Rising health care cost in Canada and other developed countries, as well as the pressure for climate change mitigation, reflects the importance of consumption and production-related externalities in agriculture. This study assesses the economic returns to the biotech canola industry in Canada, considering potential health care savings and greenhouse gas (GHG) emissions reduction associated with canola oil consumption and canola seed production. It is shown that the indirect benefits of consumption and production-related externalities associated with the canola sector are substantial aspects of the gains from agricultural research investments and the impacts of agriculture policy. Our estimates suggest that the external implications of increased canola production and consumption could exceed 20% of the economic effect of biotechnological improvements in canola. The impact on research policy and improvement in overall social welfare are also discussed.

Dr. James Rude, colleague and friend, died in May of 2022. James was raised on a grain farm in Birch Hills, Saskatchewan and earned a BA and a MA in Economics from the University of Saskatchewan. He served as a lecturer at the University of Saskatchewan, starting in 1982. In 1984 he began working at SaskTel before moving to the trade secretariate with the Saskatchewan provincial government. In 1993, he earned a PhD in Agricultural Economics at the University of Guelph, after which he worked on trade policy at Agriculture and Agri-Food Canada. James also worked as a researcher at the University of Saskatchewan and at Iowa State University. James was hired as an Assistant Professor at the University of Manitoba in 2002 and moved to the University of Alberta's Department of Resource Economics and Environmental Sociology in 2007, where he spent his last 15 years. Many economists who worked with James grew accustomed to in-depth discussions of agricultural issues with him and felt a significant personal and professional loss after his passing. He was the go-to person in our profession for information about current and historical institutions governing Canadian agricultural policy. To honor James' contributions and foster his brand of economic analysis, the Canadian Journal of Agricultural Economics commissioned a special issue on current issues in agricultural economics inspired by his work. James' research interests were broad; he contributed to the analysis of a wide range of issues in applied economics. The wide range of articles in this special issue reflect the broad reach of James' research and policy work. The first group of papers focuses on policy interventions and rent seeking. Vercammen (2024) investigates the time-series properties of agricultural TFP growth, and provocatively challenges the commonly-held view that slower agricultural TFP growth can be attributed to declining public R&D expenditures. Wichman (2024) investigates bidding behavior in conservation auctions; Barichello et al. (2024) generate a model to estimate quota values in Canada's dairy market; Cardwell and Biden (2024) analyze compensation payments to producers in Canada's supply-managed industries in the wake of recent trade agreements. The second group of papers is related to farm-level production and management decisions. McKnight et al. (2024) develop a model to understand how producers of bioenergy feedstocks respond to changes in relative crop prices; De Laporte et al. (2024) investigate how Canada's suite of BRM programs affect farmers' decisions to undertake GHG-emission reducing practices; Larue and Ker (2024) model how climate-related production shocks affect Canadian apple production and trade flows. The third group of papers analyses market power and price transmission in agricultural supply chains. Singbo and Sossou (2024) investigate how market power in Quebec grain markets can favor local grain sellers; McKendree et al. (2024) model how capacity utilization in feedlots can affect price passthrough in feeder cattle markets; Zheng et al. (2024) estimate the effects of COVID-19 disruptions on price transmission and price volatility in Canada's beef supply chain. This special issue of the Canadian Journal of Agricultural Economics is dedicated to the memory of James. His impact on research in Canadian agricultural economics was strong and enduring, and these papers are inspired by his work. James' passing left a void in our discipline, and among members of our community. We will continue working in his tradition and will strive to meet the standards set by James during his