Annual/Termination Reports:

[02/19/2009] [04/06/2009] [05/03/2010] [05/03/2010] [01/10/2011] [04/01/2011] [02/06/2012] [06/06/2012]

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Participants

Won Koo, North Dakota State University
Lynn Kennedy, Louisiana State University
Darren Hudson, Texas Tech University
Osei Yeboah, North Carolina A&T
Eric Wailes, University of Arkansas
Henry Thompson, Auburn University
Albert Allen, Mississippi State University
Andy Schmitz, University of Florida
James Seale, University of Florida
Shida Henneberry, Oklahoma State University
Suzanne Thronsbury, Michigan State University
Parr Rosson, Texas AgriLife Research

Brief Summary of Minutes

Discussed parameters and commitments of new regional research project, S-1043. Each state representative confirmed their respective role.
Each state representative presented a summary of progress and research results for themselves and others participating in the project.
Discussed new research initiatives and opportunities, focusing on invited papers at Agricultural and Applied Economics Association and Southern Agricultural Economics Association meetings. Discussed prospects for expanding participation of selected members to the Allied Social Sciences Association meeting and the International Ag Trade Research Consortium.
Elected new officers for 2009-2011: Parr Rosson, Chair, Osei Yeboah, Secretary

Discussed location/timing/program for Spring 2009 meeting: San Antonio, Texas, March 19-20, 2009.

Conducted presented papers on the following topics:
Lifting the Cuban Embargo: Gains in Southeastern Markets, Cassandra Copeland and Henry Thompson
Opportunities for Exporting Agricultural Products to Cuba, Parr Rosson, Texas AgriLife Research
Exchange Rate Sensitivity in Bilateral Agricultural Trade Flows: The Case of U.S. Trade with Canada and Mexico, Lynn Kennedy and Young-jai Lee
Analyzing Factors Affecting US Food Price Inflation, Woo Koo and Jungho Baek

Accomplishments

Intended activities discussed included submission of papers, organized symposia and posters to professional meetings.<br /> Other activities included discussion of conducting a national conference on trade interaction with international institutions such as the World Trade Organization.<br /> Milestones achieved included the completion of research on food prices and the economy, trade with Cuba, and trade with Canada and Mexico.

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Held conference on The Economics of Alternative Energy Sources and Globalization: The Road Ahead (Biofuels)Conference. Abstracts, papers and presentations available at cnas.tamu.edu.<br /> Provided research output to public via web site above.<br />

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Conducted national conference on international implications of alternative biofuels. Attracted more than 60 individuals, ranging from businesses, policy makers to academia and government agencies.<br /> <br /> Planning proposals for AFRI initiative as well as input into the proposal process in order to attempt to increase role of economists in lead for research efforts.

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Kwan Choi Iowa State University;
Won W. Koo North Dakota State University;
Darren Hudson Texas Tech University;
Larry Sanders Oklahoma State University;
C. Parr Rosson Texas AgriLife Research;
Eric Young, AA North Carolina State University;
David Karemera South Carolina State University;
Andrew Muhammad Economic Research Service, USDA;
Eric Wailes University of Arkansas;
Osei Yeboah North Carolina A&T University;
Henry Thompson Auburn University;
Andy Schmitz University of Florida

Brief Summary of Minutes

8:30 a.m., Thursday, November 10: Call to Order, Andrew Muhammad, Secretary (for Suzanne Thornsbury who could not attend and has had to resign leadership role due to other responsibilities).

Approval of previous minutes from New Orleans, Spring meeting. Hudson moved to accept the minutes, second by Sanders. Minutes approved by unanimous consent. We recognized Rosson and Osei for service.

New Business

New member recruitment ideas: Sanders mentioned that budget situation may lead to some new members due to additional responsibilities to those who do not have a trade focus. Koo mentioned Iowa State may want to join. Henneberry has a new administrative position, limiting her participation. Thompson noted that economics departments may have an interest. Young mentioned doing a symposium or poster to recruit new members.

Eric Young’s report: State budgets are settled. Federal budget is the major topic. NIFA budget is in conference committee. Senate marks are better than House. The hope is that the final budget nearer to the Senate. Agency summary was made available. Earmarks are off the table for next few years. Some lines may have earmarks as part of them. This would not be good. Another option is to designate part of formula. Farm bill is being developed with $23 billion in proposed cuts. All of that amount would be in commodity, conservation and nutrition. This is better for universities and agencies than mandatory cuts that come out of discretionary funding.

