News from Filley Hall

Welcome to the first issue of the Department of Agricultural Economics newsletter  

On behalf of our faculty and staff I would like to welcome you to the Department of Agricultural Economics newsletter. 

In addition to the newsletter, we invite you to visit our website where you will find a number of resources including the weekly Cornhusker Economics newsletter, the latest research from our faculty and information about our academic programs.  

The past has been a busy and productive one for the Department of Agricultural Economics.  New options were added for undergraduate majors to help them better prepare for new career opportunities in agriculture and natural resources.  Dr. Azzeddine Azzam received the Excellence in Graduate Education Award and was the speaker at the Doctoral Commencement and Hooding Ceremony.  Our faculty helped agriculture producers understand the changes occurring in the energy and commodity markets though numerous research papers, publications and extension activities. 

As the new semester progresses, our faculty and students will have access to the latest technology which will be installed in 210 Filley Hall, the graduate student computer lab and the Schlesinger Reference Room.  As part of the graduate student computer lab renovations, a new experimental economics lab will be installed.  This lab will allow our faculty to conduct cutting-edge research and test various economic theories. 

Our work is focused on five areas: Agribusiness, Agricultural and Food Industrial Organization, Farm Management and Marketing, Natural Resources and the Environment and Community and Social Capital.  We look forward to keeping your informed about our activities in these areas and the activities of our students. 

We hope you will also keep us informed about your activities.  Alumni, we would enjoy knowing where your degree has taken you.  All others, we would like to hear from you as well.  If you have questions or comments about anything in this newsletter or any other Department of Agricultural Economics activity, please contact Kara Heideman at kheideman3@unl.edu or (402) 472-2757.

Dr. Alan Baquet, Department Head

Results of Panhandle Newcomer Survey Presented

Faculty from the Department of Agricultural Economics, the Center for Applied Rural Innovation and the Nebraska Rural Initiative have released their findings from a study of newcomers to Nebraska’s Panhandle region.  The U.S. Department of Agriculture-funded study examined the traits of the new residents in the 11-county Panhandle region; specifically who they are, what brought them to the region and what will keep them there.

Cheryl Burkhart-Kriesel and Bruce Johnson from the Department of Agricultural Economics, Charlotte Narjes and Rebecca Vogt from Center for Applied Innovation and Randy Cantrell from the Nebraska Rural Initiative conducted the study which included a survey and focus group interviews of new Panhandle residents.  They recently presented their findings to community stakeholders in Chadron, Alliance, Scottsbluff, Sidney and Kimball.

The research team also acquired additional funding this spring from the USDA to further expand the project. They will be working with a community in the region to use the results of the study to inform a marketing campaign to help attract and retain new residents.

For more information contact: Cheryl Burkhart-Kriesel at cburkhartkriesel1@unl.edu or (308) 632-1234

New Options for Undergraduate Majors

Building on the foundation of the three majors in the Department of Agricultural Economics, new options were created which will allow undergraduates to more closely focus their academic preparation.

Agribusiness majors can major in the general Agribusiness option or specialize in one of four areas or, Agricultural Banking and Finance, Food Product Marketing and Management, Livestock Industries or Marketing.  The Agricultural Banking and Finance option is a partnership with the Nebraska Bankers Association (NBA).  NBA has provided scholarship funds and helped develop an internship program which matches interested students with an agricultural lender.

Students interested in an Agricultural Economics major also have a general option or can focus on Farm and Ranch Management, Public Policy or Quantitative Analysis.

New this year is expanded Natural Resource and Environmental Economics choices.  In order to meet the growing demand in energy and environmental-related careers, new programs in Eco-Business and Sustainability, Energy, Environmental Economics and Water Economics were developed.

Three minors are also available in the department, Agribusiness, Agricultural Economics and Community Economics and Social Dynamics.

To learn more about this majors contact Rosalee Swartz at rswartz1@unl.edu or (402) 472-5234

UNL Ag Economics at the AAEA National Meetings

The American Agricultural Economics Association held their annual meetings July 28-29 in Orlando, Florida.

The Quiz Bowl team of Justin Cech, Isaac Mortensen and Pam Polhmann placed second in the Academic Bowl competition.  The 2nd place finish is the highest ranking for a UNL team.  These students prepared throughout the spring and summer, reviewing their knowledge of agribusiness, micro and macroeconomics and quantitative analysis.

