{"title":"Broadband internet speed upgrades and the farmland market: A shift-share instrumental variable approach","authors":"Xiaorui Qu, Qinan Lu, Minghao Li, Wendong Zhang","doi":"10.1111/ajae.12559","DOIUrl":"https://doi.org/10.1111/ajae.12559","url":null,"abstract":"<p>Access to reliable and affordable high-speed internet is critical for economic growth, and broadband internet access is of particular concern in rural America. As the United States continues to invest in this vital infrastructure, we provide the first empirical examination of the impact of broadband internet speed upgrades on farm-level sale prices and county-level cash rents in 12 Midwestern US states from 2016 to 2021. We employ a Bartik shift-share instrument with broadband technology shares to address the potential endogeneity in the deployment and upgrades of broadband internet. Our results indicate that a one megabit per second (Mbps) increase in download speed raises farmland sale prices by 0.268% and county-level cash rents by 0.070%. Additionally, a one-percentage-point increase in the download speed growth rate leads to a 0.041 percentage point increase in the growth rate of county-level cash rents. By decomposing the Bartik shift-share instrument, we demonstrate that the exogeneity of the initial market share of satellite technology contributes most to identification. Our research provides valuable insights for policymaking by quantifying the return on broadband investment and identifying areas and types of farms that benefit more from higher internet speed.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 2","pages":"566-598"},"PeriodicalIF":3.3,"publicationDate":"2025-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146193658","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":"Minimum wages and pass-through","authors":"Timothy J. Richards, Ujjwol Paudel","doi":"10.1111/ajae.12554","DOIUrl":"https://doi.org/10.1111/ajae.12554","url":null,"abstract":"<p>Retail food prices rose dramatically in late 2021. Some argue that this food price inflation was due to “greedflation,” or firms increasing downstream prices simply because they can. In this study, we investigate the sources of “overshifting” store-level cost shocks into downstream prices, or the apparent ability of retailers to pass along price increases that are proportionately larger than increases in cost. We use exogenous changes in minimum wages as our setting and study how food retailers pass increases in labor costs along to consumers in the form of higher food prices. We derive a new theoretical model of retail price pass-through and show that demand curvature, market power, and consumer search behavior each likely affect observed rates of retail price pass-through. Our structural analysis shows that, after controlling for the primary determinants of wage pass-through, market power and demand curvature explain much of the variation in cost pass-through, although general price inflation has an important role in accentuating the rate of minimum wage pass-through. Our findings have important implications for minimum wage policy, and for understanding the role of cost shocks in food price inflation.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 2","pages":"462-493"},"PeriodicalIF":3.3,"publicationDate":"2025-05-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146176525","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":"Productivity growth from genetic improvement: Evidence from Illinois soybean trial data","authors":"Jared P. Hutchins, Scott H. Irwin","doi":"10.1111/ajae.12555","DOIUrl":"https://doi.org/10.1111/ajae.12555","url":null,"abstract":"<p>In 2023, the United States produced 28% of the world's soybeans, making understanding yield trends in the United States important for understanding global price trends. We estimate yield growth due to genetic change in soybeans using Illinois variety trial data with a modified approach. Specifically, our approach uses the yield from “check varieties” that are planted consistently from 1997 to 2020 as a control variable to identify the gain in yield across years using only yield variation within the plot and year. Ours are the first estimates of genetic gain in commercial soybean varieties after 2010 and we find that soybean yields increased between 25 and 26 kg/ha (0.37–0.38 bu/acre), or 0.7%, per year at a roughly linear rate in the past two decades. We find mixed evidence that the yield of genetically engineered soybeans grew faster than conventional varieties: In many years, conventional varieties did just as well as genetically engineered ones. We also find that adding the check variety's yield as a control variable significantly impacts how models in the literature estimate the average annual yield gain from genetics in these data. Our findings suggest that genetic change continued to be a consistent driver of yield change in soybeans over the past two decades.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 2","pages":"665-685"},"PeriodicalIF":3.3,"publicationDate":"2025-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.12555","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146176338","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}
Christopher Sichko, Ariell Zimran, Aparna Howlader
