Source: CORNELL UNIVERSITY submitted to NRP
ASSESSING THE CONSUMER BEHAVIOR, MARKET COORDINATION AND PERFORMANCE OF THE CONSUMER-ORIENTED FRUIT AND VEGETABLE SECTOR
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0223973
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
S-1050
Project Start Date
Oct 1, 2010
Project End Date
Sep 30, 2015
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
CORNELL UNIVERSITY
(N/A)
ITHACA,NY 14853
Performing Department
Applied Economics & Management
Non Technical Summary
This research will conduct a competitiveness analysis for key horticultural products (e.g., apples, grapes, sweet corn, cabbage, snap beans, and onions) produced in NYS. Examining how horticultural products are produced, managed, and sold in outside, but very similar, markets enables stakeholders in NYS to consider their strengths and shed some light on new opportunities. I will also assess the economic effects of marketing strategies and policies that are designed to influence consumer behaviour in fruit and vegetable markets.
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
6036010301050%
6106110301050%
Goals / Objectives
Develop demand and market valuation models for the produce sector that can be used to evaluate effects of increasingly complex product differentiation schemes (organic, enhanced health claims, biodynamic), trade, commodity marketing programs, labeling programs (local, food miles, Fair Trade), traceability systems, and food safety events in the U.S. produce markets. Analyze the relative benefits and costs, to producers and consumers, of government and industry-led marketing and policy programs (certifications, Leafy Greens marketing order, Country of origin labeling, farmers markets) using both theoretical approaches and empirical evidence from multi-state applied research projects.
Project Methods
This research proposes to conduct a three-part competitiveness analysis of key horticultural products (e.g., apples, grapes, sweet corn, cabbage, snap beans, and onions) in New York State (NYS). First, crop budgets for the selected NYS horticultural products will be established; for each horticultural product, we will develop an appropriate representative farm in NYS and collect all the relevant cost and revenue items on a per acre basis. Second, an overview of horticultural sectors in NYS and other states/provinces will be performed to examine general market trends between 1980 and 2008. Here we will focus on trends that describe acreage, yields, gross values, per capita consumption rates, trade flows, and the evolution of industry organizations. The competitiveness analysis will look carefully at the underlying drivers of changes that have occurred in NYS and other states/provinces across horticultural sectors. Close attention will be paid to differences in agronomic and climatic conditions, costs of production, market structures, consumer demand, promotion efforts, supply chain management issues, research and development expenditures, and government policies. Third, based on results from the competiveness analysis, some key policy topics will be identified for specialty crops and simulation experiments will be performed to examine the economic implications of either adopting or changing policies applied to horticultural products.

