CONSUMER PREFERENCE FOR PST-SUPPLEMENT PORK

Conjoint measurement was used to determine consumer preference for fresh pork produced with genetically engineered porcine somatotropin (pST). A preference model was constructed based on three pork attributes, degree of fat reduction, price, and production technology, which allowed for interactions between attributes to be estimated. Interview surveys were used to collect data in several shopping centres in three Australian cities. Respondents generally preferred leaner pST-supplemented pork, but only at fat reduction levels greater than those possible with conventionally produced pork, and at competitive prices.     

AN ECONOMIC ALTERNATIVE TO CONCESSIONAL FARM INTEREST RATES

A variable amortization plan is proposed, indexing annual payments made by farm mortgage borrowers. A debt reserve balance also is proposed to stabilize payments received by lenders. Research implied by the proposal is outlined, together with modelling suggestions for investigating effects of the plan on farm income after debt servicing requirements have been met.     

NORTH AMERICAN-JAPANESE PORK TRADE: AN APPLICATION OF QUADRATIC PROGRAMMING

The main objective of this study was to develop a quarterly recursive programming model of the Japanese-North American pork industries, including the spatial and temporal aspects of the sector, for use in evaluating policy alternatives. The study outlines the structure of the Japanese pork industry and develops a five region (Eastern Canada, Western Canada, United States, Japan, Rest of the World) quadratic programming model which is able to incorporate the Japanese pork price stabilization policy that includes import quotas, a variable duty and an ad valorem duty. Supply, consumption and storage functions were estimated using data from 1963 through 1974. The validated model was used to analyze the effects of: exchange rate variations and modified Japanese domestic agricultural policies on the volume and origin of North American-Japanese pork trade. Le principal objectif de cet étude était de développer, sur une base trimestrielle, un modèle récursif de programmation de l'industrie porcine Nord Américaine et Japonnaise incluant les dimensions espace, temps, dans le but d'évaluer différentes politiques. Cet étude donne un apercu de la structure de l'industrie porcine Japonnaise en développant un modèle quadratique de programmation à grandes régions (L'Est et l'Ouest Canadien, les Etats-Unis, le Japon et le reste du monde). Ce programme est en mesure d'incorporer la politique Japonnaise de stabilisation des prix du pore dont: les quotas d'importation et les droits de doine (spécifiques ou ad-valorem). Les équations d'offre, de consommation et d'entreposage ont été estimeés sur la période 1963–1974. Ce modèle validé a servi à l'analyse des répercussions des différents taux de change, politiques agricoles Japonnaise sur le volume et l'origine du commerce du pore entre l'Amérique du Nord et le Japon.     

LAND USE PERMITS AS AN ALTERNATIVE TO FERTILISER AND LEACHING TAXES FOR THE CONTROL OF NITRATE POLLUTION

Legislation emanating from the European Community is establishing pressures to take action to reduce the level of nitrates in water, and the principles established towards environmental management indicate an emphasis on prevention rather than treatment. This paper analyses three possible approaches by means of controls on fertilisers, on nitrate leaching and on land use. These are incorporated into a linear programming model of a catchment in Cambridgeshire. The results indicate the superior cost-effectiveness of controls over leaching and the severe impact which taxes would have on farm incomes. A system of permits on land use is found to be relatively cost-effective and to offer an administratively feasible alternative.     

TWO-TIER PRICING FOR MILK: A RE-EXAMINATION

Principal objections to two-tier pricing have centred on administrative complexities and the ‘transparent’ nature of its cost. However, the credibility of two-tier pricing for milk within the European Community is now enhanced by the existence of a quota scheme and by recent levels of budgetary expenditure. Potential features of two-tier pricing are that farm support can be more readily directed at selected recipients and that lowering of market prices for milk relieves consumers from some of the burden of this support. A major attraction is that the existing quota system allows for an immediate ready-made transition. In this paper, two applications are developed. Both allow varying combinations of quota level and support price, but differ in their impact on producers' incomes. Some degree of national flexibility within the Community is also explored.     

PRINCIPLES FOR ALLOCATING WILDLAND AMONG ALTERNATIVE USES*

Increasing demands on rural land have produced a need for reliable criteria for allocating public lands among alternative uses. With increasing frequency we can expect the optimum pattern of use to be one of "multiple use" But multiple use is a vague and ambiguous concept.
This paper draws on elementary economic principles to define the optimum use or combination of uses of a fixed resource base under a variety of conditions. Problems encountered in applying these criteria (especially those relating to the form of available data) are discussed, as well as some implications for public policy of attempting to maintain the highest economic use of public wildlands.
RÉPARTITION DES RÉGIONS INEXPLOITÉES POUR D'AUTRES USAGES —Les demandes croissantes sur la terre agricole ont produit le besoin de répartir les terres parmi d'autres usages. Avec une fréquence de plus en plus grande, on peut s'attendre qu'un modèls d'usage soit multiple. Cependant l'usage multiple est ur. concept imprécis et ambigu.
Sous des conditions variées, cet article se porte sur des principes élémentaires d'économie pour définir les usages d'une base de ressource stable. En appliquant ces critères, les problèmes que l'ont rencontrent, y sont discutées aussi bien que l'implication dans la politique publique de maintenir la plus haute utilité dans les regions inexploitées.     

