TIIe University of Floridu The University of Florida
Editorial Council
J. Nlichael BowkertiSD.4/Forest Service
Gail L. Cramer[Jni\vrsip qf’.4rkansas
Stephen DaviesColorado State Universip
George C. DavisTcras A&M Universi@
Elias Dinopoulosurlll,erfi/y qfFlorida
Bryan J. HubbellEn~fironmental Protection
.-t’genq’
David W. HughesLouisiana State University
Nicholas KalaitzandonakesUniversity of Missouri
David S. KraybillOhio State University
Michael R. LangemeierKansas State University
Michele C. MarraNorth Carolina State UniversityTimothy ParkUniversity of Georgia
Xiang-Dong QinNorth Carolina A&T University
Octavio RamirezTexas Tech University
Stan SpurlockMississippi State University
Greg TraxlerAuburn Universi@
Ann Marie VandemannUnited States Department
of Agriculture/Econom icResearch Service
Lois S. WillettCorneIl University
C. Thomas WorleyWashington State Universi@
Technical EditorWayne Losano, Ph.D.
Departtnen( of English, University of Florida, Gainesville, FL 3261 I, (352) 392-6650 x249
EditorialAssistant
Carol FountainUniversity of Florida
EDITORIAL POLICY
The Jotirnal of Agricultural and Applied Economics (JAAE) provides a forum for creative and schol-arly work in agriculturaleconomics and relatedareas.Contributions on methodology and applicationsin business, extension, research,andteaching phasesof agriculturaland applied economics areequallyencouraged. Submitted manuscriptsare subject to peer review for publication consideration. Submis-sion of critiques or comments on JAAE articles are welcomed.
EDITORIAL COMMUNICATIONS
Manuscript submissions and editorial correspondence should be addressed to: Charles B. Moss orJames L. Scale, Jr., Editors, JAAE, Post Office Box 110245, University of Florida, Gainesville, FL32611-0240. Phone: (352) 392-1845 x404 or x414, fax: (352) 392-3646, e-mail: [email protected].
The Journal ofAgricultural and Applied Economics (ISSN 1074-0708) is published inApril, August,and December by the SouthernAgricultural Economics Association (SAEA). Visit our worldwide website at http://www.agecon.uga. eduf-jaae/.
Copyright 01999 by the SouthernAgricultural Economics Association. Any article or other materialpublished in the JAAE may not be resubmitted for publication or republished elsewhere in full or inpart without the writtenpermission of the editors.
Educational Programs to Address the Economic Adjustments Facing Tobacco FarmersandRural Communities I Timothy Woods, Steve Isaacs, S. Darrell Mundy, and William Givan . . . 309
The Changing Political Environment for Tobacc&Implications for SouthernTobacco Farmers,Rural Economies, Taxpayers, and Consumers: Discussion I Russell W Sutton . . . . . . . . . . . . . . . 319
The Changing Political Environment for Tobacco—Implications for SouthernTobacco Farmers,Rural Economies, Taxpayers, and Consumers: Discussion / Rebecca H. Reeve . . . . . . . . . . . . . . . 323
Articles
Dairy Farm Size, Entry,and Exit in a Declining Production Region/Nero C. Rahelizatovo and Jeffrey M. Gillespie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...333
Elements of Cattle Feeding Profitability in Midwest Feedlots /John D. Lawrence, Zhi Wang, and Dan Lay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...349
Price Discovery in Wheat FuturesMarkets I Jian Yang and David J Leatham . . . . . . . . . . . . . . . . . . 359
Howard A. Clonts, Director of both the Au-burn University Environmental Institute andthe Alabama Water Resources Research Insti-tute, is also Professor of Resource Economicsin the Department of Agricultural Economicsand Rural Sociology at Auburn.
Dr. Clonts began his professional career in1962 when he was graduated from Auburn
University with a Bachelor of Science degreein Agricultural Administration. He then com-pleted a Master of Science degree at Auburnand continued graduate studies at the Univer-siiy of Arizona and Virginia Polytechnic In-stitute. He received a Ph.D. in AgriculturalEconomics from Virginia Tech. in 1969, spe-cializing in Resource Economics.
While at Virginia Tech, Dr. Clonts servedas an Instructor and taught the basic ResourceEconomics class for three years. He returnedto Auburn University in 1968. He was namedProfessor of Resource Economics in 1980, andcontinued in that position until 1996 when hewas appointed to the administrative post henow holds.
