Valley, Twin Falls-Burley district Idaho and tuber size incentives was used to calculate the fresh and processed return for both the cultivars in all three locations for commercial growers. Ordinary least squaresquares regressions showed that physiological seed aging in long growing season of Idaho should be avoided to obtain higher return in fresh market for both cultivars. But to obtain higher return in processed market, Ranger Russet seed should be aged for Ranger Russet and it, though aging should be avoided for Russet Burbank. In short growing seasons seed aging should be avoided to obtain higher return for in the fresh market for Ranger Russet but to obtain higher return in processed market the seed should be aged. Finally, in medium growing season the relationship of seed aging with growers' economic return is poorly understood difficult to quantify for both cultivars given the data used in this study. Monsanto developed GM potatoes in the 1990s that were a market failure in spite of benefits to growers, processors, consumers and the environment. Concerns that killed the market for GM potatoes are still prevalent, but consumers may perceive all native, marker free technology (All Native GM) more favorably than transgenic technology (Transgenic GM). We surveyed people in the North American potato industry regarding their opinions of GM potato issues. Respondents thought that growers and consumers would accept All Native GM potatoes more readily than Transgenic GM potatoes. Potato growers, females, Canadians and former Monsanto GM potato customers were more likely to be optimistic about All Native GM potatoes. Proactive marketing of a labeled All Native GM potato with consumer attributes, perhaps with the approval of an environmental NGO, could lead to a market success in the future.

Publications

  • Bohl, W. H., J. Stark and Christopher S. McIntosh. 2011. Potato Seed Piece Size, Spacing, and Seeding Rate Effects on Yield, Quality and Economic Return. American Journal of Potato Research, 88,6:470-478
  • Cooke, Steven C., and Christopher S. McIntosh. 2011. Forecasting General Fund Revenue: An Analysis of Idaho FY1998 to FY2011. Public Budgeting and Finance. Winter 2011:51-73
  • Toevs, Elliott A. Toevs, Joseph F. Guenthner, Aaron J. Johnson, Christopher S. McIntosh and Michael K. Thornton. 2011. An industry perspective of all-native and transgenic potatoes. AgBioForum, 14,1:14-19
  • Toevs, Elliott A., Joseph F. Guenthner, Aaron J. Johnson, Christopher S. McIntosh and Michael K. Thornton. 2011. Identity preservation systems for genetically modified potatoes. American Journal of Potato Research, 88,4: 303-308
  • Sarad Nepal, M.S. Thesis 2011. Economic Implications of Manipulating Physiological Seed Age of Idaho Ranger Russet and Russet Burbank Potatoes. August 2011


Progress 01/01/10 to 12/31/10

Outputs
OUTPUTS: Research results were generated for projects examining the impact of various plant disease and insect pressures on crops that are important to Idaho and the Northwest. Potato and onion research was completed and publication of results is in progress. One graduate student is being directly mentored for work associated with this project. The analysis from that effort is ongoing. Participation in professional meetings was undertaken to discuss and disseminate research results. PARTICIPANTS: Sarad Nepal, Graduate student. TARGET AUDIENCES: The agricultural sectors in Idaho and the Northwest are the general target audience of this research effort. This includes, but is not limited to production agriculture, the raw product supply chain, and agribusiness firms. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Findings of research conducted during the previous calendar year provide a continued examination of the effectiveness of cooperative marketing of fresh potatoes in Idaho and beyond. As before we find empirical evidence suggesting that fresh potato prices were higher and less volatile during the period when the cooperative was in the market. Potatoes were also the subject of ongoing research into the impacts of plant diseases, in this case potato virus Y. Research regarding the performance of rural schools and how funding sources impact the efficiency with which education is provided was completed.

Publications

  • Whitworth, J.L., P.B. Hamm, and Christopher S. McIntosh. 2010. Effect of Potato Virus Y on Yield of a Clonal Selection of Russet Norkotah. American Journal of Potato Research, 87, 310-14.
  • Bolotova, Y., K. Muthusamy, Christopher S. McIntosh, and P.E. Patterson. 2010. Is Stabilization of Potato Price and Supply Effective Empirical Evidence from Idaho. Agribusiness: An International Journal 26,2, 177-201.
  • Saito, Y., and Christopher S. McIntosh. 2010. The Economic Value of Auditing and Its Effectiveness in Public School Operations. Contemporary Accounting Research, Summer 2010,639-667.


