Progress 08/01/08 to 07/31/11
Outputs
OUTPUTS: (A) Activities are listed and reported by subproject. 1) Impacts of Organophosphate Pesticides Phaseout in the Apple Industry: In 2006, the U.S. Environmental Protection Agency (EPA) declared that the pesticide azinphos-methyl (AZM) cannot be used in apple production after September 30, 2012. While it provides important pest control benefits to growers of apples and other crops, AZM also poses potential risks to farm workers, pesticide applicators, and aquatic ecosystems, according to the EPA website. We estimated the change to sales, price, and employment in the Washington State apple industry from using likely AZM alternatives had this ban been in effect in 2007, the first year of the pesticide's phase-out schedule. 2) Impact of Strategy and Innovation on Performance within the Washington State Organic Industry: Organic imports have played a significant role in the US market expansion for organic products. Foreign Agriculture Service estimates that imports account for 12-18% of the US organic retail sales in 2002. A mail survey was used to gather information from Washington producers who were certified organic or transitioning to organic. 3) Wine Consumption and Market Opportunities in China: Implications for U.S. Wine Exports: We investigated the effects of information and country of origin on Chinese consumers' willingness to pay (WTP) for wine. We designed an experiment and survey, which we conducted in the summer of 2009 in seven urban communities and on three major university campuses in Beijing and Shanghai, China. Using a second-price, sealed-bid Vickrey auction mechanism, we conducted experimental auctions. The items for sale were four different wine products, which were produced in China, France, the United States, and Australia. The consumer participants were split into two comparison groups, with or without information exposure. We completed an analysis of the data. 4) Assessment of the Agritourism Industry in Washington State: We characterized the agritourism entrepreneurship and direct marketing activities in different counties of the State through a direct survey of industry respondents. 5) Invasive Species Policies and Trade Effects: Invasive species, once introduced, can be devastating to a country's production and processing sectors, as well as to the environment, and especially to those sectors integrated into international markets. To prevent catastrophic economic consequences, a variety of tools are institutionalized to contain and eradicate invasive species, including (but not limited to) stamping out, quarantine, targeted surveillance, and vaccination of suspected contacts. The effectiveness of these control measures crucially depends on knowledge about the invasive species, its interaction with other stocks, the environment and its pathways (natural and economic). Understanding and quantifying the economic cost of these measures will depend on intertemporal dimensions of biological/production processes and decision-making, as well as spatial patterns of stock movement in domestic and international trade. (B) A total of 3 graduate students were hired as research assistants. PARTICIPANTS: Thomas L. Marsh, principal investigator; Jill McCluskey, co-investigator; Greg Galinato,co-investigator; and Suzette Galinato, co-investigator. Several graduate students that were supported and completed Phd degrees, included E. V. Perevodchikov, invasive species, and H. Wang on Chinese, consumption patterns,. TARGET AUDIENCES: Agricultural producers in Washington and the United States. PROJECT MODIFICATIONS: Not relevant to this project.
Impacts
Outcomes and impacts are listed and reported by subproject. 1) Impacts of Organophosphate Pesticides Phaseout in the Apple Industry: We conclude that the ban will modestly change sales (-0.8%), prices (0.2%), and employment (0.1%) in the apple industry, with negligible impacts on the overall Washington State economy. 2) Impact of Strategy and Innovation on Performance within the Washington State Organic Industry: The scales of the farms in our survey are generally small, and almost 80% of farms have less than 10 employees. Most farms, about 74% percent, are newcomers (certified organic producer for less than ten years) to the organic business. However, more than half the respondents have been farming more than 20 years. For 54% of farms, over 90 percent of business total sales are from organic goods. 3) Wine Consumption and Market Opportunities in China: Implications for U.S. Wine Exports: The results show that our participants are willing to pay the highest price for the wine from France, while their WTP for the Chinese wine is the lowest among the four. Furthermore, we find factors affecting their WTP for wine and consumers' purchasing habits, include age, gender, employment status, education, income, and household size. Based on our findings, we made marketing suggestions. This work was leveraged as the PI successfully applied for an AFRI, USDA grant with Tom Wahl (lead PI). 4) Assessment of the Agritourism Industry in Washington State: We find that the direct marketing industry in the State is well established but the agritourism activities are still developing. Most farms that conduct agritourism are small farms (with less than $250,000 of total sales), whereas direct marketing farms vary in size and include some larger farms in terms of sales. The primary reasons for operating are to earn additional income and educate the local populace regarding agricultural and local activities which illustrates economic and altruistic motives for farmers. 5) Invasive Species Policies and Trade Effects: Country specific characteristics, such as dependence on exports or imports, livestock inventories and management, disease-control policies, consumer demographics and reaction, and value of livestock, make it difficult to extrapolate the impacts of disease outbreaks in one country to another. In total, ten presentations were given to industry and government agencies.
