Source: PURDUE UNIVERSITY submitted to
AGRICULTURAL AND RURAL FINANCE MARKETS IN TRANSITION (NC1014, NC221, NCT-194)
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
TERMINATED
Funding Source
HATCH
Reporting Frequency
Annual
Accession No.
0219653
Grant No.
(N/A)
Project No.
IND010554R2
Proposal No.
(N/A)
Multistate No.
NC-_OLD1177
Program Code
(N/A)
Project Start Date
Oct 1, 2009
Project End Date
Sep 30, 2014
Grant Year
(N/A)
Project Director
Wang, HO.
Recipient Organization
PURDUE UNIVERSITY
(N/A)
WEST LAFAYETTE,IN 47907
Performing Department
Agricultural Economics
Non Technical Summary
The project will have two components. First, the new federal farm programs, especially ACRE will be studied in the context with other existing risk management tools, such as crop yield and revenue insurance, futures market and other instruments. The added risk protection value and welfare transfer value of ACRE will be evaluated. This policy impact on farms' financial performance will be investgated. Second, the international financial market and policy including recent financial crisis and excahgne rate policies of each major players in the world market will be examined. Using China, a huge agricultural commodity consumer, as a case, the exchange rate policy impact on market demand for commodities grown in the Midwest including grain crops, livestock and specialty crops, will be explored. Product quality and food safety are an important part of the competitiveness of US agriculture. Their roles in expanding US agricultural market, especially under the pressure of international financial crisis will be explored.
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
6031719301010%
6063240301010%
6033520301010%
6033450301010%
6033240301010%
6101510301010%
6101820301010%
6063520301010%
6063450301010%
6061719301010%
Knowledge Area
603 - Market Economics; 610 - Domestic Policy Analysis; 606 - International Trade and Development;

Subject Of Investigation
3240 - Duck and goose, live animal; 1510 - Corn; 1719 - Cotton, other; 3520 - Meat, swine; 1820 - Soybean; 3450 - Milk;

Field Of Science
3010 - Economics;
Goals / Objectives
Examine the impact of recent fluctuations in capital and commodity markets on the performance, management, and regulation of agricultural financial institutions Evaluate the management strategies, capital needs, and policy impacting the financial performance and long-term sustainability of firms in the food and agribusiness sector Identify financial institutions and services that benefit agricultural producers and rural communities and expand agricultural markets, especially those producers that are beginning, young, from socially disadvantaged groups, and/or involved in producing specialty crops Investigate capital structure, financial performance, and investment strategies of firms producing renewable energy in context of long term climate change. Implications of these findings for agriculture and rural communities will be delineated
Project Methods
The primary method used to achieve the goals is empirical analysis. With the increase of fluctuations of agricultural commodity prices and land prices, farmers' risk portfolio is critial to loan decisions made at the the financial instituions to facilitate the capital availability. This is the emphasis in the NC1177 proposed method for objective 2. Time series data of crop yields and market prices will be collected, and statistic models for time series data will be employed. Risk theory and simulation will also be applied to analyze farmers' risk management behavior and the residual risk exposure under the optimal management strategies. Corn and soybean farms in Indiana will be the primary subjects in this analysis. An investigation of the impact of the exchange rate policy changes on cotton price linkages between US (the world largest exporter) and China (the largest user and textile exporter to US) markets will be conducted. Cointegration and other econometric methods will be used in this analysis. This will fit NC1177's 3rd objective and is in line with the proposed study of international finance issues. Futhermore, the impact of current international financial crisis on domestic and export markets of a specialty crop, ducks produced in Indiana primarily, and on the firms' financial perfomances will be explored. The investigator will work closely with the duck industry to obtain and utilize busienss data and macroeconomic data.

