Purdue Agricultural Economics Report

The Purdue Agricultural Economics Report (PAER) exists to serve and further the core mission of the department to engage with real world problems that are of value to stakeholders. The scholarship communicated in this publication will represent the department’s excellence in creative endeavor for new knowledge and its dissemination in the economics of agriculture and natural resources.

Recent Publication:

Outlook 2024

January 16, 2024

Welcome to the PAER Outlook 2024 issue! As is the tradition we ask department specialists to spend some time thinking about key issues in their field and consider how these have impacted outcomes over the past year and may continue to go forward. We continue to call the issue “Outlook” in recognition of the past tradition in the department delivering programming at the start of the year to educate stakeholders that may benefit from knowledge in key mission areas of Purdue Ag Econ.

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Articles:

Publication Date: May 2024
Article ID: PAER-2024-19

Yi Wang, Graduate Research Assistant

Summary: Examine the impact of the WIC infant formula rebate system on the market, leading to monopolies in state WIC segments and sparking debates over cost containment and welfare outcomes.
Publication Date: May 2024
Article ID: PAER-2024-20

Dewey J. Robertson, Graduate Research Assistant; and Roman Keeney, Associate Professor of Ag Economics

Summary: As Mexico’s proposed GMO ban is being reviewed by the USMCA trade dispute panel, we look to identify the economic implications of such a ban. Our findings show that Mexican producers will increase domestic productions and see income rises at the expense of US grain sector incomes.
Publication Date: May 2024
Article ID: PAER-2024-18

Morgan P. Mastrianni, Graduate Research Assistant; and Calum G. Turvey, Economist

Summary: This paper examines the application of commodity-linked bond structures to carbon futures markets as a potential model for future expansion of the suite of the suite of green financial products available to investors in agriculture.
Publication Date: May 2024
Article ID: PAER-2024-17

Megan N. Hughes, Graduate Research Assistant; Meilin Ma, Assistant Professor of Agricultural Economics; and Carson Reeling, Interim Graduate Program Chair of Agricultural Economics

Summary: Using a dynamic model, this study compares the effectiveness of conservation incentive programs for the adoption of cover crops.
Publication Date: May 2024
Article ID: PAER-2024-16

Binayak Kunwar, Graduate Research Assistant

Summary: This report discusses various financial ratios of agribusinesses, focusing on four major indicators of financial performance: Profitability, Liquidity, Solvency, and Efficiency. Although overall financial health of agribusinesses is generally satisfactory, the report recommends agribusinesses should cautiously adopt risk management strategies.
Publication Date: May 2024
Article ID: PAER-2024-15

Margaret Lippsmeyer, Graduate Research Assistant; Michael Langemeier, Associate Director of Center for Commercial Agriculture and Professor of Agricultural Economics; James Mintert, Director of Center for Commercial Agriculture and Professor of Agricultural Economics; and Nathan Thompson, Associate Professor of Agricultural Economics

Summary: Each year in early January, Purdue University hosts the Purdue Top Farmer Conference, where academic speakers, agribusiness affiliates, and farmers convene to discuss current issues and trends in agricultural markets. At this year’s conference, we surveyed attendee’s producer sentiment and farm resilience to strategic risk. Survey responses offer unique insights into resilience and producer sentiment of some of Indiana’s leading farmers.
Publication Date: May 2024
Article ID: PAER-2024-14

William Walls, Graduate Research Assistant; Renee Wiatt, Family Business Management Specialist; and Dr. Maria Marshall, James and Lois Ackerman Professor of Agricultural Economics

Summary: Utilizing average income for small businesses, this report sought to understand the impact succession practices can have on the success and longevity of small businesses. *As modified from the Purdue Institute for Family Businesses 2023 Quarter 1 Newsletter*
Publication Date: May 2024
Article ID: PAER-2024-13

Joshua Strine, Doctoral Student

Summary: Using job openings that are available on the Google Jobs job board, changes and long-term trends in salary of agricultural job openings is analyzed. It is found that salaries increased year over year from 2022 to 2023 and are elevated in the summer month.
Publication Date: May 2024
Article ID: PAER-2024-12