From the beginning, Dr. Clonts’ interest innatural resources led him through a highly di-verse course of study and professional expe-rience. Career challenges ranged from man-aging an Auburn University farm to managingthe State of Alabama recreational planningprogram for two years, Other efforts focusedon environmental economics, forest and wil-derness management planning, aquaculturaleconomics, and community resource devel-
opment.Dr. Clonts’ work in recreational planning
and research earned him national recognitionand several awards. The Heritage Conserva-tion and Recreation Service, U.S. Department
of the Interior, recognized him for originalthinking and contributions in 1979. In 1983 hewas appointed to serve with the AlabamaGovernor’s cabinet to work on the State Proj-ects Review Committee to review funding forselected state agencies. In 1984 he was nom-inated for a congressional appointment to theExecutive Staff of President Reagan’s Com-mission on Americans Outdoors. Although noton the Executive Staff, he was commended bythe National Recreation and Parks Associationfor work related to the Commission in 1987.The Alabama Recreation and Parks Societypresented him the Merit Award in Parks in1986. Dr. Clonts was given the W. Kelly Mos-ley Environmental Award in 1985 for service
in promoting the Mosley program. Other hon-ors included special recognition from the Al-abama Environmental Planning Council in1988, Alabama Governor’s Appreciation Cer-tificate in 1988, the Service Award from theAlabama Agricultural Experiment Station in1993, and the Exemplary Service Award fromSAEA in 1996.
Teaching was a major activity for Dr.Clonts throughout his career. Course subjectareas included introductory micro and macroeconomics, natural resource and environmen-tal economics, resource policy, and aquacul-tural economics. Experiences in aquaculturaleconomics led him to co-edit one book in1982 and co-author a textbook in 1993. Hewas ranked by students as an above averageto excellent teacher from 1969–1996.
Along with the extensive public service, re-search and teaching activities, Dr. Clonts hasproduced over 200 journal articles, books, andpapers for presentation. He directed five Ph.D.graduate research programs and 18 master’sdegree programs in Resource Economics, plusthree Ph.D. and three Master’s degree researchprograms in Fisheries and Allied Aquaculturesand served on an additional 75 graduate re-search committees.
Public service has always been a part ofDr. Clonts’ career. He worked extensively bothin a professional and a consultant’s role withthe Alabama State government in the ParksDivision and Lands Division of the Depart-ment of Conservation, the Department of En-vironmental Management, and the Departmentof Economic and Community Affairs. On the
federal side, service was provided to the U.S.Forest Service, National Park Service andHeritage Conservation and Recreation Ser-vice. Within the University, Dr. Clonts was aUniversity Faculty Senator, a member of theAdvisory Council for the International Centerfor Allied Aquacultures, and served as mem-ber or chairman on numerous university com-mittees
Dr. Clonts rendered professional service tonumerous organizations, including the Amer-ican Agricultural Economics Association,Southern Agricultural Economics Association(Charter Member, Secretary for five years, ed-itorial council for three years), National As-sociation of State Recreation Planners (Sec-retary for three years, Treasurer for two years),Southeastern Council of State Outdoor Rec-reation Planners (Vice Chair and Chair), TheAlabama Conservancy (Board of Directors fortwo years), Southern Natural Resource Eco-nomics Research Committee (Secretary, Vice-Chair, Chair), Southeastern Recreation Re-searchers Council (Chair, Editor), SouthernWildlands Research Workgroup, MidsouthAcademy of Economists, the Alabama Rec-reation and Parks Society, Alabama CitizenAdvisory Council for Recreation Planning,and the Alabama Natural Diversity Program(Board of Advisors).
Dr. Clonts was ordained into the ministryin 1980 and has served as elder, teacher,speaker, and pastor to various churches in Al-abama until the present. He plans to retiresoon and devote more time to this aspect ofhis life.
