AGRICULTURAL AND RURAL FINANCE MARKETS IN TRANSITION (NC1014, NC221, NCT-194)

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: COMPLETE
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 0220012
• Multistate No.: NC-_OLD1177
• Project Start Date: Oct 1, 2009
• Project End Date: Sep 30, 2014
• Program Code: [(N/A)]- (N/A)

Recipient Organization
LOUISIANA STATE UNIVERSITY
202 HIMES HALL
BATON ROUGE,LA 70803-0100

Performing Department
Agri Economics & Agribusiness

Non Technical Summary
The work in this research project is needed and necessary for U.S. agricultural producers and rural communities to remain financially viable and sound during these turbulent times. In general, the results of this work should improve the cost and availability of credit in agriculture. Because agricultural production is capital intensive, these improvements should lead to improved profitability of agricultural production and reduced costs of food and bio-energy for consumers. In addition to these more general outcomes a variety of more specific outcomes will result from the project including: A strengthened network of scholars and industry participants economists capable of examining specific financial market policies affecting rural areas. Participants will discern local impacts of transition and change in financial markets. Impacts will likely differ across regions. A standardized set of investigative methodologies and assessment tools for analyzing the social, economic, and fiscal impact of the global financial crisis on rural financial markets will be developed. Publications and educational materials for public and private policymakers, financial industry and agribusiness leaders, and farmers and rural citizens will be produced to help them understand this global financial crisis and what it means for themselves and their associated business and rural communities. Each of the objectives will yield multiple outputs because the researchers who will participate in this collective effort have very strong scholarly track records in publishing, disseminating research to extension or stakeholder audiences, and obtaining outside funding to enhance their research. The project will result in the development of a number of data sets and surveys that will be analyzed. The results of these analyses will form the basis for a wide range of outputs. These include: refereed journal articles, popular press articles, multi-state research bulletins, extension publications (e.g., fact sheets, bulletin updates, etc.), the development of an agricultural finance community of practice on eXtension, papers presented at professional conferences, extension presentations delivering research findings and educational material, and the organization of special conference sessions at professional meetings.

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
601	6030	3010	17%
602	6030	3010	16%
610	6030	3010	17%
602	6110	3010	50%

Knowledge Area
601 - Economics of Agricultural Production and Farm Management; 602 - Business Management, Finance, and Taxation; 610 - Domestic Policy Analysis;

Subject Of Investigation
6110 - Economy of the United States and sectors thereof; 6030 - The farm as an enterprise;

Field Of Science
3010 - Economics;

Keywords

capital markets

commodity markets

financial regulation

financial performance

financial management

financial institutions

long-term sustainability

capital structure

renewable energy

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
Objective 1 Methods: Many financial institutions have been severely impacted by the recent financial crisis. Research will be conducted on the widespread effects of the capital and commodity markets fluctuations on the performance, management, and regulation agricultural financial institutions. By pooling of state-level and national level data we will conduct collective analyses to address the increase in systemic risk for agricultural financial institutions. Using Federal Reserve data we will be able to provide information on the availability, loan demand, and the overall health of agricultural banks and agricultural producers. This will allow us to to provide policy makers and state-level bankers associations with sound evidence on how to best address the impacts of the financial crisis on agriculture. Objective 2 Methods: Efforts will be directed toward issues related to capital supply and demand in agriculture, financial management of agricultural businesses, and the impacts of public policy on capital availability and its use in the agricultural system. One key to successfully addressing this objective is to utilize both state and national level data sets designed to understand how capital needs vary across states and regions and how national level policies will impact the financial performance on firms in the sector. We want to analyze issues related to understanding how management strategies, capital needs, and policy impact financial performance. Objective 3 Methods: The turbulent economic situation has severely curtailed the available credit. This reduced flow of credit is likely to have a more dramatic impact on those that are most in need of credit. Thus, producers that are considered to be young, beginning, and small (YBS), socially disadvantaged, and/or produce specialty crops will benefit from additional efforts to ensure adequate credit. These farm groups can play a vital role in maintaining and growing rural communities in the U.S. We will work with government agencies by pooling data and other resources to ensure these special interest farm groups receive credit and financial services necessary to navigate this turbulent time. Objective 4 Methods: While the development of renewable energy industries has the potential to significantly improve the economic situation in agriculture and rural communities, recent financial stress in the corn ethanol production sector has highlighted the need to understand the financial sustainability of renewable energy industries and how policy decisions can influence these industries. The research in this objective will be broadly constructed so as to consider renewable energy production from a variety of potential feedstocks and energy outputs. Research will rely upon existing public data and coordinated data collection efforts by members of the group to analyze the problem; and utilize a variety of approaches, including econometric, optimization, and simulation analysis. Researchers will develop economic models of renewable energy production that can be adapted to a variety of potential feedstocks and regions.