{"title":"Environmental migration and race during the Great American Drought, 1935–1940","authors":"Christopher Sichko, Ariell Zimran, Aparna Howlader","doi":"10.1111/ajae.12553","DOIUrl":"https://doi.org/10.1111/ajae.12553","url":null,"abstract":"<p>We study racial differences in internal migration responses to one of the most severe climatic shocks in US history—the drought of the 1930s. Using data from the 1940 census on 70 million adults, we find that individuals exposed to more severe drought between 1935 and 1940 were more likely to make an inter-county move and that this responsiveness was greater for Black individuals than White individuals. This racial difference was particularly pronounced among the rural population. Black individuals' migration premium came despite their systematic disadvantage in the economy of the 1930s and evidence along dimensions other than race that disadvantage limited individuals' ability to adapt to the drought through migration. Federal relief spending under the Agricultural Adjustment Act (AAA) magnified this racial difference, reducing the migration response to drought for White individuals and increasing it for Black individuals. These results help to better understand how the reactions of different groups aggregate to determine the magnitude and composition of migration responses to natural disasters, as well as the roles of migration and government policy in disadvantaged groups' responses to natural disasters.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 5","pages":"1357-1382"},"PeriodicalIF":3.3,"publicationDate":"2025-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145022357","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}
Shanxia Sun, Benjamin M. Gramig, Michael S. Delgado
{"title":"Econometric evaluation of the impact of agricultural conservation on nonpoint source pollution: An application to the Wabash River watershed","authors":"Shanxia Sun, Benjamin M. Gramig, Michael S. Delgado","doi":"10.1111/ajae.12552","DOIUrl":"https://doi.org/10.1111/ajae.12552","url":null,"abstract":"<p>Agricultural production is the largest contributor of nitrogen and phosphorus pollution in lakes, rivers, and streams in the United States. The effectiveness of agricultural conservation programs that encourage farmers to adopt certain practices to reduce this water pollution, once implemented, is an open question. We develop a unique data set combining the spatial structure of the watershed river system, the timing of federal conservation contracts, water quality measurements, land use, land cover, and weather data to study the effect of conservation contracts on nitrogen and phosphorus levels in the Wabash River watershed, which drains Indiana and Illinois. We develop econometric models that generate a causal understanding of the effectiveness of these conservation contracts for reducing nitrogen and phosphorus levels in the surface water system. We find that at current treatment levels, these programs reduce surface water pollution only during relatively dry periods. The efficacy of these programs in the study area is highly sensitive to precipitation to the extent that average precipitation can eliminate the nutrient loss reduction benefits of conservation program installations at current treatment levels. Therefore, we find weak evidence to support ambient downstream water quality improvements resulting from program investment levels to date. We anticipate this work will motivate further inquiry into the manner in which these conservation programs have or have not been effective.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 2","pages":"518-541"},"PeriodicalIF":3.3,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146176389","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}
Viviana Garcia, Niklas Möhring, Yanbing Wang, Robert Finger
{"title":"Farmer behavior toward herbicide-free agriculture and conservation tillage","authors":"Viviana Garcia, Niklas Möhring, Yanbing Wang, Robert Finger","doi":"10.1111/ajae.12550","DOIUrl":"https://doi.org/10.1111/ajae.12550","url":null,"abstract":"<p>Balancing conflicting policy goals is a key challenge in the transition to sustainable agricultural systems. An important example is herbicide use reduction potentially conflicting with conservation tillage—which often strongly relies on herbicide use. We investigate the joint uptake of two agri-environmental schemes, conservation tillage and herbicide-free agriculture systems. To this end, we use a combination of detailed survey data on farmer behavior, environmental and agronomic data, and census data on the complete population of all farmers from Switzerland. Findings based on a multinomial logit and fixed effects multinomial logit indicate that, conditional on observable factors, the systems are not complementary, but joint adoption occurs for 35% of farmers. Behavioral factors explain 26% of joint adoption behavior, emphasizing the role of risk taking, openness to innovation, and biodiversity valuations in farmers' decisions. Our analysis provides broader implications for assessing and navigating conflicting sustainability goals in agriculture globally.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 1","pages":"28-53"},"PeriodicalIF":3.3,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.12550","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145706623","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":"Is yield response enough? Drought impacts on crop acreage throughout the production cycle","authors":"Erin Sumner, Minghao Li, Yau-Huo (Jimmy) Shr","doi":"10.1111/ajae.12549","DOIUrl":"https://doi.org/10.1111/ajae.12549","url":null,"abstract":"<p>Climate change is amplifying the threat of drought to food security. Despite a growing literature examining how drought affects crop yield, previous studies have mostly overlooked the impacts of drought on production through planting and harvesting decisions, which are crucial climate adaptation strategies for farmers. To address this gap, we study corn and soybean production in U.S. counties from 2001 to 2023, examining drought impacts on acreage decisions—planned acres, prevented planting, crop abandonment—and yield within a unified framework. Decomposition analysis shows that, together, acreage decisions account for up to 25% and 20% of drought impacts on corn and soybean production, respectively. Moreover, drought affects production throughout the crop year, not solely during the growing season. Specifications that omit preplanting- and planting-season drought underestimate the adverse impacts of growing-season drought on the harvested ratio, yield, and production of corn and soybeans. Our findings highlight the importance of considering adaptive behavioral responses when quantifying climate-related damage in agriculture.