Explore the vast range of titles available.

PurposeThe design of effective policies that increase access to agricultural credit should consider understanding credit constraint farmers’ groups and their response to changes in the credit conditions. To contribute to this understanding, this study surveyed farmers from Chile and classified them into five credit constraint categories discussed in credit literature. In addition, these farmers indicated how they would react to a series of hypothetical conditions related to changing interest rates, loan maturity and grace periods. Their responses were employed to measure credit demand scores (i.e. relative elasticities). Regression tests evaluated how different types of farmers reacted to changing credit conditions.Design/methodology/approachFarmers from Chile were surveyed using a mix of random and convenience sampling. Surveyed farmers were classified into five credit constraint categories proposed by previous research. Farmers rated their demand for credit on a five-point Likert-type scale for hypothetical changes in interest rates, loan maturities and grace periods. Their responses were employed to measure credit demand scores or relative credit elasticities. The study evaluated credit elasticity as a function of farmers’ credit constraint and some control variables using several regressions, including OLS, ordered probit and hierarchical regression.FindingsThe study identified 44% unconstrained nonborrowing farmers, 23% unconstrained borrowers, 14% quantity-constrained, 16% risk-constrained and 3% transaction cost-constrained farmers. Unconstrained borrowers and quantity-constrained farmers responded most to changing interest rates and loan maturity conditions. In addition, unconstrained nonborrowers and risk-constrained farmers were statistically less sensitive to changes in credit conditions than unconstrained borrowers. This finding is significant because, as discussed, unconstrained nonborrowers represent 44% of our sample. Furthermore, risk-constrained farmers were the least sensitive to changes in interest rates and loan maturity across all other credit categories.Practical implicationsThis study gives insights that can guide agribusiness policies to enhance access to credit in developing countries such as Chile. Agricultural credit capital institutions can better target their clientele by identifying farmers’ possible reactions before implementing policy changes to increase access to credit. This study’s credit constraint categorization and the results discussed can guide that identification. For instance, policies directed toward unconstrained borrowing farmers may find positive responses. However, implementing policies targeting the other three groups (unconstrained nonborrowing, risk-constrained and transaction cost-constrained farmers) is more challenging because these farmers are less responsive to changing credit conditions.Originality/valueThis article correlates farmers’ propensity to borrow and credit constraints across five categories of farmers. Prior research using this categorization framework has not identified farmers into the five groups. Furthermore, in addition to interest rate and loan maturity credit demand relative elasticity, this study adds the grace period elasticity, which has not been included in previous studies on agricultural credit.

PurposeThe purpose of this study is to estimate the amount of cash flow deficit, if any, needed to maintain the operating costs and service debt of a startup cow–calf enterprise. The study compares long-term profitability and risk between starting small and building a herd to full carrying capacity or by starting at desired herd capacity.Design/methodology/approachA dynamic cattle growth model was developed to capture expanding and maintaining the desired herd size. Discounted cash flow (DCF) models over a 15-year period were calculated to estimate net present value (NPV), modified internal rate of return (MIRR) and cash flow deficit to keep the business operating and service debt. Simulation analyses were conducted considering price and production risk.FindingsStarting at the desired herd size was preferred, according to NPV/MIRR and cash flow deficit, but the differences were not substantial. Assuming the operation is liquidated at book values, there was a 36.3% probability of this enterprise having a zero or positive NPV. If the conservative terminal value assumption is relaxed up to feasible market values, the cow–calf enterprise is economically attractive at an estimated 2.4% opportunity cost of capital. However, the producer would experience a cash flow deficit during the first seven years, which was simulated to be $14,892 and $15,985 annual for both strategies.Originality/valueInnovative methods used in this study include varying the annual opportunity cost of capital as a function of financing decisions, stochastic prices by cattle type and stochastic weaning weights that are a function of a dynamic cattle model.

