Source: WASHINGTON STATE UNIVERSITY submitted to NRP
ENHANCING COMPETITIVENESS OF AGRICULTURAL PRODUCTS
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0221968
Grant No.
2010-34270-21244
Cumulative Award Amt.
(N/A)
Proposal No.
2010-02212
Multistate No.
(N/A)
Project Start Date
Aug 1, 2010
Project End Date
Jul 31, 2013
Grant Year
2010
Program Code
[HQ]- Competitiveness of Agriculture Products, WA
Recipient Organization
WASHINGTON STATE UNIVERSITY
240 FRENCH ADMINISTRATION BLDG
PULLMAN,WA 99164-0001
Performing Department
School of Economic Sciences
Non Technical Summary
The profitability of Pacific Northwest agriculture and closely related sectors depends on efficient production and successful exporting. However, world competition is intensifying. The purpose of this project is to provide the Pacific Northwest exporters and producers with crucial information, technical problem solving and new products and processes that enhance competitiveness. The subprojects included under this special grant call for expertise in an array of scientific disciplines and use of diverse and often highly technical procedures in meeting their goals. The specific procedures vary by subproject but in all cases adhere to the highest scientific standards.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6061131301017%
6096120301017%
6031110301017%
6016030303017%
6011110303016%
6010599303016%
Goals / Objectives
The IMPACT Center's overall objectives have been to solve economic, social, policy, or technical problems that limit the competitiveness of Washington's agricultural products; identify new or expanded opportunities for Washington's agricultural products in the world marketplace; gather information about markets, consumers, distribution channels, trading systems, and agricultural policies that affect the Pacific Northwest; provide regional economic development and impact analysis, and disseminate research and other information in outreach and engagement with stakeholders. IMPACT's ongoing mission is to be a resource for information that can address and solve economic and technical barriers to trade, and enable producers and exporters to adapt rapidly to changing market conditions affecting their profitability and sustainability in domestic and global markets.
Project Methods
The method of operation is to employ teams of university scientists who will work closely with the private sector and with state and federal agencies to identify issues and problems of high priority need, and then pursue directed applied research to analyze issues and identify solutions to priority problems. The subprojects included under this special grant call for expertise of selected areas and use of diverse and often highly technical procedures in meeting their goals. The specific procedures vary by subproject, but in all cases adhere to the highest scientific standards.

