No abstract

Genetic testing is one way that feeder cattle producers can credibly signal quality to buyers. However, quality signaling in the presence of asymmetric information typically requires paying measurement costs. Given that previous research has indicated that the value of genetic information is generally not enough to offset the current cost of testing, we evaluate random sampling as a strategy to reduce the overall cost of testing. An economic approach to sample size determination is introduced utilizing a Bayesian decision theoretic framework to balance the expected costs and benefits of sampling. Data from 101 pens (2,796 animals) of commercially‐fed cattle are used to empirically evaluate optimal sampling. Assuming profit is linear (nonlinear) in genetic information, results indicate that at the baseline parameter values an optimal sample size of nine (five) out of 100 animals generates returns from sampling of $7.87/head ($5.96/head). Sensitivity analyses indicate that the degree of asymmetric information (absolute difference between seller and buyer prior expectations of quality) is the major driver of the overall results. The results provide strong evidence that random sampling generates benefits that far exceed the costs.

DNA profile information has begun appearing in purebred bull auction catalogs; however, the value of this information is as of yet unknown. This study uses data from actual bull sales at a test station and combines it with stated‐preference survey data to determine the value of the DNA profile information. Consistent with previous research, we find that expected progeny differences (EPDs), test performance, and ultrasound information significantly influence bull‐buyers’ willingness‐to‐pay. The newer DNA profile information, however, was unrelated to buyers’ preferences. Methodologically, we find statistically significant differences (but highly correlated willingness‐to‐pay values) across the stated and revealed preference data sources.

Annualized yields with more intensive cropping (IC) systems tendIntensifying the crop rotation from crop-fallow to to be greater than those of spring wheat-fallow (SW-F); however, little economic comparison information is available. The long-term crop-crop-fallow or annual cropping without fallow us-(12 yr) effects of tillage system and N fertilization on the economic ing MT and NT systems in the central and northern returns from two dryland cropping systems in North Dakota were Great Plains may improve the economics of dryland evaluated. An IC rotation [spring wheat (Triticum aestivum L.)farming systems. Kaan et al. (2002) reported that a winter wheat (T. aestivum L.)-sunflower (Helianthus annuus L.)] wheat-corn (Zea mays L.)-fallow cropping system had and a SW-F rotation were studied. Tillage systems included convenhigher annual profits than wheat-fallow in Colorado tional till (CT), minimum till (MT), and no-till (NT). Nitrogen rates from 1989 to 1997. Dhuyvetter et al. (1996) hypothesized were 34, 67, and 101 kg N ha Ϫ1 for the IC system and 0, 22, and 45 that MT and NT continuous cropping systems may be kg N ha Ϫ1 for the SW-F system. Annual precipitation ranged from more profitable than traditional crop-fallow systems. 206 to 655 mm, averaging 422 mm over 12 yr. The IC system generated Zentner et al. (2002) investigated the economics of crophigher profits than the SW-F system, but the IC profits were more variable. Within the IC system, MT generated higher profits than ping and tillage systems in the western Great Plains corresponding N treatments under CT and NT, but MT profits were area of Canada. In comparing expected returns, they more variable. Of the N rates evaluated, the largest N rates generated reported mixed results when comparing reduced tillage the largest profits. The dryland IC system with MT and NT was more systems (MT and NT) with CT. They also reported profitable than the best SW-F system using CT for this location.higher expected returns to SW-F under low wheat prices. Stochastic dominance analyses revealed that the SW-F system andAt higher prices, IC rotations were found to be more IC system CT treatments were economically inefficient when comprofitable. Given the relatively short time series (5-6 yr) pared with the IC system with MT and NT. available to Zentner et al. (2002), they did not formally consider riskiness of the cropping and tillage systems. In a series of articles, Halvorson et al. objective was to make an economic comparison of a 3-yr son, USDA-ARS,

No abstract