Source: LOUISIANA STATE UNIVERSITY submitted to NRP
OPTIMAL ECONOMIC DECISION MAKING FOR PRODUCERS IN ANIMAL AGRICULTURAL INDUSTRIES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0211069
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Aug 1, 2007
Project End Date
Jul 31, 2013
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
LOUISIANA STATE UNIVERSITY
202 HIMES HALL
BATON ROUGE,LA 70803-0100
Performing Department
Agri Economics & Agribusiness
Non Technical Summary
Technological innovation and adoption is at the root of most of the structural change that has occurred in agriculture. To understand why technologies are or are not adopted, one must understand associated revenues and costs of production, risks and uncertainties of production, risk preferences, tradeoffs associated with adoption, and impact on the farmer's lifestyle. This project examines the impact of (1) costs and returns, (2) technology and management strategy adoption, (3) risk, and (4) goals and motivations on structural change in the animal agricultural industries.
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
6011699301020%
6013910301030%
6016220301020%
6031699301010%
6033910301010%
6036220301010%
Goals / Objectives
Develop annual costs and returns estimates for animal agricultural enterprises in Louisiana and evaluate profitability associated with alternative management strategies. Evaluate rates of adoption of new production strategies and technologies in animal agriculture industries and their impact on profitability in animal agriculture industries. Identify and analyze strategies that animal agricultural producers can use to deal with the changing risk environment they face. Evaluate the impact of alternative goals and motivations on decision making in agriculture, including risk preference. Evaluate the forces influencing structural change in animal agricultural industries.
Project Methods
Estimates of costs and returns will be made annually for Louisiana beef, dairy, forage, catfish, and crawfish enterprises. The profitability of new technologies and production strategies in agricultural production will be assessed primarily by using partial budgeting analysis. Examination of the extent and rate of adoption of technology and production strategies will result from surveys of agricultural producers, conducted primarily by mail and sent to random samples of producers. Strategies for producers to reduce risk will be identified and analyzed using producer surveys. Analysis of the impact of goal structure on enterprise choice in U.S. agriculture will be conducted using USDA-ARMS data. Institutional models and USDA-ARMS data will be used to examine structural changes in the U.S. animal agricultural industries.

Progress 08/01/07 to 07/31/13

Outputs
Target Audience: The target audience of this project was U.S. and Louisiana beef, dairy, crawfish, and forage producers. 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 have been widely disseminated via peer-reviewed publications, non-peer-reviewed publications, presentations to farmers, and presentations at professional meetings. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Estimates of costs and returns for Louisiana beef, dairy, forage, and crawfish were published. Work was conducted on the economics of U.S. goat production.The economics of U.S. grass-fed beef production determined with a survey. The economics of alternative grass-fed beef systems were analyzed, as was the economics of rotational grazing systems in beef production. The economics of various technologies and management practices in the U.S. dairy and beef industries were analyzed using ARMS data.

