{"title":"A reply to “Quality standards, industry structure, and welfare in a global economy”","authors":"Carl Gaigné, Bruno Larue","doi":"10.1111/ajae.70001","DOIUrl":"10.1111/ajae.70001","url":null,"abstract":"<p>Dao-Zhi Zeng's comment identifies an important and potentially confusing ambiguity in Gaigné and Larue on the impact of quality regulations on welfare. In this reply, we clarify the effects of minimum quality standards on welfare under market imperfections and international trade.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 3","pages":"984-994"},"PeriodicalIF":3.3,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147696382","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A comment on “Quality standards, industry structure, and welfare in a global economy”","authors":"Dao-Zhi Zeng","doi":"10.1111/ajae.70002","DOIUrl":"10.1111/ajae.70002","url":null,"abstract":"<p>Gaigné and Larue (<i>American Journal of Agricultural Economics</i> 98:1432–1449) examined the welfare implications of quality regulations within an international trade context, employing a general-equilibrium framework. Their study uses a CES (Constant Elasticity of Substitution) model and finds that stricter public standards might improve welfare. However, this conclusion was actually derived from a partial-equilibrium analysis. This note conducts a thorough general-equilibrium analysis and demonstrates that their anticipated outcome does not hold within their CES framework.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 3","pages":"995-1002"},"PeriodicalIF":3.3,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147696305","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Sinking peatlands: Optimal control of subsidence","authors":"Suphi Sen, Dewy Verhoeven, Hans-Peter Weikard","doi":"10.1111/ajae.70010","DOIUrl":"10.1111/ajae.70010","url":null,"abstract":"<p>Land subsidence threatens the living conditions of about 1.2 billion people worldwide in deltaic regions characterized by soft top soil. Economic activity in these areas requires lowering groundwater levels to keep the land sufficiently dry, which leaves future generations worse off by accelerating subsidence and increasing future costs. This paper provides a model that recognizes this trade-off and yields analytical expressions for the groundwater level paths that optimally manage the dynamics of subsidence in agricultural lands. Applying our model to the paradigm case of Dutch peatlands, we find that accounting for dynamic efficiency increases welfare by more than 2.5% compared to a myopic benchmark, and these gains can be about 10% within reasonable parameter ranges. Our results support current proposals to reduce subsidence, even without considering additional social benefits from avoided carbon dioxide emissions.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 3","pages":"926-953"},"PeriodicalIF":3.3,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.70010","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147696324","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Chen-Ti Chen, Gabriel E. Lade, John M. Crespi, David A. Keiser
{"title":"Size-based regulation and water quality: Evidence from the Iowa hog industry","authors":"Chen-Ti Chen, Gabriel E. Lade, John M. Crespi, David A. Keiser","doi":"10.1111/ajae.70006","DOIUrl":"10.1111/ajae.70006","url":null,"abstract":"<p>The growing prevalence of animal feeding operations (AFOs) in the United States raises concerns among the public and regulators about their impact on local environmental quality. By linking historical regulatory records of AFOs in Iowa to downstream surface water pollution monitors, this paper studies the effects of the 2003 Clean Water Act regulations that targeted water pollution from the largest hog AFOs. The regulation decreased ammonia concentrations downstream of large hog AFOs by 6–8 percentage points. We find limited to no evidence of improvement for dissolved oxygen and phosphorus concentrations. Pollution reductions are largest during heavy precipitation months, consistent with the regulations reducing on-site spills and nutrient runoff from local fields. However, we find that pollution increased downstream from mid-sized hog AFOs, which were exempt from the updated regulations. Given the growth in the number of mid-sized facilities relative to large AFOs, we estimate that the regulation had little discernible impact on overall water quality.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 3","pages":"829-855"},"PeriodicalIF":3.3,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.70006","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147696363","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A rejoinder to “Quality standards, industry structure, and welfare in a global economy”","authors":"Dao-Zhi Zeng","doi":"10.1111/ajae.70000","DOIUrl":"10.1111/ajae.70000","url":null,"abstract":"<p>In their response to Zeng (2026), Gaigné and Larue (2025) present two new results demonstrating the potential necessity of quality regulations based on their CES model. This brief note provides additional commentary on their findings.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 3","pages":"981-983"},"PeriodicalIF":3.3,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147696306","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Brittney Goodrich, Jisang Yu, Kelly Davidson, Gyuhyeong Goh
{"title":"Rainfall timing, forage growth, and insuring forage: Linking producer perceptions to observational data","authors":"Brittney Goodrich, Jisang Yu, Kelly Davidson, Gyuhyeong Goh","doi":"10.1111/ajae.70009","DOIUrl":"10.1111/ajae.70009","url":null,"abstract":"<p>The timing and amount of rainfall are crucial in forage growth. Producer perceptions of the rainfall distribution are likely to influence their choices related to the Pasture, Rangeland, and Forage Rainfall Index insurance program. Because of the scarcity of forage production data, diversity of forage production systems, and climates throughout the United States, the correlation between the timing of rainfall and forage growth varies substantially. Using survey data from the northeastern and southeastern United States, we provide a snapshot of producers' perceptions on the relevant rainfall timing for forage growth. We also show that the perceptions do not align with actual insurance enrollment in the surveyed counties. We provide an empirical framework linking survey responses to county-level observational data using a Bayesian approach to determine the months when rainfall is most important for forage growth. We find that the producers' perceptions act as useful priors and are consistent with the county-level analysis. Our methods demonstrate a framework for combining survey data with secondary data to overcome data constraints that can be applied to other contexts beyond the Pasture, Rangeland, and Forage Rainfall Index insurance program.