Graduate students Ben Blomendahl and Brian Williams took third place in the Graduate Case Study Competition.  Robert Sheeder, also a graduate student presented the paper "Empathy Conditioned Reason: Finding Ways to Resolve Natural Resource Conflicts.  Graduate Student Juan Pablo Sesmero presented two papers, “Conservation Needs Assessment: Sustainability with Substitution and Biased Technical Change” and “Corn Ethanol Production Costs: Results from a Survey of Seven Plants from the North Central Region.”

UNL Farm Real Estate Market Developments Survey

The 2007-2008 University of Nebraska-Lincoln Farm Real Estate Market Developments Survey was one of the most remarkable.  The 23 percent annual increase through February 1, 2008 in Nebraska land values was the largest in the survey’s 30 year history. 

Each year Dr. Bruce Johnson surveys approximately 150 agriculture real estate appraisers, lenders, professional farm managers and other real estate professionals to gauge their views on the Nebraska agricultural land market.

The average value across the eight survey regions was $1,424.  The eastern region had the highest average value at $3,480 per acre and northeast region’s increase in value of 27.5 percent to $2,730 was the highest percentage increase. 

In the past four years the value of Nebraska agricultural land has increased 72 percent.  Most survey respondents expect this trend to continue and, on average, forecast an increase in land values of 12 percent.

While concerns exist the current market conditions may simply constitute a “bubble” the income basics behind the swift increases in value appear to be strong.  Dr. Johnson’s report found that half of the 2007 sales were cash purchases and nearly three-fourths of the purchases were made by active farmers.

Ethanol and Food Prices

Ethanol accounts for an increase of about 1.2 percent of the increase in U.S. food prices, according to a report by Dr. Richard Perrin. 

Dr. Perrin’s report “Ethanol and Food Prices – Preliminary Assessment,” notes that ethanol contributes to 40 percent of the recent increase in grain prices which have doubled in the last two years, but grain contributes only about 3% to the final cost of US consumers' food bill.

Because U.S. consumers spend such a small amount of their income on food, less than one-half of one about ten percent, the effect is less than in other parts of the world.  However, in some poorer countries, a consumer’s food budget can be 20 70 percent of income so an increase in grain prices has a much greater impact on these consumers.  In addition, many of these consumers’ diets rely heavily on grain.

Dr. Perrin is continuing expand on this preliminary study and further explore the reasons behind food price increases.

Ag Banking and Finance Scholarship Recipients Recognized 

On October 22, 2008, 32 Agribusiness students were recognized by the Nebraska Bankers Association (NBA) at a dinner at the Embassy Suites Hotel in Lincoln.

The students has received scholarships or completed an internship through the Agricultural Banking and Finance program at UNL’s Department of Agricultural Economics.  The program was established in 2006 through the joint efforts of the NBA and UNL Department of Agricultural Economics.  The NBA sponsors scholarships for both current UNL students and high school seniors entering the program.  The program also includes a paid summer internship at a NBA-member bank. 

“I am extremely pleased with the caliber of students entering this program,” said Dr. Ron Hanson, Harlan Professor of Agribusiness at UNL.  “The generous support of the NBA is a tremendous help to these students as they prepare for careers in banking.”

Full list of recipients

For more information about the Agricultural Banking and Finance Program at UNL contact Rosalee Swartz at (402) 472-5234 or by e-mail at rswartz@unl.edu.

Upcoming Events 

Feb 18th Cornhusker Economics Management and Outlook Conference Buffalo County Extension Office, Kearney 
Feb 19th Cornhusker Economics Management and Outlook Conference Grey Goose Lodge, Ogallala
Feb 20th Cornhusker Economics Management and Outlook Conference Panhandle Research & Extension Center, Scottsbluff 
Feb 23rd Cornhusker Economics Management and Outlook Conference Kimmel Education & Research Center, Nebraska, City
Feb 24th Cornhusker Economics Management and Outlook Conference Dusters Restaurant, Columbus
Feb 26th Women in Agriculture Conference Kearney Holiday Inn and Convention Center
Feb 27th Agricultural Economics Seminar Series
Mar 6th Filley-Garey Lecture Series
Apr 3rd Agricultural Economics Seminar Series

Agricultural Economics Calendar