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

Outputs
Target Audience: The target audiences for this project research are agricultural producers, rural residents, farm and rural appraisers and agribusiness, governmental organizations, and the agricultural/rural lending sector. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? The project has providedtime to participate inresearch opportunities with researchers atother universities. It has provided newer knowledge in economic theory development and estimation technique by working with graduate students. How have the results been disseminated to communities of interest? The results of these projects were presented at theAgricultural and Applied Economics Association (AAEA) conference, the Southern Agricultural Economics Association (SAEA) annual meetings, and the NC-1177 regional meetings. The significance of the results from these studies was shared with academics, researchers around the country and abroad, and bankers.Several peer-reviewed and conference paper presentationswere outputs of this project. Results from the studies within the project have been disseminated through a variety of outlets. Together with my graduate students and fellow researchers we have presented research findings at: 1.Agricultural & Applied Economics Association (AAEA) Annual Meetings (2009-2014) 2. Southern Agricultural Economics Association 2013 Annual Meetings (2009-2014) 3. NC-1177 Annunal meetings at the Federal Reserve Banks in Kansas City and Chicago. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Two common trading strategies in the stock market, namely contrarian (buying past losers and selling past winners) and relative strength (buying past winners and selling past losers)have garnered considerable attention in finance literature. This study finds no clear evidence for profitable zero-cost buy and hold strategy for 3- to 12- month periods during the period 1990 to 2012. However, we find few proftiable zero-cost stratey during the period 1965 to 2012, but the returns are much smaller than previously reported, These findings may imply gain in market efficiency for the US financial markets in recent period. In the US ethanol-based biofuel industry, restructuring activities in the form of mergers and acquisitions (M&As) have increased in recent years. Using an event analysis method and data on stock prices and value of the publically traded ethanol based biofuel industry between 2010 and 2012 in the United States, we found that the average cumulative abnormal returns of acquiring firms suggested that the market positively responded toward recent M&As in the industry. Around 4% postive growth on a 60-day event window was attributed to M&As using atmarket-adjusted market portfolio. A significant positive 0.47% gain in cumulative returns was detectedin a 4-day event window and a 2.7% positive gain was observedin a 10-day eventy window.