Publications

  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Gillespie, Jeffrey, Narayan Nyaupane, Kenneth McMillin, and Wes Harrison. Producer Perceptions of Important Challenges Currently Facing the U.S. Meat Goat Industry. The Professional Animal Scientist 29(2013):333-314.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Khanal, Aditya, and Jeffrey Gillespie. Adoption and Productivity of Breeding Technologies: Evidence from U.S. Dairy Farms. AgBioForum 16(1):53-65.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Wyatt, Wayne, Jeffrey Gillespie, Brad Venuto, David Blouin, Robert Boucher, and Berdikul Qushim. Effects of Year-Round Stocking Rate and Stocking Method Systems on Cow-calf Production in the Gulf Coast Region of the U.S.: Costs, Returns, and Labor Considerations The Professional Animal Scientist 29(2013):16-26.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Wyatt, Wayne, Brad Venuto, Jeffrey Gillespie, and David Blouin. Effects of Year-round Stocking Rate and Stocking Method Systems on Performance of Cow-calf Pairs in the Gulf Coast Region of the U.S. Professional Animal Scientist 29(2013):10-15.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Gillespie, Jeffrey, and Richard Nehring. Comparing Costs and Returns of Organic and Conventional U.S. Beef Farms Using Matching Samples. Australian Journal of Agricultural and Resource Economics 57,2(2013):178-192.
  • Type: Journal Articles Status: Published Year Published: 2012 Citation: Wyatt, Wayne, Brad Venuto, Jeffrey Gillespie, David Blouin, and Mike McCormick. Effects of Year-round Stocking Methods and Stocking Rates on Seasonal Forage Response and Cow-calf Weight Gain in the Gulf Coast Region of the United States. Professional Animal Scientist 28(2012):588-603.
  • Type: Journal Articles Status: Published Year Published: 2012 Citation: Wyatt, W.E., V.C. Venuto, J.M. Gillespie, D.C. Blouin, and D.D. Redfearn. Effects of Year-Round Stocking Rates and Stocking Methods on Performance of Cow-Calf Pairs Grazing Dallisgrass-Common Bermudagrass Pastures Overseeded with Annual Ryegrass. Professional Animal Scientist 28,4(August 2012):417-432.
  • Type: Journal Articles Status: Published Year Published: 2012 Citation: Nyaupane, Narayan, Jeffrey Gillespie, and Krishna Paudel. Economic Impacts of Best Management Practice Adoption by Crawfish Producers: The Role of the Environmental Quality Incentives Program. Agricultural and Resource Economics Review 41,2(August 2012):247-259.
  • Type: Journal Articles Status: Published Year Published: 2012 Citation: Pruitt, Ross, Jeffrey Gillespie, Richard Nehring, and Berdikul Qushim. Adoption of Technology, Management Practices, and Production Systems by U.S. Beef Cow-calf Producers. Journal of Agricultural and Applied Economics 44,2(2012):203-222.
  • Type: Journal Articles Status: Published Year Published: 2012 Citation: Hatzenbuehler, P.L., J.M. Gillespie, and C.E. ONeil. Does Healthy Food Cost More in Poor Neighborhoods? An Analysis of Retail Food Cost and Spatial Competition. Agricultural and Resource Economics Review 41,1(2012):43-56.
  • Type: Journal Articles Status: Published Year Published: 2012 Citation: Gillespie, Jeffrey, Narayan Nyaupane, and Robert Boucher. Changes in Crawfish Production Costs and Current Production Practices Used. Aquaculture Economics and Management 16,3(2012):250-265.
  • Type: Other Status: Published Year Published: 2013 Citation: Mishra, Ashok, Hyunjeong Joo, and Jeffrey Gillespie. Economic Impact of H-2B Visa Workers on the Louisiana Seafood Processing Industry. Louisiana Agriculture 56,3(Summer 2013):18-21.
  • Type: Other Status: Published Year Published: 2013 Citation: Harrison, Wes, Jessica Hill, Jeffrey Gillespie, and Kenneth McMillin. Conjoint Analysis of Consumers Preferences for Goat Meat in the United States. Proceedings of the meeting, Goat Meat Industry Update, Marketing and Challenges, University of Tennessee Research and Education Center, Spring Hill, TN, June 15, 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Nyaupane, Narayan, Jeffrey Gillespie, Kenneth McMillin, and Wes Harrison. Results of the U.S. Meat Goat Production Survey. Proceedings of the meeting, Goat Meat Industry Update, Marketing and Challenges, University of Tennessee Research and Education Center, Spring Hill, TN, June 15, 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Gillespie, Jeffrey, Narayan Nyaupane, Kenneth McMillin, and Wes Harrison. Results of the U.S. Meat Goat Production Survey. Meat Goat Monthly News 20,5(June 2013):8.
  • Type: Other Status: Published Year Published: 2013 Citation: Harrison, Wes, Jessica Hill, Jeffrey Gillespie, and Kenneth McMillin. Consumer Preferences for Goat Meat in the United States. Proceedings of the 28th annual Goat Field Day, Langston University, Langston, OK, April 27, 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Gillespie, Jeffrey, Narayan Nyaupane, Kenneth McMillin, and Wes Harrison. Results of the U.S. Meat Goat Production Survey. Proceedings of the 28th annual Goat Field Day, Langston University, Langston, OK, April 27, 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Boucher, Robert, and Jeffrey Gillespie. Projected Costs and Returns for Crawfish Production in Louisiana, 2013. A.E.A. Information Series No. 293, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Boucher, Robert, Jeffrey Gillespie, and Charles Hutchison. Projected Costs and Returns for Dairy and Associated Forage Crop Production in Louisiana, 2013. A.E.A. Information Series No. 294, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Boucher, Robert, and Jeffrey Gillespie. Projected Costs and Returns for Beef Cattle and Associated Forage Crop Production in Louisiana, 2013. A.E.A. Information Series No. 291, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February 2013.
  • Type: Other Status: Published Year Published: 2012 Citation: Gillespie, Jeffrey, Kurt Guidry, and Robert Boucher. Crawfish Production: Financial Characteristics and Record-keeping Options SRAC Publication No. 2405, Southern Regional Aquaculture Center, October 2012.
  • Type: Other Status: Published Year Published: 2012 Citation: Boucher, Robert, and Jeffrey Gillespie. Projected Costs and Returns for Crawfish Production in Louisiana, 2012. A.E.A. Information Series No. 286, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February 2012.
  • Type: Other Status: Published Year Published: 2012 Citation: Boucher, Robert, Jeffrey Gillespie, and Charles Hutchison. Projected Costs and Returns for Dairy and Associated Forage Crop Production in Louisiana, 2012. A.E.A. Information Series No. 285, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February 2012.
  • Type: Other Status: Published Year Published: 2012 Citation: Boucher, Robert, and Jeffrey Gillespie. Projected Costs and Returns for Beef Cattle and Associated Forage Crop Production in Louisiana, 2012. A.E.A. Information Series No. 284, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February 2012.