Publications
- Cassey, Andrew, Suzette P. Galinato and Justin Taylor. 2010. Impacts of the Azinphos-methyl Ban in the Apple Industry and Economy of Washington State. Washington State University Extension Fact Sheet FS042E. http://cru.cahe.wsu.edu/CEPublications/FS024E/FS024E.pdf.
- Cassey, Andrew, Suzette P. Galinato and Justin Taylor. 2010. Economic Impacts of the Elimination of Azinphos-methyl on the Apple Industry and Washington State. SES Working Paper 2010-6. School of Economic Sciences, Washington State University, Pullman, WA. http://faculty.ses.wsu.edu/WorkingPapers/Cassey/WP2010-6.pdf.
- Galinato, Gregmar I., Suzette P. Galinato, Hayley H. Chouinard, Mykel R. Taylor and Philip R. Wandschneider. 2011. Agritourism in Washington State: An Industry Profile. Washington State University Extension Manual EM040E. http://cru.cahe.wsu.edu/CEPublications/EM040E/EM040E.pdf
- Wang, H. and J.J. McCluskey. 2011. Effects of Information and Country of Origin on Chinese Consumer Preferences for Wine: An Experimental Approach in the Field. Working paper, Washington State University. http://ageconsearch.umn.edu/handle/61330.
- Wang, H., J.J. McCluskey, R.C. Mittelhammer, and Junfei Bai. 2011. Food Processing Degrees: Evidence from Beijing Household Survey. Working paper, Washington State University. http://iatrc.software.umn.edu/activities/annualmeetings/themedays/pdf s2010/2010Dec-WangMcCluskyBai.pdf
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Progress 08/01/09 to 07/31/10
Outputs
OUTPUTS: Listed and reported by subproject. 1) Impacts of Organophosphate Pesticides Phaseout in the Apple Industry: Preliminary GAMs codes for the regional economic model have been set up and a test run has been conducted. Next steps. We will work with the 2007 IMPLAN data files for Washington State and identify sectors to model the inputs and outputs related to apple production. We will also modify the preliminary GAMS codes to reflect the project's focus on the apple industry. We are expecting to receive 2007 data on the cost of chemicals and other production inputs from Dr. Jay Brunner of the WSU Pest Management Transition Project. 2) Impact of Strategy and Innovation on Performance within the Washington State Organic Industry: A survey has been constructed, tested, and fielded. Results are being tabulated. 3) Wine Consumption and Market Opportunities in China: Implications for U.S. Wine Exports: A doctoral student funded by this project. The student went to Shanghai (16 days) and Beijing (13 days) in May and June this summer to collect data for this projects. He conducted surveys and experiments at both locations with both residents and students on their preferences and consumption habits for wine. He used an auction approach for his experimental design. The questionnaire used in Beijing was slightly modified from the version used in Shanghai based on feedback. The data has been entered in a spreadsheet format, and we will begin the analysis this semester. A working draft report/paper will be completed by December 2009. AFRI proposal, which builds on this work, was funded by the USDA. 4) Assessment of the Agritourism Industry in Washington State: We completed a draft of the survey questionnaire and obtained a Certificate of Exemption from the WSU Institutional Review Board. The exemption is given for any research study considered as minimal risk to human subjects under federal regulations. We pre-tested the survey in the Farmer's Market in Moscow, ID. We also consulted with the WSU Social and Economic Sciences Research Center (SESRC) about the contents and layout of the questionnaire and obtained useful suggestions. We revised our questionnaire based on the comments from the pre-test survey and from SESRC. We are currently preparing the survey questionnaire in two formats: (1) online; and (2) mail for whom we did not find an email address. We will use the information from our inventory list of agritourism businesses in Washington State to determine whether to send them an online survey or mail survey. The survey will be distributed during the slow seasons of the agritourism businesses and we have identified the said periods based on the types of services and products that they offer. The first wave of surveys will be disseminated starting in October 2009. 5) Invasive Species Policies and Trade Effects: The research team is investigating 1) spatial aspects of invasive species outbreaks across countries, relative to the level of investment and 2) welfare impacts of disease outbreaks in North America and Australia. Papers have been drafted both tasks: a) Perevodchikov, E., T. Marsh, and J. Steele. 2009. " 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
Listed and reported by subproject. 1) Impacts of Organophosphate Pesticides Phaseout in the Apple Industry: We will use these data and the updated GAMS codes to simulate different scenarios and estimate the economic impacts of phasing out organophosphate pesticides in apple production. 2) Impact of Strategy and Innovation on Performance within the Washington State Organic Industry: Producers need information on the business management skills needed to run a successful organic operation, but not enough is known. Research to date has not identified how organic producers evaluate their business environment when making short- and long-run planning decisions. The lack of information on the business culture and business management practices of organic producers in Washington is a critical problem. Having and understanding this information will lead to the identification of business strategies, which can improve the business performance of new and existing organic producers and help them grow their domestic and international market share. 3) Wine Consumption and Market Opportunities in China: Implications for U.S. Wine Exports: An obstacle to overcome in meeting the potential untapped demand in China is the lack of understanding of China's consumer wine preferences and how these preferences will drive their purchasing habits and behavior. Evidence-based development of marketing strategies, trade policies, and focus is needed for exporting wine to the world's fastest growing economy. This research will allow wine producing regions, such as Washington State, to better meet Chinese consumer needs. 4) Assessment of the Agritourism Industry in Washington State: Lack of knowledge regarding the scope and scale of the agritourism industry is an important issue because, without it, we cannot adequately and thoroughly characterize the different benefits that accrue to the farms and to other economic sectors. Furthermore, recognizing the factors that attract local and foreign tourists will help further promote agritourism beyond the state and the national borders. Characterizing the agritourism entrepreneurship in different counties of Washington State and determining the extent to which Washington's agritourism industry attracts foreign tourists are targeted outcomes. 5) Invasive Species Policies and Trade Effects: The central idea is to develop a decision support tool to: identify livestock inventories and trade before and after outbreaks; identify the intertemporal and spatial economic effects of outbreaks; facilitate risk analysis; analyze the intertemporal and spatial effects and economic cost of mitigation measures; better understand impacts of regionalization; and assess domestic and international trade impacts (trade bans, trade agreements, etc).
