Progress 10/01/09 to 09/30/14
Outputs
Target Audience: The outputs of all research activities undertaken under this project have been disseminated to extension clientele within the state (includes farmers, farm lenders, industry groups and government-affiliated people). Numerous presentations were also made at professional/academic conferences at the local, regional, national and international levels. 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? The results were disseminated through publications of bulletins, journal articles and other written materials made available by print or online. These materials were disseminated to a wide array of audiences in the industry, government and academic communities. Workshops, seminars and presentations to industry and academic audiences were also made at the local, regional, national and international levels. What do you plan to do during the next reporting period to accomplish the goals?
Nothing Reported
Impacts
What was accomplished under these goals?
For the racial and gender bias in lending research, Dr. Escalante analyzed borrower data sets supplied by the Georgia FSA state office and employed various analytical/statistical techniques to determine the veracity of the farmers’ allegations. Dr. Escalante’s major findings in several studies provide an objective basis (drawn from credit risk assessment standards and models) for the lower loan approval rate experienced by non-white farmer borrowers. His studies also provide support to the judicial courts’ contention of a lack of commonality in the loan and business circumstances of the rejected loan applicants of female farmers. A number of important implications could be drawn from his research findings. First, some clarifications were made that rectify farmers’ usual misconceptions of the “dole-out” nature of certain federal farm programs. The studies’ results also have ruled out some aspects of the loan approval process as sources of discrimination but have also re-directed attention to other phases of the loan application process that need to be scrutinized further in order to reform the credit delivery system. Beyond the lending framework, the research draws attention to the long-standing struggle of minority and women farmers to improve the financial capabilities of their businesses so their credentials can be at par with other successful farm loan applicants. The results of these studies were disseminated to and well-received by a wide range of audiences through journal articles published in major peer-reviewed agricultural economics journals; presentations in regional, national, and international professional conferences; and numerous outreach workshops/seminars for farmers and lenders. Officials and analysts from the state and national offices of the FSA expressed significant interest in these studies and have been very supportive throughout the duration of the research. This research also produced an Outstanding Conference Paper Award presented at the 2008 International Conference on Business and Information in Seoul, South Korea. Through these various outreach activities, this research has contributed in bridging the gap between lenders and borrowers by clarifying pressing issues that need to be addressed in order to realize a more equitable implementation of financial assistance programs for farmers. For his immigration policy-farm labor linkages research, he uncovered several important findings. Even before individual states (like Georgia) officially enacted their own state immigration laws, 67% of the farms Dr. Escalante worked with were already experiencing difficulty in hiring seasonal farm laborers as either illegal foreigners have already fled the country or sanctions were already in place for employers caught hiring such workers. Smaller farms experienced greater difficulty in coping with the labor issue as their size could not justify (or afford) large investments in mechanization projects. These farms usually had already exhausted their family farm labor potentials but still needed to hire more off-farm workers. These farms had even already considered offering higher wages to attract domestic workers -- a strategy that did not work even under the recession's high unemployment conditions. Either the domestic workers were hesitant to endure the farms' difficult working conditions or their productivity was far too low compared to the ejected illegal farm workers’ typical output. There was even greater frustration among farmers as they realized that their only remaining legal recourse, the H2A foreign agricultural guest-worker visa program, proved to be too costly, unreliable, and hardly user-friendly. In more recent years, the merits of this research project have been revisited when the media released a surge of articles on significant crop losses realized by farms in Georgia, which the farmers attributed to their unsuccessful attempts to employ domestic workers to replace their former seasonal workers. For several months in 2011, Dr. Escalante and his research have been featured in a number of TV/radio programs (such as the USDA Office of Communications' Daily Radio Newsline, WUGA radio and TV). Articles written based on interviews with Dr. Escalante have also been published in several regional newspapers and magazines. Katti Gray, a renowned multi-awarded journalist, wrote an article on Dr. Escalante's research for the publication "Diverse Issues in Higher Education,” which has since been re-published