Charles B. Moss and Andrew Schmitz
The purpose of this paper is to examine investments in selected Feed the Future countries in Africa.
Abstract
Purpose
The purpose of this paper is to examine investments in selected Feed the Future countries in Africa.
Design/methodology/approach
The authors examine three investments in Feed the Future countries (e.g. Rwanda and Uganda) in the context of non-traded goods, exports and imports. These investments include research and development in Ugandan cassava production, a value chain intervention in the coffee market channel in Rwanda and a program to increase the use of fertilizer for maize production in Rwanda. The authors also stress the importance of distributional impacts in terms of policymaking.
Findings
The results show that while there can be net gains from each investment discussed, the distributional effects of each are very different.
Originality/value
The findings will be useful for the development community and agribusiness policymaking.
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Andrew Schmitz and P. Lynn Kennedy
We discuss food security within the context of welfare economics. We review models of commodity price stabilization brought about by government storage, and/or the private sector…
Abstract
Purpose
We discuss food security within the context of welfare economics. We review models of commodity price stabilization brought about by government storage, and/or the private sector. We use data on the stocks of major commodities to discuss the implications of storage models on food security.
Methodology/approach
The impact of storage on food security is discussed within the context of welfare economics.
Findings
Storage is not necessarily a solution to solving long-term world food problems. Also, at times in history, countries such as the United States have accumulated large stocks of commodities such as wheat, which turned out to be a costly policy.
Social implications
While food insecurity is a major issue worldwide, the solution does not entirely lie in governments being heavily involved in managing and owning food stocks. The private sector manages stocks as a part of commercial transactions. The government’s role is to provide food from stockholdings in times of emergency situations.
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Andrew Schmitz, P. Lynn Kennedy and Michael Salassi
In this chapter the development of new sugarcane varieties in Florida and Louisiana is examined, along with the accompanying advancement in mechanization technology through the…
Abstract
In this chapter the development of new sugarcane varieties in Florida and Louisiana is examined, along with the accompanying advancement in mechanization technology through the widespread adoption of sugarcane harvesters. An econometric analysis is carried out to determine the impact of the price of raw sugar on raw-sugar yields in Louisiana and Florida. This study found that in the case of Louisiana, the 3-year lagged US raw-sugar price had a positive and significant impact on sugar yields. The change in raw-sugar prices did not have a significant impact on sugar yields for the Florida industry. Sugar production has increased over time, in part, due to the development of new sugarcane varieties accompanied by modern sugarcane harvesters. Given the relationship between price and yield, particularly in Louisiana, policy makers and producers must be mindful of the potential impact of policy-induced research and development (R&D) on the competitiveness of their industry.
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Andrew Schmitz, Frederick Rossi and Troy G. Schmitz
Following the World Trade Organization (WTO) ruling favoring Brazil over U.S. cotton growers, the debate continues over the impact of U.S. farm policy. For U.S. cotton policy, the…
Abstract
Following the World Trade Organization (WTO) ruling favoring Brazil over U.S. cotton growers, the debate continues over the impact of U.S. farm policy. For U.S. cotton policy, the price impact depends on several factors, including the extent to which it is decoupled from production. The impact on world cotton prices under decoupling (the loan rate is used in supply response analysis) is much less than under coupling (the target price is used in producer production decisions). Also, the welfare impacts are very different. Using cotton as an example, the welfare cost of U.S. cotton policy is much less under a decoupled program.
P. Lynn Kennedy, Karen E. Lewis and Andrew Schmitz
While genetically modified (GM) crops have provided tremendous agricultural productivity gains, many consumers oppose GM products and maintain they are unsafe. We use the case of…
Abstract
While genetically modified (GM) crops have provided tremendous agricultural productivity gains, many consumers oppose GM products and maintain they are unsafe. We use the case of GM sugar beets and their adoption by the US producers to examine the implications of GM technology on food security. A partial equilibrium framework is used to examine the implications of GM technology on food security. This analysis provides a unique opportunity to examine the impact of GM adoption in one product (sugar beets) relative to non-GM adoption in a substitute product (sugarcane). This analysis examines the potential gains to food security through the adoption of biotechnology versus consumer fear of GM technology. Research and development (R&D) has potential implications not only through its impact on supply, but also on demand as well. This study shows that demand impacts can negate the supply-induced food security gains of R&D. Regulations such as mandatory labeling requirements can impact this outcome.
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Andrew Schmitz and P. Lynn Kennedy
The purpose of this analysis is to determine the impact of various factors, including population growth, income growth, and research and development on food security. This chapter…
Abstract
Purpose
The purpose of this analysis is to determine the impact of various factors, including population growth, income growth, and research and development on food security. This chapter also seeks to better understand the role of relative food prices in consumers’ selection of foods to meet their nutritional needs.
Methodology/approach
We utilize a welfare economic framework to provide a theoretical examination of the impact of various factors (including income growth, population growth, and research and development) on food security among the poor. A minimum nutritional diet is specified as a baseline for the evaluation of these scenarios.
Findings
Scenarios show the impacts that income, population growth, and research and development have on food security through their price and quantity impacts. Also, we highlight the difficulty in formulating an optimal diet that meets the recommended dietary requirements for only calories and protein, as different foods contain calories, proteins, and micronutrients in differing proportions. This indicates that changes in relative food prices will often alter consumers’ nutrient intake with respect to the minimum nutritional diet.
Social implications
Research and development is critical in guaranteeing food availability. Trade-based, production-based, and own-labor entitlements are key factors in determining food security. Consumption subsidies and income supplements can be used to assist those who do not have entitlements sufficient to meet their minimum nutritional diet.
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Andrew Schmitz and Hartley Furtan
The U.S. 2002 Farm Bill provides sizeable direct and indirect subsidies to U.S. farmers, which has created increased competition in markets where the United States and Canada…
Abstract
The U.S. 2002 Farm Bill provides sizeable direct and indirect subsidies to U.S. farmers, which has created increased competition in markets where the United States and Canada compete. Target prices were reintroduced and the overall level of U.S. Government support was increased. Canadian farmers will find it more difficult to compete in grains, oilseeds, and pulses. Government support in Canada for these crops is significantly below U.S. support. Canada and the United States have a significant two-way trade in agricultural products, including beef and pork. The outbreak of Mad Cow Disease in Canada in 2003 clearly illustrates the need for cooperation between the two countries.