Progress 10/01/09 to 09/30/14

Outputs
Target Audience: Taught graduate and undergraduate students through classroom teaching, field trips and study abroad programs to introduce them on how international marketing will affect the US rural economy. Mentored graduate and undergraduate students through research projects. Published journal articles for professional peers. Presented papers at many national and international conferences to disseminate research results to industrial representatives and government officials. Participated in agribusiness executive business trips and events to discuss trade, markets and finance issues related to the food supply chain. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? The PI has worked with twenty one graduate students, both Ph.D. level and Master level, and thirteen visiting scholars on related research projects. All but two Ph.D. students who are still conducting their research, the rest have all completed their Master thesis (or non-thesis research projects) and Ph.D. dissertations. One was a national award winning Master thesis and one was a national award winning dissertation. Assistant and associate professors have been mentored through writing grant proposal together, participating in field surveys, coauthoring papers published in journals, and co-organizing conferences and sessions in conferences. How have the results been disseminated to communities of interest? Eight articles have ben published in peer reviewed journals since the last report and about 30 journal articles published over the four years. They have reached a large audience nationally and internationally. These papers have been cited widely. Nearly 80 papers/posters were presented at conferences and invited talks worldwide have also reached a wide range of scholars, policy makers and industrial practitioners. Mass media interviews were conducted about agricultural policy and impacts on the agricultural society with broadcasts on National Public Radio and China Radio International. These broadcasts have reached hundreds of thousands of listeners. Direct interactions with agribusiness executives and State government officials have also help disseminate the research results. Last but not least, classroom teaching and graduate research advising have also disseminated the research findings to students, future farmers and business professionals in the field. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Multiple sub projects conducted during the four years all contributed to the project goals. First, farm financial performance resulting from their utilization of financial market instruments, government sponsored crop insurance programs and farm programs in the Farm Bill have been investigated. The 2008 Farm Bill was investigated first using representative corn growers in Indiana. Results indicate that the new ACRE program in the 2008 Farm Bill is not universally recommended for as a substitute to the traditional crop insurance from the financial performance basis. Financial cost to the government also was studied and results show that the costs of ACRE is lower than previous government programs while providing the same benefit to farmers. Papers were presented at professional conferences. Second, China is becoming a primary market for US agricultural commodities, especially for Indiana and the Midwest. Agribusiness is trying to sell more corn, pork, poultry, and dairy products to China as well. Dozens of papers have been written about Chinese consumers preferences for food from the United States based on field survey data. General results indicate that Chinese consumers are concern greatly about the safety issues from domestically grown and produced food, however, they also concerned about the taste, freshness and other attributes of food imported from the United States. These results indicate the Chinese market has more potential for US agricultural commodities, which will bring financial benefits to farms and agribusiness in the United States, especially the Corn Belt. Third, other agricultural financial topics such as crop insurance, rural property insurance, and commodity price volatilities were studied.