and circulated nationally. Aside from third-party press coverage, this research was also disseminated through journal articles published in major refereed agricultural economics journals, outreach bulletins made available to the extension clientele, and a number of presentations made at professional conferences and in-state workshops/seminars. The research generated interest and favorable reviews from regional, national, and international audiences. This research brought Dr. Escalante another Best Conference Paper Award in an international conference he attended in Kitakyushu, Japan in 2010. Currently, Dr. Escalante continues to explore strategic options for farm businesses affected by the farm labor-immigration issue. A SARE proposal on the evaluation of possible changes in the H2A foreign farm guest worker visa program has already received favorable reviews and will be submitted for funding consideration in 2014 under SARE’s Research and Education program. A grant proposal dealing with the short- and long-run feasibility of the mechanization alternative is also being finalized and should be able to generate some more research funds. For his microfinance research, Dr. Escalante has worked with several graduate students to conduct country- or region-specific analyses of MFI operations. He worked with a graduate student who revisited the Indian model and analyzed operating efficiency from the institution and borrower perspectives. Another graduate student from China worked on the relative efficiencies of Chinese MFIs vis-a-vis large agricultural government lenders and the commercial banking sector in China. A Ukrainian graduate student focused her analyses on the universality of the microfinance operating model by determining the relative emphases of financial sustainability and social outreach goals among MFIs in the newly independent republics (Caucasus and Central Asia regions, formerly part of the USSR) and India (a pioneer country in microfinance used as the study's base case). These research collaborations produced several theses and dissertations, working papers and journal articles. Papers written on this subject matter have also been presented in various regional and national professional conferences. An important recognition received is the Outstanding Master’s Thesis Award from the Agricultural and Applied Economics Association (the premier national professional organization in our field) for thesis research on Indian MFI borrower and institution efficiency analyses using Bayesian econometric methods. Dr. Escalante has also entered into an agreement with the Ateneo de Manila University's Social Enterprise Development Partnerships, Inc. for research work on Philippine MFI impact assessment studies. New graduate student advisees are also developing MS thesis work plans on the current state and direction of MFI activities in Latin America and Africa.
Publications
- Type:
Journal Articles
Status:
Published
Year Published:
2014
Citation:
Escalante, C.L., G. Kostandini, and E. Mykerezi. The Decentralization of Immigration Enforcement and Implications for Agriculture. Choices, 29(1).
- Type:
Journal Articles
Status:
Published
Year Published:
2014
Citation:
Kostandini, G., E. Mykerezi, and C.L. Escalante. The Impact of Immigration Enforcement on the Farming Sector. American Journal of Agricultural Economics, 96,1 (2014): 172-192.
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Progress 01/01/13 to 09/30/13
Outputs
Target Audience: The target audiences for the research projects undertaken this year include socially disadvantaged and small farmers, farm lenders, commodity groups or associations, academic researchers in agricultural sciences, sociology, economics and other related disciplines and other sectors of the farm industry. 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? The results have been disseminated through presentations to outreach audiences (farmers, lenders and industry groups) as well as to professional, academic audiences at regional, national and international conferences. Outreach bulletins were developed and disseminated. Journal articles were published. In addition, research results have also been used in classroom instruction. What do you plan to do during the next reporting period to accomplish the goals? There are a number of journal articles-in-progress that hopefully will be published. Additional outreach bulletins are also being developed. Greater visibility in local and state outreach events will also be pursued. Several conference papers are also being lined up for upcoming regional, national and international conferences.
Impacts
What was accomplished under these goals?
The major themes of research work done during the year were farm labor issues, microfinance and agricultural banking conditions. Three journal articles were published in 2013, with another four articles already accepted for publication in 2014. Six conference papers were presented in regional, national and international conferences. Several opportunities for outreach work were pursued during the year. These pertain to issues in credit access and credit risk measurement for organic farmers, the demand for microloans among smaller farms, and the viability of farms operated by minority farmers socially disadvantaged based on their gender and racial minority affiliations (such as African American women farmers). These outreach activities will lead to more research and publication opportunities in the following year.
