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Newsletter | Past Issues
August,
2008
In This Issue:
Understanding
Acre: Its Revenue Guarantee
ACRE
Calculator Available
New
Edition of Law Notes Available
Purdue
Ag Economists Analyze High Commodity and Food Prices
National
Agricultural Biotechnology Conference
Do
you have a question that you would like to ask the Ohio
AG Manager Team? If so, click here to email your
question
Understanding
ACRE: Its Revenue Guarantee
Carl Zulauf,
Professor, Department of Agricultural, Environmental,
and Development Economics, Ohio State University.
This
paper continues the discussion of the new ACRE farm
program. Specific to this paper is a discussion
of the revenue guarantee associated with ACRE.
The paper is available here:
http://aede.osu.edu/resources/docs/pdf/5RRJ4KAX-12OH-NKFA-5YGY8JAJ56VOM7NG.pdf
This
paper is on of five papers on the ACRE program.
The other
papers address ACRE's (1) 2008 Farm Bill Provisions,
(2) policy foundation, (3) breakeven price, and (4)
relationship with crop insurance and SURE. The
papers are at http://aede.osu.edu/resources/docs/display.php?cat=21
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ACRE
Calculator Available
Barry
Ward, Assistant Professor, Department of Agricultural,
Environmental, and Development Economics, Ohio State
University
Bruce
Babcock, Director of the Center for Agricultural and
Rural Development, and his colleagues at Iowa State
University have developed a calculator to determine
ACRE payments. This calculator will allow corn,
soybean, and wheat farmers for all states to try to
find a combination of 2008 and 2009 season average prices
whereby the traditional farm programs generate more
payments than ACRE. According to Babcock:
"The only scenario we could find is when
2008 prices are high and then 2009 prices are equal
to or greater than the average price over 2007 and 2008.
Otherwise ACRE dominates. In addition, a farmer should
find that ACRE dominates even in this situation
because the value of the 2010 ACRE put option is much
greater than 20% of direct payments."
The
calculators are offered as spreadsheets in Microsoft
Excel. You must have Microsoft Excel installed on your
computer to open and use these calculators. In addition,
if you are using a dial-up connection to the Internet,
you may find the downloading process a bit slow because
of the size of the files.
The
calculators are available at: http://www.card.iastate.edu/ag_risk_tools/acre/
Carl
Zulauf notes that the above calculator makes the calculation
only for 2009, but that anyone who signs up for ACRE
in 2009 is making a commitment for all eligible crop
through the 2012 crop years. There will be other
calculators for producers to use that will be available
in the near future, and they will be posted on Ohio
Ag Manager.
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New
Edition of Law Notes Available
Peggy
Kirk Hall, Director, Agricultural & Resource Law
Program, The Ohio State University Extension
The
summer 2008 version of Law Notes is now available.
Law Notes is a newsletter of OSU’s Agricultural
& Resource Law Program. Topics in this newsletter
include:
· Ohio Line Fence Law will Change on September
30, 2008
· OSU to Host Ohio Agricultural Law Symposium
· Controversial Livestock Zoning Case Decided
· Ohio Water Issues: the Great Lakes Compact
and a Proposed Constitutional Amendment
· What Should Agricultural Employers Know about
Employment Laws?
· Legal Q&A on open burning, trees on the
property line, dying without a will, watershed conservancy
districts
The
newsletter is available here: http://aede.osu.edu/programs/aglaw/newsletter.htm
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Purdue
Ag Economists Analyze High Commodity and Food Prices
Barry
Ward, Assistant Professor, Department of Agricultural,
Environmental, and Development Economics, Ohio State
University
In
a Farm Foundation commissioned report released on Wednesday
(July 23), the Purdue economists - Phil Abbott, Chris
Hurt and Wally Tyner - highlight key factors gleaned
from examining 25 recent studies plus their own analysis.
Their conclusion: a complex combination of factors is
fueling agricultural commodity price increases and rising
food costs.
Tyner, an expert on energy and policy issues, said the
price of oil is an important factor that has increased
the demand for biofuels. "About $3 of the corn price
increase is due to the higher oil price and $1 to the
ethanol subsidy," he said.
The economists also said decreased investment in agricultural
research has led to lower production growth, which has
reduced stocks and set the stage for commodity price
increases. "When we had crop surpluses in the 1980s
and 1990s, research on crop productivity started to
wane. It will take some time for new investments to
bear fruit," Hurt said.
The
full article is available here: http://news.uns.purdue.edu/x/2008b/080723TynerDrivers.html
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National
Agricultural Biotechnology Conference
Barry
Ward, Assistant Professor, Department of Agricultural,
Environmental, and Development Economics, Ohio State
University
Agriculture
is undergoing a major positive and challenging transformation
as it continues to provide food and feed while expanding
its role as a major provider of fuels and chemicals.
In June, 2008, the 20th Annual National Agricultural
Biotechnology Conference was held in Columbus, Ohio
to address the transformation that agriculture is undergoing.
The
National Agricultural Biotechnology Council has been
hosting annual public meetings about the safe, ethical,
and efficacious development of agricultural biotechnology
products since its formation by the Boyce Thompson Institute
in collaboration with Cornell University, Iowa State
University, and the University of California-Davis in
1988. Today the organization, a not-for-profit consortium
of 34
leading agricultural research and teaching governmental
agencies / institutions / universities in the U.S.
and Canada, continues to provide all stakeholders the
opportunity to speak, to listen, and to learn about
the issues surrounding agricultural biotechnology.
Keynote
speakers from this year's conference represent agriculture,
industry and the environment conveyed their perspectives
on these megatrends. Ethicists and policy experts gave
guidance as to how to maximize benefits and minimize
challenges. Attendees had an opportunity in breakout
sessions to provide their input and guidance on these
issues. Many of the presentations are available
online:
http://www.oardc.ohio-state.edu/nabc20/pageview1.asp?id=516
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can subscribe electronically to this newsletter by sending
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if you have problems subscribing.
Ohio
Ag Manager Team Leaders: Chris Bruynis & David Marrison
Web
Page Managers: David Marrison & Andy Kleinschmidt
Information
presented above and where trade names are used, they
are supplied with the understanding that no discrimination
is intended and no endorsement by Ohio State University
Extension is implied.
Ohio
State University Extension embraces human diversity
and is committed to ensuring that all research and related
educational programs are available to clientele on a
nondiscriminatory basis without regard to race, color,
religion, sex, age, national origin, sexual orientation,
gender identity or expression, disability, or veteran
status. This statement is in accordance with United
States Civil Rights Laws and the USDA.
Keith
L. Smith, Ph.D., Associate Vice President for Agricultural
Administration and Director, Ohio State University Extension
TDD No. 800-589-8292 ( Ohio only) or 614-292-1868
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