Opportunity Cost Research Articles

Evaluating the Acceptability of the Drink Less App and the National Health Service Alcohol Advice Web Page: Qualitative Interview Process Evaluation.

The extent to which interventions are perceived as acceptable to users impacts engagement and efficacy. In this study, we evaluated the acceptability of (1) the smartphone app Drink Less (intervention) and (2) the National Health Service (NHS) alcohol advice web page (usual digital care and comparator) among adult drinkers in the United Kingdom participating in a randomized controlled trial evaluating the effectiveness of the Drink Less app. A subsample of 26 increasing- and higher-risk drinkers (Alcohol Use Disorders Identification Test score≥8) assigned to the intervention group (Drink Less; n=14, 54%; female: n=10, 71%; age: 22-72 years; White: n=9, 64%) or usual digital care group (NHS alcohol advice web page; n=12, 46%; female: n=5, 42%; age: 23-68 years: White: n=9, 75%) took part in semistructured interviews. The interview questions were mapped on to the 7 facets of acceptability according to the Theoretical Framework of Acceptability: affective attitude, burden, perceived effectiveness, ethicality, intervention coherence, opportunity costs, and self-efficacy. Alongside these constructs, we also included a question on perceived personal relevance, which previous research has linked to acceptability and engagement. Framework and thematic analysis of data was undertaken. The Drink Less app was perceived as being ethical, easy, user-friendly, and effective for the period the app was used. Participants reported particularly liking the tracking and feedback sections of the app, which they reported increased personal relevance and which resulted in positive affect when achieving their goals. They reported no opportunity cost. Factors such as negative affect when not meeting goals and boredom led to disengagement in the longer term for some participants. The NHS alcohol advice web page was rated as being easy and user-friendly with no opportunity costs. However, the information presented was not perceived as being personally relevant or effective in changing drinking behavior. Most participants reported neutral or negative affect, most participants thought the alcohol advice web page was accessible, and some participants reported ethical concerns around the availability of suggested resources. Some participants reported that it had acted as a starting point or a signpost to other resources. Participants in both groups discussed motivation to change and contextual factors such as COVID-19 lockdowns, which influenced their perceived self-efficacy regardless of their assigned intervention. Drink Less appears to be an acceptable digital intervention among the recruited sample. The NHS alcohol advice web page was generally considered unacceptable as a stand-alone intervention among the recruited sample, although it may signpost and help people access other resources and interventions.

A retrospective audit with subsequent cost and environmental analysis of a denosumab self-injection program.

The Metabolic Bone Health Department, Cardiff and Vale University Health Board, serves a local population of approximately 445 000 people. A retrospective audit of attendance data regarding the denosumab treatment clinic (the traditional treatment pathway) and the denosumab Self-Injection Program (SIP) was conducted to determine whether the SIP is both cost-effective and environmentally beneficial, compared to the traditional treatment pathway. Cost analysis was then conducted by the Finance Department. The audit was conducted over 3years following the implementation of the service development; 233 patients had enrolled in the program at the time of the audit and 69 had completed 3years of self-injected treatment. A control group of 497 patients were identified by the service. This group remained on the historical pathway and had consistent attendance activity over the 3-yr period from 2017 to 2019. Pre- and post-period activity of all patients on the program was compared, together with the activity for the independent control group. The SIP resulted in a reduction in clinical contacts, with financial analysis showing a total opportunity cost saving per patient of £420 per annum. There were obvious benefits to the patient of a reduced number of visits to a clinical site, which also resulted in an estimated carbon footprint reduction of 59 kg CO2 per patient per annum. The cost analysis is based on our organization's 2022 charges. The SIP demonstrates that by focusing on care "closer to home", it is possible to maximize resources, improve the patient experience through reduced travel, and reduce the environmental impact of healthcare.

