Browsing by Author "Buschena, David"

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Constructing an Organic Price Series: Not as Easy as Expected
(2008-11) Buschena, David
The growth of organic farm production and consumer demand has raised questions regarding the profitability of organic systems. A primary component of this profitability is the size and sustainability of organic price premiums. Additionally, there have been recent large increases in the prices for conventionally-produced commodities due to increases in input costs (particularly fertilizer and fuel), changes in export demand (including the value of the dollar), and also perhaps the ethanol market. We explore the relationships between organic and conventional grain prices over the period 1998 to 2008 using monthly price series. This relatively long period allows us to assess the nature of the price relationships between organic and conventional prices for periods prior to and after the recent run-up in conventional prices. Our focus is on the three key crops for Montana: corn (as a feed barley substitute), hard red spring wheat, and hard red winter wheat.
An Exploration of Market Pricing Efficiency During the Dairy Options Pilot Program
(MSU Extension, 2004-09) Buschena, David; McNew, Kevin
Put options have been recommended as a substitute for price support programs (Gardner, 1977; also some more recent comments?), and subsidized option purchases have received some support in lieu of subsidized insurance programs (cite?). Put options are an interesting alternative to price supports because their market-determined price levels allow for flexibility and adjustments to relevant current and expected market conditions. Options markets should also be relatively free from the bureaucratic decision processes needed for administration of commodity price supports.
Representative Enterprise Budgets for Pea Grazing, Haying, and Harvest for Seed
(2008-06) Buschena, David
This policy issues paper presents representative enterprise budgets for the inclusion of dry edible peas into a wheat-based dryland rotation in Central Montana. Three uses of peas are considered: grazed by livestock, harvested for seed, and hayed. Peas have generated significant interest in dryland wheat systems recently as a potential replacement for fallowing in years with sufficient soil moisture. Peas fix some nitrogen, have other agronomic benefits, and with good stands are also competitive with many weeds. Peas do however have the potential to reduce soil moisture for subsequent crops compared to summer fallow.