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

Outputs
OUTPUTS: Results of this project were presented at the Agricultural and Applied Economics Association (AAEA) and Southern Agricultural Economics Association (SAEA) annual meetings, as well as at the Iberia Research Station (LSU AgCenter) Field Day. Six peer-reviewed journal articles and four producer-oriented technical publications resulted from this research. Significance of the work was shared with Louisiana grass-fed beef producers and national audiences of researchers from around the country. PARTICIPANTS: Jeffrey Gillespie (PI), Kurt Guidry, Robert Boucher, Berdikul Qushim, Narayan Nyaupane, Carol ONeil, Patrick Hatzenbuehler, Wayne Wyatt, David Blouin, LSU AgCenter. TARGET AUDIENCES: Target audiences are Louisiana and U.S. livestock and crawfish producers and agribusinesses, applied researchers in livestock and aquaculture production, and extension personnel. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
This research provided the expected costs and returns for 2012 for Louisiana beef, dairy, crawfish, and forage enterprises, which were distributed to users. Furthermore, a fact sheet on crawfish profitability showed differences in net returns for crawfish for selected production system and discussed the importance of effective record-keeping systems in crawfish production. These outputs are of direct use to farmers, lenders, and researchers needing information on livestock and aquaculture production costs. Results showed the importance of demographic and farm characteristic variables on the adoption of technology, management practices, production systems, and conservation-specific best management practices in the Louisiana crawfish and U.S. cow-calf industries. Furthermore, results showed the importance of these farm characteristics on crawfish producer participation in the Environmental Quality Incentives Program (EQUIP). These studies provide insight for evaluating the effectiveness of extension programs targeting the adoption of these practices. Results showed the increase of production costs in crawfish production over the past 20 years, with fuel costs contributing the greatest increase in total costs.