Publications
- Type:
Journal Articles
Status:
Published
Year Published:
2013
Citation:
Escalante, C.L., M. C. Ferrer, and B. Wang. USDA Microloans and Small Organic Farms: Filling a Lending Niche. Choices, 28(1). Available at http://www.choicesmagazine.org.
Li, X., C.L. Escalante, J.E. Epperson, and L.F. Gunter. Agricultural Banking and Early Warning Models of Bank Failures for the Late 2000s Great Recession. Agricultural Finance Review, 73,1 (2013): 119-135.
Epperson, J.E., and C.L. Escalante. The Effect of the Eurozone Crisis on U.S. Food Companies. J. Food Distr. Res., 44,1 (March 2013):75-82.
Escalante, C.L. and W.D. Shurley. Cash Rental Rates for Georgia Farmland, 2011-2012. Department of Agricultural and Applied Economics. AGECON 13-002 (August 2013).
Escalante, C.L. Financial Outlook: U.S. and Georgia Farms in Georgia Farm Outlook and Planning Guide for 2013-2014. Department of Agricultural and Applied Economics. University of Georgia. December 2013, pp.6-7.
Escalante, C.L., Financial Conditions of U.S. and Georgia Farms. in 2014 Georgia Economic Outlook, Selig Center for Economic Growth, University of Georgia, December 2013.
Escalante, C.L. and Y. Wu. The U.S. Organic Farms Dependence on Seasonal Farm Labor in the Post 9/11 Drive against Illegal Immigration. 3rd Annual International Conference Proceedings Qualitative and Quantitative Economics Research (QQE 2013), Global Science and Technology Forum. 20-21 May 2013, Bangkok, Thailand.
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Progress 01/01/12 to 12/31/12
Outputs
OUTPUTS: Two journal articles were published on biofuel issues. One looked at the influence of macroeconomic factors in the longstanding debate on the prioritization of food versus fuel considerations in making production decisions. The other article developed a model that will determine optimal government subsidies for biodiesel fuel production. A follow-up article with a combined racial and gender bias focus was also published. This article revisits the lawsuits filed against the USDA by minority groups that alleged they were discriminated against when their loan applications were evaluated by the Farm Service Agency. There is also a conference paper on bank failure prediction models as applied to agricultural and non-agricultural banks operating during the late 2000s recession. This paper was later developed into a full-blown journal article and is slated to be published in 2013. Another production economics paper continues to look at the feasibility of fumigant and mulch alternatives for farmers when methyl bromide is completely phased out in the market. Modes of dissemination include more than just publications accessible to academic and professional readers. There were also statewide workshops (such as The Future of Food, Team Agriculture Georgia's Small and Beginning Farmers and County Agents' Winter School workshops). Paper presentations were also made in international conferences (3), national and regional academic conferences (at least 6) and other local meetings. 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
The optimal biodiesel subsidy study considered price response into account in deriving optimal subsidy. Estimated values of the optimal subsidy are close to the recently expired subsidy, revealing the subsidy's environmental and security benefits. However, further positive environmental and security benefits from the biodiesel tax-exemption subsidy may be obtained if the subsidy is combined with a federal excise tax on petroleum diesel. In the study on macroeconomic influence on food versus fuel issues, results support the hypothesis that fundamental market forces of demand and supply are the main drivers of food price volatility. Increased biofuel production may cause short-run food price increases but not long-run price shifts. Decentralized freely operating markets will mitigate the persistence of any price shocks and restore prices to their long-run trends. The main policy implications are that oil, gasoline, and ethanol market shocks do not spillover over into grain prices, which indicates no long-run food before fuel issue. In the short-run, grain prices can spike due to market shocks, so programs designed to blunt these price spikes may be warranted. In the racial and gender bias study, results indicate substantial differentials in approved loan amount gaps between racial and gender classes, favoring white and female borrowers, respectively. Further scrutiny of the borrowers' comparative financial conditions presented to FSA to support their loan applications, however, indicate that these borrower groups significantly dominate their peers in a number of measures that indicate their financial strengths and relatively greater capability to repay their future lending obligations. Hence, this study's results can hardly be construed as evidence of biased lending decisions as these borrower groups should rightfully be 25 offered more favorable loan terms, such as larger loan amounts, by the FSA.
