IDEAS home Printed from https://ideas.repec.org/a/ags/jloagb/131184.html
   My bibliography  Save this article

Evaluating Returns to Cool Season Grass Quality Characteristics for Niche Equine Feed Markets

Author

Listed:
  • Curtis, Kynda R.
  • Cowee, Margaret W.
  • Kim, Man-Keun
  • Harris, Thomas R.

Abstract

This study examines the impact of cool season grass quality characteristics on pricing and net returns in niche equine feed markets. A hedonic analysis of Timothy grass hay prices in Nevada was performed to determine the implicit values of its quality characteristics. A Monte Carlo simulation was then conducted to estimate the distribution of net returns to improving grass hay quality characteristics. Results show that the presence of foreign matter had the largest impact on grass hay price, followed by seller reputation and hay color. However, for risk-averse producers, enhancing seller reputation and grass hay color are the preferred strategies for increasing net returns.

Suggested Citation

  • Curtis, Kynda R. & Cowee, Margaret W. & Kim, Man-Keun & Harris, Thomas R., 2010. "Evaluating Returns to Cool Season Grass Quality Characteristics for Niche Equine Feed Markets," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 28(1), pages 1-18.
    • Handle: RePEc:ags:jloagb:131184
    DOI: 10.22004/ag.econ.131184
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/131184/files/JAB_Spr2010__01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.131184?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Richardson, James W. & Herbst, Brian K. & Outlaw, Joe L. & Gill, Robert Chope, II, 2007. "Including Risk in Economic Feasibility Analyses: The Case of Ethanol Production in Texas," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 25(2), pages 1-18.
    2. Maria Luz Loureiro & Jill J. McCluskey, 2000. "Assessing consumer response to protected geographical identification labeling," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 309-320.
    3. Kenneth E. McConnell & Ivar E. Strand, 2000. "Hedonic Prices for Fish: Tuna Prices in Hawaii," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 133-144.
    4. Hopper, Jared A. & Peterson, Hikaru Hanawa & Burton, Robert O., 2004. "Alfalfa Hay Quality and Alternative Pricing Systems," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(3), pages 675-690, December.
    5. Meyer, Jack, 1977. "Choice among distributions," Journal of Economic Theory, Elsevier, vol. 14(2), pages 326-336, April.
    6. Blank, Steven C. & Orloff, Steve B. & Putnam, Daniel H., 2001. "Sequential Stochastic Production Decisions For A Perennial Crop: The Yield/Quality Tradeoff For Alfalfa Hay," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-17, July.
    7. Hardaker, J. Brian, 2000. "Some Issues in Dealing with Risk in Agriculture," Working Papers 12912, University of New England, School of Economics.
    8. Jolie B. Pardew, 1988. "Estimating how quality characteristics and marketing services affect alfalfa hay prices," Agribusiness, John Wiley & Sons, Ltd., vol. 4(2), pages 167-175.
    9. Bowman Kenneth R. & Don E. Ethridge, 1992. "Characteristic Supplies and Demands in a Hedonic Framework: U.S. Market for Cotton Fiber Attributes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 991-1002.
    10. Frederick V. Waugh, 1928. "Quality Factors Influencing Vegetable Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 10(2), pages 185-196.
    11. Margaretha Rudstrom, 2004. "Determining Implicit Prices for Hay Quality and Bale Characteristics," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(4), pages 552-562.
    12. Günter Schamel, 2006. "Geography versus brands in a global wine market," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 363-374.
    13. J. Shannon Neibergs, 2001. "A hedonic price analysis of thoroughbred broodmare characteristics," Agribusiness, John Wiley & Sons, Ltd., vol. 17(2), pages 299-314.
    14. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    15. Hopper, Jared A. & Peterson, Hikaru Hanawa & Burton, Robert O., Jr., 2004. "Alfalfa Hay Quality and Alternative Pricing Systems," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(3), pages 1-16, December.
    16. Margaretha Rudstrom, 2004. "Determining Implicit Prices for Hay Quality and Bale Characteristics," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(4), pages 552-562.