Publications

  • Wyatt, Wayne, Brad Venuto, Jeffrey Gillespie, David Blouin, and Mike McCormick. Effects of Year-round Stocking Methods and Stocking Rates on Seasonal Forage Response and Cow-calf Weight Gain in the Gulf Coast Region of the United States. Professional Animal Scientist 28(2012):588-603.
  • Hatzenbuehler, P.L., Jeffrey Gillespie, and Carol ONeil. Does Healthy Food Cost More in Poor Neighborhoods An Analysis of Retail Food Cost and Spatial Competition. Agricultural and Resource Economics Review 41,1(2012):43-56.
  • Gillespie, Jeffrey, Narayan Nyaupane, and Robert Boucher. Changes in Crawfish Production Costs and Current Production Practices Used. Aquaculture Economics and Management 16,3(2012):250-265.
  • Gillespie, Jeffrey, Kurt Guidry, and Robert Boucher. Crawfish Production: Financial Characteristics and Record-keeping Options. SRAC Publication No. 2405, Southern Regional Aquaculture Center, October 2012.
  • Wyatt, Wayne, Brad Venuto, Jeffrey Gillespie, David Blouin, and Darren Redfearn. Effects of Year-Round Stocking Rates and Stocking Methods on Performance of Cow-Calf Pairs Grazing Dallisgrass-Common Bermudagrass Pastures Overseeded with Annual Ryegrass. Professional Animal Scientist 28,4(August 2012):417-432.
  • Nyaupane, Narayan, Jeffrey Gillespie, and Krishna Paudel. Economic Impacts of Best Management Practice Adoption by Crawfish Producers: The Role of the Environmental Quality Incentives Program. Agricultural and Resource Economics Review 41,2(August 2012):247-259.
  • Pruitt, Ross, Jeffrey Gillespie, Richard Nehring, and Berdikul Qushim. Adoption of Technology, Management Practices, and Production Systems by U.S. Beef Cow-calf Producers. Journal of Agricultural and Applied Economics 44,2(2012):203-222.


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

Outputs
OUTPUTS: Project results were disseminated in the form of (1) publications: four peer-reviewed journal articles, five peer-reviewed abstracts, and seven papers in other outlets; and (2) presentations: eight presentations at professional meetings and one presentation to a clientele group. Some specific outputs include cost and returns estimates for Louisiana livestock and aquaculture production, estimates of drivers of increased crawfish production costs, determination of drivers of crawfish producer marketing decisions, and determination of economies of scale and efficiency drivers in the U.S. dairy industry. PARTICIPANTS: J.M. Gillespie (PI), LSU AgCenter. TARGET AUDIENCES: Louisiana animal and aquaculture industries. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
For the crawfish cost of production study, fuel and fertilizer inputs have been the major drivers of increased costs of crawfish production over the past 20 years, with the implication that these inputs have also driven the price of crawfish higher, deeming it less competitive with crawfish production in China. Research on Louisiana crawfish farmer adoption of alternative marketing systems and best management practices showed the impact of farm type on adoption, with implications for extension personnel in targeting educational systems to enhance crawfish farmer revenues, as well as inform them of government programs, such as EQIP, that can assist them with adoption costs. Research on the impact of off-farm employment and reasons for farming on farm enterprise selection showed a significant positive relationship between off-farm employment, farming for reasons other than profit, and the enterprise selection. These results enhance research and extension personnel understanding of the dynamics of enterprise selection, providing greater insight into why encouraging technology transfer can be challenging for some enterprises more than others. Further research on rotational grazing in cow-calf production showed more favorable profitability results than previously found in this study. Continued research results on dairy competitiveness showed the strong relationship between competitiveness and farm size.