Purpose The purpose of this paper is to determine the impact of 2014–2015 highly pathogenic avian influenza (HPAI), the largest animal health emergency in US history to date, on agribusinesses’ market values. Design/methodology/approach Using the 2014–2015 HPAI outbreaks in US commercial poultry, event study analysis of meat processing and marketing companies is conducted to estimate the effects HPAI had on firm value and how these effects differed across meat marketing firms over distinct disease event dates. The analyses include an overall aggregate event study, chronological outbreak studies, and an analysis that separated firms specifically marketing poultry products from those marketing all other types of meat. Findings By tracing abnormal stock returns through the event dates, the results show heterogeneity of investors responses based on the nature of the event (i.e. backyard vs commercial flocks affected), timing of the event over the course of the entire HPAI outbreak, and if a firm marketed poultry products. Overall, negative abnormal returns, ranging from 2 to 4 percent of publicly traded meat processors’ equities, are predominant post-disease event. These negative effects are slightly higher, above 5 percent, for firms marketing poultry products. Originality/value This study is the first to analyze the effects of an HPAI outbreak on the market value of US agribusiness firms.

PurposeThe United States (US) sugar program protects domestic sugar farmers from unrestricted imports of heavily-subsidized global sugar. Sugar-using firms (SUFs) criticize that program for causing US sugar prices to be higher than world sugar prices. This study examines the financial performance of publicly traded SUFs to determine if they are performing at an economic disadvantage in terms of accounting profitability, risk and economic profitability compared to other industries.Design/methodology/approachFirm-level financial accounting and market data from 2010 to 2019 were utilized to construct financial metrics for publicly traded SUFs, agribusinesses and general US firms. These financial metrics were analyzed to determine how SUFs compare to their agribusiness peer group and general US companies. The comprehensive financial analysis in this study covers: (1) accounting profit rates, (2) drivers of profitability, (3) economic profit rates, (4) trend analysis and (5) peer comparisons. Quantile regression analysis and Wilcoxon–Mann–Whitney statistics are employed for statistical comparisons.FindingsRegarding various profitability and risk measures, SUFs outperform their agribusiness peers and the general benchmark of all US firms in terms of accounting profit rates, risk levels and economic profit rates. Furthermore, compared to other US industries using the 17 French and Fama classifications, SUFs have the highest return on investment and economic profit rate―measured by the Economic Value Added® margin―and the second-lowest opportunity cost of capital, measured by the weighted average cost of capital.Originality/valueThis study finds nothing to suggest that the US sugar program hinders the financial success of SUFs, contrary to recent claims by sugar-using firms. Notably in this analysis is the evaluation of economic profit rates and a series of robustness techniques.

We provide a financial model to evaluate an orange grove investment in Florida, the producing region supplying around 90% of U.S. domestic production of orange juice. A representative orange grower planting early-mid varieties for the processed market is featured in the case. The study assumes that an existing grove has become disease-infested to a degree that there is little, if any economic value in maintaining it. The grower is left with the choice to replant the grove or to convert the land to other uses. The replanting baseline model yields a 9.7% Modified Internal Rate of Return (MIRR) and the Monte Carlo simulation shows that MIRR is equal or higher than the 7.5% hurdle rate around 81% times the model is simulated. The risk of managing an orange grove is higher than a decade ago mainly due to the presence of citrus greening, a disease that reduces yields and degrades fruit quality, causing variability in productivity and operating costs. Opportunities for growers include planting incentive programs implemented by both the government and major citrus processors and from policy changes such as the possibility of changes in depreciation of new investment for income tax purposes. Readers of this case study are expected to challenge the assumptions of the financial model and consider additional elements of risk and opportunities on their assessment of the potential orange grove investment.

