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Item Economic Benefits of Precision Agricultural Technologies(North Dakota State University, 2022) Jahan, MohsinaThe purpose of this research was to build a model of profitability that can be used by individual farmers to calculate the net benefits of using precision agricultural technologies on their farms. Three case farms were selected. Partial budgeting analysis is used to calculate the net profit effect of adopting precision agricultural technology bundles. Two scenarios were compared: farms adopting precision agricultural technologies and farms not adopting. Revenues and costs that differ between the two scenarios are included in the model. A six-step process was employed and @Risk was used to account for risk. Results show that adopting PA is profitable for farms with moderate input use variability and this is amplified with higher input prices.Item A Stochastic Simulation of the North Dakota Ethanol Production Incentive(North Dakota State University, 2009) Kurth, Andrew HamiltonThe objective of this research is to determine the effect the North Dakota Ethanol Production Incentive has on ethanol plant survivability. This thesis uses a stochastic simulation to show the financial performance of an ethanol plant with and without subsidy support. Historical corn and ethanol prices are used to simulate market conditions a typical ethanol might face. Using the forecast prices, an ethanol plant balance sheet was created to show how a plant would perform in normal market conditions, as well as how the plant would perform with the Ethanol Production Incentive and also with alternative subsidy structures that were developed. The results showed the Ethanol Production Incentive was the most effective subsidy tested and it does appear to improve plant balance sheets to a certain extent during a downturn.Item A Game Theory Analysis of Firm Reaction to External Organizational Demands: The Case of Animal Welfare Standards(North Dakota State University, 2007) Tzul, Sheril SherineThere has been increasing public concern about farm animal welfare regarding transportation, slaughter, and some management practices, especially in systems where animals are confined for most of their existence. Animal welfare organizations (groups) have traditionally focused on forwarding their agendas through legislation, although more recent attempts have focused on convincing large firms that buy agricultural commodities to require particular production process standards to be met. The strategic interactions of players in the egg industry are modeled using a game theory approach. Two scenarios were explored: a principal-agent contract model between food firms and farmers, and a model where two firms are targeted by animal activists. The former model was empirically analyzed while the latter model was theoretically examined. Results for the principal-agent contract model indicate that, in general, the decision by the farmer of whether to invest in a free-range production system is dependent on the probability of being caught cheating. Whether contracts will be accepted or rejected by suppliers is dependent on the premium for free-range eggs. Finally, as the amount that can be lost if caught breaching the contract decreases, investment is motivated only with a higher probability of being caught. Theoretical analysis where competition did not matter and animal welfare was not a determinant of demand shows that animal activists must convince food firms that there will be a significant change in revenue with compliance as opposed to rejecting the contract or negotiating a compromise in order to attain their objectives of increased animal welfare.Item Identifying Beneficial Attributes of Water Management Organizations(North Dakota State University, 2007) Kritsky, Craig CharlesWater Management Organizations (WMOs) have evolved from their inception in the early 1900s and continue to evolve today. Recently, WMOs have increased their awareness of water-quality and environmental issues. WMOs evolve at different rates due to local social, economic, and political norms. The Red River creates the border for Minnesota and North Dakota. This makes the Red River Basin ideal for WMO and institutional research. The objective of this research is to identify the characteristics of WMOs that are more successful at adopting activities considered positive to local water management as well as basin management. These activities include collaboration and water-quality improvement efforts. Results demonstrate that board member experience positively impacts several traditional WMO activities, including water movement projects, stream flow clearing efforts, wetland restoration, and tree sales. Board member experience negatively impacts collaboration, conservation contracts, water retention projects, and education and outreach. Board member attendance at annual water conferences has a positive correlation with total grant funding and conservation contracts. Cooperative extension training for board members positively correlates with conservation contracts and joint-powers agreements.Item Real Options for Agriculture Technology: A Venture Capital Valuation Approach(North Dakota State University, 2021) Vetsch, Lee ThomasFor startups and young companies, there is significant uncertainty and managerial flexibility within a company’s business model, research and development (R&D) processes, and commercialization strategy. These characteristics make early stage companies difficult to value. While the predominant valuation tools used include discounted cash flow and multiples analysis, their fixed assumptions and improper risk adjustment tend to undervalue startups with managerial flexibility, uncertainty, and high growth potential. This thesis