Publications

  • Nyaupane, Narayan, and Jeffrey Gillespie. Factors Influencing Producers' Marketing Decisions in the Louisiana Crawfish Industry. J. of Food Distribution Research 42,2(July 2011):1-11.
  • Gillespie, Jeffrey, and Ashok Mishra. Off-farm Employment and Reasons for Entering Farming as Determinants of Production Enterprise Selection in U.S. Agriculture. Australian J. of Agricultural and Resource Economics 55,3(July 2011):411-428.
  • Nyaupane, Narayan, and Jeffrey Gillespie. Louisiana Crawfish Farmer Adoption of Best Management Practices. J. of Soil and Water Conservation 66,1(January-February 2011):61-70.
  • McCormick, Mike, Shannon Forbes, Kun Jun Han, David Blouin, Vinicius Moreira, and Jeffrey Gillespie. Ricebran or Soyhull Supplementation of Holstein Steers Grazing Oat-Ryegrass Pastures. Southeast Research Station Field Day Summaries, 2011. Louisiana State University Agricultural Center, Southeast Research Station, Franklinton, 2011.
  • Gillespie, Jeffrey, Guillermo Scaglia, Holly Boland, and Wayne Wyatt. The Economics of Supplementing Beef Stocker Calves Grazing Ryegrass. Louisiana State University Agricultural Center 2011 Beef Cattle Research Report 36(2011):40-43.
  • Gillespie, Jeffrey, Wayne Wyatt, Brad Venuto, David Blouin, Robert Boucher, Weldon Nipper, and Berdikul Qushim. Choosing a Grazing System in the Gulf Coast Region: The Roles of Labor and Profitability. Louisiana State University Agricultural Center 2011 Beef Cattle Research Report 36(2011):25-28.
  • Wyatt, Wayne, Jeffrey Gillespie, Brad Venuto, and David Blouin. Effects of Year-round Stocking Rates and Stocking Methods on Cow-calf Production (Phase 2): Grazing Parameters. Louisiana State University Agricultural Center 2011 Beef Cattle Research Report 36(2011):21-24.
  • Boucher, Robert, and Jeffrey Gillespie. Projected Costs and Returns for Crawfish Production in Louisiana, 2011. A.E.A. Information Series No. 277, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February 2011.
  • Boucher, Robert, Jeffrey Gillespie, and Charles Hutchison. Projected Costs and Returns for Dairy and Associated Forage Crop Production in Louisiana, 2011. A.E.A. Information Series No. 275, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February 2011.
  • Boucher, Robert, and Jeffrey Gillespie. Projected Costs and Returns for Beef Cattle and Associated Forage Crop Production in Louisiana, 2011. A.E.A. Information Series No. 274, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February 2011.
  • Gillespie, Jeffrey, Wayne Wyatt, David Blouin, Weldon Nipper, Robert Boucher, and Berdikul Qushim. Stocking Rates of Cattle under Rotational Grazing: The Influence on Farm Profitability. (Abstract) J. Agricultural and Applied Economics 43,3(August 2011):459.
  • D'Antoni, Jeremy, Ashok Mishra, and Jeffrey Gillespie. Homogeneity of Farm Labor: A Dual Approach. (Abstract) J. Agricultural and Applied Economics 43,3(August 2011):466.
  • Khanal, Aditya, and Jeffrey Gillespie. Dairy Breeding Technologies: Adoption and Profitability. (Abstract) J. of Agricultural and Applied Economics 43,3(August 2011):458.
  • Nehring, Richard, Johannes Sauer, Jeffrey Gillespie, and Charlie Hallahan. Intensive versus Extensive Dairy Production Systems in the US and the EU: Determining the Competitive Edge. (Abstract) J. of Agricultural and Applied Economics 43,3(August 2011):458.


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

Outputs
OUTPUTS: Analyses of the adoption of several technologies in U.S. dairy production were conducted, presented at meetings, and published. Comparative analysis of the production economics of dairy systems in the U.S. and the E.U. was begun, with one paper being presented at annual meetings. Analysis of crawfish production and marketing practices was conducted, resulting in one presentation and several publications. Funding was secured for investigation of the production economics of forage-fed beef production in the U.S. 2010 budgets were developed for Louisiana beef, dairy, forage, and crawfish production. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Regardless of technology or system selection, farm size appears to be the dominant predictor of U.S. dairy farm profitability. Some competitive farms are found in most size, system, technology, and diversification combinations, with management being a major driver of profitability. Production technology, system, tenancy, technology adoption, and marketing practices vary widely in the Louisiana crawfish industry. Documentation of that variability and the percentages of farmers in the various categories was of benefit, particularly for understanding how to revise annual crawfish production budgets. Economic results of Phase II of a rotational versus continuous grazing cow-calf study suggested rotational grazing to be more competitive than results found in Phase I of the study.