Publications

  • Type: Websites Status: Published Year Published: 2014 Citation: Wang, H. H. Comments on Chinese Central Governments No 1 Document in 2014, Interviewed as an oversea economist by China Radio International, aired live on January 29, 2014. http://english.cri.cn/7146/2014/01/29/2861s810669.htm
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Wang*, H. H., Y. Wang and M. Delgado*. The Transition to Modern Agriculture: Contract Farming in Developing Countries. American Journal of Agricultural Economics, 96 (4) (2014):1257-1271
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Ortega*, D. L., H. H. Wang*, and N. J. Olynk Widmar. Aquaculture Imports from Asia: An Analysis of U.S. Consumer Demand for Select Food Quality Attributes. Agricultural Economics, 45(2014): 625-634
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Zheng*, Q., H. H. Wang*, and Q. Shi. Estimating Bivariate Yield Distributions and Crop Insurance Premiums Using Nonparametric Methods. Applied Economics, 46 (18) (2014):2108-2118.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Ortega*, D. L., C. G. Brown, S. A. Waldron, and H. H. Wang*. Agricultural Marketing and Food Safety in China: A Utility Perspective. Journal of Agribusiness in Developing and Emerging Economies, 4(1) (2014):23-31.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Ortega*, D. L., H. H. Wang*, and N. J. Olynk Widmar. Welfare and Market Impacts of Food Safety Measures in China: Results from Urban Consumers Valuation of Product Attributes. Journal of Integrative Agriculture, 13(6) (2014):1404-1411.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Ortega*, D. L., H. H. Wang*, N. J. Olynk Widmar, and L. Wu. Chinese Producer Behavior: Aquaculture Farmers in Southern China. China Economic Review, 28(2014): 17-24.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Lou*, Y., X. Fang, and H. H. Wang. The Three-Party Game of Contract Farming: Low Contract Compliance Rates in Grain Transactions in China. China: An International Journal, 11(3) (2013): 123-135
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Wang*, H. H. Agricultural Risks and Risk Management in the Current Context of Chinese Economy. Agricultural Finance Review, 78(2) (2013):245-254.
  • Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Ortega*, D. L., H. H. Wang*, and N. J. Olynk Widmar. Effects of Media headlines on Consumer Preferences for Food Safety, Quality and Environmental Attributes. Australian Journal of Agricultural and Resource Economics
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Lai, J., H. H. Wang, D. J. Ortega, and M. Chen. Chinese Consumers Linkages to Pork Quality and Safety: Risk, Environment, and Animal Welfare. Selected Paper, 1st International Academic Conference for Graduate Students, Nanjing Agricultural University, Nanjing, China, October 2014.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Carnegie, R. A., H. H. Wang, Nicole J. Olynk Widmar, and David L. Ortega. Consumer Preference for Quality and Safety Attributes of Duck in Restaurant Entrees: Is China a Market for the US Duck Industry?" Selected Paper, Agricultural and Applied Economics Association Annual Meetings, Minneapolis, MN, July 2014.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Ren, J., L. Li, and H. H. Wang. Home Owners Willingness to Buy Flood Insurance in Rural China. Organized Session Paper, Agricultural and Applied Economics Association Annual Meetings, Minneapolis, MN, July 2014.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Wang, H. H. Consumers Demand on Food Safety and Quality in Chinese Market and its Trade Implications. Keynote Paper, IAMO Forum 2014 on The Rise of the Emerging Economies: Towards Functioning Agricultural Markets and Trade Relations? June 2014, Halle, Germany.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Ren, J. and H. H. Wang. An Empirical Study on the Willingness to Buy for Rural Real Estate Flood Insurance in China. Contributing Papers, International Agricultural Risks, Finance and Insurance Conferences, Zurich, Switzerland, June 2014.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Wang, H. H., R. Carnegie, N. J. Olynk Widmar, D. L. Ortega and J. Liu. Food Quality and Safety Preferences of Both Supply and Demand Sides of Food Service Sector in China. Selected Papers, the CES 2014 Annual Conference, Guangzhou, June 2014.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Zheng, Q., and H. H. Wang. Attribute Preference of Duck Products: from Restaurant Consumer and Managers Perspectives in China. Selected Papers, the CES 2014 Annual Conference, Guangzhou, June 2014.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Wang, H. H. Food Security: China Experience. European Commission Joint Research Centre Workshop on the Eurasian Wheat Belt: Future Perspectives on Regional and International Food Security. Istanbul, Turkey, May, 2014.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Ren, J., L. Li, and H. H. Wang. Chinese Farmers Willingness to Buy for Real Estate Flood Insurance, SCC76 Conference on Economics and Management of Risk in Agriculture and Natural Resources, Pensacola, FL, March, 2014.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Ren, J., L. Li, and H. H. Wang. Flood Insurance in Rural China: Are Farmers Willing to Buy? Selected Paper, the CES 2014 North America Conference, West Lafayette, IN, March, 2014.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Carnegie, R., H. H. Wang, N. J. Olynk Widmar, D. L. Ortega and J. Liu. Quality Demand in the Food Service Industry in Urban China. Selected Papers, the CES 2014 North America Conference, West Lafayette, IN, March, 2014.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Zheng, Q., and H. H. Wang. The Market Power of Chinese Wine Industry. Selected Paper, the CES 2014 North America Conference, West Lafayette, IN, March, 2014.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Wang, H. H., Y. Wang, and M. S. Delgado. Contract Farming as a Transition for Small Farm Based Agriculture in Developing Countries to Modern Agriculture: The Case of China. Invited Paper, Allied social Sciences Association Annual Meetings, Philadelphia, PA on January 3-5, 2014.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Carnegie, R. and H. H. Wang. Economic Issues on Chinese Food Safety. The 2013 China-US Eco-Partnership Joint Annual Symposium on Environmental Health and Green Development. Knoxville, TN, November 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Wang, H. H., H. Yu, and B. Li. Is Dairy Complex a Solution to Food Safety for Raw Milk? A Comparison of Farmers Perceived and Realized Food Safety Effects. 2013 CAER-IFPRI Annual International Conference. Wuhan, China, October, 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Ortega, D. L., C. G. Brown, S. A. Waldron, and H. H. Wang. Agricultural Marketing and Food Safety in China: A Utility Perspective. 2013 CAER-IFPRI Annual International Conference. Wuhan, China, October, 2013.
  • Type: Other Status: Published Year Published: 2014 Citation: 1. Carnegie, Rachel, H. Holly Wang, Nichole J. Olynk Widmar, and David L. Ortega. Quality Demand in Urban China: Restaurant Managers and Customers , poster presented at the US-China EcoPartner Workshop, Purdue University, March, 2014.


