USDA Market Research Articles

The Making of Informational Efficiency: Information Policy and Theory in Interwar Agricultural Economics

This article offers a historical analysis of American interwar agricultural economists and their interest in information. Believing that the main problem facing farmers was a lack of information, agricultural economists designed an information policy aiming to produce, format, and disseminate information. Using administrative archives, the article analyzes the motivations of these economists and the implementation of this policy. As the article shows, the policy was a prerequisite for theoretical discussions about information, and it established institutional tools that are still used today, such as the USDA market news service.

Association of liver-abscess presence and severity with trim loss, slaughter yield, carcass grading performance, lung lesions, and value of fed-Holsteins*

ObjectiveOur objective was to evaluate the effects of liver abscesses on carcass characteristics and value of Holstein carcasses. Materials and MethodsFed-Holsteins were evalu- ated at 2 commercial processing facilities in Texas (n = 1,073) and Kansas (n = 1,070) from fall of 2016 through spring of 2017. Liver abscesses were visually assessed and scored; simultaneously, lungs were manually palpated to assess degree of consolidation and fibrin tag formation, to assess their association with liver abnormality. Finally, carcass trim was weighed from carcasses moved off line for zero tolerance trimming. Carcass and viscera values were assigned using USDA market reports and adjusted based on viscera condemnations along with premiums and dis- counts for quality and yield outcomes. Data were analyzed using the MIXED and GENMOD procedures of SAS v9.4 (SAS Institute Inc., Cary, NC) with carcass as the experi- mental unit. Results and DiscussionHot carcass weight was re- duced (−25.1 kg, −6.6%) in carcasses that had an ad- hered and open liver abscess as compared with carcasses without abscessed livers. Carcasses with adhered, open, or adhered and open liver scores had increased carcass trim (0.72, 3.92, and 3.39 kg, respectively) when compared with carcasses without abscessed livers (0.38 kg). Similarly, carcasses with adhered, open, or adhered and open liver scores returned gross carcass revenues that were 5.0% to 6.4% less (–$97.69, –$93.86, and –$121.22/carcass, re- spectively) than carcasses without abscessed livers. Liver abscesses reduced gross offal values of individual animals by 20% to 84% depending upon severity. Implications and ApplicationsFed-Holsteins have been a significant portion of the beef industry, even though Holsteins have increased rates of severe liver ab- scesses compared with their non-dairy-reared equivalents. Therefore, methods to control liver abscesses should be employed, to mitigate the greater financial risk that Hol- steins and dairy-reared animals incur to both cattle feeders and beef processors.

"The Eyes and Ears of the Agricultural Markets": A History of Information in Interwar Agricultural Economics

This article offers a historical analysis of the contributions of U.S. interwar agricultural economics to the economics of information. Concerned with improving the circulation of information on agricultural markets, agricultural economists analyzed the relationship between agents’ information and the behavior of prices on agricultural commodity exchanges, thus anticipating modern debates on informational efficiency. We show that these debates were part of a more general context of agricultural market reform led by the U.S. administration to improve the production and diffusion of economic information. We argue that such reforms were a prerequisite for theoretical discussions on information, and established institutional tools that are still active today, such as the USDA market news service.

Third-party facilitation of supply chain linkages: evidence from the Armenian vegetable industry

Abstract This paper presents an empirical examination of investment responses to external facilitation of supply chain linkages between agricultural producers and processors. Specifically, it analyzes the impact of participation in the USDA Marketing Assistance Program (MAP) facilitated formal marketing channel on farm-level investments in tomato production. The analysis involves mixed method approach utilizing a case of the USDA MAP in the Armenian vegetable industry and the survey data from 427 Armenian tomato growers. The main results indicate that the tomato growers linked to USDA MAP facilitated formal marketing channel (i.e. processors) invested significantly more in expanding tomato planting area compared to growers in informal channel (i.e. direct-to-consumer markets, middleman, and barter). The lessons from the USDA MAP’s supply chain facilitation strategy and the results of quantitative analysis provide insights on incentive structures and enforcement mechanisms for designing more effective supply chain linkages.