Publications

  • Gillespie, J. (2010). Review of book, Beattie, Bruce, C. Robert Taylor, and Myles J. Watts, The Economics of Production, 2nd Edition, Malabar, FL: Krieger Publishing Co., 2009. American Journal of Agricultural Economics 92(3): 901-902.
  • Gillespie, J., R. Nehring, C. Hallahan, C. Sandretto, and L. Tauer. (2010). Adoption of Bovine Somatotropin in the United States and Its Influence on Farm Profitability, 2000 and 2005. Agbioforum 13(3): 251-262.
  • Gillespie, J., R. Nehring, C. Sandretto, and C. Hallahan. (2010). Forage Outsourcing in the Dairy Sector: The Extent of Use and Impact on Farm Profitability. Agricultural and Resource Economics Review 39(3): 399-414.
  • Gillespie, J., and N. Nyaupane. (2010). Tenancy Arrangements Used by Louisiana Crawfish Producers. Aquaculture Economics and Management 14(3): 202-217.
  • Khanal, A., J. Gillespie, and J. MacDonald. (2010). Adoption of Technology, Management Practices, and Production Systems in U.S. Milk Production. Journal of Dairy Science 93(12): 6012-6022.
  • Khanal, A., J. Gillespie, and J. MacDonald. (2010). Adoption of Technology, Management Practices, and Production Systems in U.S. Milk Production (abstract). Journal of Agricultural and Applied Economics 42(5): 575.
  • Kim, S., J. Westra, and J. Gillespie. (2010). Adoption of Varroa-resistant Honey Bees among United States Beekeepers. Korean Journal of Agricultural Management and Policy, 37(4): 643-662.
  • Boucher, R., and J. Gillespie. (2010). Projected Costs and Returns for Crawfish Production in Louisiana, 2010. A.E.A. Information Series No. 271, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February.
  • Boucher, R., and J. Gillespie. (2010). Projected Costs and Returns for Beef Cattle and Associated Forage Crop Producion in Louisiana, 2010. A.E.A. Information Series No. 268, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February.
  • Boucher, R., J. Gillespie, and C. Hutchison. (2010). Projected Costs and Returns for Dairy and Associated Forage Crop Production in Louisiana, 2010. A.E.A. Information Series No. 269, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February.
  • Nyaupane, N., and J. Gillespie. (2010). Factors Influencing Producers' Marketing Decisions in Louisiana Crawfish Production (Abstract). Journal of Agricultural and Applied Economics 42(5): 585.


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

Outputs
OUTPUTS: Primary outputs include: (1) information regarding the adoption of various technologies and management practices by crawfish producers, distributed by means of a paper presented at an annual meeting; (2) information on the efficiency of U.S. dairy operations of different size and system configurations, distributed via presented papers at professional meetings and one peer-reviewed journal article, (3) information on the impact of various technologies in the dairy industry such as pasture-based systems on dairy farm profitability, distributed via peer-reviewed journal articles; and (4) cost and returns estimates for beef, dairy, and poultry operations, distributed via an LSU AgCenter publication. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
Crawfish technology research shows the percentages of farmers adopting various technologies and management practices, such as best management practices. Results also show the impact of alternative tenancy arrangements on adoption. Results are used primarily for the development of an updated set of crawfish budgets. This is among the first comprehensive work that has been done to characterize the economics of crawfish production by production system. Efficiency and technology adoption work in the dairy industry shows farm size is a primary determinant of efficiency and profitability, regardless of the system used. This information is of particular relevance in an era when alternative dairy systems such as organic and pasture-based are being considered as alternatives to what has become known as "conventional" dairy production. Cost and returns estimates for livestock and dairy are of direct use by farmers, as well as researchers. For instance, beef cost estimates were used to conduct a partial budgeting analysis on grazing.