Dr. Harold G. Love
Lifetime Achievement Award
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Professor of Agricultural Economics, De-partment of Agricultural Economics, Uni-versity of Kentucky, Lexington, 1969–1 992Chief of Party, University of Kentucky/USAID, Western Universities AgriculturalEducation Project, Palembang, Sumatra, In-donesiaVisiting Professor, Department of Agricul-tural Economics and Rural Sociology, Es-cola Superior de Agricultural “Luiz de Quei-roz, ” University of Sao Paulo, Piracicaba,Brazil, 1992International Trade Task Force, SouthernExtension Marketing and Southern Exten-sion Public Affairs Committee, 1986–1 986(Chairman)President’s International Cooperative Devel-opment Program Committee, CooperativeLeague of the USA, Washington, D. C., 1985American Institute of Cooperation Board ofTrustees, 1982–1985Governor’s Council on Agriculture, Ken-tucky, 1973–1977
Harold Love, a pioneer in agribusiness exten-sion and academia, has had a multifaceted ca-reer in extension, teaching, applied research,administration, and international programs. Hedeveloped new programs, expanded the bodyof knowledge in agribusiness, and was highlysuccessful in all of his endeavors. Love con-tributed 39 years of service to the Universityof Kentucky, the first three as an assistantcounty agent where his success in organizinglocal marketing cooperatives attracted the at-tention of the University of Kentucky Depart-ment of agricultural Economics. The depart-ment recruited him as an area marketing agentin Louisville, Kentucky. A few years later hejoined the department as Extension Specialist
in Agricultural Marketing, moving from assis-tant professor to professor in only five years.In 1986, Dr. Love left the department to servefive years as Chief-of-Party for the Universityof Kentucky/USAID Western University Ag-ricultural Education Project to strengthen col-leges of agriculture at eleven universities inIndonesia. After serving as chief-of-party, Dr.Love retired, but rejoined the department fortwo years as a temporary professor. In recentyears he has volunteered with a variety ofshort-term foreign projects.
Dr. Love was the first agribusiness special-ist at the University of Kentucky. He devel-oped in-depth programs, conducted manyworkshops in agribusiness and marketingmanagement, and assisted in organizing sev-eral new agribusinesses including the highlysuccessful Cumberland Farm Products Asso-ciation. He provided specialized information
and assistance to a variety of agribusinessfirms and groups, He is well known for hiswork with farm supply, food distribution, fruitand vegetable marketing firms, and marketingsystems. Since there was little agribusiness re-search and information available early in hiscareer, he conducted many management andmarketing audits with clientele to collect in-formation and knowledge for his programs aswell as to solve clients’ problems.
Dr. Love organized and taught the first ag-ribusiness management class at the Universityof Kentucky. Fifty to ninety upperclassmenstudents enrolled in this popular course an-nually. Coupled with this course was an in-ternship program through which he placed 15to 20 students annually with some of his Ex-tension clientele.
Dr. Love’s research projects often providedwork and research opportunities for graduatestudents and research assistants. All researchsupported his extension program and wasfunded by outside grants. Several graduate stu-dents worked on special problems under himby assisting Dr. Love with management audits,feasibility studies, and market studies. Dr.Love’s most notable research article, “Short-run Price Effects of a Structural Change in a
Terminal Market for Hogs,” Journal of Farm
Economics (3) 1965, is one of the classics inoligopsony. It has been discussed in congres-sional hearings, has been the subject of news-paper articles, and is still cited today.
Dr. Love has published over 100 studies inspecialized marketing and extension publica-tions, plus dozens of popular articles in mag-azines and trade journals. He served on 43committees and boards in the department, col-lege, university, state, southern region, nation-al, and international levels including theSouthern Extension marketing Committee. Dr.Love has received outstanding extension andteaching awards at the University of Ken-tucky, the Superior Quality of CommunicationAward from the American Agricultural Eco-nomics Association, and the DistinguishedService Award from the Association of Co-operative Educators.
Dr. Love has been an outstanding pioneerand leader in the development of agribusinessprograms in his state, the South, the UnitedStates, and in many countries around theworld, Because of his devotion to the field ofagricultural economics and for his outstandingand enduring contributions, Dr. Love contin-ues to be a valuable asset to the agriculturaleconomics profession.