Publications
- Qiu, C., G. Colson, C. Escalante, and M. Wetzstein. Considering macroeconomic indicators in the food before fuel nexus. Energy Economics, 34,6(2012):2021-2028.
- Wu, H., G. Colson, C.L. Escalante, and M. Wetzstein. An Optimal U.S. Biodiesel Fuel Subsidy. Energy Policy, 48(2012): 601-610.
- Wu, Y., C.L. Escalante, L.F. Gunter, and J.E. Epperson. A decomposition approach to analyzing racial and gender biases in Farm Service Agencys lending decisions. Applied Economics, 44,22 (August 2012): 2841-2850.
- Escalante, C.L. Financial Outlook: Georgia Farms in Georgia Farm Outlook and Planning Guide for 2012 2013. Department of Agricultural and Applied Economics. University of Georgia. December 2012.
- Fonsah, E.G., M.C. Ferrer, C.L. Escalante, and S. Culpepper. Financial Analysis of Methyl Bromide and Mulch Alternatives for Bell Pepper in Georgia. Cooperative Extension Bulletin, College of Agricultural and Environmental Sciences, University of Georgia, Bulletin No. 1411, November 2012.
- Escalante, C.L., E.G. Fonsah, C. Lacy, T. Shepherd, D. Shurley, N. Smith, F. Stegelin, and K. Wolfe. Agriculture, 2013 Georgia Economic Outlook, Selig Center for Economic Growth, University of Georgia, December 2012.
- Li, X., C.L. Escalante, J.E. Epperson, and L.F. Gunter. Early Warning Models for Bank Failures: Lessons from the Late 2000s Great Recession. 2nd Annual International Conference Proceedings Accounting and Finance (AF2012), Global Science and Technology Forum. 21-22 May 2012, Singapore.
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Progress 01/01/11 to 12/31/11
Outputs
OUTPUTS: Farm labor and immigration has been a dominant theme in a number of research outputs produced in 2011. The stricter implementation of immigration policies has led to supply gaps in the farm labor market as seasonal farm positions usually held by undocumented immigrants have been unfilled. State and regional effects on farm businesses were analyzed. Coping strategies of farmers have been identified and assessed. Another research also looked into the application of a new approach in evaluating the efficiencies of agricultural and non-agricultural banks. The effect of agricultural-related business activities on microfinance lending was also determined using a unique borrower dataset obtained from an Indian microfinance institution. Then, another study analyzed the economic and financial feasibility of adopting alternative fumigation and mulching systems that will replace methyl bromide, the once reliable fumigant now being phased out for its damaging effects on the ozone layer. 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
The farm labor-immigration research validated claims of a farm labor supply gap in the Southeast region. Sixty-seven percent (67%) of both conventional and organic farms who responded to a regional survey confirmed that they had experiences of difficulty in hiring seasonal farm workers. The survey also asked the farmers about their preferences for specific business strategies to cope with an impending gap in the seasonal farm labor supply. The most popular business strategy for conventional farms considers an input substitution scheme where more machinery will be acquired to reduce labor requirements in the event of a farm labor hiring (or shortage) problem. The respondents in this farm category also considered downsizing of farm operations as the 2nd most popular strategy. On the other hand, the most popular strategy for organic farms is production diversification (i.e. changing production plans to less labor‐intensive commodities). Results of this research provided additional empirical support to popular claims by crop farmers (in Georgia for instance) of about $75 million in crop losses attributed to labor shortages. The bank efficiency and microfinance studies both established the positive effect of agricultural activities of farm borrowers and farm loan portfolios of farm lenders in enhancing the efficiencies of lending institutions. Specifically, even under the novel Fourier functional form approach to efficiency analysis, agricultural banks and other smaller lenders outperform their larger and non-agricultural banking counterparts in terms of realized and potential efficiencies. Microfinance borrowers with more significant agricultural activities have been found to be more likely to meet their loan repayment obligations. Stochastic dominance techniques were used to identify specific fumigation-mulching systems developed by plant scientists that dominate, in both returns and risk bases, other optional methods as well as any mulching technique combined with methyl bromide, the fumigant that was set to be phased out from the market.