Progress 10/01/10 to 09/30/15

Outputs
Target Audience:My primary target audiencewasindustry stakeholders in NYS's horticultural sector, as well as those with an interest in understanding the business environment for horticultural crops including input suppliers, lenders, producers, processors, industry organizations, policy makers, agricultural scientists, and university administrators. During the period between October 1 2010 and September 30 2015 I disseminated results and interacted with a wide range of stakeholders on the research conducted as part of this project. The audience included attendees at various CCE workshops and conferences across NYS, extensioneventsin neighboringstates, the Northeast Agribusiness Seminar, and various on-campus activities. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?The project allowed me to become associatedwith the community of scholars involved in S1050 (recently renewed as S1067). Since joining the project in 2010, I have collaborated on several projects and manuscripts with 5 researchers from S1050, and I have various other continuing projects underway currently. How have the results been disseminated to communities of interest?I have made a concerted effort to disseminate my research results as widely as possible. I have given presentations from my research on this project locally, regionally, and internationally and released publications that target audiences ranging from industry stakeholders to academic economists and scientists in related fields.During the life of this project (between October 1 2010 and September 30 2015)I have disseminated results and interacted with a wide range of stakeholders on the research conducted as part of this project. The full list of presentations and publications for 2015 are listed below. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Over the duration of the project between 2010 and 2015, I made several accomplishments related togoal1 assessing consumer demand for produce. The most significantaccomplishment was for the research I did,workingwith a variety of researchers, examining the conditions under which producers and consumers would benefit from alarge scale 5 A Day program for fruits and vegetables. Here we conducted experiments and usedsurveys with consumers and producers to evaluate the costs and benefits associated with increased generic advertising for fruits and vegetables.The results from this work show that although consumers are likely to respond in some capacity to generic advertising for fruits and vegetables collectively, there are a number of constraints that do not allow all producers to support such programs. A second accomplishment related to goal 1 relates to my work examining consumer demand for wine, and in particular wine from NYS. Here my work assessed the role of promotion efforts for wine regions and the demand for local wines by restaurants. A third research area related to goal 1 focused on consumer demand for patented apple varieties by consumers and the impact that the varietal name has on consumers' willingness to pay and consume the fruit. Here we found that names that describe sensory properties of the fruit are more likely to stimulate demand for new varieties. Over this project period (between October 2010 and September 2015) I also made several accomplishments related to goal 2. I consider goal 2 to be the primary goal that I contributed towards as part of the multistate project S1050, and the area where I was able to collaborate most with other members of the multistate project. One significant accomplishment for this goal was my work that examined the marketing implications of proposed legislative changes that would allow wine to be sold in grocery stores. This was a controversial policy issue in NYS as well as several other states in recent years. The most recent work in this line of research has used Nielsen Homescan data to examine how the availability of alcohol in grocery stores affects household-level decisions, and the related effects on consumer welfare. My research shows that households that live in states with wine in grocery stores are more likely to purchases a more diverse basket of wine products. During 2015 I have also used the Nielsen data to explore the impact of marketing and labeling strategies used by food manufacturers including genetically engineered (GE) ingredients.In the future I will extend this work to examine the relative costs and benefits to producers and consumers of GE fruit and vegetablecrops when the technology might increase the nutritional content of the food and/or might help to mitigate food waste. A second major accomplishment related to goal 2 is related to the work I have done with Tim Richards and Julian Alston examining the optimal pricing mechanism for licensed fruit varieties developed by land grant universities. We have three manuscripts from this work that have been published between 2010 and 2015 and I am now extending some of this work with colleagues at WSU and others at the University of Guelph. Overall, our work shows that the method for licensing new varieties matters, and that the innovator (in this case the university) is most likely to maximize revenues when a non-exclusive (i.e., many farmers can adopt the technology) royalty is employed. Also related to objective 2, I have investigatedthe economic implications of various labor management strategies that are being used by specialty crop growers in the Northeast (including H2A). This work shows that an expansion in the guest worker program would increase fruit and vegetable production in the northeast, but that such a change in legislation might not always benefit all agricultural sectors (most notably input suppliers in grain and oilseed markets). Throughout the project I assessed the potential and implications for trade agreements in horticultural products. During2015, I spent time working on new research that examined the potential effects of the proposed EU-U.S. trade agreement (TTIP) onproducers, consumers, and marketers of fruit and vegetable products, with a special focus on the wine sector. Also, during the last year of this project (between October 2014 and September 2015) I conducted new research to examine the costs and benefits for adoption of various risk management tools (crop insurance and high tunnels) for stone fruit producers in the Northeast. This work indicates that crop insurance designed for specific regions may yield greater long-run benefits to producers compared to high tunnel systems.