productive and influential career. Introduction au numéro spécial en l'honneur du regretté Dr. James Rude Le Dr James Rude, collègue et ami, est décédé en mai 2022. James a grandi dans une ferme céréalière à Birch Hills, en Saskatchewan, et a obtenu un baccalauréat et une maîtrise en économie de l'Université de la Saskatchewan. Il a commencé à enseigner à l'Université de la Saskatchewan en 1982. En 1984, il a commencé à travailler chez SaskTel avant de rejoindre le secrétariat du commerce du gouvernement provincial de la Saskatchewan. En 1993, il a obtenu un doctorat en économie agricole à l'Université de Guelph, après quoi il a travaillé sur les politiques commerciales pour Agriculture et Agroalimentaire Canada. James a également travaillé comme chercheur à l'Université de la Saskatchewan et à l'Université d'État de l'Iowa. James a été embauché comme professeur adjoint à l'Université du Manitoba en 2002, puis a rejoint le département d'économie des ressources et de sociologie environnementale de l'Université de l'Alberta en 2007, où il a passé ses 15 dernières années. De nombreux économistes qui ont travaillé avec James s'étaient habitués à des discussions approfondies sur les questions agricoles avec lui et ont ressenti une perte personnelle et professionnelle significative après son décès. Il était la personne de référence dans notre profession pour obtenir des informations sur les institutions actuelles et historiques régissant la politique agricole canadienne. Pour honorer les contributions de James et promouvoir son style d'analyse économique, la Revue canadienne d'économie agricole a commandé un numéro spécial sur les questions actuelles en économie agricole inspirées par son travail. Les intérêts de recherche de James étaient vastes ; il a contribué à l'analyse d'une large gamme de questions en économie appliquée. La diversité des articles de ce numéro spécial reflète la portée étendue des recherches et des travaux de politique de James. Le premier groupe d'articles se concentre sur les interventions politiques et la recherche de rente. Vercammen (2024) examine les propriétés des séries chronologiques de la croissance de la productivité totale des facteurs (PTF) agricoles et remet en question l'idée communément admise selon laquelle le ralentissement de la croissance de la PTF agricole peut être attribué à la diminution des dépenses publiques en R&D. Wichman (2024) étudie les comportements d'enchères dans les enchères de conservation ; Barichello, Vercammen et Zammit-Maempel (2024) génèrent un modèle pour estimer la valeur des quotas dans le marché laitier canadien ; Cardwell et Biden (2024) analysent les paiements compensatoires aux producteurs dans les industries sous gestion de l'offre du Canada à la suite des récents accords commerciaux. Le deuxième groupe d'articles est lié à la production à la ferme et aux décisions de gestion. McKnight et al. (2024) développent un modèle pour comprendre comment les producteurs de matières premières pour la bioénergie réagissent aux changements des prix relatifs des cultures ; De Laporte et al. (2024) examinent comment les programmes de gestion des risques d'entreprise (GRE) du Canada influencent les décisions des agriculteurs de mettre en œuvre des pratiques réduisant les émissions de gaz à effet de serre ; Larue et Ker (2024) modélisent comment les chocs climatiques affectent la production et les flux commerciaux de pommes au Canada. Le troisième groupe d'articles analyse le pouvoir de marché et la transmission des prix dans les chaînes d'approvisionnement agricoles. Singbo et Sossou (2024) étudient comment le pouvoir de marché dans les marchés céréaliers du Québec peut favoriser les vendeurs locaux de céréales ; McKendree, Tonsor et Dong (2024) modélisent comment l'utilisation de la capacité dans les parcs d'engraissement peut affecter la transmission des prix sur les marchés des bovins de boucherie ; Zheng et al. (2024) estiment les effets des perturbations liées au COVID-19 sur la transmission des prix et la volatilité des prix dans la chaîne d'approvisionnement du bœuf au Canada. Ce numéro spécial de la Revue canadienne d'économie agricole est dédié à la mémoire de James. Son impact sur la recherche en économie agricole canadienne a été fort et durable, et ces articles sont inspirés par son travail. Le décès de James a laissé un vide dans notre discipline et parmi les membres de notre communauté. Nous continuerons de travailler dans sa tradition et nous nous efforcerons de respecter les normes établies par James au cours de sa carrière productive et influente.