Investment responses to third-party market facilitation in Armenia

Purpose– The purpose of this paper is to assess the role of a third-party market facilitation strategy in creating sustainable market linkages and revitalizing an important agri-food sector in a developing country setting. More specifically, this study evaluates a third-party facilitator’s ability to assist producers and processors in developing internal private enforcement mechanisms through stimulating investments in relationship-specific assets.Design/methodology/approach– This paper uses mixed methods approach. The research is grounded by a case study of the USDA Marketing Assistance Program (MAP) in the Armenian dairy industry. Qualitative evidence from the case study is combined with data from a survey of 745 Armenian dairy farmers to examine the impact of participation in the USDA MAP-facilitated marketing channel on farm-level investments.Findings– The main results indicate that over the four-year period of the USDA MAP facilitation of dairy supply chain, farms linked to the formal milk marketing channel have invested in approximately twice as many assets specific to milk production compared to farms in the informal channel. This finding supports the hypothesis that third-party market facilitation strategy pursued by the USDA MAP has stimulated investments in private enforcement capital between dairy producers and processors and implies that an external third-party market facilitator can play an important role in enhancing performance of supply chain linkages.Originality/value– These findings and the lessons from the case of USDA MAP contribute to better understanding of third-party market linkage facilitation strategies and will be useful for the development community and agribusiness decision makers.

End user preferences for USDA market information

Buyers and sellers of agricultural commodities benefit from public provision of information in decision-making processes. The purpose of this study is to improve understanding of current preferences for public agricultural information. Results indicate preference for farm level reports by Extension agents and leading economic indicators by agribusiness or market analysts. Implications are outlined for ongoing discussions regarding maintenance of public investment in an era of tightening U.S. federal budgets.

Long-term sustainability of third-party facilitated market linkages: Evidence from the USDA marketing assistance program in the Armenian dairy industry

Public–private partnerships are increasingly seen as an important tool to build agri-food supply chains and develop markets for agri-food products in emerging economies. However, many of these initiatives fail when the public component of the program ends. One exception is the USDA Market Assistance Program (MAP) that facilitated the redevelopment of the Armenian dairy sector after privatization. This paper presents a case study of this initiative and hypothesize that the USDA MAP facilitated farmer investment in private enforcement capital. This investment resulted in sustainable market relationships between farmers and dairy processors even after the USDA MAP expired. We find empirical evidence to support this hypothesis using a panel dataset collected from 172 Armenian dairy farmers in 2004 and 2009.

Effects of USDA feeder cattle frame and muscle grades on stocker and feeder cattle performance and profitability

A total of 395 calves (180 ± 25 kg) were purchased from sale barns in Oklahoma and Texas in the fall of 3 consecutive years to measure the effect of USDA feeder cattle frame and muscle grades on performance and profitability. Individual purchase weight and price were recorded, and steers were assigned USDA feeder cattle grades of Large (LG), Medium (MED), or Small (SM) frame size and Number 1 or Number 2 muscle thickness by the same official USDA market graders. Steers were grazed on rye pasture and were then valued by commercial order buyers in frame and muscle grade groups. Muscle grade did not affect (P > 0.60) animal performance or profitability during the grazing phase. Grazing ADG increased linearly (P < 0.001) as frame grade increased, but purchase price was lower (P < 0.001) for SM steers than for MED and LG frame steers, respectively, resulting in greater (P < 0.001) grazing-phase net returns for SM steers. Following finishing on a high-concentrate diet, the lesser total weight gain during finishing of SM steers (P < 0.001) resulted in lesser per animal revenue. Feed and interest costs were also less (P < 0.001) and marbling score greater (P < 0.001) for SM steers, resulting in greater finishing net returns and carcass price. In a post hoc analysis in which frame and muscle grades were reassigned to cattle based on HCW and LM area, only 44% of the cattle remained in their original grade.