Publications

• Type: Journal Articles Status: Published Year Published: 2014 Citation: Khanal, A.R., and Ashok K. Mishra. Agritourism and Off-farm Work: Survival Strategies for Small Farms. Agricultural Economics: An International Journal, 45 (2014) supplement 6576.
• Type: Journal Articles Status: Published Year Published: 2013 Citation: Joo, H., A. Khanal, and Ashok K. Mishra. Farmers participation in Agritourism: Does it affect the Bottom Line? Agricultural and Resource Economics Review, Vol. 42(3), 2013: 491-490.
• Type: Journal Articles Status: Published Year Published: 2014 Citation: Mishra, Ashok K. Mishra, J.M Fannin, and H. Joo. Off-Farm Work, Intensity of Government Payments, and Farm Exits: Evidence from a National Survey in the United States. Canadian Journal of Agricultural Economics, 62(2), 2014: 283-306.
• Type: Journal Articles Status: Published Year Published: 2014 Citation: Park, T. A., Ashok K. Mishra, and S. Wozniak. Do Farm Operators Benefit from Direct to Consumer Marketing Strategies? Agricultural Economics: An International Journal, 45(2014): 213-224.
• Type: Journal Articles Status: Published Year Published: 2014 Citation: Ahearn, M.C., H.S. El-Osta, and Ashok K. Mishra. Considerations in Work Choices of U.S. Farm Households: The Role of Health Insurance. Journal of Agricultural and Resource Economics, Vol. 38(1), 2013: 19-33.
• Type: Journal Articles Status: Published Year Published: 2010 Citation: Mishra, Ashok K, H.S. El-Osta, and S. Shaik. Succession Decisions in U.S. Family Farm Businesses. Journal of Agricultural and Resource Economics 35(1), 2010:133-152.
• Type: Journal Articles Status: Published Year Published: 2010 Citation: Detre, J., Ashok K. Mishra, and A. Adhikari. Factor Affecting the Adoption of Genetically Modified Crops by Young and Beginning U.S. Farmers and Rancher Journal of the American Society of Farm Managers and Rural Appraisers Vol. 71 (1), 2010: 130-144.
• Type: Journal Articles Status: Published Year Published: 2009 Citation: Mishra, Ashok K., R. P. Williams, and J. D. Detre. Internet Access and Internet Purchasing Patterns of Farm Households Agricultural and Resource Economics Review, Vol. 38(2), 2009: 1-10.
• Type: Journal Articles Status: Published Year Published: 2009 Citation: Mishra, Ashok K., C. H. Wilson, and R. P. Williams. Factors Affecting the Financial Performance of New and Beginning Farmers. Agricultural Finance Review, 69(2), 2009: 160-79.
• Type: Conference Papers and Presentations Status: Other Year Published: 2014 Citation: Khanal, A., Ashok. K. Mishra, M. Bhattarai. Weather Risk and Cropping Intensity: A Non-Stationary and Dynamic Panel Modeling Approach. Selected Paper presented at the 2013 Agricultural & Applied Economics Association (AAEA) Annual Meetings, Minneapolis, MN, July 27-27, 2014.
• Type: Conference Papers and Presentations Status: Other Year Published: 2013 Citation: Nehring, R., Ashok. K. Mishra, J. A. Fernandez-Cornejo, C. Hallahan, K.W. Erickson. The Impacts of Off-farm Income on Efficiency, Scale and Profitability of Corn Farms. Selected Paper presented at the 2013 Agricultural & Applied Economics Association (AAEA) Annual Meetings, Washington DC. Aug. 4-6, 2013.
• Type: Conference Papers and Presentations Status: Other Year Published: 2012 Citation: Moss, C. B., Ashok. K. Mishra, and H. Uematsu. Capital Structure in Modern American Agriculture: Evidence from a National Survey. Selected Paper presented at the 2012 Agricultural & Applied Economics Association (AAEA) Annual Meetings, Seattle, WA, Aug. 12-14, 2012.
• Type: Conference Papers and Presentations Status: Other Year Published: 2009 Citation: Lence, S. H. and Ashok K. Mishra. Land Rental Arrangements in U.S. Agriculture: Evidence from a National Survey. Selected paper presented at the Regional Research Committee meetings, NC-1177, October 1-2, 2009 in Chicago, IL.
• Type: Conference Papers and Presentations Status: Published Year Published: 2011 Citation: Park, T., Ashok. K. Mishra and S. Wozniak. Farm Operator Benefits From Direct Marketing Strategies: Does Choice of Local Food Channel Impact Farm Revenue. Selected Paper presented at the 2011 Agricultural & Applied Economics Association (AAEA) & Northeastern Agricultural and Resource Economics Association (NAREA) Joint Annual Meetings, Pittsburgh, PA, July 24July 26.
• Type: Conference Papers and Presentations Status: Other Year Published: 2010 Citation: Mishra, Ashok K. and C.B. Moss. Does Off-Farm Income Influence Farmland Values? A Quantile Regression Approach. Paper presented at the NC-177 Annual Meetings, Kansas City, KS, Sept. 30-Oct.1, 2010.