Progress 10/01/12 to 09/30/13

Outputs
Target Audience: Taught graduate and undersgraduate students through classroom teaching, field trips and study abroad programs to introduce them how international marketing will affect US rural economy. Published journal articles to professional peers contributing both methodologically and empirically. Presented papers at many national and interntional conferences to disemnate research results to industrial representatives and governement officials. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Working with graduate students and junior faculty members to help their careerdevelopment. How have the results been disseminated to communities of interest? Papers published in many journals and presented in many conferences. Share research results in classrooms for future farmers and agribusiness professionals. Talks given at workshops for governement officials and professional from other countries. What do you plan to do during the next reporting period to accomplish the goals? Continue with my research, with an emphasis on international market forour agricultural products, which will contribute to the financial health of our farms and firms in food industry.

Impacts
What was accomplished under these goals? Have evalueated consumers preference and market demand for food products that are important to the long-term sustrainabilit of farms and firms int he food sector.Published6 journal articles and have another 5 accepted, published two book chapters, and made 12 conference presentations during this period.

Publications

  • Type: Other Status: Published Year Published: 2013 Citation: Wang, H. H., H. Yu, and B. Li. Is Dairy Complex a Solution to Food Safety for Raw Milk? A Comparison of Farmers Perceived and Realized Food Safety Effects. Proceedings of 2013 CAER-IFPRI Annual International Annual Conference on: Institutional Innovation and Rural Development. Part I. Wuhan, China, October 17-18, 2013, pp341-349.
  • Type: Journal Articles Status: Accepted Year Published: 2013 Citation: Fang , X. and H. H. Wang. The Three-Party Game of Contract Farming: Low Contract Compliance Rates in Grain Transactions in China. China: An International Journal.
  • Type: Journal Articles Status: Accepted Year Published: 2013 Citation: Ortega, D. L., C. G. Brown, S. A. Waldron, and H. H. Wang. Agricultural Marketing and Food Safety in China: A Utility Perspective. Journal of Agribusiness in Developing and Emerging Economies
  • Type: Journal Articles Status: Accepted Year Published: 2013 Citation: Ortega, D. L., H. H. Wang, and N. J. Olynk Widmar. Aquaculture Imports from Asia: An Analysis of U.S. Consumer Demand for Select Food Quality Attributes. Agricultural Economics.
  • Type: Journal Articles Status: Accepted Year Published: 2013 Citation: Ortega, D. L., H. H. Wang*, N. J. Olynk Widmar, and L. Wu. Chinese Producer Behavior: Aquaculture Farmers in Southern China. China Economic Review.
  • Type: Journal Articles Status: Accepted Year Published: 2013 Citation: Ortega, D. L., H. H. Wang, and N. J. Olynk Widmar. Welfare and Market Impacts of Food Safety Measures in China: Results from Urban Consumers Valuation of Product Attributes. Journal of Integrative Agriculture.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Wang, H. H., R.N. Karuaihe, D. L. Young, and Y. Zhang. Farmers Demand for Weather-Based Crop Insurance Contracts: The Case of Maize in South Africa. Agrekon, 52(1) (2013):87-110.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Wang, H. H., X. Zhang, D. L. Ortega, N. J. Olynk Widmar. Information on Food Safety, Consumer Preference and Behavior: The Case of Seafood in the US. Food Control, 33(1) (2013):293-300.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: He, C., K.K. Quagrainie, and H. H. Wang. Determinants of Shrimp Importation into the USA: An Application of an Augmented Gravity Model. Journal of Chinese Economics and Business Studies, 11(3) (2013):219-228.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Wang, H. H. Agricultural Risks and Risk Management in the Current Context of Chinese Economy. Agricultural Finance Review, 78(2) (2013):245-254.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Wang, H. H., R. W. Zhang, and D. L. Ortega. Chinese Food Safety Situation in a Globalized World Market. Journal of Chinese Economics, 1(1) (2013):114-124.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Ortega, D. L., H. H. Wang, N. J. Olynk Widmar, and L. Wu. Chinese Producer Behavior: Aquaculture Farmers in Southern China. Organized Session Paper, Agricultural and Applied Economics Association Annual Meetings, Washington, DC, August 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Yu, H., H. H. Wang, B. Li. What Can We Do to Ensure Food Safety of Raw Milk in China? Organized Session Paper, Agricultural and Applied Economics Association Annual Meetings, Washington, DC, August 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Wang, H. H., D. L. Ortega, C. G. Brown, and S. A. Waldron. Agricultural Marketing and Food Safety in China: A Utility Perspective. Selected Paper, CES Annual International Conference on the Chinese Financial System in Transition: Reforms, Policies and Practices, Chengdu, China, June 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Guo, Q. H. H. Wang and Y. Chen. Market Power Estimation by Controlling Price Heterogeneity. Selected Paper, CES Annual International Conference on the Chinese Financial System in Transition: Reforms, Policies and Practices, Chengdu, China, June 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Zheng, Q. and H. H. Wang. Chinese Wine Firms Market Power under Price Heterogeneity. Selected Paper, CES Annual International Conference on the Chinese Financial System in Transition: Reforms, Policies and Practices, Chengdu, China, June 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Ortega, D. L., H. H. Wang, N. J. Olynk Widmar, and L.Wu. Sustainability and Producer Behavior: Aquaculture Farmers in Southern China. 134th EAAE Seminar: Labels on Sustainability: An Issue for Consumers, Producers, Policy Makers and NGOs. Paris, France, March 21-22, 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Hu, Z., T. Baker, and H. H. Wang. Are the US Crop Insurance Programs Fair Across Regions and Crops?. SCC76 Economics and Management of Risk in Agriculture and Natural Resources. Pensacola, FL, March 14-16, 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Ortega, D. L., H. H. Wang, and N. J. Olynk Widmar. Effects of media headlines on consumer preferences for food safety, quality and environmental attributes. Australian Agricultural and Resource Economists Society 57th Annual Conference, Sydney, Australia, February 5-8, 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2012 Citation: Ortega, D. L., H. H. Wang, and N. J. Olynk Widmar. US Consumer Preferences for Imported Food Safety and Quality, Media Effect, and Implications to China. The Chinese Economists Societys Presidential Forum at Kunming, China on December 17, 2012.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2012 Citation: Ortega, D. L., H. H. Wang, and N. J. Olynk. Effects of Media Exposure on Consumer Preferences for Shrimp Safety, Quality and Environmental Attributes. CAER-IFPRI Annual International Conference on Transforming Chinas Agricultural and Rural Sector: Challenges and Solutions, Beijing, China, October 18-19, 2012.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Yu, Hailong, and H. Holly Wang. What Can We Do to Ensure Food Safety of Raw Milk in China. US-China EcoPartner Workshop, Purdue University, February, 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Zhang, Robin W., Rachel A. Carnegie, and H. Holly Wang. Understanding Chinese Duck Markets, Consumption and Production. Purdue Poultry Day with the Indiana State Poultry Association, West Lafayette, IN, August, 2013.
  • Type: Journal Articles Status: Published Year Published: 2012 Citation: Wang, H. H. and X. Xin. Food Price and Biofuels. China Agricultural Economics Review, 4(4) (2012): 405-406.
  • Type: Book Chapters Status: Published Year Published: 2012 Citation: Wang, H. H. Chinese Agricultural Issues in the Global Background. In Chinas Economic Reform and its Future Development: Symposia of the First CES Presidential Forum. Eds by Y. Wang and K. Li. Nankai University Press, Tianjin, China, 2012, pp139-148.
  • Type: Book Chapters Status: Published Year Published: 2013 Citation: Wang, H. H. and Y. Wang. Introduction to Agricultural Insurance in the US. Report on the Development of Chinese Agricultural Insurance 2012. Eds by G. Tuo. China Agriculture Press, Beijing, China, 2013, pp 274-282.