Carson Reeling, Interim Graduate Program Chair of Agricultural Economics; Brady Brewer, MS-MBA Director and Associate Professor of Agricultural Economics

Summary: Dr. Carson Reeling and Dr. Brady Brewer provide an update on the State of the Agricultural Economics Graduate Program at Purdue University.
Publication Date: January 2024
Article ID: PAER-2024-01

Larry DeBoer, Professor Emeritus of Agricultural Economics

Summary: Professor DeBoer explains why so many economists predicted recession in 2023 and why it didn’t happen. His analysis indicates slowed growth in 2024 from reduced spending but that recession could be avoided.
Publication Date: January 2024
Article ID: PAER-2024-02

Russell Hillberry, Professor of Agricultural Economics

Summary: Professor Hillberry reviews trade and trade policy developments from 2023 including responses to the Russia-Ukraine war. Looking ahead he identifies the potential for trade disputes and how the election may shape US merchandise and agriculture trade.
Publication Date: January 2024
Article ID: PAER-2024-03

Roman Keeney, Associate Professor of Agricultural Economics

Summary: Congress failed to pass new farm legislation in 2023, instead continuing the 2018 Farm Bill for one more year. In a 2024 election year, the time to produce a new five-year bill for agriculture may be short.
Publication Date: January 2024
Article ID: PAER-2024-04

Maksym Chepeliev, Research Economist

Summary: Food-security implications of the war in Ukraine are exacerbated by adverse weather events, energy and fertilizer market disruptions, and food export restrictions, disproportionally impacting low-income households. Proactive trade policies, such as trade facilitation measures and the reduction of import tariffs on agricultural and food commodities, could largely mitigate the impacts of the war on global agriculture.
Publication Date: January 2024
Article ID: PAER-2024-05

Zuzana Bednarik, Research and Extension Specialist, North Central Regional Center for Rural Development; and Maria I. Marshall, Jim and Lois Ackerman Professor of Agricultural Economics

Summary: A generation gap revealed differences in diversity and trust in institutions.
Publication Date: January 2024
Article ID: PAER-2024-06

Farzad Taheripour, Professor of Agricultural Economics

Summary: Professor Taheripour reviews the growth of energy and biofuels policy as a key component of agricultural policy research and the contributions of Purdue Ag Econ.
Publication Date: January 2024
Article ID: PAER-2024-07

Caitlinn Hubbell, Market Research Analyst; and Joe Balagtas, Professor of Agricultural Economics

Summary: Hubbell and Balagtas examine data from 2023 and explain the factors that drove changes to food prices. Looking to 2024 they highlight macro factors that will determine whether food price inflation continues to slow.
Publication Date: January 2024
Article ID: PAER-2024-08

Nicole Olynk Widmar, Interim Department Head and Professor of Agricultural Economics

Summary: Professor Widmar reviews key changes to dairy market fundamentals and how consumer and producer prices have responded. Looking ahead, tight supplies are expected to persist but limited demand growth could limit price increases.
Publication Date: January 2024
Article ID: PAER-2024-09

Todd Kuethe, Professor and Schrader Endowed Chair in Farmland Economics

Summary: The growth rate of Indiana farmland prices is expected to moderate in 2024. Cash rental rates are expected to hold steady or increase in 2023.
Publication Date: January 2024
Article ID: PAER-2024-10

Brady Brewer, Associate Professor of Agricultural Economics; and Todd Kuethe, Professor and Schrader Endowed Chair in Farmland Economics

Summary: Increasing interest rates, higher demand for loans, lower repayment rates, and fund availability suggest agricultural credit markets trending downward for 2023.
Publication Date: January 2024
Article ID: PAER-2024-11

Michael Langemeier, Professor of Agricultural Economics

Summary: Production costs are expected to decline from 2023 record levels. However, production costs are still considerably higher than what they were prior to the advent of COVID-19.

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The Purdue Agricultural Economics Report is a quarterly publication written by faculty and staff from the Department Agricultural Economics at Purdue University.

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