Publications

  • Scaglia, Guillermo, Jeffrey Gillespie, Holly Boland, and Wayne Wyatt. "Effects of Time of Supplementation on Beef Stocker Calves Grazing Ryegrass. I. Performance and Economic Analysis." The Professional Animal Scientist 25,6(December 2009): 749-756.
  • Nehring, Richard, Jeffrey Gillespie, Carmen Sandretto, and Charlie Hallahan. "Small U.S. Dairy Farms: Can They Compete" Agricultural Economics 40,s1(November 2009): 817-825.
  • Gillespie, Jeffrey, Richard Nehring, Charlie Hallahan, and Carmen Sandretto. "The Economics of Pasture-Based Dairying in the United States." Journal of Agricultural and Resource Economics 34,3(December 2009): 412-427.
  • Mishra, Ashok, Hisham El-Osta, and Jeffrey Gillespie. "Effect of Agricultural Policy on Regional Income Inequality among Farm Households." Journal of Policy Modeling 31,3(May-June 2009): 325-340.
  • Gillespie, Jeffrey, Tyler Mark, and Carmen Sandretto. "Computerized Technology Adoption Among Farms in the U.S. Dairy Industry." Journal of the American Society of Farm Managers and Rural Appraisers 31,(2009).
  • Gillespie, Jeffrey, Wayne Wyatt, Brad Venuto, David Blouin, and Robert Boucher. "Choosing a Grazing System in the Gulf Coast Region: The Roles of Labor and Profitability." 2009 Beef and Forage Report, Louisiana State University Agricultural Center 35(2009): 21-24.
  • Boucher, Robert, and Jeffrey Gillespie. "Projected Costs and Returns for Beef Cattle, Dairy, and Forage Crop Production in Louisiana, 2009." A.E.A. Information Series, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, February 2009: 1-49.


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

Outputs
OUTPUTS: Four outputs in the form of presentations at professional meetings were generated during 2008. Results of an economic comparison of conventional and pasture-based systems were presented at the Northeastern Agricultural and Resource Economics meetings in Quebec, Canada in June. Results of an economic analysis of purchasing versus growing forages in the dairy industry were presented at the Northeastern Agricultural and Resource Economics meetings in Quebec, Canada in June. Results of an economic analysis of organic versus conventional dairy production were presented at the European Association of Agricultural Economists Congress in Ghent, Belgium in August. Results of a study examining factors influencing the adoption of a Varroa-resistant line of honey bees were presented at the annual meetings of SERA-30, Natural Resource Economics, in Washington, DC in May. A questionnaire was developed for data collection on adoption of technology and management practices in crawfish production and subsequently mailed to farmers in the Fall. Data from this survey were collected through December. PARTICIPANTS: Jeffrey Gillespie, PI. USDA-Economic Research Service employees Richard Nehring, Charlie Hallahan, James MacDonald, and Carmen Sandretto collaborated on the dairy projects. Graduate Research Assistant Narayan Nyaupane assisted with the crawfish project. Research Associate Robert Boucher assisted with cost of production estimates. TARGET AUDIENCES: Target audiences include agricultural economists, dairy industry personnel, and students. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
Adoption rates of various computerized technologies in dairy production were determined, with results showing that adopters of a computerized technology are also likely to be the adopters of other technologies in the dairy industry; demographic and regional characteristics were important, as well. Analysis of the economics of pasture-based versus conventional dairy production suggests that the most important driver of profitability is farm size, with system choice having little impact. Similar results were found with respect to organic versus non-organic dairy production. These results are particularly useful in assisting farmers to determine whether to adopt an alternative system, and to policymakers in determining whether alternative policies might influence system choice. Significant differences were found in adoption rates of various best management practices in dairy production. Farm type and farmer demographics had significant impact on whether a farmer adopted best management practices.