Venture capital exit after venture IPO

AbstractResearch SummaryVenture capital firms (VCs) sometimes continue to hold significant equity stakes in entrepreneurial ventures after venture IPO. The information economics view suggests that retaining equity signals VC commitment and venture quality. This study conceptualizes retaining equity as holding an exchange option, the option to exchange VCs' own valuation of IPO ventures for the market's valuation. Holding this option allows VCs to benefit from the ventures' upside potential. Since exit amounts to giving up the option, the option value represents an opportunity cost of exit. VCs may delay exit if this option is sufficiently valuable. The study examines two key conditions that interact to increase the value of this option: uncertainty and positive private information. This study contributes to research on VC exit and real options.Managerial SummaryWhen do VCs retain equity rather than exit after venture IPO? Researchers have addressed the impact of signaling, cash constraints, human capital constraints, blockholding, VC fund performance, portfolio diversification and institutional features. We identify a previously unrecognized driver: to retain the opportunity to benefit from an IPO venture's upside potential that is yet to be fully recognized or realized. We submit that VCs' incentive to retain equity increases with uncertainty in the venture's industry, and VCs' positive private information as indicated by venture patent applications and positive market surprises in the venture's industry. We find largely supportive evidence for the positive joint effect of uncertainty and private information on the decision to retain equity within the first year or even two years after IPO lockup expiration.

Heterogeneous impact of cost of carry on corporate money demand

AbstractTransaction cost model predicts opportunity costs should negatively affect money demand. Examining the effect of cost of carry (CC) on cash holdings at the firm‐level, rather the average effect for entire population, we find that such a pervasive negative relation does not hold in times of low interest rate with about a 10% chance of observing positive effects. Firm size emerges as the primary driver of this heterogeneity, demonstrating a hump‐shaped effect on the cash‐CC link. Our findings suggest that policymakers should track the distributional impacts of opportunity cost of money demand over time to better evaluation of monetary policy.

Capturing the Value of Vaccination within Health Technology Assessment and Health Economics-Practical Considerations for Expanding Valuation by Including Key Concepts.

Following the development of a value of vaccination (VoV) framework for health technology assessment/cost-effectiveness analysis (HTA/CEA), and identification of three vaccination benefits for near-term inclusion in HTA/CEA, this final paper provides decision makers with methods and examples to consider benefits of health systems strengthening (HSS), equity, and macroeconomic gains. Expert working groups, targeted literature reviews, and case studies were used. Opportunity cost methods were applied for HSS benefits of rotavirus vaccination. Vaccination, with HSS benefits included, reduced the incremental cost-effectiveness ratio (ICER) by 1.4-50.5% (to GBP 11,552-GBP 23,016) depending on alternative conditions considered. Distributional CEA was applied for health equity benefits of meningococcal vaccination. Nearly 80% of prevented cases were among the three most deprived groups. Vaccination, with equity benefits included, reduced the ICER by 22-56% (to GBP 7014-GBP 12,460), depending on equity parameters. Macroeconomic models may inform HTA deliberative processes (e.g., disease impact on the labour force and the wider economy), or macroeconomic outcomes may be assessed for individuals in CEAs (e.g., impact on non-health consumption, leisure time, and income). These case studies show how to assess broader vaccination benefits in current HTA/CEA, providing decision makers with more accurate and complete VoV assessments. More work is needed to refine inputs and methods, especially for macroeconomic gains.

Evaluating the cost and operational context for national human papillomavirus (HPV) vaccine delivery in three regions of Ethiopia.

Cervical cancer is the second leading cause of cancer deaths among women in Ethiopia. Human papillomavirus (HPV) vaccination is a primary prevention method for cervical cancer and was introduced in Ethiopia in 2018. We conducted a cross-sectional, mixed-methods study to understand the operational context for the HPV vaccination program and the associated costs in three regions of Ethiopia. Operations research provided insights on the frequency and intensity with which HPV vaccination program activities were done, focusing on activities conducted to vaccinate the cohort receiving its first dose in October 2019 and second dose in January 2021. Microcosting was used to estimate the costs to the health system for these activities. Data collection using structured questionnaires was done at 60 health facilities, 17 woredas, and 9 zones/sub-cities that were randomly selected from three purposively selected regions and the national level. Financial costs (monetary outlays) and economic costs (financial costs plus opportunity costs of resource use) were estimated in 2019 US$. Health facilities delivered an average of 411 HPV vaccine doses during the reference period, ranging from a mean of 86 to 606 across the three regions. Aggregated across all levels of the health system, the estimated financial cost per dose across the pooled sample was $2.23, and the economic cost per dose was $7.19, excluding the cost of vaccines and supplies. There were regional variations in these estimates, with mean financial cost per dose ranging from $1.17 to $7.18 and mean economic cost per dose ranging from $5.80 to $18.13 across the three regions. Regional variations exist in the service volume, frequency, and intensity of conducting HPV vaccination activities, as reflected in the estimated costs of delivery. Data generated from this study can be used to inform program planning and budgeting, taking into account regional variations, for effective utilization of resources.

