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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 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 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 Impacts of Cost-Reducing Technology in the Gold and Oil Industries(North Dakota State University, 2019) Simonson, Mark AlanThis thesis explores the question of what drives the development of cost-reducing technology. It will also explore this question in the gold and oil industries. It will integrate Paul Romer’s idea that investment in technology is an endogenous factor in the econometric testing. This matters because while a time lag may exist between investment in a commodity and one’s return on such investment, the role of changes in price and elasticity aid in driving such investment.Item Yield Efficiency Using a Stochastic Frontier Approach for Corn, Soybeans, and Hard Red Spring Wheat in North Dakota(North Dakota State University, 2017) Badarch, BayarbatAgriculture is a keystone for the North Dakota economy. The research focused on three selected crops’ yield: corn, soybeans and HRS wheat. The research provides a direct and indirect cumulative elasticity measure for North Dakota for each of the three crops’ yields using stochastic yield frontier models. In addition, the research provides the technical efficiency frontiers for nine different regions in North Dakota as well as across the 22 years (1994 to 2015). The results revealed that each of the three crops’ yields have a stronger relationship with weather variables than input cost and quantity variables. The mean level of corn, soybeans, and HRS wheat technical efficiency were 73 percent, 80 percent, and 72 percent, respectively. This research proposes that each of the three crops’ operations could potentially improve efficiency without adding extra expense of input costs. Overall, North Dakota farmers were relatively efficient in each of the crops’ operations.Item An Empirical Analysis of U.S. Foreign Direct Investment and Exports of Processed Food Industries(North Dakota State University, 2006) Haque, MohuaThis study examined the determinants of U.S. foreign direct investment (FDI) and exports of processed food. This study also examined the impact of U.S. FDI on U.S. exports on processed food. FDI and export models used for estimation in this study were based on the cost-minimizing production function. The analysis focused on ten countries for the period of 1989-2004. Four of them were Asian countries: India, Japan, South Korea, and Thailand. Six of them were European countries: Belgium, France, Germany, Italy, Spain, and the United Kingdom. The model was estimated using the two-way error component three-stage least squares (EC3SLS) method. Results from this study show that U.S. FDI and U.S. exports of processed food are complements. Major factors affecting U.S. FDI in the processing industry are GDP, GDP per capita, exchange rate, tariff rate, labor compensation cost, interest rate, and distance. Major factors affecting U.S. exports in the processed food industry are GDP, distance, and GDP from the agri-sector.Item The Role of Trade Facilitation Indicators and Genetically Engineered Restrictive Index on U.S. State Exports and Efficiency(North Dakota State University, 2018) Addey, Kwame AsiamTrade Facilitation Indicators have become important mechanisms of monitoring the ease of trade. Another issue of rising concern is the pervasive debate on genetically engineered organisms and the development of Genetically Engineered Restrictive Index to evaluate its implications on trade. With regards to these, the objective of the United States Trade Representative is to eliminate implicit trade barriers. Hence, this study examines the impact of TFIs on U.S. agricultural export and its efficiency. From the results, a 1% increase in destination’s Genetically Engineered Restrictive Index leads to a US$ 9,426.82 and US$ 74,268.04 decline in corn and soybean exports while wheat experiences a US$ 26,204.05 increase. The ‘I-State’ paradox was also revealed from the efficiency rankings. This research recommends that GE labelling policies should be synchronized to match the requirements of the destination countries. Furthermore, information on GE foods must be transparent and disseminated to change destinations’ negative perception.