Shoppers face high beef prices at the supermarket, but those prices are not a reflection of what Canadian farmers and ranchers earn from their cow-calf herds. In the past 30 years, the average beef producer’s operating margin has never reached $50,000, despite the fact that the average beef farm’s asset base stands at more than $2 million. Better access to export markets, including the U.S., South Asia and North Africa, would help to remedy the producers poor returns. Export prices would need to cover production costs, the largest of which is feed for the producers’ cattle herds, accounting for 77 per cent of the average ranch’s cash costs. As of July 2023, Alberta’s herd consisted of 1.77 million beef and dairy cows. With demand for livestock-derived food expected to jump by 38 per cent in the next 30 years, Canadian cattle ranchers need to take advantage of this global increase through freer trade. Canadian beef can remain competitive globally if the supply chain accesses world markets beyond the U.S., especially in developing countries where consumer incomes are increasing. The industry also needs investments in research, farm extension and supply chain co-ordination from national and provincial self-funded producer groups. Producers must look outward to global trade but be ready to capture new innovations at home. The dominant economies of scale are available to beef processors and finding savings is difficult for farmers and ranchers. However, there is potential for the supply chain to see savings from new technology, which is why investment in continuing support for ranch-level production research is necessary. Producers also need to focus on national co-ordination aimed at protecting trade access and responding to trends in consumer demand for beef. Any new industry policies must also consider key factors that currently affect market demand and expansion including: changing consumer preferences globally, the welfare of animals raised for slaughter and the effects of greenhouse gas emissions on supply chain sustainability. As some of the output and byproducts of the grain production sector provide feed for cattle, policies meant to support the grain sector may be indirectly influencing the beef sector significantly — for good and bad. Infrastructure required for worker safety, animal welfare improvements or improved food safety also adds to the cost of the beef supply. Protectionist trends and increased tariffs pose a threat to the supply chain because they too can create new costs. This is why access to foreign markets is crucial for producers, along with continued investment in research, sector-wide co-ordination to support market access and reviewing crop support to ensure livestock producers are compensated if grain policy changes harm them. Although live animals and much processed Canadian beef are exported to the U.S., fostering good trade relations in Asia and Africa is vital, given the growth in incomes and consumer demand for beef that is predicted for those regions. Free trade is the basis of good agriculture policy and any move towards protectionist policies and higher tariffs is the biggest threat for new costs in the supply chain. Canada’s beef sector requires low-cost access to foreign markets, making free trade policy the single most important policy focus for the sector.

Threshold cointegration is introduced as an econometric technique to model the impact of trade disruptions on spatial price transmission in commodity markets so that market participants and policy makers can understand the global impact of trade disruptions on prices. The threshold cointegration technique that is employed is flexible in that it allows the number of thresholds and their location to be determined endogenously and the threshold variable to be exogenous to the system. We innovate on the threshold cointegration technique by selecting a measure of trade disruptions as the threshold variable. This innovation can be used for any commodity market that is spatially connected due to arbitrage; however, to illustrate its usefulness we apply the technique to trade disruptions for canola traded between Canada and China using weekly data between 2014 and 2019 and find that canola trade disruptions between Canada and China impacted global price transmission and resulted in market fragmentation.

In a Cournot duopoly model, we examine three policy regimes relevant to current international plant breeding: patents alone, patents with a farmer exemption to use saved seed, and patents with research collaboration. In the symmetric version of the model where firms are identical, we show that the social planner prefers patents with research collaboration over patents alone and prefers the patents alone to patents with a farmer exemption. We examine two variations of the model where firms are asymmetric i. due to cost differences and ii. due to the different endowments of germplasm. Situations develop where the research collaboration resolves the common pool problem and increases R&D investment and where it creates free riding problem and decreases R&D investment. We show that the lower cost (more endowed) breeder invests more in R&D under the research collaboration than patents if variety differentiation is high and cost (knowledge endowment) dispersion is low. On the other hand, the higher cost (less endowed) breeder, generally, invests less in R&D under a research collaboration if variety differentiation or cost (knowledge endowment) dispersion is low. These findings suggest new gains are likely from the adoption of international conventions of plant breeders' rights. Keywords: Plant breeding, farmer exemption, research collaboration, Intellectual Property Rights, product differentiation, Cournot oligopoly. JEL Classifications: D21, D43, D60, D82, L13, L24, O34, O38, Q16, Q18 DOI: https://doi.org/10.32479/ijefi.11544

Stavroula Malla (University of Lethbridge, Canada), Derek G. Brewin (University of Manitoba, Canada)