Publications

  • Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Rickard, Bradley. How do date labels impact food waste: Considering product category, package size, and risk". Presented at the New York Produce Show and Conference. New York, NY. December 2, 2015.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Wilson, N., B. Rickard, R. Saputo, and S.-T. Ho. 2015. Food waste: The role of date labels, package size, and product category. Presented as a seminar in the Rural Infrastructure and Agro-industries Division, Food and Agriculture Organization of the United Nations. Rome, Italy. August 7, 2015.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Sapkota Bastola, P., K. Gallardo, J. McCluskey, and B. Rickard. 2015. Mechanisms of patent licensing for varietal innovation. Presented at the Annual Meeting of the Agricultural and Applied Economics Association. San Francisco, CA. July 27, 2015.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Wilson, N., B. Rickard, R. Saputo, and S.-T. Ho. 2015. Food waste: The role of date labels, package size, and product category. Presented at the Annual Meeting of the Agricultural and Applied Economics Association. San Francisco, CA. July 26, 2015.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Wilson, N., B. Rickard, R. Saputo, and S.-T. Ho. 2015. Food waste: The role of date labels, package size, and product category. Presented as a seminar in the Environment in Trade and Agriculture Division, Organisation of Economic Cooperation and Development. Paris, France. July 17, 2015.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Qu, M., B.J. Rickard, M. Costanigro, and E. McLaughlin. 2015. Retail wine availability and product diversity. Presented at the Annual Meeting of the Northeast Agricultural and Resource Economics Association. Newport, RI. June 27, 2015.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Qu, M., B.J. Rickard, M. Costanigro, and E. McLaughlin. 2015. Retail wine availability and product diversity. Presented at the Annual Meeting of the American Association of Wine Economists. Mendoza, Argentina. May 28, 2015.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Rickard, Bradley. Consumer response to the introduction of GMOs in fruit and vegetable markets. Presented at the London Produce Show and Conference. London, UK. June 4, 2015.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Rickard, Bradley J. Retail Availability of Wine and Product Diversity. Presented at the B.E.V. Annual Meeting. Rochester, NY. February 26, 2015.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2014 Citation: Rickard, Bradley. Will 'GMO Free' Be the New Organic? Presented at the New York Produce Show and Conference. New York, NY. December 3, 2014
  • Type: Other Status: Other Year Published: 2015 Citation: Maloney, T., M. Smith, R. Saputo, and B. Rickard. 2015. Workforce Issues: Profiles of Specialty Crop Farms in New York State. AEM Extension Bulletin No. 2015-13.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Doerflinger, F., B. Rickard, J. Nock, and C. Watkins. 2015. Early harvest is a critical factor in decreasing flesh browning development of Empire apples. New York Fruit Quarterly 23(3): 3034.
  • Type: Other Status: Other Year Published: 2015 Citation: Baker, P., A. De Marree, S.-T. Ho, T. Maloney, and B. Rickard. 2015. Labor Issues and Employment Practices on New York Apple Farms. AEM Extension Bulletin No. 2015-02.
  • Type: Other Status: Other Year Published: 2014 Citation: Rickard, B.J. Chapter 9: Outlook for Fruits and Vegetables, in the 2015 New York Economic Handbook. E.B. 201410, Charles H. Dyson School of Applied Economics and Management, Cornell University. December 2014.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Chen, X., H.M. Kaiser, and B.J. Rickard. 2015. The impacts of inclusive and exclusive taxes on healthy eating: An experimental study. Food Policy 56(October): 1324.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Rickard, B.J., J.J. McCluskey, and R.W. Patterson. 2015. Reputation tapping. European Review of Agricultural Economics 42(4): 675701.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Doerflinger, F., B. Rickard, J. Nock, and C. Watkins. 2015. An economic analysis of harvest timing to manage a physiological storage disorder in Empire apples. Postharvest Biology and Technology 107(September): 18.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Liaukonyte, J., T.J. Richards, H.M. Kaiser, and B.J. Rickard. 2015. Under-contribution to public goods due to self-interested inequity aversion. European Review of Agricultural Economics 42(3): 473497.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Rickard, B.J. 2015. On the political economy of guest worker programs in agriculture. Food Policy 52(April): 18.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Lusk, J.L., B.R. McFadden, and B.J. Rickard. 2015. Which biotech foods are most acceptable to the public? Biotechnology Journal 10(1): 1316.


Progress 10/01/13 to 09/30/14

Outputs
Target Audience: During the period between October 1 2013 and September 30 2014 I disseminated results and interacted with a wide range of stakeholders on the research conducted as part of this project. The audience included attendees at CCE workshops and conferences (F&V Expo in Syracuse in January 2014, BEV NY conference in February 2014), similar organizations in other states (e.g., VA Vintner's Association), the Northeast Agribusiness Seminar, and various on-campus events. The audience included stakeholders in NYS's horticultural sector, as well as thosewith an interest in understanding the business environment for horticultural crops including input suppliers, lenders, producers, processors, industry organizations, policy makers, agricultural scientists, and university administrators. Changes/Problems: Recently I requested a change to notify NIFA that we plan to conduct a laboratory experiment related to the causes and consequences of food waste, notably for food waste related to packaged vegetables. Because the experiment uses human subjects, we uploaded the relevant IRB forms related to this experiment. What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? During the period between October 1 2013 and September 30 2014 I disseminated results and interacted with a wide range of stakeholders on the research conducted as part of this project. The audience included attendees at CCE workshops and conferences (F&V Expo in Syracuse in January 2014, BEV NY conference in February 2014), similar organizations in other states (e.g., VA Vintner's Association), the Northeast Agribusiness Seminar, and various on-campus events. The audience included stakeholders in NYS's horticultural sector, as well as thosewith an interest in understanding the business environment for horticultural crops including input suppliers, lenders, producers, processors, industry organizations, policy makers, agricultural scientists, and university administrators. What do you plan to do during the next reporting period to accomplish the goals? On objective 1 I began to usethe Nielsen Homescan data to examine demand for baby food products with non-GMO labels, and notably for baby food products that are made using fruits and vegetables. I have alsoused the same dataset (working with Marco Costanigro from CSU) to examine how consumer demand for variety is impacted by state laws; here we focus on state laws that restrict the retail availability of wine. During the reporting period forobjective 2,Ibegan toconduct a laboratory study (with Norbert Wilson at Auburn) to examine factors that are considered to impact food waste. Here we focus on the role of i) package size, ii) product type, and iii) date labels on the likelihood that consumers will increase food waste. We examine packaged salad greens as one of the products in this study. Different treatments will examine date labels that use the following language: Best by, Use by, and Freshest by; this is done as a way to disentangle messages that appear like food safety messages versus those that appear like food quality messages.I havealso been working with colleagues at USDA-ERSexamining the likely effects of the proposed EU-U.S. free trade agreement (TTIP) on fruit and vegetable trade. Here we are paying special attention to the role of SPS and other non-tariff barriers that are in place and how relaxation of these regulations may affect trade flows.