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 3","pages":"747-770"},"PeriodicalIF":3.3,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.70009","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147696366","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Optimal timing and rate of nitrogen fertilizer use: An integrated network technology approach","authors":"Tihomir Ancev, Moriah Bostian","doi":"10.1111/ajae.70011","DOIUrl":"10.1111/ajae.70011","url":null,"abstract":"<p>Both the rate and timing of crop fertilizer application play an important role in agricultural productivity. However, inefficient fertilizer use can significantly increase production costs, water pollution, and greenhouse gas emissions. To capture both the spatial heterogeneity and dynamic nature of this problem, we develop a multi-stage network production model, which links the sequential stages of crop growth within the overall crop production process. We use this framework to estimate nitrogen fertilizer application inefficiency and to determine the optimal rate and timing of fertilizer application. We apply this framework to wheat production at the field scale, using an agronomic simulation model calibrated to experimental data from Australia. Our results indicate that it is optimal to reduce the overall fertilizer application rate and to move away from the current practice of front-loading fertilizer in the initial stages of crop growth toward the intermediate stages. This can be achieved without compromising yields while also reducing nutrient losses.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 3","pages":"856-873"},"PeriodicalIF":3.3,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.70011","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147696368","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Saurav Raj Kunwar, Robert G. Chambers, Laura F. Gentry, Teresa Serra
{"title":"What are the carbon services from cover-crop adoption worth from farmers' perspective?","authors":"Saurav Raj Kunwar, Robert G. Chambers, Laura F. Gentry, Teresa Serra","doi":"10.1111/ajae.70005","DOIUrl":"10.1111/ajae.70005","url":null,"abstract":"<p>We derive shadow prices of carbon services provided by cover crops relative to non-cover-crop agricultural practices, accounting for carbon sequestration and greenhouse gas (GHG) emissions. We model the agricultural technology by integrating crop production, carbon sequestration, and GHG emissions. We derive a novel function representation of our technology using a data envelopment analysis (DEA). We then calculate shadow prices based on the dual representation of the technology and compare shadow prices between cover-crop and non-cover-crop fields. We find that the carbon sequestration and the GHG emissions reduction services from cover-crop fields relative to non-cover-crop fields are worth USD 17.88 and USD 9.42 per acre, respectively. We compare shadow prices to payments from an incentive program aimed at promoting cover-crop adoption, thereby highlighting the economic feasibility and potential barriers to adopting sustainable practices.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 3","pages":"901-925"},"PeriodicalIF":3.3,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.70005","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147696356","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Spatial price competition and buyer power in the U.S. beef packing industry","authors":"GianCarlo Moschini, T. Jake Smith","doi":"10.1111/ajae.70003","DOIUrl":"10.1111/ajae.70003","url":null,"abstract":"<p>We develop a spatially-explicit model of the U.S. beef packing industry to study key questions related to competition in an oligopsony setting. Cattle supplies are modeled at the county level, and packing plants' location, capacity, and ownership are taken as given. Packers procure negotiated cattle by competing in prices in each local (county) market, while accounting for transportation costs and pre-existing contracted supplies (alternative marketing arrangements). The model, calibrated to match observed 2022 data, is solved for the Bertrand–Nash equilibrium prices. The computed markdown in the price packers pay for fed cattle is decomposed into three components: the portion due to the inherent spatial oligopsony power; the amount due to an aspect of market concentration (firms owning multiple plants); and the component due to contracting. We find that markdowns are moderate, about $3.69/cwt or 2.6% of the fed cattle price, on average. About 54% of this markdown is due to the spatial configuration of plants, 40% is due to pre-contracted supplies, and only 6% of the markdown is attributed to multi-plant ownership by firms. Separately from markdowns, capacity constraints are found to lower fed cattle prices by 0.8% on average. Beyond the baseline, simulated counterfactual scenarios highlight specific policy-relevant questions. Markdowns are reasonably robust across counterfactuals, decreasing only modestly when plants operate independently or the use of contracting is limited. Across all counterfactual scenarios, cattle prices per se are most affected by tightening capacity constraints (as arising from a major plant closure or an upward swing in the cattle cycle).</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 3","pages":"771-798"},"PeriodicalIF":3.3,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.70003","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147696296","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Evaluating large-scale government investments in fertilizer adoption: The Ethiopian experience","authors":"Thomas Assefa, Ellen McCullough, Guush Berhane","doi":"10.1111/ajae.70007","DOIUrl":"10.1111/ajae.70007","url":null,"abstract":"<p>We evaluate the impact of a large Government of Ethiopia intervention to raise fertilizer supply by establishing five fertilizer blending facilities supplying fertilizers tailored to local soil nutrient profiles. We rely on the phased geographic rollout of blending facility establishment to identify the causal effect on fertilizer use, application rates, crop yields, gross crop revenue, and household consumption. Combining effects of multiple treatment periods, each estimated using a doubly robust difference-in-difference model, we find that the blending facilities increased the probability that farmers adopt the new blended fertilizers by 22 percentage points and increased application rates by 17 kg/ha (baseline adoption was zero). The facilities mostly induced farmers who previously used DAP to switch to NPS, and we find large decreases in DAP adoption (by 22 percentage points, 47% of the control group base mean) and application rates (16 kg/ha, 52% of the control group base mean) yet no impact on overall fertilizer adoption or application rates. Though the new blended fertilizers were expected to perform better, there is no evidence they improved crop yields, crop gross revenue, or household consumption. The effect of the intervention was more pronounced (with larger increases in NPS use and larger decreases in DAP use) for farms located near demonstration plots, which the Government used to train farmers about the agronomic response to the new fertilizers. We confirm results using three large-scale longitudinal datasets and show that they are robust to choices of specification, treatment definition, and inference assumptions.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 3","pages":"874-900"},"PeriodicalIF":3.3,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.70007","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147696277","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}