The importance of IPRs (Intellectual Property Rights) in enhancing investment in research related to crop biotechnology is explored through an updated review of the evidence related to canola in Canada. Relevant past work on the rise of private investment in canola is examined and recent updates are presented. The case for continued public investment in crop research even for a crop with significant IPR protection is discussed theoretically and recent and past evidence related to this theory is explored. The benefit of the biotechnology applied to canola to farmers, to plant breeders, to the health of Canadians and to the environment are examined and confirmed

AbstractBrewin (2020) was optimistic about the fate of the Canadian grains and oilseeds sector in 2020 as the COVID‐19 pandemic descended on the world. The sector did generate a large crop and, towards the end of 2020, saw a lift in prices. This contributed to record farm income in Canada in 2020. The pace of grain and oilseed exports in Canada and ethanol demand in the east were affected by COVID‐19, but the forecast of a “near normal” 2020 was relatively accurate. Production and prices stayed on track, largely because the world did not impose significant new barriers to trade in cereals and oilseeds and because these sectors have distanced labor in virtually every step of the supply chain which protected these markets from this pandemic. The dominant price factor for the sector remains global demand that had been growing before 2020 relative to the pace of production and may have been stimulated by deficit budgets around the world. Compared to the tight global stocks, COVID‐19 had a minor impact on grain prices which led to steady production worldwide and in Canada. We are still waiting for more evidence to assess the role of federal coordination in the success of the grains and oilseed sector in 2020, but Canada's past participation in trade and safety protocols based on science allowed the grains and oilseed sector in Canada to earn a very good income in 2020.

The Chinese government's recent decision to suspend the export licenses of two Canadian grain firms has garnered international attention. The dispute has been portrayed by some as a diplomatic dispute between two countries, and by others as a concern about plant health. We analyze the economics of the dispute, including a simple economic model of international trade in which a large-country importer imposes a targeted import ban on one large-country exporter. The model provides a framework for understanding the economic effects of a trade ban under various market conditions. We also discuss the legal framework and dispute settlement process that would be encountered if the disagreement proceeds to a formal dispute in the World Trade Organization.

The Chinese government's recent decision to suspend the export licenses of two Canadian grain firms has garnered international attention. The dispute has been portrayed by some as a diplomatic dispute between two countries, and by others as a concern about plant health. We analyze the economics of the dispute, including a simple economic model of international trade in which a large-country importer imposes a targeted import ban on one large-country exporter. The model provides a framework for understanding the economic effects of a trade ban under various market conditions. We also discuss the legal framework and dispute settlement process that would be encountered if the disagreement proceeds to a formal dispute in the World Trade Organization.

Increased investment in agricultural research could contribute to sustainable development goals and benefit farmers, consumers, the environment, and the economy. This paper provides recent evidence and a critical assessment of the evolving Canadian canola crop development and innovation policy and compares it to the wheat and pulse sectors that differ in degree of biotechnology adoption, seeded acreage, intellectual property rights, and private sector involvement. This study also assesses how crop characteristics and technological changes affect future optimal public policy. A number of innovation policies are discussed that could stimulate further growth within the crop sector.

Increased investment in agricultural research could contribute to sustainable development goals and benefit farmers, consumers, the environment, and the economy. This paper provides recent evidence and a critical assessment of the evolving Canadian canola crop development and innovation policy and compares it to the wheat and pulse sectors that differ in degree of biotechnology adoption, seeded acreage, intellectual property rights, and private sector involvement. This study also assesses how crop characteristics and technological changes affect future optimal public policy. A number of innovation policies are discussed that could stimulate further growth within the crop sector.