Impacts
What was accomplished under these goals? On objective 1, Iworked with Ed McLaughlin and Harry Kaiser at Cornell studying the factors that influence producers' willingness to fund a large scale 5 A Day program for fruits and vegetables. Here we conducted a survey among produce packers, shippers, and growers and used data from approximately 300 respondents.I alsoworked withMarco Costanigro (a member of S-1050) andpublished an article examining the economic and social impacts of alcohol distribution regulations. We are now in the process of planning a follow-up study that uses Nielsen Homescan data to examine how the availability of alcohol in grocery stores affects household-level decisions, and the related effects on consumer welfare. During the reporting period Iworked withJayson Lusk at OSU to study consumer response to Genetically Engineered (GE) fruit varieties when consumers are presented with information on the nature and degree of innovation embedded in the GE product. I also qorked withTodd Schmit and a graduate student at Cornell collecting restaurant-level data (food and wine) to understand the drivers of demand for local wines in restaurants in NYS. This work was presented widely at extension events in NYS.Lastly, Iworked with Kathy Kelly and Ramu Govindasamy (both members of S-1050) on a USDA-funded project that examines consumer demand for wines produced in New Jersey, New York, and Pennsylvania. We plan to report preliminary findings form the survey work in 2015 at various extension events in the tri-state area. During the reporting period forobjective 2,I finished a project with Tim Richards and Julian Alston examining the optimal pricing mechanism for licensed fruit varieties developed by land grant universities. We have three manuscripts from this work under review and are now in the process of extending this work with two colleagues from S-1050 (Jill McCluskey and Karina Gallardo at WSU). Our plan is to further examine the key considerations in the pricing and commercialization for managed varieties being released by WSU.During this time I also worked on a project focusing on agricultural labor supply and immigration reform. Here we look at the economic implications of various labor management strategies that are being used by specialty crop growers in the Northeast (including H2A). We will also consider the effects on agricultural markets associated with an expanded guest worker program.

Publications

  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Ho, S.-T., B.J. Rickard, and J. Liaukonyte. 2014. Economic and nutritional implications from changes in U.S. agricultural promotion efforts. Journal of Agricultural and Applied Economics 46(4): 593613.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Balagtas, J.V., B. Krissoff, L. Lei, and B.J. Rickard*. 2014. Has U.S. farm policy influenced fruit and vegetable production? Applied Economic Perspectives and Policy 36(2): 265286.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Perla, J., B. Rickard, and T. Schmit. 2014. Looking for locapours: Using Zagat Survey� data to examine restaurant demand for local wine. Agricultural and Resource Economics Review 43(1): 6986.
  • Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Fang, D., T.J. Richards, and B.J. Rickard. Optimal licensing of agricultural patents: Fees versus royalties. Journal of Agricultural and Resource Economics (forthcoming).
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Richards, T.J., and B.J. Rickard. 2014. Patents as options: Path-dependency and optimal valuation strategies. European Review of Agricultural Economics 41(5): 817841.