Effects of Government Jobs on the Labour Market in Bangladesh

This paper empirically studies the implications of attractive government jobs for labour market. Exploiting an age ceiling policy that sets the age limit for eligibility for public employment at age 30, the study finds that the likelihood of private sector employment is about five percentage points higher for ineligible than eligible at the cutoff age of 30, mainly driven by females, particularly after doubling the public service salaries. The increase in employment after expiring the eligibility for government jobs is explained by increasing labour force participation rather than declining unemployment. During the eligibility period, candidates repeatedly try for government jobs and delay the pursuit of other opportunities, incurring substantial monetary expenses, time costs, and opportunity costs of time. At the same time, there is some evidence that public sector exam preparation gives rise to brain gain. While several papers studied this phenomenon theoretically, this study contributes by providing empirical evidence. The data for this study was drawn from population censuses and labour force surveys for the period 1991–2017 and a primary survey conducted online for this study in Bangladesh, and labour force surveys of India for 2011–2012, 2017–2018, and 2019–2020.

Ukraine and the opportunity costs of military aid

Abstract Western states have provided billions of dollars of military aid to Ukraine to help it in its war against Russia. Yet, despite numerous discussions of the ethical issues raised by the war, there has been little discussion of the opportunity costs of this military assistance. Is it right that the West has prioritized military assistance to Ukraine, when the conflict in Ukraine is just one of numerous challenges facing the world, from forced displacement to global poverty, preventable disease to climate change? This article offers the first detailed engagement with this issue, taking seriously the nonideal feasibility constraints that states face. It firsts set out the prima facie case against assisting Ukraine militarily due to the opportunity costs. It then explores—and largely rejects—two responses: that military assistance is required to protect Ukrainian self-determination and that it is needed to stop the march of authoritarianism. It argues that the opportunity costs objection has serious force and counts against much of the provision of military assistance to Ukraine (although not all). This argument has broader implications for the extent to which states should prioritize military aid over other means of addressing global challenges.

Considering the land-cover elasticity of ecosystem service value coefficients improves assessments of large land-use changes

Economic development often impacts on ecosystem services. Previous studies have raised public and political awareness of the costs associated with such impacts and the benefits of ecosystem services. In cases where empirical information on the value of ecosystem services is lacking, benefit transfer (BT) approaches that use value estimates from a previously studied site to estimate the economic values of a new target area have been established. One of the most popular BT approaches is unit value transfer, where constant ecosystem service value coefficients are used to assess a given land-use/land-cover (LULC) change. In several case studies assessing LULC changes, such unit value transfers with constant value coefficients are biased when nonmarginal changes are involved. Theoretical considerations suggest that large changes in land allocation should alter the opportunity costs of gaining or losing natural capital because the marginal costs of additional losses increase as some LULC types become scarcer (e.g. natural ecosystems). In contrast, marginal benefits shrink as other LULC types become more abundant (e.g. agricultural replacement systems).Here, we propose an improved method for assessing larger scale (i.e., at national levels and beyond) LULC changes using endogenous value coefficients that account for the size of the land cover allocated to each LULC type and derive an equation for calculating these coefficients. The extent to which the value coefficient changes with variations in the land cover area depends on the land-cover elasticity of the value coefficient. Using a hypothetical numerical example of an area of tropical forest converted into grassland, we show that the bias caused by neglecting this land-cover elasticity can be considerable. We also demonstrate how the elasticity needed to correct the value coefficient can be estimated empirically. Finally, we suggest some modifications for future studies assessing large LULC changes.

