Despite being generally accepted as a promising conservation practice to reduce nitrate pollution and promote soil sustainability, cover crop adoption in Midwestern US agriculture is low. Based on focus groups, surveys and partial budgets, we calculated the annual net returns to cover crop use for farmers in Illinois, Iowa and Minnesota; and elicited farmers’ perceptions about the pros and cons of incorporating cover crops to their row cropping systems. The novelty of our methodology resides in comparing each farmer's practices in the portion of their cropping system with cover crops (typically small), against their practices in the other portion of their cropping system without cover crops. The resulting comparisons, accounting for farmer heterogeneity, are more robust than the typical effects calculated by comparing indicators across cover crop users and unrelated non-adopters. Our results highlight the complicated nature of integrating cover crops into the crop production system and show that cover crops affect whole farm profitability through several channels besides establishment and termination costs. Despite farmers’ positive perceptions about cover crops and the availability of cost-share programs, calculated annual net returns to cover crops use were negative for most participants.

Despite the active promotion of cover crops as a key conservation practice, their adoption is very limited. We developed a series of partial budgets based on a statewide survey of Iowa farmers to evaluate the changes in net returns resulting from the incorporation of cover crops into a corn or soybean production system. The average net returns to cover crop use for farmers who did not use cover crops for grazing livestock or forage were consistently negative across different planting and termination methods, tillage practices, and experience levels. Only farmers who used cover crops for grazing livestock or forage and received cost-share payments tended to derive net positive returns from cover crop use. Our results can be used as benchmarks for current or potential cover croppers and for ground-truthing agricultural and conservation policy design.

The paper investigates the determinants of geographical distribution of international currencies in global financial market transactions. We implement a gravity model, in which international currency distribution depends on the characteristics of the source and destination countries. We find that the source country's currency is more likely to be used in the financial market transactions of the destination country if the bilateral trade and capital flows are large or the destination country's economy is the larger of the two. We also find that the level of development of the destination country's financial market and whether the two countries use a common language are important determinants of the currency distribution. In addition, our model suggests that, to be a true international currency, the renminbi should be used more extensively in the financial markets of the US and UK.

No abstract

The paper investigates the determinants of geographical distribution of international currencies in global financial market transactions. We implement a gravity model, in which international currency distribution depends on the characteristics of the source and destination countries. We find that the source country's currency is more likely to be used in the financial market transactions of the destination country if the bilateral trade and capital flows are large or the destination country's economy is the larger of the two. We also find that the level of development of the destination country's financial market and whether the two countries use a common language are important determinants of the currency distribution. In addition, our model suggests that, to be a true international currency, the renminbi should be used more extensively in the financial markets of the US and UK.