Progress 08/01/10 to 07/31/13

Outputs
Target Audience: SUBPROJECT 1: Assessing the Burden of Sanitary and Phyto-sanitary (SPS) Barriers on the Washington State Agricultural Sector - Potential agricultural exporters, tree fruit growers. SUBPROJECT 2: Agricultural Assets and Adjustment Costs in the Pacific Northwest (PNW) - Farmers/growers. SUBPROJECT 3: Spatial-Intertemporal Acreage and Supply Response - Tree fruit growers. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Opportunities for training and professional development are reported by subproject: SUBPROJECT 1: Assessing the Burden of Sanitary and Phyto-sanitary (SPS) Barriers on the Washington State Agricultural Sector - This project provided support to one Phd student in economic sciences, who examined SPS barriers for specialty crops in Washington agriculture.A poster was presentedabout "Farm Level Demand for Fresh and Processed Stone Fruit in the United States” by the student at the Agricultural and Applied Economics Association Annual Meeting inSeattle, WashingtononAugust 13, 2012. The presentation was attended by 20 people.Participants in the subproject included: Dr. Thomas L. Marsh (PI), Dr. Andrew Cassey (Collaborator), Dr. Yunfei Zhang (postdoctoral research associate), Xiaojiao Jiang (PhD student), and Dr. Peter R. Tozer (Research Associate). SUBPROJECT 2: Agricultural Assets and Adjustment Costs in the Pacific Northwest (PNW) - This research project supported part ofthe Phd Dissertation by Scott Colby (Essays in Microeconomic Theory, Washington State University, 2011), which examined intertemporal risk management in agriculture. Participants in the subproject included: Dr. Thomas L. Marsh (PI), Jeff LaFrance (Co-PI) and Scott Colby (PhD student). SUBPROJECT 3: Spatial-Intertemporal Acreage and Supply Response - Participants in the subproject included: Dr. Thomas L. Marsh (PI), Dr. Michael Brady (Co-PI) and Dr. Peter R. Tozer (Research Associate). Participants have participated in academic conferences and industry meetings. How have the results been disseminated to communities of interest? Dissemination of results is reported by subproject: SUBPROJECT 1: Assessing the Burden of Sanitary and Phyto-sanitary (SPS) Barriers on the Washington State Agricultural Sector - Direct assistance to potential agricultural exporters is made available through the WSU Export Assistance Program.Online resources including the (Agricultural) Exporters Toolkit and Washington Agricultural Trade Barriers Database are also available for access. SUBPROJECT 2: Agricultural Assets and Adjustment Costs in the Pacific Northwest (PNW) - The information generated from the study will provide a greater understanding of rates of return to land and other assets in the Pacific Northwest. The study results will be disseminated to the specific agricultural industries through IMPACT and School of Economic Sciences (SES) reports, focused presentations of the findings to industry participants, and in peer reviewed journal outlets. SUBPROJECT 3: Spatial-Intertemporal Acreage and Supply Response - An integrated database of farmland ownership, cropland cover, land cover change, and irrigation technology use for Washington isaccessible to the public. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Accomplishments are reported by subproject: SUBPROJECT 1: Assessing the Burden of Sanitary and Phyto-sanitary (SPS) Barriers on the Washington State Agricultural Sector - This project assessed the economic impacts of SPS barriers on trade, including case studies on selected fresh fruits. Documentation was completed for information on SPS issues, tariff rate, value-added tax rate, sales tax rate and import policies facing major importers of U.S. apples, cherries, peaches and pears. Furthermore,a data base of SPS barriers significant to the Pacific Northwest was developed to support the Washington State University (WSU) Export Enhancement Program. This program was led by Dr. Andrew Cassey and Dr. Yunfei Zhang (postdoctoral research associate) at WSU, in association with the Washington State Department of Agriculture, Washington Small Business Development Center, Community Economic Revitalization Board, and Washington State Department of Commerce. SUBPROJECT 2: Agricultural Assets and Adjustment Costs in the Pacific Northwest (PNW) - Risk aversion and adjustment costs are jointly significant components of agricultural production and they generate significant changes in the rate of return to farmland. An economic model has been developed and data have been collected. SUBPROJECT 3: Spatial-Intertemporal Acreage and Supply Response - Work focused on integrating two major datasets, which has led to three works in progress/working papers. First, in April, 2012 the Washington State Cropland Data Layer was updated by the Washington State Department of Agriculture to include 2011, and data layers for 2002 through 2005 were also obtained from WSDA for the first time. Second, an integrated database of county assessors data on land ownership in Washington was developed. Routines to integrate these two data sources were developed to provide a substantially more detailed database of farmland ownership, cropland cover, land cover change, and irrigation technology use that had not previously been available for Washington.Furthermore, the integrated database received an important addition in 2013 of a statewide land parcel ownership database that included Yakima County, which is the leading county in Washington in terms of value of agricultural production. Previously, the Yakima County Assessors Office was unwilling to make their data available. This addition has allowed the papers using this database to be completed in Summer 2013.

