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California Agriculture, Vol. 45, No.5

U.S.-Mexico free trade: mixed blessing for farmers?
Cover:  Shipping agricultural and other cargo, Transportaci
September-October 1991
Volume 45, Number 5

Peer-reviewed research and review articles

Free trade with Mexico: economic impacts
by Raul Hinojosa-Ojeda, Sherman Robinson, Kirby S. Moulton
| Full text HTML  | PDF  
Economic models forecast that Mexico will benefit from increased economic growth and the U.S. from new market opportunities.
Economic models show that the U.S. will benefit economically from a free trade agreement (FTA), but Mexico is likely to benefit more. The creation of an FTA will result in the movement of labor and capital across sectors in both economies. The benefits to Mexico will be augmented if significant economic development occurs as a result of the agreement. The FTA is likely to cause a reduction or change in the mix of California horticultural products directly competitive with Mexico. (See sidebar, p. 7.) Market opportunities are expected to develop for other products.
Sidebar: Is “free trade” really free?: How the FTA will affect California agriculture
by Raul Hinojosa-Ojeda, Sherman Robinson, Kirby S. Moulton
| Full text HTML  | PDF  
Lowered tariff barriers would lead to stiffer Mexican competition in a range of specialty crops.
Abstract Not Available – First paragraph follows: While the accompanying article discusses potential free-trade impacts on agriculture as a whole, it does not focus on individual industries. Within each agricultural sector there will be winners and losers. Much attention in California has focused on the potential losses in the domestic production of vegetables caused by increased imports of such products from Mexico. One difficulty in assessing the impact of such production and trade shifts is the lack of adequate data to permit sound analysis. Therefore, much of what is concluded is based on structural descriptions and opinions about relevant economic relationships.
Free trade impacts
by Kirby S. Moulton
| Full text HTML  | PDF  
The tomato processing industry has expanded more rapidly in Mexico than the fresh tomato industry. Export of tomato paste to the United States has doubled since 1986 and will increase still further when the US. tariff is eliminated under the Free Trade Agreement (FTA). This will permit Mexico to displace other suppliers to the U.S. market (such as Chile, Turkey and Taiwan). It will probably cause lower prices for U.S. producers as well.
Free trade impacts: Mexico's tomato processing industry may gain
by Kirby S. Moulton
| Full text HTML  | PDF  
Mexican export of tomato paste to the U.S. has doubled since 1986 and will increase further still if tariffs are eliminated.
The tomato processing industry has expanded more rapidly in Mexico than the fresh tomato industry. Export of tomato paste to the United States has doubled since 1986 and will increase still further when the US. tariff is eliminated under the Free Trade Agreement (FTA). This will permit Mexico to displace other suppliers to the U.S. market (such as Chile, Turkey and Taiwan). It will probably cause lower prices for U.S. producers as well. (Editor's note: Most tonnage statistics in this paper are in metric tons. In a few cases, U.S. tons have been used, and so designated. For conversion purposes, 1 metric ton = 2,205 lb; 1 US. ton =2,000 lb.)
U.S.-Mexico production costs compared: Asparagus, broccoli production likely to shift to Mexicali
by Refugio A. González, George E. Goldman, Rafael Ruíz, José Santana
| Full text HTML  | PDF  
Lower labor costs at harvest lend an economic advantage to Mexican broccoli and asparagus farmers.
Farmers in the Mexicali Valley of Baja California-North growing two specialty crops, asparagus (Asparagus officinalis) and broccoli (Brassica oleracea) hold an economic advantage over farmers growing the same two crops in the Imperial Valley of California. Potential shifts in production from the U.S. to Mexico may have an effect on the number of jobs, the private sales sector, and personal income in Imperial County.
Genetic improvement of beneficial insect…: Guthion-resistant parasite ready for implementation in walnuts
by Marjorie A. Hoy, Frances E. Cave, Michael A. Caprio
| Full text HTML  | PDF  
The Guthion-resistant walnut aphid parasite Trioxys pallidus has performed well in laboratory and field evaluations.
Because pesticides may depress populations of beneficial insects as well as target pests, biological control has historically played a limited role in integrated pest management (IPM). However, recent research has shown that pesticide-resistant parasites selected in the laboratory can be established in the field and enhance IPM programs. Continuing studies indicate that a Guthion-resistant strain selected at UCB performs well in two California orchards, and could be used to colonize other walnut orchards throughout the state. Additional releases would accelerate this process. Otherwise, large-scale establishment might take 5 to 10 years. Pesticide-resistant beneficials — whether selected In the laboratory or genetically engineered — may someday play an expanded role in IPM programs and the reduction of pesticide use.
Controlling ash, olive tree pest: Study describes ash borer infestations, tests management method
by Pamela S. Bone, Carlton S. Koehler
| Full text HTML  | PDF  
One chlorpyrifos spray during moth flight season prevented serious tree injury.
The ash borer represents a serious threat to ash and olive trees. Larvae invade trunks, and branches throughout the canopy. A single spray of chlorpyrifos applied during the moth flight season protected landscape ash from serious injury.
Triticale: an alternative cereal grain in broiler starter diets
by Pran Vohra, Sally Bersch, Calvin O. Qualset, Robert Becker
| Full text HTML  | PDF  
Locally produced triticale could reduce the amount of corn and soybean meal necessary in poultry diets, saving producers the cost of Midwest shipments.
California poultry diets typically contain about 60% corn and 30% soybean meal even though the bulk of these ingredients have to be transported from the Midwest. Triticale is a viable alternative feedstuff for poultry because it has a substantially higher protein content than corn and reduces the amount of soybean meal needed in poultry diets. This potential California crop could save the industry a substantial portion of its current shipments of Midwest corn and soybean meal.
Implementing CIMIS at the farm level: a grower's experience in walnuts
by Allan E. Fulton, Robert H. Beede, Rebecca C. Phene
| Full text HTML  | PDF  
When CIMIS recommendations were applied in one walnut orchard, the grower's net income increased an average of $245/ac annually.
The California Irrigation Management Information System (CIMIS) originated in 1982. Its purposes were to provide estimates of crop water requirements as influenced by real-time weather conditions and to ensure reasonable use of limited water supplies for farming. This study documents the effects of managing on-farm irrigation practices, with and without using CIMIS information, in a Kings County walnut orchard. In this example, increased water use, increased production, and increased profits were experienced as a result of implementing CIMIS information.