Progress 10/01/11 to 09/30/12

Outputs
OUTPUTS: The outputs of the agricultural financial market in transition project developed in the past year include six peer reviewed journal articles, all in SCI and SSCI journals, eight conference presentations, and six invited talks as reported in the publication category. Field surveys were conducted, and a lot of mentoring to graduate students, junior scholars and visiting scholars occurred. Research was also incorporated in classroom teaching. PARTICIPANTS: Dr. Wang is the sole PI of this project. She has several collaborators from Purdue as well as other universities. Dr. Laping Wu from China Agricultural University, Dr. Yuehua Zhang from Zhejiang University (China), Dr. Junfei Bai from China Academy of Science, and Dr. Nicole Olynk from the same department are all collaborators. She has trained one PHD student at Purdue University, David Ortage, who has successfully defended his dissertation, received tenure tracked assistant professor offers from two major land grant university and will start his career in Jan. of 2013 at Michigan State University. With this project, she has trained two another PHD students as Purdue visiting students from Renmin University of China and China Agriculture University, Qing Guo and Yanping Zhang. The former is finishing up his dissertation from the project and the latter has successfully completed her PHD degree using this project and now employed by China Ministry of Agriculture. TARGET AUDIENCES: The target audience of this projects are professionals in agricultural risks and finance internationally, farmers, financial industry, policy makers and governments of developing countries. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
The six peer reviewed journal articles are all in SCI or SSCI journals which means they are widely read. Especially, the AJAE 2012 article has been cited twice already as reported by Google Scholar. the Boyd, et al paper won the journal's annual best paper award issued by Emerald Publishing. The eight conference presentations, including one keynote speech to the entire conference, made during this year reached an audience of 800 internationally. The six invited talks also reached an audience of about 250. The audience included scholars, financial industry, and government officials in US, China, Brazil, Australia, and many other countries because several conferences have wide international participants, such as the annual conference of International Association of Agricultural Economists (IAAE). The biggest Chinese private insurance adjusting company, who learned from a web report about one invited talk on insurance given by Dr. Wang in June, sent a delegation to Purdue in September to learn furthermore about US crop insurance. They reported that they had gained a lot of practical knowledge.