    17. Bodo E. Steiner, 2004. "Australian wines in the British wine market: A hedonic price analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 287-307.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Boyer, Christopher N. & Griffith, Andrew P. & Roberts, Roland K. & Savoy, Hubert J. & Leib, Brian G., 2014. "Managing Nitrate Levels in Bermudagrass Hay: Implications for Net Returns," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2014, pages 1-16.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diersen, Matthew A., 2008. "Hay Price Forecasts at the State Level," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37600, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    2. Waseem AHMAD* & Tanvir AHMED** & Bashir AHMAD***, 2017. "HEDONIC PRICING OF MILK AT RETAIL LEVEL: A Case of Faisalabad, Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 27(1), pages 29-39.
    3. Trestini, Samuele & Giampietri, Elisa & Szathvary, Serena & Dal Bianco, Andrea, 2018. "Insights on the Alleged Imitation of Prosecco Wine Name: The Case of the German Market," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(4), August.
    4. Raj Chandra & Gabriel E. Lade & GianCarlo Moschini, 2021. "Geographical Indications and Welfare: Evidence from the US Wine Market," Center for Agricultural and Rural Development (CARD) Publications 21-wp628, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Boyer, Christopher N. & Griffith, Andrew P. & Roberts, Roland K. & Savoy, Hubert J. & Leib, Brian G., 2014. "Managing Nitrate Levels in Bermudagrass Hay: Implications for Net Returns," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2014, pages 1-16.
    6. Xu, Xun & Loke, Matthew K. & Leung, PingSun, 2015. "Is There a Price Premium for Local Food? The Case of the Fresh Lettuce Market in Hawaii," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-14, April.
    7. Günter Schamel, 2007. "Auction markets for specialty food products with geographical indications," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 257-264, September.
    8. Kim, Man-Keun & Curtis, Kynda R. & Yeager, Irvin, 2014. "An Assessment of Market Strategies for Small-Scale Produce Growers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(3), pages 1-18, September.
    9. Luigi Roselli & Domenico Carlucci & Bernardo Corrado Gennaro, 2016. "What Is the Value of Extrinsic Olive Oil Cues in Emerging Markets? Empirical Evidence from the U.S. E‐Commerce Retail Market," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 329-342, July.
    10. Kolodinsky, Jane, 2008. "Affect or information? Labeling policy and consumer valuation of rBST free and organic characteristics of milk," Food Policy, Elsevier, vol. 33(6), pages 616-623, December.
    11. Caracciolo, Francesco & D’Amico, Mario & Di Vita, Giuseppe & Pomarici, Eugenio & Dal Bianco, Andrea & Cembalo, Luigi, 2016. "Private vs. Collective Wine Reputation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-20, August.
    12. Vosloo, Jodie, 2021. "A profitability and risk assessment of market strategies for potato producers in South Africa," Research Theses 334757, Collaborative Masters Program in Agricultural and Applied Economics.
    13. Teuber, Ramona, 2010. "Estimating the Demand for Sensory Quality – Theoretical Considerations and an Empirical Application to Specialty Coffee," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(03), pages 1-14, September.
    14. Schulz, Lee L. & Schroeder, Ted C. & White, Katharine L., 2012. "Value of Beef Steak Branding: Hedonic Analysis of Retail Scanner Data," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(2), pages 1-14, August.
    15. Farrell, Terence C. & Hopkins, David L., 2007. "A hedonic Model of Lamb Carcass Attributes," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 15.
    16. Crespi, John M. & Marette, Stephan, 2003. "Some Economic Implications Of Public Labeling," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(3), pages 1-12, November.
    17. Lien, Gudbrand, 2003. "Assisting whole-farm decision-making through stochastic budgeting," Agricultural Systems, Elsevier, vol. 76(2), pages 399-413, May.
    18. Empen, Janine, 2011. "Preissetzung Auf Dem Deutschen Joghurtmarkt: Eine Hedonische Analyse," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115362, German Association of Agricultural Economists (GEWISOLA).
    19. Teuber, Ramona, 2010. "Estimating the Demand for Sensory Quality – Theoretical Considerations and an Empirical Application to Specialty Coffee," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(3).
    20. Julia Bronnmann & Frank Asche, 2016. "The Value of Product Attributes, Brands and Private Labels: An Analysis of Frozen Seafood in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 231-244, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jloagb:131184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeaggea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.