Publications
- No publications reported this period
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Progress 08/01/08 to 07/31/09
Outputs
OUTPUTS: The method of operation is to employ teams of university scientists who will work closely with the private sector and with state and federal agencies to identify issues and problems of high priority need, and then pursue directed applied research to analyze issues and identify solutions to priority problems. The subprojects included under this special grant call for expertise in an array of scientific disciplines and use of diverse and often highly technical procedures in meeting their goals. The specific procedures vary by subproject but in all cases adhere to the highest scientific standards. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: The method of operation is to employ teams of university scientists who will work closely with the private sector and with state and federal agencies to identify issues and problems of high priority need, and then pursue directed applied research to analyze issues and identify solutions to priority problems. The subprojects included under this special grant call for expertise in an array of scientific disciplines and use of diverse and often highly technical procedures in meeting their goals. The specific procedures vary by subproject but in all cases adhere to the highest scientific standards. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
Impacts of Organophosphate Pesticides Phaseout in the Apple Industry: Preliminary GAMs codes for the regional economic model have been set up and a test run has been conducted. Next steps. We will work with the 2007 IMPLAN data files for Washington State and identify sectors to model the inputs and outputs related to apple production. We will also modify the preliminary GAMS codes to reflect the project's focus on the apple industry. We are expecting to receive 2007 data on the cost of chemicals and other production inputs from Dr. Jay Brunner of the WSU Pest Management Transition Project. We will use these data and the updated GAMS codes to simulate different scenarios and estimate the economic impacts of phasing out organophosphate pesticides in apple production. Impact of Strategy and Innovation on Performance within the Washington State Organic Industry: A survey has been constructed, tested, and fielded. Results are being tabulated. Wine Consumption and Market Opportunities in China: Implications for U.S. Wine Exports: A doctoral student funded by this project. The student went to Shanghai (16 days) and Beijing (13 days) in May and June this summer to collect data for this projects. He conducted surveys and experiments at both locations with both residents and students on their preferences and consumption habits for wine. He used an auction approach for his experimental design. The questionnaire used in Beijing was slightly modified from the version used in Shanghai based on feedback. The data has been entered in a spreadsheet format, and we will begin the analysis this semester. A working draft report/paper will be completed by December 2009. AFRI proposal, which builds on this work, was funded by the USDA. Assessment of the Agritourism Industry in Washington State: We completed a draft of the survey questionnaire and obtained a Certificate of Exemption from the WSU Institutional Review Board. The exemption is given for any research study considered as minimal risk to human subjects under federal regulations. We pre-tested the survey in the Farmer's Market in Moscow, ID. We also consulted with the WSU Social and Economic Sciences Research Center (SESRC) about the contents and layout of the questionnaire and obtained useful suggestions. We revised our questionnaire based on the comments from the pre-test survey and from SESRC. We are currently preparing the survey questionnaire in two formats: (1) online; and (2) mail for whom we did not find an email address. We will use the information from our inventory list of agritourism businesses in Washington State to determine whether to send them an online survey or mail survey. The survey will be distributed during the slow seasons of the agritourism businesses and we have identified the said periods based on the types of services and products that they offer. The first wave of surveys will be disseminated starting in October 2009. Invasive Species Policies and Trade Effects: The research team is investigating 1) spatial aspects of invasive species outbreaks across countries, relative to the level of investment and 2) welfare impacts of disease outbreaks in North America and Australia.
Publications
- Perevodchikov, E., T. Marsh, and J. Steele. 2009. "Invasive Species Outbreaks: A Spatial Game Theoretic Approach," SES Working Paper, WSU.
- Perevodchikov, E. and T. L. Marsh. 2009. "International Trade and FMD in the Livestock Sector," Selected Paper, SES Working Paper.
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