utilizes stochastic real options to assist with the valuation process for agricultural technology startups in order to better reflect uncertainty, managerial flexibility, and asymmetric growth that is existent. The stochastic real options are integrated into decision trees to account for uncertainty and the two types of risk, being private and market risk. While this application is used for two case studies of startups in agricultural technology, the method can be applied to different startups with varying scenarios and industries.Item Productivity Growth in the U.S. Trucking Industry(North Dakota State University, 2008) Condon, StevenThe performance of the trucking industry is very important to the economy given that it moves nearly 70 percent of the nation's freight (Tall et al. 2005). The more efficient and productive trucking fins are, the less the shipping costs are for the trucking firm managers and the end consumers or businesses. Consequently, it has become vital to keep the trucking industry running efficiently and continuing to improve productivity. Productivity change of 115 of the largest firms in the United States was determined for the years 1999 and 2003. The Malmquist Productivity Index was decomposed into technical efficiency change and technical change. Results showed that the trucking industry, on average, was technically inefficient in years 1999 and 2003, even though the trucking industry experienced productivity improvement during that period. There was evidence that, on average, technical change, instead of technical efficiency, contributed more to productivity growth in the U.S. trucking industry. The findings in this study point to technological innovation as the reason for positive productivity change. It has also been found that the industry has been rather technically inefficient. Trucking firms should embrace innovation and technology, and develop new strategies for delivery to improve productivity.Item Comparative Analysis of the Profit Risk in the Cultivation of Energy Beet in North Dakota(North Dakota State University, 2016) Wijesinghe, Asanka SanjeewaEnergy beet is a promising ethanol feedstock as it did not compromise the food security given it is not used as a food or feed. Although the technological and financial feasibility studies were available the risk of yield and profit aspect is not considered in the previous studies. Hence this study focuses on the cost of private risk bearing of a representative energy beet grower comparing to the other crops in North Dakota. The lowest risk premium is reported for the dry land production at the Langdon Research and Extension Centre (REC). Further in Langdon energy beet has the lowest risk premium (0.733USD/acre) comparing to the conventional crops. Hence a risk averse farmer can opt for energy beet in Langdon. The certainty equivalent is highest in Oakes irrigated experiment site followed by Carrington irrigated REC. Hence in irrigated sites energy beet can be a financially appealing crop for farmers.Item Stakeholder Preferences for Water Quality Alternatives in the Red River Basin(North Dakota State University, 2007) Torpen, David RandalThe objective of this research is to estimate stakeholder preferences for management alternatives within the Red River of the North basin. Specifically, this thesis analyzes preferences related to water quality, water-based recreation, water supply, and institution. Results are estimated using choice experiments. Data show that residents are willing to pay approximately $84 per year for wetland restoration, $76 per year for additional bike trails, and $117 for enhanced fishery management. Taken to an aggregate level of all counties with land in the basin, willingness to pay is approximately $24 million for wetlands, $22 million for bike trails, and $34 million for enhanced fishery management. These values can assist institutions in making decisions related to the basin's water resources.Item The Impact of the African Growth and Opportunity Act on Sub-Sahara African Value-Added Agricultural Exports(North Dakota State University, 2019) Mwagura, JosephThis thesis uses new measures of value added trade for agricultural exports which originate from Sub-Sahara African (SSA) countries and go to the United States of America (U.S.A.). First, the impact of the African Growth and Opportunities Act (AGOA) on SSA’s domestic value-added exports is assessed by using a sectoral structural gravity model. The study then evaluates the AGOA’s effect on the extensive margin and intensive margin of US-SSA value added trade using a Helpman, Melitz, and Rubinstein (2008) (HMR) two-step procedure model. The empirical results show that AGOA has had an insignificant impact on SSA’s agricultural domestic value-added exports to the U.S.A. In addition, being an AGOA recipient does not seem to affect a recipient’s decision to export domestic value-added agricultural products and has had an insignificant impact on the volume of agricultural domestic value-added exports to the U.S.A.Item Case Studies in Farm Management(North Dakota State University, 2006) Jodock, Karl NelsonPrevious research on teaching methods in economics demonstrates the need for active learning. The use of case studies is one way to fill that need. Two case studies are developed; they can be used to give students experience in applying farm management concepts to real farm management decisions. Students are given the opportunity to analyze an expansion decision at a typical North Dakota cash crop farm. Students also evaluate a producer's marketing strategies, develop marketing plans, and make recommendations for the future. Teaching notes are included to provide guidance for the instructor. The case studies are expected to provide an effective addition to traditional teaching methods.