This study investigates the potential impact of food safety outbreaks on domestic shipments, imports, and prices of the produce industry. Moreover, the compliance costs associated with new food safety standards were also estimated. Three case studies were analyzed to assess these potential impacts: the muskmelon (Cucumis melo) outbreak of Mar.–Apr. 2008, the spinach (Spinacea oleracea) outbreak of Sept. 2006, and the tomato (Solanum lycopersicum) outbreak of June–July 2008. The results demonstrate that the costs incurred by producers because of food safety outbreaks in produce are far greater than preventing such incidents.
This paper investigates the farm-level impacts of the 1996 farm bill on the South. Focus group perceptions of risk sources, observed acreage changes, and the farm-level impact of increased price risk are evaluated. Focus group respondents ranked price and yield as the two most important sources of risk, and diversification was ranked highly as a risk-management tool. Limited data suggest that acreage shifts among crops are occurring in the South, presumably aided by the 1996 farm bill. Higher probabilities of cash flow deficits are estimated for cotton and rice relative to feedgrain, wheat, and oilseed operations.
This study investigates the potential impacts of food safety outbreaks on domestic shipments, imports, and prices of the produce industry. Three case studies were analyzed to assess these potential impacts: the cantaloupe outbreak of March–April 2008, the spinach outbreak of September 2006, and the tomato outbreak of June–July 2008. Data-determined historical decompositions were conducted to provide a weekly picture of domestic shipment, import, and price fluctuation transmissions. The empirical analysis based on a vector autoregression (VAR) model showed differences in the results depending on the source of the outbreak (domestic vs. imported).
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