Progress 01/01/13 to 09/30/13

Outputs
Target Audience: The research from thisproject has reached agricultural producers, rural residents, farm and rural appraisers and agribusiness, governmental organizations,and the agricultural/rural lending sector. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Results from the studies within the project have been disseminated through a variety of outlets. Together with my graduate students and fellow researchers we have presented research findings at the following: 1.Agricultural & Applied Economics Association (AAEA) Annual Meetings, Washington DC. Aug. 4-6, 2013. 2. Presented paper at the NC-1177 meetings inWashington DC. OCt. 25th and 26th, 2012. 3. Presented papers at the Southern Agricultural Economics Association, Orlando, Fla Feb 203 What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Findings from our research suggest several interesting impact on farm profitability. The impact of off-farm income on farmland values is important in the market allocation of land between agriculture, urban, and environmental/amenity uses.The effect of land attributes—captured by regional location and farm program payments; off-farm income on value of farmland can be better explained by estimating quantile regression across farmland value categories. Results indicate that a one percent increase in off-farm income could increase per-acre farmland value between 0.15 and 0.21%. Financial constraints, both in the short and long run, have an impact on economic well-being of farm families.Financial constraints alsohave an impact on production efficiency and technology adoption.Both liquidity and solvency have a negative impact on participation in such programs. Additionally,access to the Internet plays an important role in the farmer’s decision to participate in Conservation Reserve Program (CRP) and Environmental Quality Incentives Programs (EQIP). Results also suggested that beginning farmers are more likely to participate in theEQIP program.

Publications

• Type: Journal Articles Status: Under Review Year Published: 2013 Citation: DAntoni, Jeremy and Detre, Joshua D., "Are Agribusiness Stocks an Investor Safe Haven?" Agricultural Finance Review.

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

Outputs
OUTPUTS: Results of this project were presented at several meetings including the Agricultural and Applied Economics Association, (AAEA) meeting and the Southern Agricultural Economics Association (SAEA) meeting. A number of graduate students by the PI and Co-PI were successfully mentored as either a committee chair and/or committee member. The PI is a succesful project investigator on a recently awarded grant from the Bureau of Ocean Energy Management. PARTICIPANTS: Ashok Mishra (PI), Josh Detre, Notie Lansford, Damona Doye, Ashok Mishra, Matt Fannin, Michael Harris, Kenneth Erickson, Mary Ahearn Charles Hallahan, Rebecca Powell John Barreca, Kurt Guidry, Brian Briggeman, Michael Gunderson, Hector Zapata, Michael Harris, Diego Javier Gavilanez, Benjamin Clark, Tyler Mark, Tatsuya Hanabuchi, Hiroki Uematsu, and Jeremy D'Antoni, LSU AgCenter. TARGET AUDIENCES: The target audiences for this project research are agricultural producers, rural residents, farm and rural appraisers and agribusiness, governmental organizations,and the agricultural/rural lending sector. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Findings suggest several interesting impacts on farm profitability. For drivers of profitability specialization, tenure, farm type, operator age and education, farm size, and regional location are key drivers of profit margin. However, vertical coordination, age of the operator, and government payments affect the asset turnover ratio. Farm households receiving income from off-farm work have lower asset turnover ratios. Relative importance of these factors on farm-level profitability varies by farm type, by region, and over time. Key factors affecting the asset-to-equity ratio component in the DuPont model are vertical coordination, diversification, and farm tenure. Certified organic farmers do not earn significantly higher household income than conventional farmers. Though certified organic crop producers earn higher revenue, they incur higher production expenses as well. The results suggest the lack of economic incentives can be an important barrier to conversion to organic farming.