Progress 01/01/09 to 12/31/09

Outputs
OUTPUTS: Presentations were made at the University of Idaho Potato conference, and the meeting of the Idaho Eastern Oregon Onion committee. PARTICIPANTS: Brian Jemmett, graduate student, University of Idaho Mike Thornton, Faculty, University of Idaho Yoshie Saito, Faculty, Georgia Southern University TARGET AUDIENCES: The target audiences for the crop-level applied reasearch are the growers of the commodities themselves as well as those who are stakeholders in the agricultural production sector. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Research completed during the reporting period determined for the first time the economic impact of Iris Yellow Spot Virus and thrips on commercial onion production.

Publications

  • Saito, Y., and Christopher S. McIntosh. 2010 The Economic Value of Auditing and Its Effectiveness in Public School Operations. Contemporary Accounting Research (Forthcoming)
  • Bolotova, Y., K. Muthusamy, Christopher S. McIntosh, and P.E. Patterson. 2010. Is Stabilization of Potato Price and Supply Effective Empirical Evidence from Idaho. Agribusiness: An International Journal 26:2 (Forthcoming)
  • Bolotova, Y., A.V. Karasev, and Christopher S. McIntosh, 2009. Statistical Analysis of the Laboratory Methods Used to Detect Potato Virus Y. American Journal of Potato Research. 86:4, 265-271.
  • Two Essays on the Economics of Production and Marketing of the Idaho-Eastern Oregon Onion Industry. 2009. MS Thesis, University of Idaho.


Progress 01/01/08 to 12/31/08

Outputs
OUTPUTS: Reserach was undertaken on optimal potato rotations and analysis of the omp-acts of a marketing cooperative on the structure and performance of potato markets in the state of Idaho. Two MS Thesis resulted from this effort. Major research outputs concerning potato markets and optimal rotations for Idaho potatoes were disseminated through a variety of means. These included presentations at grower oriented meetings (the University of Idaho Potato Conference) meetings of Agribusiness professionals (International Agribusiness Management Association annual meetings) and meetings of professional agricultural economists (American Applied Economics Association annual meeting). A variety of methods were employed inlcuding a poster, extension-style presentations and academic presentations of scholarly work. PARTICIPANTS: Colaborators included Dr. Yuliya Bolotova, and Paul M. Patterson, Dr. Bryan Hoplins (Brigham Young University), Dr. Garth Taylor and Dr. William Bohl - all at the Univeristy of Idaho unless otherwise indicated. MS students parcipating in this reasearch include Kalamani Muthusamy and Penny Myers. TARGET AUDIENCES: Target Audiences include but are not limited to: Academic or other profesional agricultural economists agribusiness managers potato growers potato packers and shippers potato industry professionals and analysts graduate students in applied economics undergraduate students in applied and agricultural economics and agribusiness. citizens and taxpayers of the state of Idaho citizens and taxpayers of the United States of America PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Optimal potato rotations were determined to consist of winter wheat and potatoes in a three year rotation. This accounted for price, weed, disease and insect risk exposure. This analysis was accomplished using a discreet sequential stochastic programming approach. High potato price volatility, decreasing demand for fresh potatoes and prices below the cost of production led to a decision of a number of Idaho potato growers to organize the United Fresh Potato Growers of Idaho, a marketing cooperative. The programs and strategies of the cooperative target both the production and marketing of fresh potatoes in Idaho. To evaluate the effectiveness of the programs implemented by the cooperative, we examine the level and volatility of fresh potato prices during two periods: before the cooperative was organized and when the cooperative is in the market. We find empirical evidence suggesting that fresh potato prices were higher and less volatile during the period when the cooperative was in the market.

Publications

  • Bolotova, Y., K. Muthusamy, Christopher S. McIntosh, and P.E. Patterson. 2008. The Impact of Coordination of Production and Marketing Strategies on Price Behavior: Evidence from Idaho Potato Industry. International Food and Agribusiness Management Review 11,3:1-30.
  • Muthusamy, K., Christopher S. McIntosh, Y. Bolotova and P. E. Patterson. 2008. Price Volatility of Idaho Fresh Potatoes: 1987 - 2007. American Journal of Potato Research 85,6:438-444.
  • Myers, P., Christopher S. McIntosh, P.E. Patterson, R.G Taylor, and B.G. Hopkins. 2008. Optimal Crop Rotations of Idaho Potatoes. American Journal of Potato Research 85,3:183-197.
  • Bohl, W.H., J. Stark, and C.S. McIntosh. 2008. Effects of Varying Seed Piece Size and Spacing on Yield and Size Distribution of Three Potato Cultivars. Am. J. Pot. Res. 85: 4.