Estimating Stockout Costs and Optimal Stockout Rates: A Case on the Management of Ugly Produce Inventory

Efficiently managing inventories requires an accurate estimation of stockout costs. This estimation is complicated by challenges in determining how to compensate consumers monetarily to ensure they will maintain the same level of utility they would have obtained had stockouts not occurred. This paper presents an analysis of these compensation costs as applied to the design of optimal stockout rates by an online retailer marketing to consumers aesthetically substandard fruits and vegetables rejected by mainstream grocery chains. Because growers face high uncertainty in their harvesting conditions and in the aesthetic quality of their crops and there are little data on hand to predict the value consumers attach to the availability of subpar produce, it is difficult to optimally match the supply of these products with consumers’ demand. Our analysis draws from a multiple discrete-continuous extreme value (MDCEV) choice model to calculate consumer compensations that the retailer can use to estimate the opportunity costs of stockouts to manage its inventory. We show that not taking into account these compensation costs could unduly inflate the optimal stockout rates for these products. Armed with these compensation cost estimates, we show how these costs can serve as incentives for retailers to source greater inventory amounts of imperfect produce from growers and how this will ultimately translate into less waste in the supply chain. This paper was accepted by Charles Corbett, operations management. Funding: Funding from Agriculture and Food Research Initiative (National Institute for Food and Agriculture, USDA) [Grant 2016-09900] is gratefully acknowledged. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2021.03174 .

Polish Dairy Farm Transformations and Competitiveness 20 Years after Poland's Accession to the European Union.

Poland is one of the leading milk producers in the EU, being the fifth largest after countries such as Germany, France, Italy, and the Netherlands. From Poland's accession to the European Union in 2004 up to 2022, Polish milk production experienced dynamic development. In this, there occurred a strong decline in the number of dairy farms (by -78%) and the number of cows (by -21%), an increase in dairy herd size (3.5 times) and increase in milk production (+60%) and milk yield per cow (by +62%). These were among the highest growth dynamics among the analysed countries. As a result of this significant transformation, Poland maintained an important position in milk exports, with a 31% export share in production in 2022. The scale of milk production was the basic factor determining the efficiency and competitiveness of dairy farms in Poland. Milk yield, farmland productivity, labour productivity, milk price, and the Corrected Competitiveness Index (based on labour and land opportunity costs) all showed a positive relationship with cow herd size on the farm. Milk production is highly uncompetitive for smaller farms (<15 cows). Despite substantial public support, the smaller farms, where subsidies equal up to 47% of total production value, could not earn sufficient income to cover the cost of capital, risk, and management in 2008, and even more so in 2021. This is because the farm income is too small to cover the extremely high opportunity cost of labour. The larger farms (with 30 cows and more) are competitive and responsible for the majority (~60-70%) of milk produced and delivered to the market. The most challenging from the sectoral policy point of view are medium farms (10-29 cows), whose share in production and deliveries is still important. To survive as economically viable units, these farms have to increase in scale and improve productivity. Otherwise, they will be gradually supplanted by larger farms.

The cost of delivering COVID-19 vaccines in Vietnam

BackgroundThe COVID-19 pandemic affected hundreds of millions of people and lives, and vaccination was the safest and most effective strategy to prevent and mitigate the burden of this disease. The implementation of COVID-19 vaccination in Vietnam in 2021 was unprecedentedly challenging in scale and complexity, yet economic evidence on the cost of delivery vaccines thought the program was lacking.MethodsThis retrospective costing study utilized a bottom-up, ingredient-based approach to estimate the cost of delivering COVID-19 vaccines in Vietnam in 2021, from a payer perspective. The study included 38 study sites across all administrative and implementation level, including three geographic areas and two delivery strategies, in two provinces, Hanoi and Dak Lak. The study findings were complemented with qualitative interviews with health staff and stakeholders.ResultsThe economic cost to deliver one COVID-19 vaccine dose was $1.73, mostly comprised of opportunity costs ($1.14 per dose) which were driven by labor costs ($1.12 per dose). The delivery cost in urban areas was the highest ($2.02), followed by peri-urban areas ($1.45) and remote areas ($1.37). Delivery costs were higher at temporary sites ($1.78) when compared to facility-based delivery ($1.63). Comparing low-volume and high-volume periods showed that the delivery cost decreased significantly as volume increased, from $5.24 per dose to $1.65 per dose.ConclusionsThe study estimates the cost of delivering COVID-19 vaccines in Vietnam in 2021. Enabling factors and challenges during the implementation of the program were explored. Study limitations may lead to underestimation of results and reduce generalizability.

