ABSTRACT Argentina applies differentiated export taxes ( retenciones ) on agricultural commodities, and these rates have changed repeatedly since 2010. This article examines the bilateral trade effects of that variation on the taxed commodities, wheat, corn, beef, raw soybeans, soybean meal, and soybean oil, using a gravity modeling approach. It identifies the differential incidence of a destination‐uniform export tax rather than its single average effect, which is not separately identified within a structural gravity setting. This incidence falls along two margins. Across destinations, the response to the tax differs by group in soybean oil, corn, and wheat, while no destination difference is found in soybean meal, beef, and raw soybeans. Across processing stages, the export mix moved toward soybean meal and away from raw beans. Measured against the rate itself, the average response is negative in four of the six commodities, and among these only wheat is distinguishable from zero. A uniform export tax therefore falls unevenly across destination markets and across processing stages, and bilateral trade data identify that uneven incidence more readily than a single average effect.
ABSTRACT This article examines whether realized extreme drought episodes affect the speed of adjustment of derived input demands and output supplies toward their long‐run equilibrium in U.S. agriculture, focusing on states in the North Central Region. Using state‐level data from 1960 to 2015, we estimate a dynamic investment‐demand and output‐supply system based on adjustment cost theory. The results indicate that labor adjusts faster than capital, while land is highly persistent from year to year. Extreme drought is associated with faster capital adjustment, although this evidence should be interpreted as short‐run weather‐related adjustment rather than long‐run climate adaptation. The paper updates the input adjustment literature by showing how realized drought exposure may condition adjustment speeds in a regional agricultural system.
ABSTRACT The 2022 Mississippi River drought disrupted navigation and affected local grain prices and basis. Using daily elevator‐level corn and soybean data across nine Mississippi River states (2000–2024), we estimate a drought‐period spatial exposure gradient: the interaction between a September–December 2022 drought indicator and each elevator's river‐port proximity, with elevator and date fixed effects. The cash‐to‐futures ratio rose less near river ports, by about 0.08 (corn) and 0.04 (soybean) log points in the nearest versus farthest decile. Estimates are stable across alternative distance measures and spatially robust standard errors. These findings highlight the exposure of river‐dependent grain markets to inland‐waterway disruptions and can help producers and policymakers manage localized basis risk.
ABSTRACT Vanilla beans are the second most valued spice and are mostly grown in developing countries. The United States is the largest importer of vanilla beans, even though Florida's tropical climate is suitable for vanilla production. To examine consumer preferences and valuations for vanilla with different flavor sources and attributes, including domestic production, we conduct a nationwide choice experiment survey of US consumers. Respondents were randomly assigned to one of three information treatments or a control group receiving no information to determine the effect of additional information on consumer preferences for vanilla. Mixed logit model results indicate that survey respondents are willing to pay the highest premium for vanilla extracts made with US vanilla beans. This premium persists even when panelists are provided with information about the benefits of purchasing Madagascan vanilla to Madagascan farmers and economy. Our results suggest that home bias—a preference for domestic goods—plays a vital role in shaping how consumers value and support domestic producers through their purchasing decisions. Respondents in the control and all three treatment groups are also willing to pay significant premiums for naturally produced, organically produced, and non‐GMO attributes.
ABSTRACT The persistence of asymmetric prices and inefficiencies in the functioning of agricultural markets for perishable horticultural crops such as apple has necessitated an examination of market integration and price transmission across major apple markets of India. Using monthly wholesale apple prices, cointegration techniques, the Granger causality test, and the Generalized Impulse Response Function are employed to analyze the dynamic price interrelationships and adjustments among selected apple markets. The Vector Error Correction Model (VECM) and Threshold Vector Error Correction Model (TVECM) are applied to assess the adjustment of cointegrated markets toward long‐run equilibrium after short‐run deviations. The findings reveal that selected apple markets are cointegrated and have long‐run equal relationships among them. Mumbai and Jammu emerge as key markets, with Jammu significantly influencing price formation and showing bidirectional causality with several regional markets. Regional markets such as Delhi, Hyderabad, Kanpur, and Ludhiana adjust their prices toward the central markets over time. Faster adjustments in the TVECM indicate the presence of nonlinear threshold effects, while variation in price transmission speed reflects uneven market efficiency. These findings underscore the need for improved rural infrastructure, post‐harvest management, and greater transparency in market regulating charges to enhance price transmission across spatially separated apple markets of India.
