IDEAS home Printed from https://ideas.repec.org/p/ags/cfarer/266593.html
   My bibliography  Save this paper

From Farm Income to Food Consumption: Valuing USDA Data Products

Author

Listed:
  • Lusk, Jayson L.

Abstract

Tightening budgets and increased calls for accountability have sparked efforts to determine the value of U.S. Department of Agriculture (USDA) data products. This report surveys the social science literature on the value of public data, explores the research on the value of USDA data, and describes a framework for prioritizing data collection and reporting. There are a number of motivations for the public provision of information, such as public-good and externality argu-ments, the potential to improve market efficiency and resource allocation, and the desire to reduce information asym-metries and inequities, which suggest a potential under-provision of market information by the private sector. The value of information is related to the ability of producers, speculators, and consumers to make decisions that better correspond with reality. A wide variety of empirical approaches have been used to study the value of information, and the advantages and disadvantages of each are explored. Researchers have used market-reaction tests most often to assess the value of USDA commodity information. The extant literature consistently shows that such data provides valuable information to market participants. Although numerous studies provide indirect evidence that USDA data offer significant economic value, prior research has largely refrained from quantifying the value of data in a way that can be compared with costs. A proposed framework for data product prioritization requires decision-makers to weight the relative merits of different factors affecting the value of data collec-tion and dissemination. The framework can be used to provide qualitative guidance and quantitative, relative rankings of alternative data products. The last section of the report offers recommendations for further research, understanding the extent of data product use across Federal agencies and streamlining data products to more closely match how and when they are most useful.

Suggested Citation

  • Lusk, Jayson L., 2016. "From Farm Income to Food Consumption: Valuing USDA Data Products," C-FARE Reports 266593, Council on Food, Agricultural, and Resource Economics (C-FARE).
  • Handle: RePEc:ags:cfarer:266593
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/266593/files/cfare-data-review-report-1-14-v4.pdf
    Download Restriction: no

    File URL: http://ageconsearch.umn.edu/record/266593/files/cfare-data-review-report-1-14-v4.pdf?subformat=pdfa
    Download Restriction: no

    References listed on IDEAS

    as
    1. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    2. Mario Mazzocchi & Gianluca Stefani & Spencer J. Henson, 2004. "Consumer Welfare and the Loss Induced by Withholding Information: The Case of BSE in Italy," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(1), pages 41-58.
    3. Davis, Douglas D. & Holt, Charles a., 1993. "Experimental economics: Methods, problems and promise," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 8(2), pages 179-212.
    4. Azzeddine Azzam, 2003. "Market Transparency and Market Structure: The Livestock Mandatory Reporting Act of 1999," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 387-395.
    5. Phil L. Colling & Scott H. Irwin, 1990. "The Reaction of Live Hog Futures Prices to USDA Hogs and Pigs Reports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 84-94.
    6. repec:ags:jrapmc:122315 is not listed on IDEAS
    7. Olga Isengildina-Massa & Scott H. Irwin & Darrel L. Good & Jennifer K. Gomez, 2008. "Impact of WASDE reports on implied volatility in corn and soybean markets," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 473-490.
    8. Karali, Berna, 2012. "Do USDA Announcements Affect Comovements Across Commodity Futures Returns?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-21, April.
    9. Kenkel, Philip L. & Norris, Patricia E., 1995. "Agricultural Producers' Willingness To Pay For Real-Time Mesoscale Weather Information," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(2), pages 1-17, December.
    10. Zapata, Samuel D. & Carpio, Carlos E. & Isengildina-Massa, Olga & Lamie, R. David, 2013. "Producer Willingness to Pay for the Services Provided by an Electronic Trade Platform: The Case of MarketMaker," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143070, Southern Agricultural Economics Association.
    11. Orazem, Peter & Baur, Robert F., 1994. "The Rationality and Price Effects of Usda Forecasts of Oranges," Staff General Research Papers Archive 11133, Iowa State University, Department of Economics.
    12. Richard E. Just, 1983. "The Impact of Less Data on the Agricultural Economy and Society," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(5), pages 872-881.
    13. Foster, William & Just, Richard E., 1989. "Measuring welfare effects of product contamination with consumer uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 266-283, November.
    14. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
    15. Clifford, William B. & Hoban, Thomas J. & Whitehead, John C., 2001. "Willingness To Pay For Agricultural Research And Extension Programs," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 33(1), pages 1-11, April.
    16. B. Wade Brorsen & Jean-Paul Chavas & Warren R. Grant & L. D. Schnake, 1985. "Marketing Margins and Price Uncertainty: The Case of the U.S. Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 521-528.
    17. Freebairn, John W., 1978. "An Evaluation of Outlook Information for Australian Agricultural Commodities," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 46(03), pages 1-21, December.
    18. Matthew Rousu & Wallace E. Huffman & Jason F. Shogren & Abebayehu Tegene, 2007. "Effects And Value Of Verifiable Information In A Controversial Market: Evidence From Lab Auctions Of Genetically Modified Food," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 409-432, July.
    19. David F. Bradford & Harry H. Kelejian, 1978. "The Value of Information for Crop Forecasting with Bayesian Speculators: Theory and Empirical Results," Bell Journal of Economics, The RAND Corporation, vol. 9(1), pages 123-144, Spring.
    20. Matthew P. Schaefer & Robert J. Myers & Stephen R. Koontz, 2004. "Rational expectations and market efficiency in the U.S. live cattle futures market: The role of proprietary information," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 24(5), pages 429-451, May.
    21. Anderson, John D. & Ward, Clement E. & Koontz, Stephen R. & Peel, Derrell S. & Trapp, James N., 1998. "Experimental Simulation Of Public Information Impacts On Price Discovery And Marketing Efficiency In The Fed Cattle Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-17, July.
    Full references (including those not matched with items on IDEAS)

    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:cfarer:266593. See general information about how to correct material in RePEc.

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

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.