Publications

  • Type: Other Status: Published Year Published: 2013 Citation: Cassey, A.J. and Y. Zhao. 2013. An Investigation Into Manufacturing and Agricultural Exports to China. Washington State University Extension Publication EM065E.
  • Type: Other Status: Published Year Published: 2013 Citation: Cassey, A.J. and Y. Zhao 2013. Export Trends in Washington State, Vol. 5. Washington State University Extension Publication FS105E. http://cru.cahe.wsu.edu/CEPublications/FS105E/FS105E.pdf.
  • Type: Other Status: Published Year Published: 2012 Citation: Cassey, A.J., and Y. Zhao. 2012. Export Trends in Washington State, Vol. 4. Washington State University Extension Publication FS076E. http://cru.cahe.wsu.edu/CEPublications/FS076E/FS076E.pdf.
  • Type: Other Status: Published Year Published: 2012 Citation: Cassey, A.J., and Y. Zhao. 2012. Export Process Quickstart: Step-by-step to Agricultural Exporting. Washington State University Publication FS071E. http://cru.cahe.wsu.edu/CEPublications/FS071E/FS071E.pdf.
  • Type: Theses/Dissertations Status: Accepted Year Published: 2011 Citation: Colby, S. 2011. Essays in Microeconomic Theory. Washington State University, Pullman, Washington.
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2012 Citation: Jiang, X. and T. Marsh. Farm Level Demand for Fresh and Processed Stone Fruit in the United States. Poster Presentation at the Agricultural and Applied Economics Association Annual Meeting, Seattle, Washington, August 13, 2012.
  • Type: Other Status: Other Year Published: 2013 Citation: Liu, X., T. Marsh and H. Chouinard. The Effects of Imposing Taxes on Processed Fruit. Working Paper.
  • Type: Other Status: Other Year Published: 2013 Citation: Tozer, P. R., T. L. Marsh, and J. L. Sage. 2013. Trends in Agricultural Production, Exports, and Transportation in Washington State. Report prepared for the Washington State Freight Mobility Strategic Investment Board.
  • Type: Other Status: Other Year Published: 2013 Citation: Tozer, P. R., and T. L. Marsh. Perennial Crop Supply Models  Estimating Changes in Bearing Acreage. Working Paper.
  • Type: Other Status: Other Year Published: 2013 Citation: Brady, M. and P. Tantihkarnchana. Why are Interruptible Water Rights Holders More Likely to Grow High Value Water Sensitive Crops? Working Paper.
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2013 Citation: Brady, M.P. and T.L. Marsh. Does Perennial Crop Supply Change Occur at the Intensive or Extensive Margin of the Landowner? Applied and Agricultural Economics Association Annual Meetings Selected Paper, August 4, 2013. http://ageconsearch.umn.edu/bitstream/150452/2/PerennialOwnerLandUseChange.pdf.
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2013 Citation: Brady, M. and U. Bastola. Is Irrigation Inefficiency Due to Incentives or Complexity? Western Agricultural Economics Association Annual Meetings Selected Presentation, June 27, 2013.
  • Type: Other Status: Other Year Published: 2013 Citation: Brady, M., P. Tozer, T. Marsh, and R. Shumway. The Influence of Landowner Risk Aversion on Orchard Mix. Work in progress.
  • Type: Other Status: Other Year Published: 2013 Citation: Brady, M., Y. Chen, and J. Yoder. The Impact of Exempt Wells on Land Use Change in a Water Scarce and High Environmental Amenity Region: A Quasi-Experimental Approach. Working Paper.


Progress 08/01/11 to 07/31/12

Outputs
OUTPUTS: Outputs are listed and reported by subproject. Results will be disseminated through the International Marketing Program for Agriculture Commodities and Trade (IMPACT) reports and presentations by IMPACT researchers. SUBPROJECT 1: Assessing the Burden of Sanitary and Phyto-sanitary (SPS) Barriers on the Washington State Agricultural Sector - A PhD student has completed a literature review about the economic impacts of SPS barriers on trade, including case studies on selected fresh fruits, such as pears. Documentation was completed for information on SPS issues, tariff rate, value-added tax rate, sales tax rate and import policies facing major importers of U.S. apples, cherries, peaches and pears. SUBPROJECT 2: Agricultural Assets and Adjustment Costs in the Pacific Northwest (PNW) - Risk aversion and adjustment costs are jointly significant components of agricultural production and they generate significant changes in the rate of return to farmland. The information generated from the study will be disseminated to the specific agricultural industries through IMPACT and the Schoold of Economic Sciences (SES) reports, focused presentations of the findings to industry participants, and in peer reviewed journal outlets. An economic model has been developed and data have been collected. SUBPROJECT 3: Spatial-Intertemporal Acreage and Supply Response - Work from this funding during 2011-2012 focused on integrating two major datasets which has led to three works in progress/working papers. First, in April, 2012 the Washington State Cropland Data Layer was updated by the Washington State Department of Agriculture to include 2011, and data layers for 2002 through 2005 were also obtained from WSDA for the first time. Second, an integrated database of county assessors data on land ownership in Washington was developed. Routines to integrate these two data sources were developed to provide a substantially more detailed database of farmland ownership, cropland cover, land cover change, and irrigation technology use that has not previously been available for Washington. PARTICIPANTS: SUBPROJECT 1: Assessing the Burden of Sanitary and Phyto-sanitary (SPS) Barriers on the Washington State Agricultural Sector -
Dr. Thomas L. Marsh, principal investigator;
Dr. Andrew Cassey, collaborator;
Dr. Yunfei Zhang, postdoctoral research associate;
Xiaojiao Jiang, PhD student.

