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Information, Extension, and Regional Development Spatial Spillovers. Individual vs Coordinated Decisionmaking. Daniel Osgood Assistant Extension Specialist/Assistant Professor Department of Agricultural and Resource Economics University of Arizona. Example: Weather information.
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Information, Extension, and Regional DevelopmentSpatial Spillovers.Individual vs Coordinated Decisionmaking Daniel Osgood Assistant Extension Specialist/Assistant Professor Department of Agricultural and Resource Economics University of Arizona
Agricultural weather information • Agricultural weather systems • AgriMET, AZMET, CIMIS, LAIS • frost and climate forecasting • Popular in spite of more precise alternatives • Private systems limited to value added • Stand alone private systems rare, short-lived • Why?
Precision, Profits, and Waste • Precision technologies • Information and application • Public good market failures: Pirating
Conservation Mechanisms • Extension provision of information • Addresses market failures • Reduces waste • Improves agricultural viability • Taxes, fees, regulation • Info can out perform taxes, fees • Often taxes, fees, regulation not feasible • Cooperation: Mexican Ejidos
Extension as Neutral Moderator • Yuma pinmap is self-enforced by competing growers • Required extension as neutral moderator • Improves productivity • 90 percent of World Broccoli Seed • Growers actually requested more regulation • Growers use to reduce liability • Enables smaller players to have equal access • Similar to: Online Water Market
Impacts • Improve productivity • Reduce costs • Reduce pesticide use • Prevent pest spread, identify sources • Document responsible behavior • Cotton application
Benefits of Regional Coordination • Coordination allows reduced pest use • Particularly in sensitive areas • Agriculture shows responsible behavior • Proactive cooperation • Less tension
Endangered Species • Regulation that does not address information issues may lead to unintended behavior
Will this ranch survive? • Drought has driven cattle off range • Ranchers must decide how to restock • Ranchers must decide if they should restock • Retirement vs Bankruptcy
Extension and Information • Drought Forecast (CLIMAS) • Educate on climate (CLIMAS) • Risk management education (RightRisk) • Post drought option decision support (Ranching for Profitability) • Regional coordination: • moving cattle, working with agencies • land use change, multifunctionality
Sales 1991 Source: Yavapai, MIS
Sales 1991 - 1992 Source: Yavapai, MIS
Sales 1991 - 1993 Source: Yavapai, MIS