Dr. Bill R. Miller
Lifetime Achievement Award
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Assistant Professor, Department of Agricul-tural Economics, Auburn University, Au-burn, Alabama, 1963–1968Associate Professor and Professor, Depart-ment of Agricultural Economics, Universityof Georgia, Athens, 1968-presentVisiting Professor, International Trade Poli-cy, United States Department of Agriculture,Economic Research Service (USDA/ERS),Washington, DC, 1989Visiting Professor, Debrecen University, De-brecen, Hungary, 1990Visiting Economics Advisor to Poland,USDA Extension Service Polish-AmericanProject, Warsaw, Poland, 199 1–1995Project Director, USDA Extension ServicePolish-American Extension Project, Warsaw,Poland, 1995Chairman, Food and Agricultural Policy Re-search Committee, USDA, 1980Chairman, International Trade Policy Re-search Committee, USDA, 1989Member, Editorial Council, Journal of Ag-
ricultural Economics, 1990–199 1Lecturer, Productions Economics, DebrecenUniversity, Debrecen, Hungary, 1990Distinguished Service Award, USDM13RS,1991Awards: Outstanding Professor Award,1974; Outstanding Graduate Teacher Award,1984; Applebaum Award, 1987; Agricultur-al Economics Association of Georgia Distin-
guished Service Award, 1988; D.W. BrooksAward for Excellence in International Ag-riculture, 1993; NCTA Outstanding Instruc-tional Media Award, 1995
The common thread of Dr. Miller’s scholarshipfor southern agricultural economics is a com-mitment to interdisciplinary and applied re-
search. Dr. Miller’s peers recognize him as aleader in this effort and approach him for workon a number of projects related to poultry andpeanuts. In addition to commodity research, heis also sought for work across department andcollege lines. A review of his vita will indicatethesis research directed in the Statistics De-partment, the College of Business, and The In-stitute of Natural Resources. He also servedoutside the university. For thirteen years heheld continuous contact with the GeorgiaFarm Bureau to process and analyze all oftheir farm record keeping for tax and manage-ment purposes. During his last two years at
Georgia he was asked to chair a committee to Dr. Miller’s interest and success in dealinghelp develop Governor Zen Miller’s legisla-tive initiative for cleaning up Georgia rivers.
Dr. Miller’s early work in poultry concen-trated on egg marketing. His journal articlewith Gene Masters (first director of UnitedEgg Producers), “A Short-Run Price Predic-tion Model of Eggs, ” American Journal of
Agricultural Economics 58( 1):98–1 00, docu-mented the demand for this new model ofprice discovery. Egg Clearinghouse is today aviable model for price discovery via publictrading in industries with a high concentrationof firms. Dr. Miller’s most recent work withDr. Pesti, in broiler production, resulted in atextbook that received the NACTA MediaAward for Excellence, 1995. Dr. Miller, work-ing with Dr. Pesti, is moving the industryaway from least-cost feed mix and toward theuse of production functions as a desired man-agement tool of the industry. Dr. Miller’s lastproject at the university extends this method-ology to include a complete model of an in-tegrated broiler firm,
Dr. Miller and Fred White published anumber of articles in the area of taxation andpolicy analysis and it was in the area of policyadvisement that Dr. Miller had the greatest im-pact on the peanut industry. The peanut in-dustry is still grappling with the concept ofhow the industry might be organized in a freemarket and is constantly looking for new di-rections. Dr. Miller has been the industry’s keyadvisor on the use of a peanut futures marketas one of the keys to free market organization.An important treatment of the subject withF.W. Williams and Brian Smith, “PotentialWorld Trade in a Futures Contract for ShelledEdible Peanuts,” Agribusiness: An Interna-
tional Journal 2(1 ):2 1–32, was widely quotedand continued interest led to an additionalstudy published with Charley Huang, SteveTurner, and Laszlo Posci, “Conjoint Analysisin New Contract Design, ” Journal of Futures
Markets 13( 1):2 19–248. Any new studies ofthe feasibility of a peanut futures contract willuse Dr. Miller’s studies as a baseline as theyare the only studies available with an inter-national scope.
with applied problems led the USDA to invitehim to serve as economist on the first team ofadvisors sent to Poland with the Polish-Amer-ican Extension Project (PAEP). Beginning inthe summer of 1991, Dr. Miller has been theleading economist among southern institutionsin bringing the benefits of a free market and ademocratic society to the republics of the So-viet Union. Accomplishments of the workhave been documented by Miller, et al, in“Economics Education in an Emerging Mar-ket Economy,” American Journal of Agricul-
tural Economics 77(3):462–470, and by Mill-er, in “History of Business Planning in thePolish Extension Service during Transition toa Market Economy, ” Faculty Series FS 98–10, Polish appreciation of the project is reflect-ed in a statement by the President of Polandwho told the United States Secretary of Ag-riculture that the Polish-American ExtensionProject was the most successful effort of anycountry in the world trying to help Polandduring its transition to a market economy.