Publications

• Uematsu, H., Ashok K. Mishra, and R, Powell. "An Alternative Method to Estimate Income Variance in Cross-sectional Data." Applied Economics Letters, 2012, 19 (12): 1431-1436.
• D'Antoni, J.,and Ashok K. Mishra. "Testing Dependence Using Copulas: The Case of Dual Employment." Applied Economics Letters, 2012, 19(13): 1265-1269.
• Mishra, Ashok K., H. Uematsu, and R. Powell. "Precautionary Wealth Income Uncertainty: A Household-Level Analysis" Journal of Applied Economics, XV (2), 2012: 353-369.
• Clark, Benjamin M., Joshua D. Detre, Jeremy D'Antoni, and Hector O. Zapata. (2012). "The Role of an AG Index in a Modern Portfolio," Agricultural Finance Review, Vol. 72, No. 3(362-380).
• Mark, Tyler B., Joshua D. Detre, Jeremy D'Antoni, and Ashok K. Mishra. (2012). "Factors Influencing Farm Operator Expectations on Future Levels of Government Support," Journal of the American Society of Farm Managers and Rural Appraisers, Vol. 75, No. 1(148-164).
• Briggeman, Brian C., Joshua D. Detre, Notie Lansford, and Damona Doye. (2012). "Experiential Learning on the Internet: The Case of the Internet Agricultural Bank Simulation Game," North American Colleges and Teachers of Agriculture Journal. Vol. 46, No. 2(63-67).
• Zapata, Hector O., Joshua D. Detre, and Tatsuya Hanabuchi. (2012). "Historical Performance of Commodity and Stock Markets," Journal of Agricultural and Applied Economics, Vol. 44, No. 3(339-357).
• Detre, Joshua D., and Michael A. Gunderson. (2012). "Doing More with Less in a Rapidly Changing Discipline-Smaller Agribusiness Faculties Teaching More Students," International Food and Agribusiness Management Review, Vol. 15, No. Special Issue A Global Networks, Global Perspectives and Global Talent (31-36).
• Fannin, James M. and Joshua D. Detre. (2012). "Red Light Ahead! Preparing Local Governments Financially for the Next Disaster," Choices, Vol. 27, No. 1. Available at http://www.choicesmagazine.org/choices-magazine/theme-articles/rural- wealth-creation/red-light-ahead-preparing-local-governments-financial ly-for-the-next-disaster.
• Fannin, James M., John D. Barreca, and Joshua D. Detre. (2012). "Estimating GDP at the Parish (County) Level: An Evaluation of Alternative Approaches," Louisiana State University Agricultural Center Experiment Station Bulletin, No. 890.
• Fannin, J. Matthew, John D. Barreca, and Joshua D. Detre. (2012). "The Role of Public Wealth on Recovery and Resiliency to Natural Disasters in Rural Communities," American Journal of Agricultural Economics, Vol. 94, No. 2(549-555).
• Detre, Joshua D., Diego Javier Gavilanez Hernandez, Kurt M. Guidry, and Hector O. Zapata (2012). "The New Marketing Reality for Louisiana Producers," Louisiana Agriculture, Vol. 54, No. 3 22-23).
• Detre, Joshua D., and Hector O. Zapata. (2012). "If Market Investors Are Turning to Agricultural Stocks, Why Shouldn't Farmers" Louisiana Agriculture, Vol. 54, No. 3(20-21).

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

Outputs
OUTPUTS: Results of this project were presented at several meetings including the Agricultural and Applied Economics Association, (AAEA) meeting, the Southern Agricultural Economics Association (SAEA) meeting, and at the Southern Regional Science Association meeting. A number of graduate students by the PI were successfully mentored as either a committee chairman and/or committee member. The PI's are project investigators on a recently awarded National Needs Fellowship Grant. They also were awarded a grant from the Mississippi-Alabama Sea Grant Consortium to measure the financial vulnerability of municipal governments to tropical natural disaster risk. PARTICIPANTS: Ashok Mishra (PI), Josh Detre (Co-PI), Chuck Moss, Saleem Shaik, Grigorios Livanis, Michael Gunderson, Brian Briggeman, Tyler Mark, Krishnia Paudel, Hisham El-Osta, Christine Wilson, Hiroki Uematsu, and Arun Adhikari, LSU AgCenter. TARGET AUDIENCES: The target audiences for this project research are agricultural producers, rural residents, farm and rural appraisers and agribusiness, governmental organizations,and the agricultural/rural lending sector. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Findings from our research have the potential to positively influence the financial viability of all stakeholders in the agrifood and supply chain. Young and small farmers who want to improve their financial viability should adopt direct marketing strategies, especially if they are located in regions of fruit and vegetable production, and if their operation is in a region with access to a large metropolitan customer base. Moreover, these farmers should seek to adopt GM crops to increase the profitability of their operation. Farmers also should be concerned with the type of agricultural policies passed by the government as it pertains to farmland values, the largest asset on most farm balance sheets. As farmland values continue to increase, many farm households on average possess higher wealth than nonfarm households. Wealth accumulation does not necessarily correspond solely to on-farm income and indeed many farmers rely upon off-farm income. Thus, off-farm income can no longer be treated as residual or transitory income. Indeed, with changes in health care benefits, disability insurance, retirement benefits, and other expenses, farm household must understand the tradeoffs when examining household labor decisions. The significance of this fellowship is extremely important to agricultural stakeholders in Louisiana and in the Gulf Coast and Delta Regions of the U.S. Funding from the Grants will be used to attract the doctoral students who will examine the impacts of natural and environmental disasters on the financial viability or rural and agricultural communities.