Publications

  • Xu, C., H. H. Wang, Q. Shi. "Farmers' Income and Production Responses to Rural Taxation Reform in Three Regions in China." Journal of Agricultural Economics, 63(2) (2012): 291-309.
  • Ortega, D. L., H. H. Wang, N.J. Olynk, J. Bai, and L. Wu. "Chinese Consumers Demand for Food Safety Attributes: A Push for Government and Industrial Regulations." American Journal of Agricultural Economics, 94 (2) (2012): 489-495.
  • Wang, H. H., Y. Zhang, and L. Wu. "Is Contract Farming A Risk Management Instrument for Chinese Farmers Evidence from a Survey of Vegetable Farmers in Shandong." China Agricultural Economic Review, 3(4) (2011):489-505.
  • Boyd, M., J. Pai, Q. Zhang, H. H. Wang, and K. Wang. "Factors Affecting Crop Insurance Purchases in China: The Inner Mongolia Region." China Agricultural Economic Review, 3(4) (2011):441-450.
  • Boyd, M., and H. H. Wang. "The Role of Public Policy and Agricultural Risk Management in Food Security." China Agricultural Economic Review, 3(4) (2011): 417-422.
  • Ortega, D. L., H. H. Wang, N. J. Olynk. "U.S. Consumer Demand for Food Safety and Eco-friendly Production Process Attributes in Imported Aquaculture Products." Organized Session Paper, CES Annual International Conference on Development beyond the Middle Income Trap: China in Transition, Kaifeng, China, June 2012.
  • Guo, Q. H. H. Wang, Y. Chen. "Evaluating Market Power and Productivity for Chinese Dairy Industry." Selected Paper, CES Annual International Conference on Development beyond the Middle Income Trap: China in Transition, Kaifeng, China, June 2012.
  • Wang, H. H.. "Managing Agricultural Risks under the Vulnerable Ecosystem in China." Invited paper, the 2012 Annual Symposium of US-China Ecopartnership for Environmental Sustainability: Land Use, Ecosystem Services, and Sustainable Development, Shenyang, China, September, 2012.
  • Ortega, D. L., H. H. Wang, N.J. Olynk. "Demand for Food Safety and Eco-Friendly Attributes in Aquaculture Products." Organized Symposium, International Association of Agricultural Economics, Foz du Iguacu, Brazil, August 2012.
  • Zhang, Y., and H. H. Wang. "Can Farmers' Insurance Under-Report Behavior Be Considered Cheating" Organized Session Paper, Agricultural and Applied Economics Association Annual Meetings, Seattle, WA, August 2012.
  • Ortega, D. L., H. H. Wang, N. J. Olynk. "Modeling Consumer Preferences for Sustainability, Food Safety, and Production Process Attributes of Imported Aquaculture Products from China." Organized Session Paper, Agricultural and Applied Economics Association Annual Meetings, Seattle, WA, August 2012.
  • Wang, H. H. "Risks and Risk Management in the Context of Chinese Agriculture in 2012." Keynote paper, International Agricultural Risk, Finance and Insurance Conference, Beijing, China, June 2012.
  • Ortega, D. L., H. H. Wang, N. J. Olynk. "Food Safety Policies in China: Consumer Welfare and Aggregate Market Impacts." 2011 CAER-IFPRI Annual International Conference on Is China Entering a High Food Price Era Chengdu, China, October 2011.