Publications
- Yu, Y., C.L. Escalante, J. Houston, L. Gunter, and X. Deng. Analyzing scale and scope specialization efficiencies of U.S. agricultural and non-agricultural banks using the Fourier Flexible Functional Form Applied Financial Economics, 21,15(August 2011): 1103-1116.
- Escalante, C.L., S.L. Perkins, and F.I. Santos.When the Seasonal Foreign Farm Workers Are Gone. Journal of the American Society of Farm Managers and Rural Appraisers,74,1(2011): 83-96.
- Ferrer, M.C., E.G. Fonsah, and C.L. Escalante. Risk Efficient Fumigant-Mulching System Alternatives for Bell Pepper Production. Journal of the American Society of Farm Managers and Rural Appraisers,74,1(2011): 162-174.
- Raghunathan, U., C.L. Escalante, J.H. Dorfman, J. Houston, and G. Ames. The Effect of Agriculture on Repayment Efficiency: A look at MFI borrowing groups. Agricultural Economics,42,4(July 2011): 465-474.
- Escalante, C.L. Financial Outlook: Georgia Farms. Georgia Farm Outlook and Planning Guide for 2011-2012. Department of Agricultural and Applied Economics.University of Georgia. December 2011, p. 6.
- Stegelin, F. and C.L. Escalante. Georgia Farm Labor. Georgia Farm Outlook and Planning Guide for 2011-2012. Department of Agricultural and Applied Economics.University of Georgia. December 2011, pp. 29-30.
- Escalante, C.L., E.G. Fonsah, C. Lacy, J. McKissick, T. Shepherd, D. Shurley, N. Smith, F. Stegelin, and K. Wolfe. Agriculture. 2012 Georgia Economic Outlook, Selig Center for Economic Growth, The University of Georgia, December 2011.
- Escalante, C.L. Custom Farm Machinery Rates in Georgia, 2011. Department of Agricultural and Applied Economics. AGECON 11-0003 (August 2011).
- Bain, Rod and Cesar Escalante.Impacts of Regulation on Farm Labor. USDA Daily Radio Newsline, USDA Office of Communications. August 10, 2011.
- Bain, Rod and Cesar Escalante.Challenges in Hiring Farm Labor.USDA Daily Radio Newsline, USDA Office of Communications. August 10, 2011.
- Escalante, C.L. Actuality: On Farm Labor Hiring Challenges. USDA Daily Radio Newsline, USDA Office of Communications. August 10, 2011.
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Progress 01/01/10 to 12/31/10
Outputs
OUTPUTS: Projects wrapped up during the year include the analysis of consumer premiums for grass-fed and organic milk products, the evaluation of economic benefits of alley cropping systems versus organic and conventional production systems, and the identification of risk efficient, dominant alternative fumigation mulching systems for farmers replacing methyl bromide for use as fumigant. Notably, two of these projects are production economics in nature and these economic assessment studies are designed to benefit both producers and consumers. Ongoing projects include the investigation of the effects of stricter immigration policies on the labor sourcing and business viability of organic and conventional farms in the Southeast. Moreover, outlook articles on the state of agricultural lending and financial conditions of farms in Georgia were published and formed part of the Extension's outreach project. These outlook outreach efforts provide important information to farmers, lenders and other stakeholders in the state that they can use when making business plans and projections. Outreach work specifically targeted toward the landscaping industry has also been implemented during the year. Four cost and bid estimation workshops for landscape installation and maintenance firms were conducted. These workshops assist the landscape businesses in minimizing losses and optimizing profits in the contracts they enter into. PARTICIPANTS: The alternative cropping system study was a collaboration with the Ecology Department of the University of Georgia. The immigration policy changes and farm labor study was funded by a grant from the Sustainable Agriculture Research and Education (SARE). The consumer premiums for grass-fed milk study was a collaboration with the university's Center for Agribusiness and Economic Development (CAED). The cost and estimation software project for landscape installation and maintenance is an ongoing collaboration with the university's Department of Horticulture. TARGET AUDIENCES: The target