Major unsettled issue is indirect cost rate since directors do not want full cost rates which would reduce land grant competitiveness relative to other entities. Compromise rate may be 30 %, going to 45% over several years. Deans and directors want to consolidate small NIFA budget lines in order to reduce costs. Small lines are also vulnerable to elimination. IPM may be done that way. Next farm bill may contain authorization for this. Some early discussion of one line budget, but had too many problems, mainly that congress did not like that idea. Research directors in the south want to share more resources across state lines. Joint payment is occurring in some cases, and also sharing large physical resources such as dairies, equipment, and others. This is driven by budget issues as well. Sanders asked about research in this area, given the loss in time and other aspects. Young was not aware of any work in this area. Directors want to do this now because that having someone to do the work is better than having no one to do the work. Science behind some of these decisions is lacking (Sanders). Hudson noted it may be easier to do some things across state lines than within the state. Getting credit for student hours is a problem within states. Wailes mentioned the Ag*Idea which offers programs, degrees and courses across states that is working. For teaching this may be easy, but institutional constraints are a problem. Hudson mentioned the cooperative course with TAMU that was delivered.

Other New Business

Hudson, Sanders and Muhammad will be the election committee.

World Trade Center status is now in the Westin and welcomes our committee.

December 5 is AAEA track session deadline. FAMPS may be possible. There may be up to seven tracks. We could do a proposal. Pacific Rim issues would be important given the location of the meeting in Seattle. Sanders noted to defer this discussion until after we discuss state work.

Muhammad discussed Global Meat Conference planned by Keithly Jones. Two things have limited this: ERS move to a new building was a problem. The third floor will not be available until December, so space is limited. The second issue is budget outlook and 15% reduction is being planned. Branch consolidation is occurring and there are 75 buyouts in process, resulting in 10% reduction in staff budget, along with limiting outlook activities. This ties in with NASS cuts as well in their reports. By the end of the year things may be better, but not sure now how that may play out. ERS is searching for new administrator. So the meat conference is on hold for now. Koo noted that letters can be sent to industry to seek support. Muhammad mentioned doing it next fall, budget permitting. There was discussion of the committee taking the lead and ERS supporting the event. Wailes noted if a program is available, send to sponsors and ask for support. Conference objective was to give meat outlook, given the Korean trade agreement, and other issues. Phytosanitary issues are important. Hudson favors holding it next fall in Washington, D.C (motion). Walies second. Muhammad will be on the committee. Koo and Hudson will be on committee. Motion passed.
SAEA Invited Paper session on food price volatility is approved and papers will be done by deadline. OS on Cuba is approved as well. Cuba activities: Wailes intends to travel there and to assess rice research and trade potential. He has a student interested in both rice and sugar trade with Cuba. Cuba is trying to modernize rice sector so an economic assessment is needed to determine potential. Arkansas has sent rice to Cuba in the past. Sanders noted Oklahoma has sent groups as well.

Ideas for new proposal: Young mentioned that next fall we will need to put a writing committee together and discuss objectives in the spring meeting (2012). Schmitz noted that IATRC group has 200 members. McArthur Foundation supports the development of papers and the New York University does similar work in law, trade and economics. Harvard is involved and doing benefit-cost analysis. Getting younger faculty involved is difficult due to focus on journal publications and limited travel budgets (Hudson). Schmitz mentioned the possibility of putting Cuba in the title. The proposal needs to be broad, with special interests included as objectives (Hudson). Hudson noted that members need to identify areas of work, different structures, other disciplines, and strong collaboration (Young).

State Reports

Auburn (Thompson): New faculty may be interested in the committee, along with forestry department. Research areas are food safety, microeconomics, fisheries and trade. Auburn now has a PhD program back. Hiring 2 – 3 new faculty this year.