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

Outputs
Target Audience: The target audiences for the work during this time period include agricultural producers, agribusiness firms, and policy makers. 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? Rickard, B., and J. Perla. “Do restaurants cater to locapours? Using ZAGAT® survey data to examine factors that influence wine list selections.” Presented at the New York Produce Show and Conference. New York, NY. December 11, 2013. 35 attendees. Rickard, Bradley. “Situation and Outlook Report for Fruits and Vegetables.” Presented at the AEM Agricultural Outlook Conference. Ithaca, NY. December 10, 2013. 25 attendees. Rickard, Bradley. “University licensing of patents for varietal innovations in agriculture.” Presented as a departmental seminar at Oklahoma State University. Stillwater, OK. November 22, 2013. 40 attendees. Rickard, Bradley. “University licensing of patents for apple varietal innovations.” Presented at the CCE Agriculture and Food Systems In-service Conference. Ithaca, NY. November 19, 2013. 10 attendees. Rickard, Bradley. “The political economy of guest worker programs in agriculture.” Presented at the FDRS Annual Meeting. Chicago, IL. October 7, 2013. 20 attendees. Rickard, Bradley. “University licensing of patents for varietal innovations in agriculture.” Presented at the AAEA/CAES Annual Meeting. Washington D.C. August 6, 2013. 15 attendees. Perla, J., and B. Rickard. “Do restaurants cater to locapours? Using ZAGAT® survey data to examine factors that influence wine list selections.” Presented at the NAREA Pre-conference Workshop. Ithaca, NY. June 23, 2013. 35 attendees. Rickard, B., and J. McCluskey. “Reputation Tapping.” Presented at the Eastern Economic Association Annual Meeting. New York, NY. May 10, 2013. 25 attendees. Rickard, Bradley. “Economic and Social Effects from the Introduction of Alcohol into Grocery Stores.” Presented as a departmental seminar at the University of Connecticut. Storrs, CT. April 12, 2013. 40 attendees. Rickard, Bradley. “University licensing of patents for varietal innovations in agriculture.” Presented at the NC 1034 Annual Meeting. Tucson, AZ. March 15, 2013. 15 attendees. Perla, J., and B. Rickard. “Do restaurants cater to locapours? Using ZAGAT® survey data to examine factors that influence wine list selections.” Presented at Vit2013. Rochester, NY. February 7, 2013. 45 attendees. What do you plan to do during the next reporting period to accomplish the goals? Continue working with others in the regional research group S-1050 on on-going work that examines economic issues in horticultural markets, as well as continue working with others at CU examining competitiveness issues in NYS horticultural markets.

Impacts
What was accomplished under these goals? During 2013 I worked with Ed McLaughlin and Harry Kaiser at Cornell studying the factors that influence producers’ willingness to fund a large scale 5 A Day program for fruits and vegetables. Here we conducted a survey among produce packers, shippers, and growers and used data from approximately 300 respondents. During 2013 Marco Costanigro (a member of S-1050) published an article examining the economic and social impacts of alcohol distribution regulations. We are now in the process of planning a follow-up study that uses Nielsen Homescan data to examine how the availability of alcohol in grocery stores affects household-level decisions, and the related effects on consumer welfare. In 2014 I plan to start a new project with Jayson Lusk at OSU to study consumer response to Genetically Engineered (GE) fruit varieties when consumers are presented with information on the nature and degree of innovation embedded in the GE product. In 2013 I worked with Todd Schmit and a graduate student at Cornell collecting restaurant-level data (food and wine) to understand the drivers of demand for local wines in restaurants in NYS. This work was presented widely at extension events in NYS. At the 2013 S-1050 meeting I met James Sterns from OSU and we talked about working together on a project that studies the evolution of R&D frameworks at land grant universities, and specifically the R&D that is happening for the fruit and vegetable sector. We are now in the early stages of writing a thought piece on this topic and plan to submit it to Choices in 2014. We hope this may lead to additional work on the economics of R&D for horticultural products.

Publications

  • Type: Journal Articles Status: Accepted Year Published: 2013 Citation: Rickard, B.J., M. Costanigro, and T. Garg. 2013. Economic and social implications from regulating alcohol availability in grocery stores. Applied Economic Perspectives and Policy 35(4): 613633.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Rickard, B.J. Chapter 9: Outlook for Fruits and Vegetables, in the 2014 New York Economic Handbook. E.B. 201318, Charles H. Dyson School of Applied Economics and Management, Cornell University. December 2013.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Rickard, B.J., T.M. Schmit, M.I. G�mez, and H. Lu. 2013. Developing brands for patented fruit varieties: Does the name matter? Agribusiness: An International Journal 29(3): 259272.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: 8. Schmit, T.M., B.J. Rickard, and J. Taber. 2013. Consumer valuation of environmentally friendly production practices in wines considering asymmetric information and sensory effects. Journal of Agricultural Economics 64(2): 483504.