The economic stability and growth engen-dered by his work is expected to significantlyexpand the trade potential and economicgrowth of the United States and aid in pre-serving peace in the free world. Dr. Miller iscurrently pursuing this activity as Director ofthe USDA Marketing Assistance Project inArmenia where he has led the Armenian Ag-ricultural Academy to develop the first inte-grated research, teaching, and extension pro-gram for a university in the former SovietUnion.
Dr. Miller is successful in imparting his ex-pertise to students. He was an early developerof the curriculum that established the Ph.D. inAgricultural and Applied Economics at theUniversity of Georgia and later he was chairof the committee that established the mastersof agribusiness degree. He served for sevenyears as graduate coordinator and taught a leadprice analysis course in the Ph.D. program. Dr.Miller directed 23 Masters theses and sixPh.D. dissertations. Eight of his students hold,or have held, professorial rank in six southernland grant universities.
Mary A. Marchant
1999–2000 President
Mary Marchant grew up on a farm in the Cen-tral Valley of California. She attended the Uni-versity of California at Davis where she ob-tained her Ph.D. in Agricultural Economics aswell as a M.A. in Economics. While attendinggraduate school she worked for the CaliforniaDepartment of Food and Agriculture as a re-search analyst. Dr. Marchant joined the Uni-versity of Kentucky (UK) faculty in 1989, andis currently an Associate Professor in the Ag-ricultural Economics Department. Her teach-ing and research areas include internationaltrade, econometrics, and agricultural marketing.
Dr. Marchant’s academic achievements in-clude publishing four books, 27 journal articlesand refereed book chapters, and presentingover 50 invited and selected presentations atinternational, national, and regional agriculturaleconomics meetings, including two contributed
paper presentations at the International Asso-ciation of Agricultural Economists’ triennialmeetings in Zimbabwe and Tokyo, respective-ly. Awards include the American AgriculturalEconomics Association’s (AAEA) Distin-guished Undergraduate Teaching Award, 1999;the Fulbright Distinguished Chair in Agricul-tural Economics, University’ degli Studi dellsTuscia, Viterbo, Italy, March-May, 1998; the
UK Alumni Association’s Great TeacherAward, 1998; the Gamma Sigma Delta MasterTeacher Award-UK chapter, 1994; and the UKChancellor’s Award for Outstanding Teaching,finalist, 1992. Research accomplishments in-clude funding for two National Research Initia-tive (NRI) Competitive Grants; organizing andobtaining funding for a national conference en-titled “Trade and the Environment,” a post-conference to the 1996 AAEA annual meeting;and receiving an invitation by Garland
Publishing Inc. to publish her thesis as a book
in a series entitled Government and the Econ-
omy. Most recently, Dr. Marchant was invitedto serve as the Markets and Trade Panel Man-ager for the National Research Initiative Com-petitive Grants Program of the U.S. Departmentof Agriculture (USDA).
In addition to the above awards, Dr. Mar-chant’s teaching accomplishments include co-organizing a national teaching conference, en-titled “New Technologies and Innovations inAgricultural Economics Instruction, ” en-dorsed by the AAEA and co-sponsored by theSouthern Agricultural Economics Association(SAEA), as well as co-editing the correspond-ing conference proceedings. Additionally, Dr.Marchant served as faculty advisor to the Ag-ribusiness Club’s academic team, winners ofthe 1997 and 1996 AAEA National AcademicBowl.
An active member in our profession, Dr.Marchant has held key leadership positions inboth the AAEA and the SAEA. In the AAEA,she was elected 1999–2002 member of theFoundation Governing Board, served as the1997 Chair of the AAEA Committee on Wom-en in Agricultural Economics (CWAE), Chairof the Learning Workshop Planning Commit-tee for the 1996 “Trade and the Environment”Workshop described above, and the 1992–94Chair of the AAEA Employment ServicesCommittee. In the SAEA, Dr. Marchant waselected 1998 President-elect, 1997 First VicePresident, and 1996 Second Vice President ofthe Association where she coordinated scien-tific reviews of selected paper and symposiasubmissions for presentation at the 1997SAEA annual meeting. In addition, Dr. Mar-chant was elected 1998 President of the Gam-ma Sigma Delta Agricultural Honor Society-UK Chapter, and also served as the 1994 Chairof the S-256 Regional Research Project on In-ternational Trade.
