Hostname: page-component-cb9f654ff-mnl9s Total loading time: 0 Render date: 2025-08-22T05:23:08.688Z Has data issue: false hasContentIssue false
  • English
  • Français

Does On-Farm Quality Assurance Pay? A Cost-Benefit Analysis of the Grainsafe Program

Published online by Cambridge University Press:  28 April 2015

Umit Karaca ,
Corinne Alexander  and
Dirk Maier
Umit Karaca
Affiliation:
Department of Agricultural and Biological Engineering, Purdue University
Corinne Alexander
Affiliation:
Department of Agricultural Economics, Purdue University
Dirk Maier
Affiliation:
Department of Agricultural and Biological Engineering, Purdue University
Get access Rights & Permissions [Opens in a new window]

Abstract

Since the introduction of genetically modified (GM) crops, the commodity grain system has been under pressure to segregate GM and non-GM crops. Starting at the level of the grain handler, members of the grain supply chain have successfully used quality assurance and identity preservation programs to segregate non GM crops. Producers delivering high-value, identity-preserved crops have become interested in implementing these quality management systems at the farm level. We conduct a cost-benefit analysis that shows that quality assurance program may be profitable for producers, depending on their farm size and equipment management strategy.

Keywords

@Riskcost-benefit analysisidentity preservationon-farm quality assuranceQ12Q16

Information

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 39 , Issue 3 , December 2007 , pp. 541 - 556
Copyright
Copyright © Southern Agricultural Economics Association 2007