In 2016, the Minister of Transport released a review of the Canada Transportation Act that recommended the eventual removal of the Maximum Revenue Entitlement (MRE) governing the movement of grain by rail. The MRE is sometimes referred to as a revenue cap, but the MRE sets a maximum average allowable freight rate over all tonnes of grain moved. There is no a priori cap to the revenue or amount of grain moved. We argue that the MRE permitted railways to set prices to promote more efficient movement. This paper evaluates the consequences of ending the MRE in the context of Canada's evolving grain supply chain and its interaction with railways. Assuming cartel behavior among railways, we find that the removal of the MRE for grain transportation could increase rates by $42 to $73/t, depending on the market power of grain companies. Farmer prices were lowered by basis shifts larger than $73 in 2013–14, but a long-term rate increase of this magnitude could generate regulatory or strategic responses that were not part of our model. In our worst case scenario, farmers lose 90% of their current surplus. Even modest amounts of market power can generate significant farm price reductions. En 2016, le ministre du Transport déposait le rapport de l'examen de la Loi sur les transports au Canada. Y était proposée l'éventuelle élimination du Revenu admissible maximal (RAM) gouvernant le transport du grain par chemin de fer. L'on qualifie souvent le RAM de plafond du revenu, mais le RAM établit un maximum taux moyen autorisé de fret sur toutes les tonnes de grain acheminées. Aucun plafond n'est fixé pour le revenu ni la quantité de grain transporté. Nous croyons que le RAM a permis aux lignes ferroviaires d'établir leur prix et de promouvoir un transport plus efficient. Cet article évalue les conséquences de l'élimination du RAM au sein du contexte évolutif de la chaine canadienne d'approvisionnement en grain, et ses interactions avec les lignes ferroviaires. Supposant des comportements anticoncurrentiels parmi les lignes ferroviaires, nous concluons que l'élimination du RAM pour le transport du grain pourrait augmenter les taux de 42 $ à 73 $ par tonne, en fonction du pouvoir des sociétés céréalières sur le marché. Les prix agricoles ont été baissés de marges de base dépassant les 73 $ en 2013–14, mais une augmentation du taux de cette envergure à long terme pourrait générer des réactions réglementaires ou stratégiques ne faisant pas partie de notre modèle. Notre pire scénario verrait les exploitations agricoles perdre 90 % de leurs surplus actuels. Même un modéré pouvoir sur le marché peut générer de considérables réductions des prix agricoles.

Purpose - The purpose of this paper is to examine the impacts of changing biotechnology and intellectual property rights (IPRs), institutions, and policies for Canadian crop development related to oilseed rape or "canola" as a case study. Implications for China as it considers regulatory and institutional change related to private sector incentives to invest in biotechnology are also discussed.Design/methodology/approach - The authors assess the effects of introducing biotechnology and IPRs in the Canadian oilseed sector over time. Data on the rate of return on agricultural research in general are presented and then the focus moves to the impacts for farmers in Canada. New data are gathered to estimate recent gains in the benefit of biotechnology advancements for farmers. Furthermore, the evolution of agricultural research in China is briefly presented, and a discussion follows that considers Canadian evidence and the possible applicability of the impacts to China.Findings - The results support earlier studies identifying gains from agricultural research and show that private sector investments in Canada are now much higher than public sector investments and thus institutional innovations have been a powerful trigger to improve productivity. The gains from biotechnology for farmers are now over CND 1 billion per year in Canada.Research limitations/implications - The research gains measured are for Canada so should be applied to China's situation only as a potential for gains.Practical implications - While more work is needed to identify reasonable institutional incentives to generate private investment in China's biotechnology industry, the potential impact in the Canadian canola sector highlights the importance of continuing the investment in biotechnology, and the need for appropriate policies and regulations to spur private investment.Social implications - Biotechnology greatly improved the welfare of farmers in Canada. Much of the gain the authors find was in improved yields and lower herbicide costs that improved farmer profits. Privatization of breeding was a key step in this transformation.Originality/value - The paper contributes an updated review of Canadian intellectual property institutions related to biotechnology, and an updated measure of gains at the farm level. It also begins the analysis of the applicability of these institutional changes for China.

Vast distances in the Canadian grain handling system means that the supply chain is highly reliant on rail transportation. After years of relative stability, the grain supply chain has recently undergone many signifi cant changes, including deregulation in grain handling. However, the consequences emerging from some of these changes were unexpected. In this paper, we explore the evolving behavior of participants in the increasingly liberalized Canadian grain handling supply chain. The changes seem to be creating new winners and losers in the system. To this end, we fi nd that while current railroad regulations in Canada have led to effi ciencies, deregulation of grain handling seems to have generated gains for grain companies at the expense of farmers.