Progress 10/01/10 to 09/30/11

Outputs
OUTPUTS: Outputs include 1) preparing journal publication for the article about US Midwestern farmers' risk management behavior under the ACRE program; 2) writing several publications on Chinese food demand with food safety implications to US livestock products and producers; 3) advising graduate students on a research project regarding to US poultry industry. The paper addressing Midwestern farmers financial management has been presented at conferences and submitted to a peer reviewed journal. 4) Several journal articles are either published or accepted for publication (only the published ones are listed for this period.) Some of peer viewed journal articles are for a market relevant to US commodity (the cotton paper) or relevant to financial risk management modeling (contracting, financial markets, etc.) 5) More data are collected on demand for aquaculture products, through consumer survey and interview agribusiness. 6) One Master student defended his thesis. The primary means of dissemination of the research work is through peer reviewed journal publication and professional conference presentation. PARTICIPANTS: The only person paid by this project is the PI, Dr. H. Holly Wang herself. Graduate students, David Ortega, Paul Gardener, Yanping Zhang were paid by different collabortors, and they are also trainees. Partner organizations include Maple Leaf Farms, China Agricultural University, China Academy of Science, and Illinois-Indiana Sea Grant Research. Collaborators include co-authers: Nicole Olynk, Laping Wu, Junfei Bai, Milton Boyd, Tim Baker, Rong Nie, and Poomthan Rangkakulnuwat. TARGET AUDIENCES: Main audience is the professional society. Efforts include giving lectures in classroom of various courses at Purdue University, professional conferences. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Six peer reviewed journal publications relevant to this project during this period warrent the research findings delivered to readers. Google Scholar has docummented over 12 citations for these new articles.

Publications

  • Wang, H. H., J. W. Park, and T. Baker. Contracting, Negotiation, and the Policy Change: The Conflict between Korean Farmers and their Agricultural Cooperatives. Agricultural Economics (Czech), 57(10) (2011): 467-473.
  • Rangkakulnuwat, P., and H. H. Wang. Productivity Growth Decomposition with Fixed Effect-Instrumental Variable Approach: Rethinking Thai Commercial Banks after the Financial Crisis. Economic Modeling, 28(6) (2011): 2579-2588.
  • Nie, R., and H. H. Wang. An Empirical Study on Farmers' Willingness to Participate in Agricultural Insurance in Liaoning Province. Mathematics in Practice and Theory, 41(4) (2011): 58-63.
  • Ortega, D. L., H. H. Wang, L. Wu and N. J. Olynk. Modeling Heterogeneity in Consumer Preferences for Select Food Safety Attributes in China. Food Policy, 36 (2) (2011): 318-324. Wang, Z., S. Zheng, H. H. Wang, and S. Song. Can Migrant Workers' Nutrition and Health Level Affect their Salary Income China & World Economy, 18, (5) (September - October 2010):105-124.
  • Tian, L., H. H. Wang, Y. Chen. Spatial Externalities in Regional Economic Growth of China. China Economic Review, 21 (s1, 2010): 21-30.
  • Ge, Y., H. H. Wang, and S. Ahn. Cotton Market Integration and the Impact of China's New Exchange Rate Regime. Agricultural Economics. 41 (September, 2010):442-451.
  • Ortega, D. L., H. H. Wang, N. J. Olynk, J. Bai, and L. Wu. Chinese Consumers Demand for Food Safety Attributes: A Push for Government and Industrial Regulations. Invited Paper, Agricultural and Applied Economics Association Annual Meetings, Philadelphia, PA, July 2011.
  • Wang, H. H., Y. Ge, and K. Foster. Price Drivers in the Global Food Crisis and Implications to Food Price Rise. Organized Session Paper, CES Annual International Conference on Ten Years after WTO Accession: China and the World Economy, Beijing, China, June 2011. Wang, H. H., Y. Chen, and G. Patrick. New Government Support Programs in the US: the Average Crop Revenue Election. 2010 CAER-IFPRI Annual International Conference on Agriculture and the Wealth of Nations, Beijing, China, October 2010.
  • Ortega, D. L., H. H. Wang, and N. J. Olynk. Food Safety Policies in China: Consumer Welfare and Aggregate Market Impacts. Proceedings of 2011 CAER-IFPRI International Annual Conference on: Is China Entering a High Food Price Era Chengdu, China, October 22-23, 2011, pp165-171.