North Dakota State (Koo): Climate change effects on trade and food security and the other is US – China trade. China currency is an issue, so he examined causes of trade deficit, exchange rate or other issues. The exchange rate is not causing the trade deficit. Policy restrictions on GHG and impacts of trade. Farm bill conference was held with Senator Kent Conrad and 250 people attended. New farm bill options were discussed. Discussion of food prices was held and potential for a cost-price squeeze developing in US agriculture. Discussion of price impacts followed. Some discussion of farm bill issues and options followed.

South Carolina State (Karemera): analysis of trade agreement will be discussed later. Editing paper on trade with Australia. USAID project in Burundi to create an agribusiness program by improving curriculum and developing extension programs. Koo noted that agriculture is underdeveloped and water is a major limiting factor. Water resources are available, but limited irrigation capability. Wailes mentioned students coming to the US to study. Continues for the two more years. Also working on improving nutrition, productivity and improved seed varieties.

Texas Tech (Hudson): budget issues are driving things now so work continues. Working in Brazil on USDA project. Policy analysis continues, but FAPRI cotton modeler left for ERS so Tech now does this. Changing demographics in China and impacts on cotton use. Doing climate change analysis as well. Cotton will be impacted to a limited degree from higher temperatures. Production would shift from China to the United States. Sorghum work continues with Malaga doing trade diversion effects for Africa and impacts on US sorghum.

Florida (Schmitz): Economics of Alternative Energy Sources and Globalization book is now available for Bentham Books. Based on conference held in Florida in 2009. Thanks to those who attended the Moose Jaw conference. Doing work on Ukraine, Russia and Uzbekistan. Doing work with Moss and Seale on consumption and income shares on changes in surplus. Using elasticity work by Seale and ERS. Major implications for policy makers based on returns to research. Working with Kennedy on Everglades buyout project to assess costs-benefits. Also working on production quota buyouts in Canada and how programs are different. Treasury payment and tax for payments give different results. Implications for Canadian buyouts of supply management are important due to high costs.

Arkansas (Wailes): In light of potential changes in farm bill, more risk management work is being done, and changes in the farm bill such as elimination of direct payments or a move toward that would have serious economic impacts on rice farmers. ADB project being done on speculative bubble and management of strategic stocks and role of an Asian rice futures market by McKenzie. Trans Pacific Partnership being analyzed to assess compensation package for rice producers in Japan. Finishing political economy study of trade agreements in Western Hemisphere and treatment of sensitive products. Doing work on wheat, dairy, rice and wines. Working with Liberia to develop degree programs and policy support for rice sector.
North Carolina A&T (Yeboah): working on regional climate change for NSF. Received NIFA grant for small farm cooperatives and conducting regional workshops. Completed work on solar powered irrigation pumps in North Carolina. Continue work on hog farmers in NC to form export cooperative. Completing paper on global food security.

Oklahoma State (Sanders): Shida Henneberry is now the leader of trade programs for agriculture. As a result, she will have limited time for committee in the near future. David Henneberry has now moved to the university. Mike Woods is in China this week pursuing new programs for undergraduates from China. Could lead to 200 new students in agricultural economics. Koo noted some of the drawbacks on the program such as preparation and high tuition costs. OSU could send faculty to China to assess and teach to prepare students. Shida is developing publication for on-line course she has taught. Time demands are major constraint. Sanders is working on state water plan leading team to assess how water will impact production in Oklahoma and commodity availability for international trade. Wailes mentioned drought tolerance in rice through GM crops and resource savings. Much research on technology that has dynamics of change. Environmental issues and trade likely topics for the future. Clem Ward has retired. No new hires yet. Top priority in ag finance and two is livestock marketing. Sanders updates trade and policy. Oklahoma has ag leadership program and has trade game at the end of the program. Helps orient the group to culture and sensitivity.

Texas AgriLife Research (Rosson): Searching for new department head. Hope to have someone in place by summer or early next fall. Completed AMS project on Panama Canal expansion on US cotton exports, showing increased exports through Gulf and South Atlantic ports (3.5 million bales). Working on AFRI project to assess cost – benefits of processing technology in beef. Conducting global analysis of cotton expansion in Brazil and impacts on world trade. New project with AMS on tracking grain and oilseed exports to and within Mexico. Submitted proposal with NDSU and WSU for national transportation center.
ERS (Muhammad): Donna Roberts in new branch chief for trade. New elasticity report is out 144 countries. Results used for USDA baseline and GTAP. All is available online. Invited to World Bank to give presentation on results. Impacts of US cotton on demand in China and competition with West Africa. Assessing salmon import demand and COOL. Working on export tax reform in Argentina and impacts on trade with China. Planning project with Matt Holt on structural change and rolling regression using Rotterdam model. This is being linked to China’s demand for wine.