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

Outputs
OUTPUTS: During 2012 I finished a project with Jill McCluskey (another member of S-1050) that examined the role of reputation in the development of new wine regions. In this project we examine consumer response to different types of reputation-based information: firm-based, region-based, and international-based. We conducted a laboratory experiment at Cornell in late-2011 and in early 2012 to collect WTP data under various information treatments and the results have been disseminated to grape growers and wine makers in New York, New Jersey, and Virginia. As a follow-up to the and study described above, I am now working with Todd Schmit and a graduate student at Cornell collecting restaurant-level data (food and wine) to understand the drivers of demand for local wines in restaurants in NYS. This work has been shared with wine and grape researchers at Cornell and with some industry stakeholders in New York State. During 2012 we (myself, Miguel Gomez, and others) completed our project that examines consumer demand for varietal introductions in the apple sector and the results were shared with apple growers involved in marketing the new patented apple varieties. I also have continued to work with Miguel Gomez and others in NYS to develop crop budgets for key horticultural products in NYS. Research in this area was shared with processing vegetable growers in New York State in 2012. During 2012 I also worked with folks in Crop and Soil Sciences to develop crop budgets for various vegetables that are produced using alternative organic cropping systems. This work was shared in detail with the grower members on the advisory council for the project. Reseach was disseminated at the following events that were attended primarily by industry stakeholders: Finger Lakes Wine and Grape Symposium: Wine Industry Workshop. Seneca Falls, NY. NY Fruit and Vegetable Expo. Syracuse, NY. January 24, 2012. Cornell Agriculture and Food Systems In-service: Farm Management and Marketing. Ithaca, NY. November 15, 2012. Cornell Agriculture and Food Systems In-service: Cornell Recent Advances in Viticulture and Enology. Ithaca, NY. November 16, 2012. AEM Agricultural Outlook Conference. Ithaca, NY. December 18, 2012. New York Produce Show and Conference. New York, NY. December 5, 2012. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
Our work that examined the role of reputation in the development of new wine regions is being used by wine growers as they further develop their marketing efforts in eastern states. Results from our lab study show that consumers respond to specific types of marketing information and have the capacity to increase sales and demand of wine produced in eastern U.S. states. My work related to restaurant-level data (food and wine) has been shared with selected wineries in New York State and we hope it will be used to help winery owners and restuarant owners to understand mutually beneficial paths of cooperation. Our project that examines consumer demand for varietal introductions in the apple sector gave the executive team at NYAG the infromation needed to recruit a professional marketing team to help them launch two new apple varieties. The data we collected and the results we presented allowed them to be equipped with preliminary marketing information, and this allowed them to be better prepared to develop their marketing program. Another project in 2012 looked at the domestic market implications of the Market Access Program (MAP) that subsidizes exports of selected agricultural products, most of which are specialty crops. Here we are interested in the domestic market effects and food consumption patterns given a change in MAP funding. We (myself and a graduate student at Cornell) developed a model to simulate the effects of i) decreases in MAP funding, ii) and decreases in MAP funding coupled with an expansion of domestic promotion efforts. This work has begun to be recognized by industry stakeholders and policymakers as part of the discussions surrounding the economics of provisions in the next Farm Bill. Our work that developed crop budgets for various vegetables using alternative organic cropping systems has impacted production systems among organic vegetable producers in the Northeast. Our work highlights the economic impacts under the different systems under different conditions, and selected stakeholders have been able to adjust their production systems to increase profitability.