Publications

• Detre, J., H. Uematsu, A. K. Mishra. "The Influence of GM Crop Adoption on the Profitability on Farms Operated by Young and Beginning Farmers." Agricultural Finance Review, Vol. 71(1), 2011:41-61.
• Mishra, A. K., and K. Paudel. "Estimating Permanent Income and Wealth of U.S. Farm Households." Applied Economics, Vol. 43(12), 2011: 1521-1533.
• Mishra, A. K., G. T. Livanis,and C. B. Moss. "Did the Federal Agriculture Improvement and Reform Act of 1996 Affect Farmland Values" Entropy, Vol. 13, 2011:668-682.
• Detre, J. T. B. Mark, A. K. Mishra, and A. Adhikari. "Linkage between Direct Marketing and Farm Income: Double Hurdle Approach." Agribusiness: an International Journal, Vol. 27(1), 2011:19-23.
• Mishra, A. K., H.S. El-Osta, and S. H. Shaik. "Agricultural Policy Reform and Its Effect on Income Inequality." J. Income Distribution, Vol. 19(1), 2010:75-95.
• Gunderson, M. A., J. D. Detre, C. A. Wilson, and B. C. Briggeman. "Ag Lending: The Next Generation." Agricultural Finance Review, Vol. 71, No. 3, 2011:280-294.
• Detre, J. D., and M. A. Gunderson. "The Triple Bottom Line: What is the Short Run Impact on the Returns to Agribusiness Stocks." International Food and Agribusiness Management Review, Vol. 14, No. 4, 2011:165-178.

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

Outputs
OUTPUTS: Funding from this project has supported our research project in agricultural finance issues. Both Drs. Mishra and Detre successfully submitted and presented papers at several meetings including the Southern Agricultural Economics Association (SAEA) meeting, the Agricultural and Applied Economics Association, and to the Regional Research group meetings of members of NC-1177. In addition, Dr. Detre conducted a survey of lending professionals throughout the U.S. to gather their opinions on the financial and non-financial skill set needed by the financial industry in our undergraduates. The significance of the results from these studies was shared with academics, researchers around the country and the globe, and with industry professionals and policy makers in the field of agricultural finance. PARTICIPANTS: Ashok Mishra, project investigator; Josh Detre, project investigator; Chuck Moss, collaborator; Saleem Shaik, collaborator; Ken Erickson, collaborator; Michael Gunderson, collaborator; Allan Gray, collaborator; Mike Bohelje, collaborator; Tyler Mark, graduate student Arun Adhikari, graduate studen; Ben Clark, graduate student TARGET AUDIENCES: The target audiences for this project research are agricultural producers, rural residents and rural community leaders, and the agricultural lending sector. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Findings from our research have the potential to postively influence the incomes of various groups of stakeholders across the global food and fiber sector. First, our research provides a framework for livestock commodity groups and policy makers who are considering livestock initiatives, whether they have the ability and the competitive advantages necessary to undertake such an expansion. We also found that farmer's who want to participate and/or establish a farmers' market as a method of increasing their income must have an understanding of the Millennial Generation. This generation is vastly different from previous generations and value different attributes when shopping for food, i.e. they are concerned more with the quality and shopping experience, than with price. Results indicate that distribution of income among farm households in the Fruitful Rim region was above the level of dispersion for all U.S. farm households; however, income inequality in the Heartland region was consistently below the level of dispersion for all U.S. farm households. Finally, income from government farm program help reduce total income inequality in the Heartland and Northern Great Plains regions, while income from off-farm wages and/or salaries played an important role in reducing total income inequality in Basin and Range and Fruitful Rim region of the U.S. farm sector