SUBPROJECT 2: Agricultural Assets and Adjustment Costs in the Pacific Northwest (PNW) -
Dr. Thomas L. Marsh, principal investigator;
Dr. Jeff LaFrance, co-principal investigator;
Scott Colby, PhD student.

SUBPROJECT 3: Spatial-Intertemporal Acreage and Supply Response -
Dr. Thomas L. Marsh, principal investigator;
Dr. Michael Brady, co-principal investigator;
B.J. Thurlby, collaborator. TARGET AUDIENCES: Potential agricultural exporters;
Efforts - Direct assistance to potential agricultural exporters;
Online resources including the (Agricultural) Exporters Toolkit and Washington Agricultural Trade Barriers Database.
Tree fruit growers;
Efforts: Integrated database of farmland ownership, cropland cover, land cover change, and irrigation technology use for Washington. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
Outcomes/Impacts are listed and reported by subproject. SUBPROJECT 1: Assessing the Burden of Sanitary and Phyto-sanitary (SPS) Barriers on the Washington State Agricultural Sector - This project provided support to one Phd student in economic sciences, who examined SPS barriers for specialty crops in Washington agriculture. One poster was presented in 2012 - Jiang, X. and T. Marsh, "Farm Level Demand for Fresh and Processed Stone Fruit in the United States," Poster Presentation at the Agricultural and Applied Economics Association Annual Meeting, Seattle, Washington, August 13, 2012 (20 people). A data base of SPS barriers significant to the Pacific Northwest was developed to support the WSU export enhancement program. This effort was led by Dr. Andrew Cassey and Dr. Yunfei Zhang (postdoctoral research associate) at Washington State University (WSU), in association with the Washington State Department of Agriculture, Washington Small Business Development Center, Community Economic Revitalization Board, and Washington State Department of Commerce. SUBPROJECT 2: Agricultural Assets and Adjustment Costs in the Pacific Northwest (PNW) - The targeted outcomes provide a greater understanding of rates of return to land and other assets in the Pacific Northwest. This research project supported part of a Phd Dissertation by Scott Colby (Essays in Microeconomic Theory, Washington State University, 2011), which examined intertemporal risk management in agriculture. SUBPROJECT 3: Spatial-Intertemporal Acreage and Supply Response - The integrated database including farmland ownership, cropland cover, land cover change, and irrigation technology in Washington has spawned three major lines of research. Three papers are expected to be submitted to peer review journals in 2013 based on this research.