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 2","pages":"542-565"},"PeriodicalIF":3.3,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146176390","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":"Nonclassical measurement error in farmland markets with implications for Ricardian analysis","authors":"Daniel P. Bigelow, Margaret Jodlowski","doi":"10.1111/ajae.12548","DOIUrl":"https://doi.org/10.1111/ajae.12548","url":null,"abstract":"<p>Nonclassical measurement error threatens the validity of empirical economic models. We examine the extent to which land value measures that are commonly used in studies of the US farmland market are subject to nonclassical measurement error. We consider differences in county-level land values from two popular data sources: (1) self-reported land value assessments from the 2017 US Census of Agriculture and (2) observed sales prices from agricultural land transactions (2013–2017). We find that the difference between these data sources, which we interpret as measurement error, is correlated with multiple determinants of land value. Farmland market characteristics, including market size, are negatively related to this difference, implying that more information in a market allows respondents to better update their priors about their land's value. Survey respondents are also slow to update their assessments in areas of rapid recent price changes. Surprisingly, we find measurement error in farmland value to be correlated with climate. To illustrate the empirical implications, we conduct a Ricardian analysis of agricultural climate change impacts and find that temperature, in particular, is differentially capitalized into self-reported land value estimates and sales prices. Under certain climate specifications, using self-reported land values generates climate damage estimates that are more pessimistic but ultimately not significantly different from those using sales prices. However, regional heterogeneity highlights where this difference is significant, namely the northern half of the eastern United States. More generally, our findings highlight important considerations for researchers relying on farmland values from alternative data sources.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 2","pages":"599-629"},"PeriodicalIF":3.3,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.12548","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146176391","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":"Resource windfalls and political sabotage: Evidence from 5.2 million political ads","authors":"David Lagziel, Ehud Lehrer, Ohad Raveh","doi":"10.1111/ajae.12551","DOIUrl":"https://doi.org/10.1111/ajae.12551","url":null,"abstract":"<p>We study the role of incentives in inducing sabotage in political contents, vis-à-vis natural resource windfalls. The latter induce plausibly exogenous increases in contests' stakes by extending opportunities for policy implementation or private gain upon winning and enhancing incumbent advantage. A model of political contests with endogenous sabotage indicates that higher stakes increase sabotage in political campaigns. We validate these predictions using over 5 million TV ads from United States gubernatorial elections (2010–2020), leveraging plausibly exogenous variations in states' natural resource endowments. Results show that resource windfalls significantly escalate negative campaigning: A standard deviation increase in resource windfalls leads to a 10% rise in campaign negativity. We show that this effect is primarily fueled by corruption and observed most strongly in symmetric, more competitive environments.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"108 2","pages":"630-664"},"PeriodicalIF":3.3,"publicationDate":"2025-05-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.12551","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146176213","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}
Lawson Connor, Bruce L. Ahrendsen, Charles B. Dodson, Logan Moss
{"title":"Minority Farmer and Rancher Delinquency and Local Cultural Climate: Evidence from Farm Service Agency's County Office Committees","authors":"Lawson Connor, Bruce L. Ahrendsen, Charles B. Dodson, Logan Moss","doi":"10.1111/ajae.12546","DOIUrl":"https://doi.org/10.1111/ajae.12546","url":null,"abstract":"<p>Farm delinquency is linked to many negative indicators of farm survival, including increased risk of bankruptcy and farm failure. Minority farmers and ranchers (MFR) have been found to exhibit higher rates of delinquency on U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) loans compared to their non-Hispanic White male counterparts. These findings persist even after accounting for economic/financial factors expected to predict loan repayment performance. In this study, to further explore the existing discrepancy between loan default rates for MFR and White, non-Hispanic borrowers, we look more broadly than financial indicators and introduce MFR representation on the FSA County Office Committee (COC) as a proxy for the local cultural climate in an agricultural community. Using changes in COC membership demographics over time and across counties, this study suggests that MFR representation on the COC is associated with a lower probability of MFR delinquency by roughly 10 percentage points. With the probability of delinquency also being about 10 percentage points higher among MFR, the effect represents a significant improvement in loan repayment outcomes for the group. The FSA COCs represent an important linkage between the USDA and the local agricultural community. Moreover, elected minority representation on COCs can be considered as indicative of supportive cultural climates for minorities in agriculture. Given that COC membership composition may represent a proxy for local cultural climate in agriculture, this research raises interesting questions about the potential relationship of MFR representation and community engagement, to FSA program performance.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 5","pages":"1335-1356"},"PeriodicalIF":3.3,"publicationDate":"2025-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.12546","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145022335","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}