IDEAS home Printed from https://ideas.repec.org/p/ags/aaea11/103974.html
   My bibliography  Save this paper

Economic Value of Information: Wheat Protein Measurement

Author

Listed:
  • Miao, Ruiqing
  • Hennessy, David A.

Abstract

In this paper we study U.S. wheat farmers’ willingness to pay for near infrared (NIR) sensor that can segregates wheat grains according to their protein concentration. We first develop a microeconomic optimization model of wheat farmers’ segregating and commingling decisions. Then we use U.S. wheat prices and stocks to estimate a wheat protein stock demand system. This allows us to establish the effects of changes in the protein profile of wheat stocks on protein premiums. The paper’s simulation section combines the results from the microeconomic optimization model and from the econometric estimations to simulate wheat farmers’ WTP for the sorting technology. Preliminary findings from the simulation show that a typical hard red winter (hard red spring) wheat farmer’s WTP for the sorting technology is 5.6 (4.8) cents per bushel.

Suggested Citation

  • Miao, Ruiqing & Hennessy, David A., 2011. "Economic Value of Information: Wheat Protein Measurement," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103974, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea11:103974
    DOI: 10.22004/ag.econ.103974
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/103974/files/WheatProtein_AAEA_May3rd2011.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.103974?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Crop Production/Industries; Production Economics;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea11:103974. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.