Publications

  • Rickard, B.J., A.M. Okrent, and J.M. Alston. 2013. How have agricultural policies influenced caloric consumption patterns in the United States Health Economics (forthcoming).
  • J. Alston, A. Okrent, and B. Rickard. 2013. Impact of agricultural policies on caloric consumption. Trends in Endocrinology and Metabolism: A Cell Press Reviews Journal (forthcoming).
  • Rickard, B.J., T.M. Schmit, M.I. Gomez, and H. Lu. 2013. Developing brands for patented fruit varieties: Does the name matter Agribusiness: An International Journal (forthcoming).
  • Schmit, T.M., B.J. Rickard, and J. Taber. 2013. Consumer valuation of environmentally friendly production practices in wines considering asymmetric information and sensory effects. Journal of Agricultural Economics (forthcoming).
  • Liaukonyte, J., B. Rickard, H. Kaiser, A. Okrent, and T. Richards. 2012. Economic and health effects of fruit and vegetable advertising: Evidence from lab experiments. Food Policy 37(5): 543-553.
  • Rickard, Bradley J. 2012. The economics of introducing wine into grocery stores. Contemporary Economic Policy 30(3): 382-398.
  • Li, J., M.I. Gomez, B.J. Rickard, and M. Skinner. 2013. Factors influencing adoption of integrated pest management practices in Northeast greenhouse ornamentals. Agricultural and Resource Economics Review (forthcoming).
  • Rickard, B.J., M. Costanigro, and T. Garg. 2012. Regulating the availability of beer, wine, and spirits in grocery stores: Beverage-specific effects on prices, consumption, and traffic fatalities. Under review at Applied Economic Perspectives and Policy.
  • Liaukonyte, J., T. Richards, B. Rickard, and H. Kaiser. 2012. Under-Contribution to Public Goods due to Self-Interested Inequity Aversion. Revised and resubmitted to American Journal of Agricultural Economics.
  • Rickard, B.J., J.J. McCluskey, and R.W. Patterson. 2012. Reputation Tapping. Under Review at the American Journal of Agricultural Economics.
  • Liaukonyte, J., N.A. Streletskaya, H.M. Kaiser, and B.J. Rickard. 2012. Asymmetry in Demand Responses to Positive and Negative Product Labeling Information: Evidence from Lab Experiments. Under Review at Applied Economic Perspectives and Policy.
  • Richards, T.J., B.J. Rickard, J.M. Alston, and D. Fang. 2012. Patents as Options: Path-Dependency and Optimal Valuation Strategies. Under Review at the American Journal of Agricultural and Resource Economics.
  • Ho, S.-T., B.J. Rickard, and J. Liaukonyte. 2012. Welfare and nutritional effects from potential changes in U.S. trade promotion efforts. AEM Working Paper #2012-16. Under Review at Food Policy.
  • Balagtas, J., B. Krissoff, L. Lei, and B. Rickard. 2012. Acreage response to fruit and vegetable planting restrictions: A difference-in-difference approach. AEM Working Paper #2012-14. Under Review at Applied Economic Perspectives and Policy.
  • Rickard, B.J. Chapter 9: Outlook for Fruits and Vegetables, in the 2013 New York Economic Handbook. 2012. E.B. 2012-18, Charles H. Dyson School of Applied Economics and Management, Cornell University. December 2012.
  • Rickard, B.J. Situation and Outlook for Fruit in Federal Reference Manual for Regional Schools: Income Tax Management and Reporting for Small Businesses and Farms. 2012. E.B. 2012-23, Charles H. Dyson School of Applied Economics and Management, Cornell University. December 2012.
  • Rickard, B., and J. Perla. 2012. The Trans-Pacific Partnership and Wine Sales to Canadians. New York Farm Bureaus Grassroots: Guest Opinion. 1(10), page 5.


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

Outputs
OUTPUTS: During the reporting period a major output stemmed from work that examined the market potential for varietal introductions in the apple sector. I developed an experiment during 2011 that examined consumers' willingness to pay for NY1, the new managed apple variety developed at Cornell University. We introduced consumers to five apple varieties (Empire, Fuji, Honeycrisp, Pinata, and NY1) and asked them to place bids on one pound of each variety. Consumers were introduced to NY1 with one of three names as a way to gauge the relative importance of names for the new variety. Our names draw on commonly used themes for tree fruit varietal names: sensory names, appearance names, and namesake names. Our results show that a sensory name had a significant effect on consumers' valuation of NY1 and Pinata, but little effect on consumers' valuation of the other traditional varieties. Results from this work were disseminated widely to stakeholders in New York State including presentations at the CCE-Hudson Valley Fruit School in Kingston, NY; at the CCE-Wayne County Fruit School in Newark, NY; at the New York Produce Show and Conference, in New York City, NY; and at the CCE-Orleans County Fruit School in Albion, NY. During the reporting period I have also continued to develop crop budgets for key horticultural products in NYS. Research in this area has recently been completed for processing peas and snap beans using survey data collected from farms in western New York State. We found that average costs of production were in line with what has been reported in other states, and we would like to conduct a more formal analysis across selected states. Results from this work were disseminated widely to stakeholders in New York State through extension bulletins and presentations. An extension bulletin written with S.-T. Ho, J. Kikkert, K. Klotzbach, S. Reiners, and M. Smith titled Examining the Costs of Producing Processing Snap Beans and Green Peas in New York State was released in 2011. Furthermore, these results were disseminated to staekholders at a presentation titled Situation and Outlook Report for Fruits and Vegetables at the AEM Agricultural Outlook Conference. During 2011 I also worked with colleagues in CALS to develop crop budgets for various vegetables that are produced using alternative organic cropping systems. Results from an extension bulletin written by myself, S. Chan, B. Caldwell, C. Mohler were disseminated to research colleagues at a univeristy-industry meeting in June 2011 and shared with farmer members of the advisory council for the Organic Cropping Systems Project. 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
Research conducted during this reporting period examined linkages between farm policies and obesity rates in the United States. Results from this work were extended through presentations including a faculty seminar in the Division of Nutritional Sciences and as part of a session at the Cornell Agriculture and Food Systems In-service Conference. Findings from this work led to a change in the way people view the relationship between farm bill provisions and rising obesity rates. Perhaps surprising, the caloric effects from removing farm subsidies would be very small, and in fact, removal of all farm subsidies including tariffs on imported items may increase net caloric consumption. Other research in 2011 examined the social consequences of proposed policy changes on grocery store alcohol availability. Over the past 30 years, and especially over the past few years we have seen legislative proposals to introduce wine into grocery stores in NYS; however, none of these have passed due to strong opposition from liquor store owners and social interest groups concerned about increased alcohol consumption and the problems associated with increased alcohol consumption. This analysis uses data across 48 states between 1982 and 2000 to assess the effects of grocery store alcohol availability on beer, wine, and spirit prices and consumption, and the effects on traffic fatality rates. Our results indicate that introducing wine into grocery stores decreases wine prices and increases wine consumption; we also find that traffic fatalities are most closely tied to beer and spirit consumption. Preliminary simulation results show that the introduction of wine into grocery stores would have negligible effects on traffic fatalities, and may even have the capacity to reduce fatalities if the increased wine consumption displaces some beer and spirit consumption. These results show that resistance to such policy changes for reasons related to increased traffic fatalities may be misguided, and they have had an impact on the policy discussions surrounding this controversial debate in New York State (as well as in other states considering the introduction of wine into grocery stores including Tennessee, Colorado, Oklahoma, and Kentucky). In particular, a presentation that focused on this research at the Wine Industry Workshop in Geneva, NY in April 2011 increased knowledge on this issue for a wide range of stakeholders in NYS's wine industry. Third, my work that examined the role of names for new managed apple varieites has influenced apple marketers to consider their promotion strategies carefully. Although I did not identify a commercial name for the new managed apple varieties in NYS, I have provided new infromation to help industry stakeholders make an informed decision on this front.