Simulation Analysis of Artificial Intelligence Technology Diffusion under Market Competition and Policy Incentives Based on Complex Network Evolutionary Game Models

The relationship network between enterprises will change their adoption behavior of AI technology and this micro-decision-making mechanism will eventually decide whether AI technology can diffuse and the extent of diffusion on the macro level. However, the existing AI technology diffusion research mostly focuses on the integration of AI technology with other industries from the industrial level, ignoring the complexity of the micro-complex game process and interactions within the enterprise network on the macro technology diffusion. In this regard, this paper builds a game model of AI technology diffusion in core and non-core enterprises from the levels of market competition and policy incentives based on complex network evolutionary game theory. It does this through simulation analysis that examines the mechanism of key factors affecting the diffusion of AI technology, as well as the influence and combination effects of pertinent policies. The study shows that (1) AI technology diffuses more effectively in non-core enterprises than it does in core enterprises; (2) changes in parameters like technology cost and policy regimes have a more evident impact on core enterprises than non-core ones; (3) in market competition, increasing the network average degree, the proportion of AI technology products in the mainstream market, the opportunity cost, the cost reduction factor, or decreasing the cost of AI technology can all promote the diffusion of AI technology; (4) under policy incentives, increasing the proportion of AI technology subsidies and the influence of high-tech identification of enterprises can both promote the diffusion of AI technology.

Retraction Note: Financing for energy efficiency solutions to mitigate opportunity cost of coal consumption: An empirical analysis of Chinese industries.

Retraction Note: Financing for energy efficiency solutions to mitigate opportunity cost of coal consumption: An empirical analysis of Chinese industries.

Longer school schedules, childcare and the quality of mothers’ employment

Summary Better employment quality can improve personal well-being, social cohesion, and inclusive growth and development. Yet good quality jobs – associated with greater well-being – are less accessible to women than men. While it is understood that policies balancing family and work lead to greater female labour participation, this paper investigates whether one such policy – increased childcare – improves the quality of jobs where mothers are employed. The context we analyse is a nationwide school reform in Chile that extended school schedules for primary school-aged children, providing childcare services. We combine administrative data of the phase-in of the policy with panel data of individual mothers’ employment outcomes and socio-economic characteristics. We estimate a fixed-effects model that controls for mothers’ unobserved heterogeneity and identifies the effect of the policy from plausibly exogenous temporal and spatial variations in access to schools with long schedules and exogenous exposure to the policy. We find a positive effect of childcare on several measures of employment quality and gender gaps within the couple. Our evidence suggests that the mechanism driving the impact is the implicit subsidy to the cost of childcare, affecting the opportunity cost of mothers’ time. In addition, we find heterogeneous results by mothers’ education level. Access to childcare through longer primary school schedules can increase household welfare and can play a role in reducing income and gender inequalities.

Modelling the impact of business risk on the competitiveness of purpose-grown biomass of annual and perennial crops

Perennial energy crops compete with conventional annual crops in land-use. The production price of biomass from perennial energy crops is thus derived on the basis of the opportunity cost principle. This means that in deciding whether to grow perennial energy crops, the farmer will demand a price for biomass that will at least provide him with the same economic effect over the lifetime of the plantation in the form of the present value of net cash flows over the lifetime of the energy crop plantation. The level of discounts used to discount the cash flows associated with (annual) conventional crops and perennial energy crops plays an important role in modelling the biomass production price. The business risk associated with the two types of crops is different, with generally higher risk associated with perennial energy crops. This study focuses on developing a methodology to incorporate the risk associated with growing conventional and energy crops and to derive the discount rate for both crop groups. The methodology is demonstrated using the example of the Czech Republic and the price level in 2021. The analysis using Czech data led to a discount rate of 8.5 % for conventional crops and 11.5 % for perennial energy crops. The increase in the discount value for perennial energy crops leads to an increase in the expected biomass sales price by a producer. The sensitivity of the biomass production price level to an increase in the discount rate is lower for Miscanthus plantations compared to short rotation coppice.