An Economic Analysis of Feeding Cull Sows

ABSTRACT The objectives of this study were to estimate the amount of feed and associated costs of adding BW to cull sows. Body weight, backfat, loin eye area, heart and jowl girth, and flank-to-flank measurements were recorded for 29 cull sows approximately every 14 d for a total of 96 d. Feed disappearance and BW gain for each interval was used to calculate performance traits, total revenue, total costs, and net margin. The period of greatest efficiency was from 0 to 14 d, equaling 0.37, 0.41, 0.26, and 0.28 for sows in USDA market weight classes 1 through 4, respectively. Feed efficiency decreased throughout the trial, yet at a slower rate. Average daily feed intake (i.e., feed disappearance), BW gain, and revenue increased (P

Agricultural production credit clubs in Armenia: facilitating investment through market linkages, social capital, and microcredit

Armenia’s 1991 privatization and land redistribution process handed ownership and control of agricultural production to over 300,000 inexperienced, financially distressed, subsistence farmers operating extremely small fragmented plots, and the processing sector to similarly distressed managers. As seen elsewhere across Eastern Europe, the result was chaotic turmoil characterized by pervasive delayed payments, massive disinvestment, and rapid output declines. However, unlike elsewhere, Armenia could not rely upon the entry of FDI to correct channel incentives and revitalize its agricultural and rural financial markets. Instead, an alternative exogenous stimulus was required. This study analyzes the instrumental case of how a quasi‐public third party, the USDA Market Assistance Program and Agricultural Production Credit Clubs, successfully imitated FDI‐induced incentive structures through market linkages, social capital, and microcredit to establish economically sustainable marketing channels. The findings provide important insights into the design of market‐linked microcredit programs.

NEW STRATEGIES IN TRANSPORTATION FOR FLORICULTURAL CROPS

In the past century, the centers of production and consumption of ornamentals increasingly have become widely separated. A cut flower bouquet purchased today in a Verona florist could easily combine Italian foliage with flowers grown in Kenya, Colombia, Holland and Thailand. The extended transportation infrastructure and delays between harvest and consumption implicit in this separation can easily result in significant reduction in quality and vase life. Geography plays an important role in selection of transportation mode, and most “long distance” flowers still are transported by air. Air transport typically results in quality loss due to poor temperature control, accelerated water loss, and airport delays and interventions. The high Q10 for respiration in cut flowers (as much as 7!) implies a substantial premium for careful temperature control during transportation. Innovative systems for temperature control could be important tools for maintaining freshness during air transport. The primacy of postharvest temperature control has driven the continued search for ways to use surface transportation - sea containers and trucks are an important tool in this effort. The lack of response of cut flowers to controlled atmospheres (apart from ethylenesensitive flowers) has frustrated this effort, but careful temperature control and monitoring of container temperatures and the use of faster ships has resulted in successful out-turn of flowers transported from Central America to North America. Temperature control also frustrates efforts to direct-market flowers using the Internet. Innovative packaging concepts will be essential to success in this field. THE CONSUMPTION OF CUT FLOWERS IN THE U.S. IS LOW The world market for cut flowers is a dynamic one, with major changes in consumption and production in relatively short time-scales. Of particular interest has been the evolution of the market in the United States, which is illustrated by statistics provided by the USDA Market Research Service (Fig. 1). In brief, the data show: • In the early 70’s, with the entry of significant quantities of imported flowers, consumption rose. • U.S. production was static until the early 90’s, while consumption increased with steady increase in imported product. • During the 90’s the unfavorable comparative economics of production in the U.S. (primarily California) resulted in a rapid decline in local production, which now represents less than 30% of all the flowers consumed in this country. • From the mid-90’s, consumption of cut flowers fell steadily, and by 2000 was less than three quarters of that at the peak (1993). PER CAPITA CONSUMPTION OF FLOWERS IN THE U.S. LAGS BEHIND THAT IN OTHER COUNTRIES Comparison of U.S. and international statistics show the nature of the problem for the cut flower industry in the U.S. Per capita consumption of cut flowers in the United States is very low compared to other developed, and even some developing nations (Table 1). For example, consumption in Holland is 24 times higher, and even in Britain, a nation that historically has had relatively low cut flower sales, present consumption is 16 times that in the U.S. Despite the high standard of living and historically high levels of disposable income in the U.S., cut flower consumption is lower than that in Poland and