Publications

  • Rickard, B.J. Situation and Outlook for Fruit, in Federal Reference Manual for Regional Schools: Income Tax Management and Reporting for Small Businesses and Farms. E.B. 2010-23, Charles H. Dyson School of Applied Economics and Management, Cornell University. December 2010.
  • Chan, S., B. Caldwell, and B. Rickard. 2010. An economic analysis of alternative cropping systems in organic vegetable production. AEM Extension Bulletin No. 2010-14.
  • Rickard, B.J., J. Liaukonyte, H.M. Kaiser, and T.J. Richards. 2011. Consumer response to commodity-specific and broad-based promotion programs for fruits and vegetables. American Journal of Agricultural Economics 93(5)
  • Rickard, B.J., and L. Lei. 2011. How important are tariffs and non-tariff barriers in international markets for fresh fruit Agricultural Economics 42(S).
  • Rickard, B. J., and D.A. Sumner. 2011. Was there policy reform Evolution of EU domestic support for processed fruits and vegetables. Food Policy 36(3).
  • Chan, S., B. Caldwell, B. Rickard, and C. Mohler. 2011. Economic Performance of Organic Cropping Systems for Vegetables in the Northeast. Journal of Agribusiness 29(1).
  • Schroeter, C., J. Ritchie, and B. Rickard. 2011. Factors that influence prices of cool climate wines: A hedonic analysis of the market for Riesling. Journal of Agribusiness 29(1).
  • Alston, Julian M., B.J. Rickard, and A.M. Okrent. 2010. Farm policy and obesity in the United States. Choices 25(3)
  • J. Liaukonyte, B. Rickard, H. Kaiser, T. Richards, and A. Okrent. 2010. Evaluating advertising strategies for fruits and vegetables and the implications for obesity in the United States. AEM Working Paper No. 2010-19.
  • Rickard, B.J., M. Costanigro, and T. Garg. 2011. Regulating the availability of alcohol in grocery stores: Beverage-specific effects on prices, consumption, and traffic fatalities. AAWE Working Paper No. 95.
  • Rickard, B.J., T.M. Schmit, M.I. Gomez, and H. Lu. 2011. Does the name matter Developing brands for patented fruit varieties. AEM Working Paper No. 2011-16.
  • Rickard, B.J., T.M. Schmit, M.I. Gomez, and H. Lu. 2011. Does the name matter Developing brands for patented fruit varieties. New York Fruit Quarterly 19(3): 5-8.
  • Liaukonyte, J., B. Rickard, H. Kaiser, T. Richards, and A. Okrent. 2011. Evaluating Advertising Strategies for Fruits and Vegetables and the Implications for Obesity in the United States. Smart Marketing, Dyson School of Applied Economics and Management, Cornell University. November 2011.
  • Rickard, B. How Do Consumers Respond to Advertising Programs for Fruits and Vegetables Smart Marketing. Charles H. Dyson School of Applied Economics and Management. January 2011.