Progress 01/01/07 to 12/31/07

Outputs
OUTPUTS: One masters thesis was completed under this project and the research will be presented at the Idaho Potato conference, the American Agricultural Economics Association annual meetings and the International Agribusiness Management Association annual meetings. In addition several prelimary research findings from this project were reported through presentations at the Potato Association of America annual meeting and the American Accounting Association mid-year meetings. In each of the instances mentioned above, information was disseminated to target audiences using PowerPoint slides and handouts, as well as presenting the results in person. Topics included "Monitoring the hidden costs of regulation", "Effects of potato seedpiece size and spacing on yield", "Use of Nitrogen uptake analysis to assess potato status", "price impacts resulting from market organization" and "Effects of seedborne potato virus Y on yields". Five total presentations were made from research conducted under this project. One M.S. thesis was completed: Kalamani Muthusamy. "Impact of a Marketing Cooperative on Price Behavior in the Idaho Potato Industry." Agricultural Economics and Rural Sociology, University of Idaho, August 2007 PARTICIPANTS: Colaborators included Bolh, W.H.; Stark, J.; Nolte, P.; Patterson, P.E.; Saito, Y.; Love, S.; Whitworth, J.; and Thonton, M.K. Training and professional development included graduate students Muthusami, K.; and Widner, L.; Batemen, M.; Adhikari, a. TARGET AUDIENCES: The target audiences for this reserach effort included: potato producers, processors, shippers, and seed growers in the United States and internationally. Members and observers of market organization efforts undertaken by United Potato of America and its affiliates. Legislators, goverment auditors, and officials who have an interest in evaluating productivity and efficiency.

Impacts
The impacts of the studies mentioned above include findings that Potato Virus Y has a predictible impact on yields, and a much greater impact on grower income than a simple yield decrease would indicate, due to the changes in composition of yield (size and grade). These results were supported by statistical analysis. Using autocorrelated conditional heteroscedastic regression techniques the price impacts of market organization were analyzed and it was found that no statistically significant increase in potato prices had occurred, but price volatility had been decreased by a statistically significant amount.

Publications

  • Bohl, W.H., Stark J., and McIntosh C.S. (2007). Seed Piece Size and Spacing Effects on Yield. The Spudvine, University of Idaho Extension, February 2007.


Progress 07/01/06 to 12/31/06

Outputs
Research regarding Idaho's green industries was undertaken utilizing an Input-Output (I-O) model to measure the relative size of different sectors and their linkages to the other sectors of an economy. This approach provides a strong framework for a comparative assessment of the research outcome with national data and the similar studies carried forth by the other states. The IMpact Analysis for PLANning (IMPLAN) software was used for the I-O modeling in our study. Three different categories of effects, i.e., Direct, Indirect and Induced effects are used by IMPLAN for describing the economic impacts of the selected industry. These three types of impacts, as calculated by the model, add up to the total economic impact of the green industry in Idaho. Direct impacts are jobs, value added, and sales. These are directly created by products and services as a base (export) industry. The indirect impacts of the green industry are the impacts on non-basic Idaho businesses that provide goods or services as inputs to the green industry. Finally, workers in the green industry spend their wages and salary on food, cars, real estate and many other goods and services which induce additional economic activity for the providers of these goods and services. The resulting economic activity is the induced impact of the green industry. The total economic impact of the industry was estimated to be $78 million in output, 1,031 total employment and $52 million in terms of value added impacts. The impacts are shown to have increased over the past few years.

Impacts
The benefits from this research are a clearer understanding of the size and importance of the green industry to Idaho's economy. Dollar impacts cannot be measured at this time, but the industry is in a much better position to analyze the impact that future changes in policy/wages/employment may have.

Publications

  • Adhikari, Arun. Economic Impacts of the Green Industry in Idaho. 2006. M.S. Thesis, Christopher S. McIntosh, Advisor. Dept. of Agricultural Economics and Rural Sociology, University of Idaho, Moscow, ID