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

References

Anderson, L.E. “The Development and Implementation of the Canadian Identity Preserved Recognition System.” Proceedings of 2004 International Quality Grains Conference. 2004. Internet site: www.iqgc.org.Google Scholar
Babcock, B., and Hennessy, D.. “Input Demand under Yield and Revenue Insurance.” American Journal of Agricultural Economics 78(May 1996):416-27.CrossRefGoogle Scholar
Bartosik, R.E. “Implementation and Evaluation of a New Variable Heat Fan and Burner In-Bindrying Control Strategy.” M.S. thesis. Purdue University, 2003.Google Scholar
Coble, K., Knight, T., Pope, R., and Williams, J.. “Modeling Farm-Level Crop Insurance Demand with Panel Data.” American Journal of Agricultural Economics 78(May 1996):439-47.CrossRefGoogle Scholar
Dhuyvetter, K.C., Hamman, G.L., and Harner, J.P. III. “The Economics of On-Farm Storage.” Kansas State University Agricultural Experiment Station and Cooperative Extension Service, F-2474, October 2000.Google Scholar
Environmental Protection Agency. FIFRA Scientific Advisory Panel Meeting, Assessment of Scientific Information Concerning StarLink™ Corn, SAP Report No. 2000-06, December 1 2000. Internet site: www.epa.gov/scipoly/sap/meetings/2000/november/one.pdf.Google Scholar
Ess, D.R., and Fleck, N.A.. Unpublished data. Purdue University, 2004.Google Scholar
Euro-Retailer Producer Working Group, Internet site: www.eurep.org (Accessed on March 25, 2005).Google Scholar
Federal Reserve Board. “Agricultural Finance Data-book.” 2004. Internet site: www.federalreserve.gov/releases/el5 (Accessed February 1, 2005).Google Scholar
Goodwin, B., and Ker, A.. “Nonparametric Estimation of Crop Yield Distributions: Implications for Rating Group-Risk (GRP) Crop Insurance Contracts.” American Journal of Agricultural Economics 81 (February 1998):139-53.CrossRefGoogle Scholar
Gustafson, C.R. “Economics of Producing for an Identity-Preserved (IP) Grain Market.” AAE Staff Paper No. 02002. Department of Agribusiness and Applied Economics, North Dakota State University, 2002.Google Scholar
Hanna, H.M., Quick, G.R., and Jarboe, D.H.. “Combine clean-Out for Identity-Preserved Grains.” Proceedings of 2004 International Quality Grains Conference. 2004. Internet site: www.iqgc.org.Google Scholar
Hanna, H.M., and McGuire, J.. “Clean-Out Procedures for Case IH Central Seed Hopper Planters.” Iowa State University Extension, PM-1904, April 2002.Google Scholar
Hobbs, J.E.W., Kerr, W.A., and Phillips, P.W.B.. “Identity Preservation and International Trade: Signaling Quality across National Boundaries.” Canadian Journal of Agricultural Economics 49(December 2001):567-79.CrossRefGoogle Scholar
Hurburgh, C.R. Jr. “Identification and Segregation of High-Value Soybeans at a Country Elevator.” Journal of the American Oil Chemists' Society 71 (October 1994):1073-78.CrossRefGoogle Scholar
Hurburgh, C.R. Jr. “An ISO-Based System for Certification and Traceability in the US Grain Handling System.” Proceedings of 2004 International Quality Grains Conference. 2004. Internet site: www.iqgc.org.Google Scholar
Huygen, I., Veeman, M., and Lerohl, M.. “Cost Implications of Alternative GM Tolerance Levels: Non-Genetically Modified Wheat in Western Canada.” AgBioForum 6,4(2004):169-77, Internet site: www.agbioforum.org.Google Scholar
Indiana Agricultural Statistics Service. Internet site: www.nass.usda.gov/in (Accessed February 1, 2005).Google Scholar
Indiana Crop Improvement Association. Internet site: www.indianacrop.org (Accessed February 1, 2005).Google Scholar
Just, R.E., and Weninger, Q.. “Are Crop Yields Normally Distributed?” American Journal of Agricultural Economics 81 (May 1999):287–304.CrossRefGoogle Scholar
Kalaitzandonakes, N., Maltsbarger, R., and Barnes, J.. “Global Identity Preservation Costs in Agricultural Supply Chains.” Canadian Journal of Agricultural Economics 49(December 2001):605-15.CrossRefGoogle Scholar
Ker, A., and Coble, K.. “Modeling Conditional Yield Distributions.” American Journal of Agricultural Economics 85(May 2003):291–304.CrossRefGoogle Scholar
Lin, W.W., Williams, C., and Harwood, J.. “Biotechnology: U.S. Grain Handlers Look Ahead.” Agricultural Outlook, Economic Research Service, United States Department of Agriculture, April 2000.Google Scholar
Maier, D.E. “Quality Assurance and Source Verification Issues of Post-Harvest Grains and Oilseeds.” Proceedings of the XXX CIOSTA-CIGR V Congress on Management and Technology Applications to Empower Agriculture and Agri-Food Systems, 2003, pp. 28–48.Google Scholar
Nelson, C., and Preckel, P.. “The Conditional Beta Distribution as a Stochastic Production Function.” American Journal of Agricultural Economics 71(May 1989):370-78.CrossRefGoogle Scholar
Nielsen, R.L., and Maier, D.E.. “GMO Issues Facing Indiana Farmers in 2001.” Grain Quality Task Force Fact Sheet #46. Purdue University, 2001.Google Scholar
Phillips, P.W.B. “Traceability and Trade of Genetically Modified Food.” National Agricultural Biotechnology Council Report 15: Biotechnology: Science and Society at a Crossroad. Eaglesham, A., Ristow, S. and Hardy, R.W.F. eds., 2003, pp. 141-54.Google Scholar
Racine, J., and Ker, A.. “Rating Crop Insurance Policies with Efficient Nonparametric Estimators That Admit Mixed Data Types.” Journal of Agricultural and Resource Economics 31 (March 2006):27–39.Google Scholar
Schnitkey, G. “Estimated Crop Costs—2004.” Farm Business Management Handbook FBM-0100. University of Illinois, 2004.Google Scholar
Sparks Companies Inc. “The U.S. Corn Masa Industry: Structure and Implications for the Great Plains Region.” Prepared for Agricultural Marketing Research Center, Kansas State University, 2003.Google Scholar
Stevenson, P.F. “Using a Systems Evaluation Approach to Managing Quality Grains.” Proceedings of 2004 International Quality Grains Conference. 2004. Internet site: www.iqgc.org.Google Scholar
Uhrig, J.W., and Maier, D.E.. Costs of Drying High-Moisture Corn.” Grain Quality Task Force Fact Sheet #3. Purdue University, 1992.Google Scholar
United States Department of Agriculture. Agricultural Marketing Service. “Grain Transportation Report:2004.” Internet site: www.ams.usda.gov/tmdtsb/grain (Accessed February 1, 2005).Google Scholar
United States Department of Agriculture. National Agricultural Statistics Service. “Corn, Soybeans, and Wheat Sold through Marketing Contracts—2001 Summary.” February 2003.Google Scholar
Voigt, J.F. “Maintaining Quality and Purity in Commercial Elevators and Equipment.” Proceedings of 2004 International Quality Grains Conference. 2004. Internet site: www.iqgc.org.Google Scholar
Wilson, W.W., and Dahl, B.L.. “Costs and Risks of Testing and Segregating Genetically Modified Wheat.” Review of Agricultural Economics 27(Fall/Winter 2005):212-28.CrossRefGoogle Scholar