Revenue Impacts of MPP Branded Funds: A Firm-Level Analysis

The USDA's Market Access Program (formerly Market Promotion Program) recently underwent a major change to redirect all branded products export promotion funds to small domestic firms and cooperatives. The redirection responded to criticisms by the General Accounting Office of past allocations of branded products export promotion funds to large, experienced exporters. This study uses a firm-level analysis to examine whether firm size and export experience matter in how effectively firms use the promotion funds to increase their revenues. The results support neither the GAO criticisms nor the recent program redirection.

Control of Cabbage Pests, Summer, 1993

Abstract Greenhouse grown cabbage plants were transplanted on 27 Apr into a Bernow series sandy loam soil at the Wes Watkins AREC in Lane, OK. Plots measuring one row wide by 4.6 m long were arranged in a randomized complete block design with four replications. Spray buffers of one row between rows and 3 m within rows were left unplanted. Double-row beds were spaced 0.9 m apart with 30 cm interplant spacing. Conventional cultural practices were used throughout the trial. All treatments were applied on 26 May, 4, 14 and 24 Jun with a CO2-powered backpack sprayer calibrated on 3 May at 205 liters per acre. The boom was configured with two TX-26 (hollow cone) spray nozzles spaced 46 cm apart and directed inward towards the base of the plants. On each sample date, five randomly selected plants per plot were sampled for CL, thrips and HB. All heads were harvested on 2 Jul and evaluated for insect damage according to the following scale: 1 = no wrapper leaf damage, no head damage, 2 = wrapper leaf damage, no head damage, 3 = light head damage (3 or less feeding holes), 4 = moderate/severe head damage (&amp;gt;3 feeding holes). Heads rated 1 or 2 were considered marketable in accordance with USDA market standards.

Control of Cabbage Looper and Diamondback Moth on Cabbage, Spring, 1993

Abstract Six week old cabbage plants were transplanted into a Bernow series sandy loam soil on 29 Mar at the Wes Watkins AREC Lane, OK. Plots one row wide by 4.6 m long were arranged in a randomized complete block design with four replications. One unplanted row between rows and 3 m within rows served as spray buffers. Doublerow beds were spaced 0.9 m apart with 30 cm between plants within rows. Standard cultural practices were used throughout the trial. All treatments were applied on 4, 14, 19 and 25 May and 2, 10 Jun using a CO2-powered backpack sprayer calibrated on 3 May @ 205.2 liters per acre. The sprayer was equipped with two TX-26 (hollow cone) spray nozzles spaced 46 cm apart and directed inward towards the base of the plants. On each sample date, five randomly selected plants per plot were sampled for CL, DBM and other lepidopterous larvae. Larvae were categorized as small (CL: instar 1 or 2; DBM—instar 1, 2 or 3) or large (CL—instar 3 or 4; DBM—instar 4, 5 or 6). All heads were harvested on 2 Jul and evaluated for insect feeding damage according to the following scale: 1 = no wrapper leaf damage, no head damage, 2 = wrapper leaf damage, no head damage, 3 = light head damage (3 or less feeding holes), 4 = moderate/severe head damage (&amp;gt;3 feeding holes). Heads rated 1 or 2 were considered marketable in accordance with USDA market standards.