audiences of these projects are agribusiness managers and operators, academic researchers, and other interest groups among the various extension clientele of the university. The cost and estimation software project specifically targets business operators in the landscape industry, not just in Georgia but nationwide. The outreach publications on cash rents, farmland values and economic outlook cater to the information needs of the agribusiness industry in Georgia and the rest of the country. The production economics-related studies are directed towards specific enterprises -- such as dairy producers, bell pepper and other fruit and vegetable farms. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
The research on the immigration policies' effect on farm labor market conditions and farm businesses' viability produced interesting results, The study confirms that when seasonal foreign farm workers with illegal resident status have left the country, farms experience difficulty in finding motivated equally efficient workers to fill in the void. The study further asserts that larger conventional farms usually opt for greater mechanization of their operations, with downsizing as another remedy. Both farms also rely heavily on family members' increased involvement in farm management. Enterprise budget analysis results suggest that when family farm labor inputs are exhausted, business losses could be realized as yields are significantly reduced due to difficulty or delays in hiring domestic unskilled workers. The studies that investigated some production economic issues identified production methods that are dominant in achieving dominance in both return maximization and risk minimization. More efficient fumigants, combined with a specific mulching method, were identified that could surpass the efficiency of the usually reliable fumigant methyl bromide that was phased out. Alley cropping has also been found to produce risk efficient returns structure and at the same time provides farmers in the Georgia's Piedmont region with a reliable natural soil enhancement method. Consumers have also been found to value highly not just health and environmental concerns, but also animal welfare, as revealed in the higher price premiums they attribute to grass-fed milk products. Outreach work providing economic outlook information as well as decision tools for bidding on landscape installation and maintenance projects have somehow helped certain extension clients in dealing with the challenges of the current economic slowdown.
Publications
- Wong, J., U. Raghunathan, C. L. Escalante, and K. Wolfe. Consumer Premiums for Environmentally Friendly Grass-fed and Organic Milk in the Southeast. Journal of Agribusiness, 28,1(Spring 2010):75-88.
- Jacobsen, K.L., C.L. Escalante, and C.F. Jordan. Economic Analysis of Experimental Organic Agricultural Systems on a Highly Eroded Soil of the Georgia Piedmont, USA. Journal of Renewable Agriculture and Food Systems, 25,4(2010): 296-308.
- Fonsah, E.G., Y. Yu, C. L. Escalante, A. S. Culpepper, X. Deng. Comparative Yield Efficiencies of Methyl Bromide Substitute Fumigants and Mulching Systems for Pepper Production in the Southeast, USA. Journal of Agribusiness and Rural Development 4,14 (2009).
- Escalante, C.L. Financial Outlook: Georgia Farms in Georgia Farm Outlook and Planning Guide for 2010-2011. Department of Agricultural and Applied Economics. University of Georgia. December 2010.
- Escalante, C.L., E.G. Fonsah, C. Lacy, J. McKissick, T. Shepherd, D. Shurley, N. Smith, F. Stegelin, and K. Wolfe. Agriculture, 2011 Georgia Economic Outlook, Selig Center for Economic Growth, The University of Georgia, December 2010, pages 47-51.
- Escalante, C.L. Cash Rents Paid for Georgia Farmland in 2010. Department of Agricultural and Applied Economics. AGECON 10-004, July 2010.
- Escalante, C.L. Georgia Farmland Values in 2010. Department of Agricultural and Applied Economics. AGECON 10-005, July 2010.
- Santos, F.I. and C. L. Escalante. Farm Labor Management Decisions of Organic and Conventional Farms: A Survey of Southeastern Farm Businesses. Department of Agricultural and Applied Economics, University of Georgia, AGECON-10-001, January 2010.