In 2016, the Minister of Transport released a review of the Canada Transportation Act that recommended the eventual removal of the Maximum Revenue Entitlement (MRE) governing the movement of grain by rail. The MRE is sometimes referred to as a revenue cap, but the MRE sets a maximum average allowable freight rate over all tonnes of grain moved. There is no a priori cap to the revenue or amount of grain moved. We argue that the MRE permitted railways to set prices to promote more efficient movement. This paper evaluates the consequences of ending the MRE in the context of Canada's evolving grain supply chain and its interaction with railways. Assuming cartel behavior among railways, we find that the removal of the MRE for grain transportation could increase rates by $42 to $73/t, depending on the market power of grain companies. Farmer prices were lowered by basis shifts larger than $73 in 2013-14, but a long-term rate increase of this magnitude could generate regulatory or strategic responses that were not part of our model. In our worst case scenario, farmers lose 90% of their current surplus. Even modest amounts of market power can generate significant farm price reductions.

To open this address, I would like to advocate for membership in the Canadian Agricultural Economics Society (CAES). The fact that applied economics offers theory and methods that help us address topics as diverse as the Canadian grain value chain and the economics of species at risk speaks well for the future of our discipline. There is a vast array of work for us to do. Membership in the CAES offers an excellent link to the most up‐to‐date research in this area through our journal and conferences. Every society I attend inspires me to examine my own research and look at problems in new ways using new tools I learned from presentations made by the members of CAES. The main message of my address is to promote the application of Game Theory strategies as a way to understand behavior in the grain value chain. These tools are already being applied in areas as different as optimizing tradable systems of environmental goods and assessing competitive behavior in beef packing. Tout d'abord, je tiens à mentionner que j'appuie l'adhésion à la Société canadienne d'agroéconomie (SCAE). Le fait que l’économie appliquée offre la théorie et les méthodes qui nous aident à examiner des sujets aussi variés que la chaîne de valeur des grains du Canada et l’économie des espèces en péril augure bien pour l'avenir de notre discipline. La diversité du travail à accomplir est immense. Être membre de la SCAE procure un lien privilégié à la recherche de pointe grâce à notre Revue et à nos conférences. Aujourd'hui, mon message vise principalement à promouvoir l'application des stratégies de la théorie des jeux pour comprendre le comportement au sein de la chaîne de valeur des grains. Certains domaines, tels que l'optimisation des systèmes d’échange des biens environnementaux et l’évaluation du comportement concurrentiel dans le secteur du conditionnement du bœuf, utilisent déjà ces outils. La panoplie d'outils à notre disposition est mise en valeur dans notre Revue et lors de nos congrès. Tous les congrès auxquels j'assiste me motivent à examiner ma propre recherche et à analyser les problèmes sous un angle différent grâce aux nouveaux outils mis au point et présentés par les membres de la SCAE.

Khakbazan, M., Durunna, O. N., Sirski, T. K., Brewin, D. G., Huang, J., Berry, N., Iwaasa, A. D., Scott, S. L., Robins, C. D., Block, H. C. and Lardner, H. A. 2015. The effects of spring versus summer calving on beef cattle economic performance in western Canada. Can. J. Anim. Sci. 95: 475–486. The choice of calving date influences the net revenue of a calving operation as it affects the number of days that calves spend in each feeding phase and when they are subsequently marketed. These two factors determine the costs, revenue, and risk (variance) of each calving system for the calving phase of a beef system. The majority of cow–calf producers in western Canada have adopted early calving (EC) in spring due to management factors. However, late calving (LC) in the summer is an alternative beef calving system associated with higher returns due to lower system costs and higher beef prices. It may offer a better match between cow nutritional requirements and pasture availability. The objective of this study was to compare the revenues and risks for a traditional EC system and an alternative LC system at three sites in western Canada. Biological and economic data from three field experimental sites in western Canada (Brandon Research Centre in Manitoba, Western Beef Development Centre in Lanigan, Saskatchewan and Semi-Arid Prairie Agriculture Research Centre in Swift Current, Saskatchewan) were used to determine the costs and benefits of the alternative beef calving system. The results showed that even though the EC has higher cost than the LC, the EC is slightly better than LC in terms of higher net revenue potential, but it comes at a greater risk due to higher revenue variances. The EC system is usually more preferable for risk-neutral producers, whereas the LC system is more preferable for risk-averse producers.