22 pages, This paper presents direct evidence on the impact of a specific extension program that is aimed at promoting the adoption of varieties resistant to the soybean cyst nematode (SCN), specifically the Iowa State University SCN-Resistant Soybean Variety Trials. We use two data sources: experimental data from these variety trials and a rich proprietary dataset on farmers’ seed purchases. Combining these data, we estimate the value of soybean cyst nematode-resistant variety availability, and the associated variety trials that provide information on their performance to farmers and seed companies. Given the scope and diffusion of this extension program, the focus of the analysis is on Iowa and northern Illinois over the period 2011–2016. Farmers’ seed choices are modeled in a discrete choice framework, specifically a one-level nested logit model. Using the estimated demand model, we find farmers’ marginal willingness to pay for soybean cyst nematode-resistant varieties, and for related extension information provided by the Iowa State University SCN-Resistant Soybean Variety Trials program, to be large. These results are confirmed by counterfactual analyses showing that, over the six-year period and region of the study, the total ex post welfare change associated with the existence of, and information about, SCN-resistant seeds is about $478 million. About one-third of this surplus is captured by seed suppliers, and two-thirds accrues to farmers.
26 pages, via online journal, Purpose
This paper is concerned with the impact of the University of California Cooperative Extension (UCCE) on regional productivity in California agriculture. UCCE is responsible for agricultural research and development (R&D), and dissemination of agricultural know-how in the state.
Method/methodology/approach
We estimate the effect of UCCE on county-level agricultural productivity for the years 1992–2012, using an agricultural production function with measures of agricultural extension inputs alongside the traditional agricultural production inputs at the county level.
Findings
Results show a positive impact of UCCE through its stock of depreciated expenditures. For an additional dollar spent on UCCE expenditures stock, agricultural productivity, measured as value of sales at the county level, improves by $1–9 per acre of farmland for knowledge/expenditure depreciation rates between 0 and 20 percent.
Practical implications
Results suggest that county differences in productivity could affect extension expenditures. The high level of contribution found in the results would be especially useful during a period of political pressure to reduce public spending for agricultural extension in the state.
Theoretical implications
Theoretical implications suggest that agricultural systems with higher level of knowledge depreciation are associated with higher resulting incremental agricultural productivity per an additional dollar spent on UCCE expenditures stock. This suggests that extension policy should consider also the agricultural system (crop mix).
Originality
We use original budgetary data that was collected especially for answering our research questions from archives of UCCE. We estimate impact of extension at the county level in California, on the value of agricultural sales (of crops and livestock). We developed an extension expenditure stock, using current and past expenditures data, and different depreciation rates, following the theory of Knowledge Production Function.
26 pages, Agricultural productive services are an important means to achieve effective allocation of regional resources and play an important role in ensuring food security and improving farmers’ welfare. However, the development process of agricultural productive services still faces problems such as large differences in service levels in different segments and low participation rates in the full service. In order to investigate the influential paths of the low participation rate of farmers in the full-service process, this study takes maize farmers in northeast China as the research object. Based on 937 survey data from six cities in three northeastern provinces, we used the Item Response Theory (IRT) model to measure farmers’ information acquisition ability and constructed the Heckman two-stage model and the IV-Heckman model to analyze the logical framework of “information acquisition ability—farmers’ choice of productive agricultural services”. The main findings are as follows: firstly, the more channels there are, the stronger the farmers’ channel internalities; the higher the degree of channel differentiation, the stronger the farmers’ channel internalities. Second, after addressing the sample selection bias and endogeneity, there is a small rise in the facilitation effect of information acquisition ability on farmers’ productive agricultural service behavior. Third, this facilitation effect is achieved through farmers’ perceived usefulness of productive agricultural services, and the mediating effect of perceived ease of use is not significant. Therefore, fostering farmers’ self-perceptions and optimizing information delivery strategies are effective ways to promote farmers’ choice of agricultural productive services and to facilitate the modernization of Chinese agriculture. In general, this study helps to reveal the theoretical mechanism of farmers’ information asymmetry, and provides empirical evidence for how to promote the development of agricultural productive services.