AN EVALUATION OF PRICING PERFORMANCE OF THE CANADIAN FEED GRAINS POLICY

Models, both theoretical and econometric, were developed to examine the pricing performance of the Canadian feed grains policy. An 18 equation econometric model, comprising three levels; farm, Canadian Wheat Board and domestic open market, provided the means to measure intermarket price relationships empirically. The model was further simulated for two policy situations, changes in domestic barley stocks and exports. The analytical results support the theoretical contention that the structure of the feed grains market (policy) does not lead to price efficiency. Results showed that performance was dependent upon Canadian Wheat Board export policy and producer marketing decisions which in turn are influenced by the feed grains policy and associated marketing structure. Des modèles théoriques et des modèles économétriques ont été développés avec le but d'examiner le fonctionnement, à l'ègard des prix, de la politique des grains alimentaires au Canada. Un modéle économetrique àéquations, comprenant trois niveaux; la ferme, La Commission Canadienne du Blé, et le marché libre domestique; a produit le moyen de mesurer empiriquement les rapports entre les cours de marche. Le modèle a ètè simulé, en addition, pour examiner deux situations politiques, les changements dans les stocks domestiques et dans les expoetations de l'orge. Les résultats analytiques donnent appui à l'hypothèse théorique que la structure du marché des grains alimentaires (la politique) ne mène pas à l'efficacité de la détermination des prix. Les résultats ont montré que le fonctionnement dépendait de la politique d'exportation de la Commission Canadienne du Blé et des décisions marchandes des producteurs qui, à leur tour, sont influencées par la politique des grains alimentaires et par la structure marchande y associée.     

PRODUCT TRADING — AN ALTERNATIVE TO TRANSFERABLE WHEAT QUOTAS

This note examines the implications of permitting producers to trade wheat amongst themselves. The outcome, in efficiency terms, is identical to that achieved with transferable quotas. For some producers, there may be advantages in product trading that are not available in transferable quotas.     

AN ALTERNATIVE SOLUTION TO LINEAR PROGRAMMING PROBLEMS WITH STOCHASTIC INPUT-OUTPUT COEFFICIENTS

Deriving acceptable farm plans where input-output coefficients are stochastic is a complex problem. Previous formulations have required many simplifying assumptions about the stochastic variables in the analysis. This paper presents an alternative approach based on the mean absolute deviation, which permits solution by a conventional linear programming algorithm whilst avoiding some of those assumptions previously required. The formulation also incorporates a stochastic objective function. Examples are provided using the situation of stochastic feed supply with reference to representative sheep-grain farms on the Northern Tablelands of New South Wales. Results from these suggest that this alternative approach is a distinct improvement on earlier stochastic formulations which utilize linear programming algorithms.     

PROPERTY ENTITLEMENTS AND PRICING POLICIES FOR A MATURING WATER ECONOMY

The Australian water economy is entering a mature phase characterised by inelastic supply of 'new' water and the need for expensive rehabilitation of aging projects. Thus, the policy focus will turn increasingly toward ways of restraining water demand and reallocating existing supplies. A prima facie case is made that the efficiency loss from current water pricing and allocation policy is significant. After considering the relevant welfare economics theory, the theory of administered prices and marketable property rights and some American proposals for reform, a system of transferable water entitlements is proposed and developed.     

ALTERNATIVE DEFINITIONS OF DEMAND FOR RECREATIONAL ANGLING IN NORTHERN IRELAND

The effects of three alternative definitions of demand on estimated parameters are explored in a travel-cost study of aggregate demand for recreational angling in Northern Ireland in 1988. Functions are estimated using individual visits and zonal visitation rates for the number of visits and the number of visitors as alternative demand definitions. The approach using individual visits was found to be the more satisfactory in statistical terms and in relation to estimates of user benefits when compared with a parallel contingency valuation study. It is judged to be the more appropriate approach where there is a well defined and quantifiable user group. However, the modelling of income and substitutes in the functions proved to be unsatisfactory, perhaps due to inadequate specification and measurement of these variables.     

AGRICULTURAL FINANCE AND INFLATION: AN EXAMINATION OF ALTERNATIVE METHODS WITH REFERENCE TO BRITISH EXPERIENCE

Increased inflation has the effect of increasing nominal interest rates which in turn cause problems in servicing debts in the form of conventional loans. Price-level-adjusted mortgages (PLAMs) have been recommended as a means of avoiding debt servicing difficulties associated with inflation. Bank overdrafts can act as effective substitutes for PLAMs and have some tax advantages. Leasing also provides an alternative way of avoiding cash flow problems associated with conventional term loans. Experience in the 1970s demonstrated that the provision of external finance to agriculture was maintained during a period of inflation although the balance of borrowing shifted from term loans to overdrafts.