This study models the purchasing behavior of specialty coffee by 114 coffee shops across 15 cities in nine states in Mexico. Simple and multilevel mixed-effects logistic models are tested. Our models extend the framework used in prior research. We model the purchase of specialty coffee as a function of: (a) material attributes, (b) symbolic attributes, (c) coffee shop characteristics, (d) profile of the coffee shop’s owner, and (e) socio-economic variables of the cities where the coffee shops were located. Overall, our results are consistent with expectations developed from the coffee literature. That is, the likelihood of purchasing specialty coffee increases when: coffee’s aroma drives the purchase, coffee purchased is from the state of Oaxaca, the coffee shop has a value-added business model, the coffee shop is diversified selling both ground coffee and coffee drinks, the coffee shop owner’s knowledge on coffee supply chain activities is high, and the coffee shop is located in a city with a higher education index. In contrast, the likelihood of purchasing specialty coffee decreases when a coffee professional tastes the coffee before the purchase, when coffee shops are not given the opportunity to roast their own coffee, and in coffee shops located in larger cities. Overall, our research suggests that the specialty coffee niche in Mexico has some elements required for this segment to transition from a supply chain approach to a value-based supply chain approach. This might be particularly beneficial for smallholder coffee growers, who despite several constraints contribute to the sustainability of coffee supply chains.

The effect of the United States (US) sugar program on sugar-using firm profitability from 2000 to 2017 is examined using firm financial data and the relative US-to-world sugar price ratio. Return on assets and market-to-book ratio proxy for firm financial performance. The regression results provide statistical evidence that as the US sugar price increases relative to the world sugar price, sugar-using firm financial performance improves. This is likely a result of sugar-using firms passing higher sugar costs on to consumers. An ex post analysis indicates that the statistical tests have adequate power. Findings provide guidelines for future analyses investigating the relationship between the US sugar program and sugar-using firm financial performance.

ABSTRACT We develop constructs to evaluate the factors influencing the degree of students' acceptance of cases. In our proposed framework, student acceptance is affected by the case selection, intensity of faculty use, training, course type and level, level of instructor expertise, teaching atmosphere, and the faculty's beliefs about the usefulness of the case method. Our sample includes faculty teaching quantitative or qualitative courses across several disciplines in undergraduate business administration. Responses to a survey are analyzed using factor analysis and regression. The quantitative analysis is complemented by interviews with a subset of expert faculty using a two-round modified Delphi technique. This study may be limited by the fact that it measured faculty perceptions of the degree of students' acceptance of cases, rather than student acceptance directly. Future research might survey students or use students' courses evaluations to validate or contradict our results. RESUMEN Desarrollamos constructos para evaluar los factores que influyen en el nivel de aceptación de los estudiantes en relación a los casos de estudio. En el marco conceptual que proponemos, la aceptación del estudiante se determina por la selección de los casos, la intensidad de uso por parte de los profesores, el entrenamiento, el tipo y nivel del curso, la experiencia de los profesores, la atmósfera de enseñanza, y la convicción del cuerpo docente sobre la utilidad del método de casos. Nuestra muestra incluye profesores de cursos cualitativos y cuantitativos de varias asignaturas de la licenciatura de administración de empresas. Las respuestas de la encuesta se analizan a través de análisis factorial y análisis de regresión. El análisis cuantitativo se complementa con entrevistas a profesores expertos; y una parte de la muestra, mediante el método Delphi modificado en dos rondas. Una posible limitación del estudio es el hecho de que medimos la percepción de los profesores sobre el nivel de aceptación de los estudiantes, en vez de medir directamente el nivel de aceptación de los estudiantes. Futuros trabajos de investigación podrían encuestar a estudiantes o usar evaluaciones de estudiantes acerca de cursos con casos para validar o contradecir nuestros resultados. RESUMO Desenvolvemos construtos para avaliar os fatores que influenciam o grau de aceitação dos alunos em relação aos estudos de casos. Na configuração proposta, a aceitação dos alunos é afetada pela seleção do caso, intensidade de seu uso pelos docentes, formação, tipo e nível do curso, nível de especialidade do instrutor, atmosfera de ensino, e crenças dos docentes com relação à utilidade do método de estudo de caso. Nossa amostra inclui docentes de cursos quantitativos ou qualitativos em várias disciplinas em nível de graduação na área de administração de empresas. As respostas à pesquisa foram analisadas utilizando-se análise fatorial e regressão. A análise quantitativa é complementada por entrevistas com um subconjunto de docentes especialistas, utilizando-se uma técnica Delphi de dois ciclos modificada. Este estudo pode ser limitado pelo fato de haver mensurado percepções de docentes quanto ao grau de aceitação de alunos em relação a estudos de casos, e não a aceitação dos alunos diretamente. Futuros estudos podem pesquisar alunos ou utilizar avaliações dos alunos com relação aos cursos para validar ou refutar nossos resultados.