Corn Earworm Control on Sweet Corn, 1993

Abstract On 28 Apr, ‘Aztec’ sweet corn was seeded into a fine sandy loam soil at the Wes Watkins AREC, Lane, OK. Plots were 7 m long by 4 rows wide. Unplanted areas of 1.5 m were left on each end and side of each plot to reduce spray drift. Rows were spaced 0.9 m apart with plants spaced 10-15 cm apart. Plots were arranged in a randomized complete block design with four replications. Fertilizer and herbicides were applied at recommended rates and overhead irrigation was applied as needed. All insecticides were applied using a tractor-mounted PTO-driven air pressure sprayer calibrated at 131 liters per acre. Three hollow cone (TX-12) nozzles per row were used to cover each row on both sides and from above. A single broadcast application of Dipel 2X at 1.0 lb/acre was made on 17 Jun to control larvae in the whorls. Treatments were applied on the following dates: 18, 21, 23, 26, 28, 30 Jun and 2 Jul. All primary ears from each plot were harvested on 7 Jul. Each ear was evaluated for CEW damage and categorized as undamaged, marketable or unmarketable based on USDA market grades. Ears less than five inches long after trimming all CEW damage from them were considered unmarketable.

Cabbage Looper and Diamondback Moth Control on Cabbage, Spring, 1993

Abstract Six week old plants were transplanted into a Bernow series fine, sandy loam soil at the Wes Watkins AREC in Lane, OK. Plots measuring one row wide by 4.6 m long were arranged in a randomized complete block design with four replications. One unplanted bed between beds and 3 m within rows served as spray buffers. Beds were spaced 0.9 m apart and plants were spaced 30 cm apart and arranged with two rows on each bed. Conventional cultural practices were used throughout the trial. All treatments were applied on 14, 19 and 25 May and 2, 10, and 16 Jun using a COrpowered backpack sprayer calibrated on 3 May at 205 liters per acre at 30 psi. The spray boom was configured with two TX-26 hollow cone nozzles spaced 46 cm apart and directed inward towards the base of the plants. On each sample date, five randomly selected plants per plot were sampled for CL, DBM and other lepidopterous larvae. Larvae were categorized as small (CL—instar 1 or 2; DBM—instar 1, 2 or 3) or large (CL—instar 3 or 4; DBM—instar 4, 5 or 6). All heads from each plot were harvested on 21 Jun and rated for lepidopterous feeding damage according to the following scale: 1 = no wrapper leaf damage, no head damage, 2 = wrapper leaf damage, no head damage, 3 = light head damage (&amp;lt;3 feeding holes), 4 = moderate/severe head damage (&amp;gt;3 feeding holes). Heads rated 1 or 2 were considered marketable in accordance with USDA market standards.

Estimates of subprimal yields from beef carcasses as affected by USDA grades, subcutaneous fat trim level, and carcass sex class and type.

One hundred beef carcasses were selected to represent the mix of cattle slaughtered across the United States. Selection criteria included breed type (60% British/continental European, 20% Bos indicus, and 20% dairy carcasses), sex class (beef and Bos indicus: 67% steers, 33% heifers; dairy: 100% steers), USDA quality grade (4% Prime, 53% Choice, and 43% Select), USDA yield grade (10% YG 1, 43% YG 2, 40% YG 3, and 7% YG 4), and carcass weight (steers: 272.2 to 385.6 kg, heifers: 226.8 to 340.2 kg). One side of each carcass was fabricated into boneless subprimals and minor cuts following Institutional Meat Purchase Specifications. After fabrication, subprimals were trimmed progressively of fat in .64-cm increments beginning with a maximum of 2.54 cm and ending with .64 cm. Linear regression models were developed for each individual cut, including fabrication byproduct items (bone, fat trim) to estimate the percentage yield of those cuts reported by USDA Market News. Strip loin, top sirloin butt, and gooseneck rounds from heifers tended to have a higher percentage yield at the same USDA yield grade than the same cuts from steers, possibly resulting from increased fat deposition on heifers. Percentage of fat trimmed from dairy steers was 2 to 3% lower than that from other sex-class/carcass types; however, due to increased percentage of bone and less muscle, dairy steers were lower-yielding. Fat trimmed from carcasses ranged from 7.9 to 15.6% as the maximum trim level decreased from 2.54 to .64 cm.