Publications

  • Kim, Seon-Ae, Jeffrey Gillespie, and Krishna Paudel. "Rotational Grazing Adoption in Cattle Production Under a Cost-Share Agreement: Does Ambivalence Have a Role in Conservation Technology Adoption" Australian Journal of Agricultural and Resource Economics 52,3(September 2008): 235-252.
  • Grisham, Elisabeth, and Jeffrey Gillespie. "Record-Keeping Technology Adoption among Dairy Farmers." Journal of the American Society of Farm Managers and Rural Appraisers 30(2008):16-27.
  • Fields, Deacue and Jeffrey Gillespie. "Beef Producer Preferences and Purchase Decisions for Revenue Insurance." Journal of Agricultural and Applied Economics 40,3(December 2008):789-803.
  • Gillespie, Jeffrey, and Darius Lewis. "Processor Willingness to Adopt a Crawfish Peeling Machine: An Application of Technology Adoption Under Uncertainty." Journal of Agricultural and Applied Economics 40,1(April 2008):369-384.
  • Obubuafo, Joyce, Jeffrey Gillespie, Krishna Paudel, and Seon-Ae Kim. "Awareness of and Application to the Environmental Quality Incentives Program by Cow-Calf Producers." Journal of Agricultural and Applied Economics 40,1(April 2008):357-368.
  • Gillespie, Jeffrey, Wayne Wyatt, Brad Venuto, David Blouin, and Robert Boucher. "The Roles of Labor and Profitability in Choosing a Grazing Strategy for Beef Production in the U.S. Gulf Coast Region." Journal of Agricultural and Applied Economics 40,1(April 2008):301-314.
  • Boucher, Robert, and Jeffrey Gillespie. Projected Costs and Returns for Beef Cattle, Dairy, and Forage Crop Production in Louisiana, 2008. A.E.A. Information Series, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, January 2008: 1-49.
  • Boucher, Robert, and Jeffrey Gillespie. Projected Costs and Returns for Crawfish Production in Louisiana, 2008. A.E.A. Information Series, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, January 2008: 1-49.


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

Outputs
OUTPUTS: Determination of the profitability of dairy production under organic, pasture-based production was made. Determination of the profitability of dairy production using bovine somatotropin was made. Determination of the types of dairy producers purchasing versus raising their own forages was made, as well as the associated profitability. PARTICIPANTS: Richard Nehring, Carmen Sandretto, and Charlie Hallahan, Economists with USDA-Economic Research Service, were involved in the dairy research.

Impacts
Dairy producers and other stakeholders have an interest in the profitability of new technologies and management practices that are rapidly evolving. Research results lend insights so that producers can made responsible adoption decisions and policymakers can develop incentive programs to encourage production practices considered appropriate to society.

Publications

  • Lewis, Darius, and Jeffrey Gillespie (2007). Crawfish Processor Preferences for the Adoption of a Potential Crawfish Peeling Machine: A Conjoint Analysis, Aquaculture Economics and Management 11(1): 355-369.
  • Nehring, Richard, Jeffrey Gillespie, Erik O'Donoghue, and Carmen Sandretto, 2007. Dairy Resource Management: A Focus on Conventional and pasture-Based Systems, Abstract in Agricultural and Resource Economics Review 36(2): 350.
  • Nehring, Richard, Jeffrey Gillespie, Erik O'Donoghue, and Carmen Sandretto, 2007. Dairy Resource Management: A Comparison of Conventional and Pasture-Based Systems, Abstract in the Journal of Agricultural and Applied Economics 39(2): 413.
  • Gillespie, Jeffrey, Wayne Wyatt, Brad Venuto, David Blouin, and Robert Boucher, 2007. The Economics of Rotational Grazing in the Gulf Coast Region: Costs, Returns, and Labor Considerations, Abstract in the Journal of Agricultural and Applied Economics 39(2): 414.
  • Grisham, Elisabeth, and Jeffrey Gillespie, 2007. Record Keeping Technology Adoption in the Louisiana Dairy Industry, Abstract in the Journal of Agricultural and Applied Economics 39(2): 411.
  • Lewis, Darius, and Jeffrey Gillespie, 2007. Crawfish Peeling Preferences for the Adoption of a Crawfish Peeling Machine: A Conjoint Analysis, Abstract in the Journal of Agricultural and Applied Economics 39(2): 417.
  • Mishra, Ashok, and Jeffrey Gillespie, 2007. The Role of Goal Structure in Enterprise Selection in U.S. Agriculture, Abstract in the Journal of Agricultural and Applied Economics 39(2): 419.