Publications

  • No publications reported this period


Progress 08/01/10 to 07/31/11

Outputs
OUTPUTS: Outputs are listed and reported by subproject. Results will be disseminated through IMPACT reports and presentations by IMPACT researchers. SUBPROJECT 1: Assessing the Burden of Sanitary and Phyto-sanitary (SPS) Barriers on the Washington State Agricultural Sector. A primary objective for the government of the state of Washington is to increase revenues from agricultural exports. A PhD student has completed a literature review on SPS barriers in an effort to describe and document the sanitary and phyto-sanitary and tariff issues related to major Washington State agricultural products. An economic model is in the process of being developed. Elasticities have been collected and estimated for fresh fruit to implement an empirical model. Several case studies are being examined (including pear). SUBPROJECT 2: Agricultural Assets and Adjustment Costs in the Pacific Northwest (PNW). Risk aversion and adjustment costs are jointly significant components of agricultural production and they generate significant changes in the rate of return to farmland. The information generated from the study will be disseminated to the specific agricultural industries through IMPACT and SES reports, focused presentations of the findings to industry participants, and in peer reviewed journal outlets. An economic model has been developed and data have been collected. SUBPROJECT 3: Spatial-Intertemporal Acreage and Supply Response. In response to increasing concern among producers in Washington State, and the Pacific Northwest, more generally, about oversupply of tree fruits and some specialty crops that has adverse implications to commodity prices, there is a need to understand acreage and supply dynamics and to improve forecasts. The information generated from this study will be disseminated to the tree fruit and specialty crop industry to address their concerns about the dynamic nature of supply (and periods of oversupply). The web-based tool will be deployed through the IMPACT webpage. Data collection was completed in March 2011. The first set of data includes county level data integrated with the updated Washington State Department of Agriculture Cropland Data Layer (WSDA CDL). The WSDA CDL is an enhanced version of the USDA CDL that undergoes significant ground truthing and integrates multiple remotely sensed data layers. The most recent edition of the WSDA CDL that was released in Spring 2011 made it possible to construct the second set of data, which is a field level panel data set of agricultural land cover. The third set of integrated data includes water rights data provided by the Washington State Department of Ecology. This is used to identify parcels of land associated with junior and interruptible water rights. Data on the frequency of curtailments across irrigation districts are also merged in the third dataset. In total, this represents a significant advance on previous datasets of perennial crop production across spatial and temporal dimensions. Initial analysis of the data began in Summer 2011. PARTICIPANTS: Thomas L. Marsh, principal investigator; Mike Brady, co-principal investigator; Jeff LaFrance, collaborator. This research project supported part of a PhD Dissertation by Scott Colby (Essays in Microeconomic Theory, Washington State University, 2011), which examined intertemporal risk management in agriculture. TARGET AUDIENCES: Producers of tree fruit and other crops in Washington and the rest of the United States. PROJECT MODIFICATIONS: Not Reported.

Impacts
Outcomes/Impacts are listed and reported by subproject. SUBPROJECT 1: Assessing the Burden of Sanitary and Phyto-sanitary (SPS) Barriers on the Washington State Agricultural Sector. Several important outcomes are relevant to this project. First, we are in the process of identifying and quantifying SPS concerns by engaging U.S. producers, packers, exporters, and policymakers. Second, to more fully understand the upstream impact of SPS barriers, we are examining SPS impacts on both packing houses and processing sectors. Finally, the research efforts have allowed us to leverage the knowledge from this project to work specifically on disease outbreaks in tree fruit. SUBPROJECT 2 : Agricultural Assets and Adjustment Costs in the Pacific Northwest(PNW). The targeted outcomes are to have a greater understanding of rates of return to land and other assets in the Pacific Northwest. This research project supported part of a PhD Dissertation by Scott Colby (Essays in Microeconomic Theory, Washington State University, 2011), which examined intertemporal risk management in agriculture. SUBPROJECT 3: Spatial-Intertemporal Acreage and Supply Response Research has now progressed to specifying and estimating a spatial econometric model as of Autumn, 2011. Results from this model are to be submitted for presentation at academic conferences in Winter 2012. At least two journal articles are expected to be completed in Spring 2012 and submitted to peer reviewed journals at that time. Presentations Brady, M., "Important Challenges for Washington Farmers: Cuts to the Farm Bill and Oversupply of Perennial Crops," The American Society of Farm Managers and Rural Appraisers, Washington Chapter Biennial Meetings, October 7, 2011 (30 people).

Publications

  • Pope, R. and J. LaFrance. 2011. Working Paper, Implicit Netput Functions and Aggregation, Washington State University. cahnrs-cms.wsu.edu/ses/seminars/documents/INF-PL-12-23-2011.pdf