- Santos, F.I. and C. L. Escalante. Farmers Business Expectations and Strategies under Immigration-Related Changes in Farm Labor Market Conditions: A Survey of Southeastern Organic and Conventional Farm Businesses. Department of Agricultural and Applied Economics, University of Georgia, AGECON-10-002, January 2010.
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Progress 01/01/09 to 12/31/09
Outputs
OUTPUTS: The analysis of lending decisions made by the Farm Service Agency shifted its focus on the borrowing experiences of women farmers. An article reported the results of the gender bias study that refute the women farmers' claim of overt discrimination against them as available loan datasets analyzed produced no overwhelming evidence of biases in loan approval decisions. The sustainable growth paradigm was empirically tested to see if farmers' certain business and operating decisions conform to predictions made by the model. Continuing work on the effect of ethanol on prices and volatility of corn and soybean prices was undertaken. Also, the organic farms' relative demand for labor was analyzed with a study on labor-related decision factors affecting technical efficiency of farms, and another study that analyzed the profitability and viability of different versions of alley cropping, organic and conventional cropping systems that have varied degrees of dependence on family and hired labor. 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
Drawing upon the allegations of the plaintiffs and the 2,000 women farmers across the country who provided supporting testimonies in the Love v. Johanns lawsuits, the FSA gender bias study's findings are consistent with the judicial courts' contention of a lack of commonality in the loan and business circumstances of rejected female loan applicants. Specifically, the study does not produce any overwhelming evidence of discrimination against Georgia female loan applicants in FSA loan approval decisions given the extent of representation afforded here of factors considered in the loan approval decision process. Results of a technical efficiency study that utilized the survey data collected in this project indicate that the number of adjustment strategies adopted is positively related to income. There is also evidence of productivity difference between the group of farmers which adopts at least one strategy and the group that has zero strategy. Summary statistics further showed that the former group has higher mean farm income. Moreover, different production function models allowed for the evaluation of what strategy/ies are most likely to be the most effective when farm labor market conditions change. Among the adjustment strategies, adjusting wages and nonwage benefits have been determined to be the most effective strategies to cope with labor shortages. The results however suggest that adopting a combination of strategies is recommended. Results of the sustainable growth study indicate the relevance of the sustainable growth paradigm in explaining most financial and operating decisions made by farm businesses in each year. The farms' tendencies to attain balanced growth seem to be more influenced by asset productivity and leverage decisions, which are given different emphases by grain and livestock farms due to differing operational structures and constraints. Specifically, grain farms, which enjoy greater flexibility to implement diversification strategies, are more inclined to balance growth through adjustments in production efficiencies. Livestock farms, on the other hand, tend to use more financial leveraging to attain the same goal.
Publications
- Jacobsen, K., C.L. Escalante, and C. Jordan. Turning red clay brown: The effects on soil quality and economic tradeoffs of restorative agricultural systems in the Deep South. Proceedings of the 94th Ecological Society of America Annual Meeting. 2009.
- Escalante, C.L., J.E. Epperson and U. Ragunathan. Gender Bias Claims in Farm Service Agency Lending Decisions. Journal of Agricultural and Resource Economics 34,2(2009):332-349.
- Rejesus, R. M., B.J. Sherrick, G.D. Schnitkey, and C.L. Escalante. Factors Influencing Producers Perceptions about the Importance of Government Support Programs in Agriculture: Application of a Semi-Parametric Ordered Response Model. Applied Economics 41,24 (November 2009): 3081-3092.
- Escalante, C.L. Farm Financial Outlook. Georgia Economic Outlook. Selig Center for Economic Growth. University of Georgia. December 2009.
- Escalante, C.L. Financial Outlook for Georgia Farms Georgia Farm Outlook and Planning Guide for 2008-2009. Department of Agricultural and Applied Economics. University of Georgia. December 2009.
- Raghunathan, U., C.L. Escalante, J.H. Dorfman, J. Houston, and G. Ames. A Bayesian Efficiency Analysis of MFI Borrowing Groups and Repayment Rates in Agriculture. Proceedings of the NC 1177 Annual Meeting, Chicago, IL, October 2009.
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