We develop constructs to evaluate the factors influencing the degree of students' acceptance of cases. In our proposed framework, student acceptance is affected by the case selection, intensity of faculty use, training, course type and level, level of instructor expertise, teaching atmosphere, and the faculty's beliefs about the usefulness of the case method. Our sample includes faculty teaching quantitative or qualitative courses across several disciplines in undergraduate business administration. Responses to a survey are analyzed using factor analysis and regression. The quantitative analysis is complemented by interviews with a subset of expert faculty using a two-round modified Delphi technique. This study may be limited by the fact that it measured faculty perceptions of the degree of students' acceptance of cases, rather than student acceptance directly. Future research might survey students or use students' courses evaluations to validate or contradict our results. KEYWORDS | Case teaching in business, undergraduate management education, factor analysis, quantitative and qualitative research, modified Delphi technique. Desenvolvemos construtos para avaliar os fatores que influenciam o grau de aceitacao dos alunos em relacao aos estudos de casos. Na configuracao proposta, a aceitacao dos alunos e afetada pela selecao do caso, intensidade de seu uso pelos docentes, formacao, tipo e nivel do curso, nivel de especialidade do instrutor, atmosfera de ensino, e crencas dos docentes com relacao a utilidade do metodo de estudo de caso. Nossa amostra inclui docentes de cursos quantitativos ou qualitativos em varias disciplinas em nivel de graduacao na area de administracao de empresas. As respostas a pesquisa foram analisadas utilizando-se analise fatorial e regressao. A analise quantitativa e complementada por entrevistas com um subconjunto de docentes especialistas, utilizando-se uma tecnica Delphi de dois ciclos modificada. Este estudo pode ser limitado pelo fato de haver mensurado percepcoes de docentes quanto ao grau de aceitacao de alunos em relacao a estudos de casos, e nao a aceitacao dos alunos diretamente. Futuros estudos podem pesquisar alunos ou utilizar avaliacoes dos alunos com relacao aos cursos para validar ou refutar nossos resultados. PALAVRAS-CHAVE | Ensino de caso em negocios, graduacao em Administracao de Empresas, analise fatorial, pesquisa quantitativa e qualitativa, tecnica Delphi modificada. Desarrollamos constructos para evaluar los factores que influyen en el nivel de aceptacion de los estudiantes en relacion a los casos de estudio. En el marco conceptual que proponemos, la aceptacion del estudiante se determina por la seleccion de los casos, la intensidad de uso por parte de los profesores, el entrenamiento, el tipo y nivel del curso, la experiencia de los profesores, la atmosfera de ensenanza, y la conviccion del cuerpo docente sobre la utilidad del metodo de casos. Nuestra muestra incluye profesores de cursos cualitativos y cuantitativos de varias asignaturas de la licenciatura de administracion de empresas. Las respuestas de la encuesta se analizan a traves de analisis factorial y analisis de regresion. El analisis cuantitativo se complementa con entrevistas a profesores expertos; y una parte de la muestra, mediante el metodo Delphi modificado en dos rondas. Una posible limitacion del estudio es el hecho de que medimos la percepcion de los profesores sobre el nivel de aceptacion de los estudiantes, en vez de medir directamente el nivel de aceptacion de los estudiantes. Futuros trabajos de investigacion podrian encuestar a estudiantes o usar evaluaciones de estudiantes acerca de cursos con casos para validar o contradecir nuestros resultados. PALABRAS CLAVE | Ensenanza a traves del metodo de casos en negocios, licenciatura en administracion de empresas, analisis factorial, investigacion cuantitativa y cualitativa, metodo Delphi modificado.