Adjourned for lunch, 12:00 noon

1:30 Research paper presentations

Thompson, Energy Substitution in a Factor Proportions Model of the US
Kareamera, Gravity Model Analysis of Regional Trade Agreements and Exchange Rates on World Vegetable Trade
Sanders: Discussion of farm bill activities, budget issues and implications for farm bill development. Discussion of committee activities followed.

Adjourned, 4:30 p.m.

9 a.m., Friday, November 11: Andrew Muhammad called meeting to order. Andrew mentioned the he will follow up with ERS to finalize plans for global meat conference in fall 2012. Sanders proposed an organized symposium on agricultural trade for AAEA 2012. Another proposal is to develop leaflets/papers on trade issues. Sanders will finalize the proposal on trade situation/trade agreements and send to Andrew for distribution to members for comments and then for submission. Andrew will take lead on paper session on China and demand issues. Jim Seale was noted as potential participant. Darren noted textile information on China could be included. FAMPS was mentioned as possible outlet.

Trade leaflets were mentioned as a possible outlet as well. Cuba was noted as a possible leaflet by Rosson. Sanders noted that symposium topics could be done as leaflets, along with African focus. Yeboah mentioned productivity as a focus-he will follow up with leaflet.

Report by nominating committee: Norbert Wilson nominated for chair, Rosson nominated as Extension representative. Sanders moves that slate be adopted, Hudson seconded. Motion passed by unanimous consent.

Sanders noted that letter of appreciation be sent to Suzanne and her supervisor and to Eric Young.

Publication list needs to be sent to Andrew Muhammad for submission to Administrative Advisor.

Schmitz noted that action is needed on meat conference, plan is needed, location, fees, etc. Why have the conference and what is the program? Andrew noted that Keithly Jones would be the ERS contact. The previous conference was focused on international meat issues and policies. General views were provided. What has been proposed is different. Hudson noted that the committee has done a blend of both approaches that has been successful. Many sessions could be published in a book or other outlet. Lanier Nalley works with WalMart and may be able to provide contacts for speakers on environment. Technical breakout sessions could be included as well. Koo said we need a main theme, format, key note address, and paper sessions. First half day will be more general. Three main topic areas might be possible (Hudson). A panel of industry speakers, then breakout sessions could follow. A book will require a publisher. ERS wants to focus on main meat groups, plus aquaculture. Broad theme sessions will include all major meats. Andrew will follow up with an e-mail in late November to Won, Darren and Keithly. The plan will be to hold the conference in November 2012. ERS will provide space, promotion, name tags and other logistical support, but may need to consider financial support for speaker travel and other needs.

Rosson noted to promote SAEA meetings with departments, graduate and undergraduate students.

Sanders noted that more funding is needed for committee activities or use CENTRA or meet only once per year. Possibly overlap with other meetings. Yeboah noted that this is one of the stronger committees left. It is difficult to bring in other groups. Hudson mentioned that some new faculty do not desire to travel. Could do more papers, visit trade related areas, have student papers, and other activities. Koo mentioned meeting in Arkansas that relates to WalMart on supply chain operations. Winrock is another possibility. Hudson noted inviting different people to do presentations to the committee. More attention to planning of meetings, something for younger faculty, collaborate with other disciplines. Andrew will circulate e-mail among members to find out views on joining with AAEA or SAEA to economize on meetings of S - 1043.

Spring meeting options include SAEA or New Orleans.

With no further business, meeting was adjourned at 10:15 a.m.
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Osei Yeboah North Carolina A&T State University
Lynn Kennedy LSU Ag. Center
Norbert Wilson Auburn University
Dennis Conley University of Nebraska-Lincoln
David Karemew South Carolina State
Albert Allen Mississippi State University
Mary Marchant Virginia Tech
James Seale University of Florida
Flynn Adcock Texas AgriLife Research
Eric Young Administrative Adviser

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