Progress 10/01/09 to 09/30/10

Outputs
OUTPUTS: Activies include 1) conducting statistical analysis for corn and wheat yield and market price risks at the levels of state, national and interntional (Indiana, US, and China); 2) conducting field surveys on Chinese market demand for US meat products; 3) collecting and analyzing data from macroeconomic environment, market and food safety risks for the poultry industry; 4) finalizing research on cotton futures market analysis; 5) finishing up a risk management computer tool for apple growers; and 6) mentoring four graduate students on related projects. The studies on corn and wheat are focused on the new method in yield modeling and the financial risk mitigation programs in the US Farm Bill. Papers have been completed and presented at professional conferences, and submitted to a journal. One student finished his Master thesis on this topic, and another student is finishing her PhD dissertation on this topic. The study on Chinese meat demand takes on the food safety risk issues and investigates the potential for US livestock export to that market. The poultry study is focused on duck producers in the US. Factors affecting the profitability of duck farms include food safety risks, prices, and population demograph. The study on the commodity futures market for cotton investigated the efficiency of global financial market. The apple project is for apple growers to evaluate his/her own farm risks, when he/she choose organic versus conventional apple productions. A computer tool was sent to many apple growers and is posted online for free public access. Research from these projects has been presented at many conferences. The PI also organized a conference and several sessions at other conferences. Other than research publications, the comupter tool is accessible at http://www.ses.wsu.edu/applerisk/ and http://www.cals.uidaho.edu/aers/apple/Apple.swf. PARTICIPANTS: Qiujie Zheng, former PHD student; Yunguang Chen, former MS student at Purdue University, now PHD student at Oregon State University; David Ortega, Yuanlong Ge, PHD students at Purdue University; George Patrick, Nicole Olynk, faculty members at Prudue University; Ahn Sung, collaborator at Washington State University; Larry Makus, collaborator at University of Idaho; Shunfeng Song, collaboraor at University of Nevada; Laping Wu, Junfei Bai, Qinghua Shi, collaborators in China. TARGET AUDIENCES: The primary audience of the project includes professionals and policy makers. The PI has participated in many professional conferences and made presentations to dissenminate the results to professionals, hoping the methods developed will be accepted and applied widely. Publications are written to reach more people including policy makers. The audience of the apple risk managment tool is farmers. The tool has been mailed to many identified apple growers and is posted online for free access. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
New knowledge has been developed through empirical studies mentioned above. For example, the new Average Crop Revenue Election is shown to be more cost effective than traditional governemnt support programs for the federal government. A new bi-variate nonparametric modeling for joint yield distribution is introduced for corn and wheat, when the two crops are planted on the same farm for rotation. This model is the first application on the stochastic crop yield distribution. The US cotton futures market is found to be integrated with cotton futures markets in China, the biggest cottom importing country from the US. We found that the markets are influenced by the exchange rate between the two currencies, and the Law of One Price is not established yet.

Publications

  • Ge, Y., H. H. Wang and S. Ahn. (2010) Cotton Market Integration and the Impact of Chinas New Exchange Rate Regime. Agricultural Economics, 41(5):442-451, 2010.
  • Ortega, D. L., H. H. Wang, and L Wu. (2009) Food Safety and Demand: Consumer Preferences toward Imported Pork in Urban China. Journal of Food Distribution Research, 40, (3): 52-63.
  • Chen, Y., H. H. Wang, G. Patrick. (2010) Average Crop Revenue Election (ACRE) Program or Traditional Government Payment Programs: What Factors Matter Selected Paper, Agricultural and Applied Economics Association Annual Meetings, Denver, CO, July 2010. Abstract, http://purl.umn.edu/61490
  • Ortega, D. L., H. H. Wang, L. Wu, Junfei Bai and N. Olynk. (2010) Measuring Heterogeneity in Consumer Preferences for Select Food Safety Attributes in China. Track Session Paper, Agricultural and Applied Economics Association Annual Meetings, Denver, CO. Abstract, http://purl.umn.edu/61175
  • Ortega, D. L., H. H. Wang, L. Wu, J. Bai, and N. Olynk. (2010) Measuring Heterogeneity in Consumer Preferences for Select Food Safety Attributes in China. Organized Session Paper, CES Annual International Conference on Chinese Economic Growth in Regional and Global Context, Xiamen China, June 2010. Abstract, The Role of China in the Post-Crisis Era Abstracts, The China Economists Society and Xiamen University, p.23.
  • Zheng, Q., H. H. Wang, and Q. Shi. (2010) Estimating Bivariate Yield Distributions and Crop Insurance Premiums Using Nonparametric Methods. Contributed paper, A Forum: The Relevance of Chinese Economic Development, West Lafayette, IN.
  • Chen, Y., H. H. Wang, G. Patrick. (2010) The Impact of the Average Crop Revenue Election on Farmers' Risk Management and on Government Expenditure. SCC76 Conference on Economics and Management of Risk in Agriculture and Natural Resources, Destin, FL.