Publications

• Mishra, Ashok K., H.S. El-Osta, and S. H. Shaik. "Agricultural Policy Reform and Its Effect on Income Inequality." Journal of Income Distribution, Vol. 19(1), 2010:75-95.
• Mishra, Ashok K, H.S. El-Osta, S. Shaik. "Succession Decisions in U.S. Family Farm Businesses." Journal of Agricultural and Resource Economics 35(1), 2010 (133-152).
• Detre, Joshua D., Tyler B. Mark, and Benjamin M. Clark, "Understanding Why College Educated Millennials Shop at Farmers' Markets: An Analysis of Students at Louisiana State University" Journal of Food Distribution Research. Vol. 41 Num. 3, 2010 (14-24).
• Detre, Joshua D., Ashok K. Mishra, and Arun Adhikari, "Adoption of Genetically Modified Crops by Young and Beginning Farmers," Journal of Farm Managers and Rural Appraisers. Vol. 73, No. 1, 2010 (130-144).
• Mark, Tyler B., Joshua D. Detre., Michael D. Boehlje, and Allan W. Gray, "Livestock Growth Initiatives and Phosphorus Removal Regulations: Understanding Their Relationship," Journal of Farm Managers and Rural Appraisers. Vol. 73, Num. 1, 2010 (99-113).

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

Outputs
OUTPUTS: Funding from this project has supported my research project in agricultural finance issues. I successfully submitted and presented papers at the Southern Agricultural Economics Association (SAEA) meetings and to the Regional Research group meetings of members of NC-1177. The significance of the results from these studies was shared with academics, researchers around the country and in Europe, bankers, and farm credit administrators. PARTICIPANTS: Ashok Mishra, project investigator Josh Detre, project investigator Sergio Lence, collaborator Tyler Mark, graduate student Arun Adhikari, graduate student TARGET AUDIENCES: The target audiences for this project research are agricultural producers, rural residents, and the agricultural lending sector. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Findings from our research suggest several intersting impacts on farm income. The first impact is that farm operators who have previously received government payments, expect that this financial support will continue. This has the potential to create a false sense of a safety net for farmers, which could cause them to engage in more risky behaviors. Additionaly, the adoption of a direct marketing strategy (DMS) allows farmers to capture a larger proportion of the consumers' dollar and therefore increase gross sales than those who have not adopted DMS. Farmer's can derive the most benefit if they are able to sell their organic crops in areas with a large metropolitan customer base.

Publications

• DAntoni, J. and Mishra, Ashok K. Predicting Financial Stress in Young and Beginning Farmers in the U.S. Abstract in Journal of Agricultural and Applied Economics, Vol. 41(2), 2009.
• Mark, T., Mishra, Ashok K., and J. Detre. Farmer Operators Attitude Toward Farm Policy A National Perspective. Abstract in Journal of Agricultural and Applied Economics, Vol. 41(2), 2009.
• Chintawar, S., Mishra, Ashok K., and J. Gillespie. The Impact of Adoption of Genetically Modified Corn on Off-Farm Labor Supply in the U.S. Abstract in Journal of Agricultural and Applied Economics, Vol. 41(2), 2009.
• Adhikari, A., Mishra, Ashok K., and S. Chintawar. Adoption of Technology and Its Impact on Profitability of Young and Beginning Farmers: Quantile Regression Approach. Abstract in Journal of Agricultural and Applied Economics, Vol. 41(2), 2009.
• Lence, S. and Ashok K. Mishra. Land Rental Arrangement in U.S. Agriculture: Evidence from a National Survey. Proceedings Regional Research Committee NC-1177: Agricultural and Rural Finance Markets in Transition. Oct. 1-2, 2009, Chicago, IL: pp.1-9.