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The overall objective of this project is to apply econometric and numerical analysis to understand how domestic and international regulation affects economic returns to agriculture. An important focus of the program will also be to communicate implications of the findings to stakeholders in Michigan. The program will also generate methodological contributions for policy analysis. The sub-objectives, and some of the specific application areas will be applied over the next five years, are reported below: Objective 1: Evaluate the direct and unintended consequences of policy and regulation, with particular emphasis on regulations affecting Michigan agribusiness.A precise understanding of the impacts of the effects of policy are necessary to evaluate the effectiveness/return on investment for policy. Additionally, as policies and regulations change incentives for affected individuals, they can generate unintended effects which undermine or reduce the intended benefits of the policy. One such application could involve the impacts of Farm Bill Commodity Program and Crop Insurance rules on the incidence of Prevent Plant for program crops. Objective 2: Analyze the political economy of policy administration, and determine the implications for Michigan stakeholdersThe political incentives created by policy administration can lead to socially sub-optimal regulatory design as politicians seek to benefit their own interests. One application of this affecting Michigan agriculture would be to analyze the effects of the Market Facilitation Payments - issued by executive order - rather than through the legislative process, on voting decisions in the 2020 Presidential election. Objective 3: Analyze the appropriate method by which to communicate policy-based extension to Michigan stakeholders.Over the last several years, university extension budgets have fallen into decline. This reality places substantial constraints on the ability to communicate policy extension via traditional in-person meetings throughout the state. At the same time, information technology allows a single person to communicate to a much larger audience, as long as the person can effectively engage the stakeholder audience. A potential research effort would be to study the effects of in-person meetings versus e-meetings by which to communicate 2020 Farm Bill Commodity Program choices on program sign-ups and election choices.

Schaefer, K., Al.; Myers, Ro, .; Malone, Tr, .; Mckendree, Me, .; Ortega, Da, .; Wu, Fe, .; Hennessy, Da, .
Michigan State University
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