Eric Belasco, Suzette Galinato, Jingze Jiang, Tom Marsh, and Srinivasa Ponnaluru March 13, 2012

 Economic Model of Optimal Mulch Use ◦ Jingze Jiang, Tom Marsh, Eric Belasco  Enterprise Budgets ◦ Suzette Galinato  Production and Risk ◦ Eric Belasco 2

 Tasks accomplished: (Jingze Jiang; Phd Project) ◦ Developed a dynamic economic model of mulch use  Measure over time profits=revenue-costs subject to economic and noneconomic processes ◦ Gathered data and information ◦ Constructed empirical model to measure user cost  balance the decision of mulch use vs cost of disposal ◦ Simulated different scenarios/sensitivity analysis ◦ Submitted abstract to the 2012 AAEA meetings 3

Experiments Information/Relationships Production Inputs & Disposal Profit= Revenue-Costs 4 Yield & Quality Markets & Demand Environmental Concerns

 Tasks to be accomplished: ◦ Continue to gather data and information ◦ Link physical relationships to economic variables ◦ Derive decision rules for optimal mulch use by grower, which provides a baseline for comparisons ◦ Simulate tradeoffs for plastic and biodegradable mulches/sensitivity analysis ◦ Compare private and social benefits for use of plastic mulches and biodegradable mulches ◦ Investigate government intervention to balance individual and social optimum 5

 Tasks accomplished: ◦ Adilet Maimekov, MS student project ◦ Examined price determinants for different commodity thermoplastics ◦ Found pricing predominately determined by  price lagged 1 period  either gas or oil prices (or both) ◦ Provides a better understanding of expected prices and variation in pricing of plastic films for economic model 6

 Tasks accomplished: Completed working drafts of budgets for: tomato, lettuce and strawberry Submitted budgets of field-grown tomato and lettuce to WSU Extension for publication as WSU Fact Sheets Required multiple contacts and meetings with growers 7

 Tasks to be accomplished:  Submit remaining crop budgets to WSU Extension Publications and finalize them after peer review  Post fact sheets on SCRI Project and IMPACT websites  Post plastic mulch requirement calculator on SCRI Project and IMPACT websites 8

 Tasks accomplished: (Suzette)  Costs built into enterprise budgets: ◦ Material ◦ Installation ◦ Removal ◦ Disposal  Tasks to be accomplished: ◦ Investment decisions ◦ Finish and post stand alone plastic mulch calculator 9

 Tasks accomplished: ◦ Initial evaluation of early-to-season premium ◦ Evaluation of crop insurance options for fruit/vegetable ◦ Theoretical development of relationship between high tunnels and crop insurance in risk management ◦ AAEA paper and presentation, summer 2011 meetings 10

 Tasks to be accomplished: ◦ Evaluate risk management strategies with HTs  Assess the interaction between HTs and crop insurance programs  Use team results to create hypothetical scenarios  Place team results within context of a longer weather time series (how frequent do these types of events occur?)  Incorporate results from ongoing Certified Organic Production survey 11

 Tasks to be accomplished: ◦ Incorporate outcomes from year 2  Yield  Marketable yield  Quality ◦ More in-depth analysis regarding early-to-market premium using farmer’s market data 12

 Tasks to be accomplished: ◦ Two presentations upcoming with Carol and Annette  Women in Agricultural Educators National Conference (March in Memphis)  HTs as a risk management tool  National Small Farms Conference (Sept. in Memphis)  A case study in uses (and abuses) of HTs ◦ Assess the insurability of HTs? (weather-based) 13

 Belasco, E., S. Ponnaluru, S. Galinato, and T.L. Marsh. “An Assessment of the Interaction between High Tunnels and Crop Insurance for Specialty Crop Producers,” American Agricultural Economics Association, Pittsburg,  Jiang, J., T. L. Marsh, and E. Belasco “Optimal Pollution Control in Agricultural Production: Biodegradable vs Plastic Mulches,” Working paper, Washington State University.  Galinato, S.P., C. Miles and S.S. Ponnaluru. “2011 Cost Estimates of Producing Fresh Market Field-Grown Tomatoes in Washington,” Working Paper submitted to WSU Extension Publication.  Galinato, S.P. and C. Miles. “2011 Cost Estimates of Producing Fresh Market Field-Grown Lettuce in Washington,” Working Paper submitted to WSU Extension Publication. 14