Estimation of the short-term costs of youths not in education, employment or training: evidence from Morocco

ABSTRACT In this study, we estimate the overall costs of the youth population, not in education, employment, or training (NEET) in Morocco, focusing on public finance and opportunity costs, focusing on three of the five aspects: unemployment, health, and teenage mothers. The results show that young rural women represent a significant percentage of youths who are not in education, employment, or training in Morocco. In 2019, the total cost of young youth not in education, employment, or training in Morocco was estimated at 60,592,858,600 Moroccan Dirhams in terms of public finance and 55,043,899 000 Moroccan dirhams in terms of opportunity cost. These findings have implications for alleviating financial strain, fostering long-term social inclusion, and economic development. The high rate of young rural women not in education, employment, or training raises the need for targeted interventions in this area. The cost to the country is significant, affecting at the same time the lives of these youth, their families, and the national economy. This study highlights the need to implement policies and programs that integrate youth not in education, employment, or training into education and employment, thus reducing their socioeconomic impact for a sustainable future. This study adds to the literature by providing a detailed cost analysis of not in education, employment, or youth training in Morocco, demonstrating how these findings can be applied to similar contexts worldwide.

Accessing Rehabilitation after Upper Limb Reconstructive Surgery in Cervical Spinal Cord Injury: A Qualitative Study

Objectives: To investigate the barriers and facilitators to rehabilitation experienced by individuals with cervical SCI after upper limb (UL) reconstructive surgery. Methods: We conducted a prospective cohort study with a follow-up period of up to 24 months. Data collection occurred at two academic and two Veterans Affairs medical centers in the United States. Participants were purposively sampled and included 21 adults with cervical SCI (c-SCI) who had received nerve or tendon transfer surgeries and 15 caregivers. We administered semi-structured interviews about participants' experiences of accessing rehabilitation services after surgery. Results: Four themes emerged from the data: (1) participants encountered greater obstacles in accessing therapy as follow-up time increased; (2) practical challenges (e.g., insurance coverage, opportunity costs, transportation) limited rehabilitation access; (3) individuals with c-SCI and their caregivers desired more information about an overall rehabilitation plan; and (4) external support systems facilitated therapy access. Conclusion: Individuals with c-SCI experience multilevel barriers in accessing rehabilitation care after UL reconstructive surgeries in the United States. This work identifies areas of focus to mitigate these challenges, such as enhancing transparency about the overall rehabilitation process, training providers to work with this population, and developing, testing, and disseminating rehabilitation protocols following UL reconstruction among people with c-SCI.

Green innovation ecosystem evolution: Diffusion of positive green innovation game strategies on complex networks

The essence of the evolution of the green innovation ecosystem is the process by which the positive strategy of green innovation spreads in a complex network. In this study, the "Object-Technology-Environment-Management-Culture (OETMC)" structure paradigm of innovation ecosystems is presented, and a causal analysis framework of green innovation ecosystem evolution based on green innovation behavior strategy, supported by green innovation efficiency and focused on green innovation ecosystems is developed. Based on this framework, the structure of the green innovation ecosystem and the diffusion process of positive green innovation in the network are discussed. The results reveal the following. (1) The complexity of the green innovation ecological network has visibly improved, but numerous blank connections remain. These are the key constraints that hinder structural evolution. (2) The appearance of a large number of long-range connections weakens the constraint of geographical distance but also hinders edge nodes from joining the network. (3) The existence of preference attachment and power law distribution of the green innovation ecological network leads to the incomplete convergence of positive green innovation strategy at any initial strategy ratio. (4) Default cost and pollution tax rate ensure the enthusiasm of green innovation actors to seek innovation cooperation by increasing opportunity costs, thus accelerating the formation and reconstruction of the green innovation ecological network. These conclusions provide a decision-making reference for governments to encourage green innovation subjects to formulate targeted policies.

On Seeing the Price of Keats’s Bread: or John Bull Buying the Elgin Marbles in a Time of Climate Crisis, 1816

This article situates John Keats’s 1817 sonnet ‘On Seeing the Elgin Marbles’ within the context of 1816–1819’s climate catastrophe and subsistence crisis. Countering received readings of Keats’s sonnet as about artistic vocation; I argue that it is more about the opportunity cost of expending public funds on ancient art during a climate-exacerbated economic crisis. This reading emerges by placing the poem in dialogue with a political cartoon by George Cruikshank, ‘ The Elgin Marbles! or John Bull buying stones at the time his numerous family want bread!!’ that critiques the British Government’s purchase of the Parthenon sculptures in these terms. I contend that both sonnet and cartoon stage the purchase of the sculptures not in terms of their artistic merits, but instead in terms of the opportunity cost of public relief and the potential ‘waste’ status of art in the face of a depressed labour market and skyrocketing grain prices.