Insect Control on Flue-Cured Tobacco with Insecticides Applied in the Transplant Water, 1984

Abstract Flue-cured tobacco was transplanted in 21.3 ft (13 plants) × 8 ft (2 rows) plots on 8 May. Treatment plots were arranged in a randomized complete block design replicated 4 times. The test site had a Chesterfleld-Mayodan-Bourne sandy loam soil with a 5.8 pH and ca. 2% organic matter. Transplant water treatments were applied in 200 gal of solution/acre (116 ml/plant) using a hand-operated transplanter. Temik 15G was applied in a 12-inch band using a Gandy granular applicator mounted on a pushcart on 2 May. It was then incorporated with a rotary tiller and the soil was bedded up for transplanting. Insect counts were made once every 1-2 weeks from mid May to mid August. On the first 3 days flea beetle feeding holes were counted on 5 plants/plot. Throughout the study, flea beetles and green peach aphids on 4 upper leaves were counted on 5 plants/plot. Tobacco in one row of each plot was harvested, cured and graded by a USDA Marketing Service grader to determine yield and market price. Data was analyzed using ANOVA and means were compared using DMRT.

Insect Control on Flue-Cured Tobacco with Insecticides Applied to the Soil and in the Transplant Water, 1985

Abstract Flue-cured tobacco ‘Coker 319’ was transplanted in 20 ft (12 plants) × 8 ft (2 rows) plots on 2 May. Treatment plots were arranged in a randomized complete block design replicated 4 times. The test site had a Chesterfield-Mayodan-Bourne sandy loam soil with a 5.8 pH and ca. 2% organic matter. Transplant water treatments were applied in 200 gal of solution/acre (116 ml/plant) using a hand-operated transplanter. Temik 15G was applied in a 12 inch band using a Gandy granular applicator mounted on a Honda FourTrax. The granular applicator was also used to broadcast the Furadan treatment. The broadcast and band treatments of Standak were applied with a CO2-powered backpack sprayer operated at 30 psi and incorporated by double disking on 30 Apr. A single 8004E tip was used to apply the band treatment, while the broadcast treatments were applied with a series of 3 8004 tips spaced at 20 inch on a 40 inch boom. Ten and 30 gal of finished spray/acre were used for the band and broadcast applications, respectively. The wind speed on the application date ranged from 2-8 mph and the temperature ranged from 75-82 degrees F. Insect counts were made once every 1-2 weeks from mid-May to mid-August. On the first 3 dates flea beetle feeding holes were counted on 10 plants/plot. Throughout the study, flea beetles and green peach aphids on 4 upper leaves were counted on 10 plants/plot. Tobacco in 1 row was harvested, cured and graded by a USDA Marketing Service grader to determine yield and market price. Aphid data was transformed to Log1() (counts + 1) and hornworm, flea beetle and flea beetle damage data were transformed to the square root (counts + 0.5) before analysis. Data was analyzed using ANOVA and means were compared using DMRT. Actual means of untransformed data are presented in the tables.

Evaluation of the Peanut Administrative Committee Testing Program for Aflatoxin in Shelled Peanuts1

Abstract Under provisions of a USDA Marketing Agreement, an aflatoxin control program for peanuts produced in the United States is administered by the Peanut Administrative Committee (PAC) composed of peanut growers and shellers. The PAC requires aflatoxin tests on all commercial lots of shelled peanuts. The present PAC testing program initiated in 1975 was evaluated for Crop A which averaged 9.5 parts-per-billion (ppb) aflatoxin and for Crop B which averaged 5.2 ppb aflatoxin. For Crop A and Crop B, respectively, 7.3% and 2.0% of the lots were rejected. The accepted lots contained an average of 7.5 ppb for Crop A and 4.7 ppb for Crop B. A correct decision (accept a lot with le; 25 ppb aflatoxin and reject a lot with &amp;gt; 25 ppb aflatoxin) was made 95% of the time for Crop A and 98% of the time for Crop B.