News and opinion

EDITORIAL
North American free trade: a strategy for California agriculture
by Kenneth R. Farrell
Full text HTML  | PDF  
PEER-REVIEWED
U.S.-Mexico production costs compared: Imperial Valley holds advantage in alfalfa, wheat and cotton
by Refugio A. Gonzalez, Juan N. Guerrero, Rafael Ruiz, Jose Santana
Full text HTML  | PDF  

Comparisons in the Imperial and Mexicali valleys reveal Mexico's lower yields and higher finance and interest charges result in higher costs per unit produced.

PEER-REVIEWED
U.S.-Mexico production costs compared: At present, livestock production more favorable in Imperial Valley
by Juan N. Guerrero, Nyles Peterson, José Calderón, Alejandro Plasencia, Refugio A. González
Full text HTML  | PDF  

With current costs and prices, livestock and dairy cattle production is most cost-effective in the U.S.

PEER-REVIEWED
How asparagus imports affect U.S. prices, grower returns and total acreage
by Ben C. French, Lois Schertz Willett
Full text HTML  | PDF  

Fresh asparagus imports may reduce asparagus prices in the short run, but in the long run imports are offset by reductions in domestic production.

PEER-REVIEWED
Do American farmers have a future in the Hong Kong market?
by Colin A. Carter
Full text HTML  | PDF  

The lucrative Hong Kong market may be threatened when the People's Republic of China regains control in 1997.

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California Agriculture, Vol. 45, No.5

U.S.-Mexico free trade: mixed blessing for farmers?
Cover:  Shipping agricultural and other cargo, Transportaci
September-October 1991
Volume 45, Number 5

Peer-reviewed research and review articles

Free trade with Mexico: economic impacts
by Raul Hinojosa-Ojeda, Sherman Robinson, Kirby S. Moulton
| Full text HTML  | PDF  
Economic models forecast that Mexico will benefit from increased economic growth and the U.S. from new market opportunities.
Economic models show that the U.S. will benefit economically from a free trade agreement (FTA), but Mexico is likely to benefit more. The creation of an FTA will result in the movement of labor and capital across sectors in both economies. The benefits to Mexico will be augmented if significant economic development occurs as a result of the agreement. The FTA is likely to cause a reduction or change in the mix of California horticultural products directly competitive with Mexico. (See sidebar, p. 7.) Market opportunities are expected to develop for other products.
Sidebar: Is “free trade” really free?: How the FTA will affect California agriculture
by Raul Hinojosa-Ojeda, Sherman Robinson, Kirby S. Moulton
| Full text HTML  | PDF  
Lowered tariff barriers would lead to stiffer Mexican competition in a range of specialty crops.
Abstract Not Available – First paragraph follows: While the accompanying article discusses potential free-trade impacts on agriculture as a whole, it does not focus on individual industries. Within each agricultural sector there will be winners and losers. Much attention in California has focused on the potential losses in the domestic production of vegetables caused by increased imports of such products from Mexico. One difficulty in assessing the impact of such production and trade shifts is the lack of adequate data to permit sound analysis. Therefore, much of what is concluded is based on structural descriptions and opinions about relevant economic relationships.
Free trade impacts
by Kirby S. Moulton
| Full text HTML  | PDF  
The tomato processing industry has expanded more rapidly in Mexico than the fresh tomato industry. Export of tomato paste to the United States has doubled since 1986 and will increase still further when the US. tariff is eliminated under the Free Trade Agreement (FTA). This will permit Mexico to displace other suppliers to the U.S. market (such as Chile, Turkey and Taiwan). It will probably cause lower prices for U.S. producers as well.
Free trade impacts: Mexico's tomato processing industry may gain
by Kirby S. Moulton
| Full text HTML  | PDF  
Mexican export of tomato paste to the U.S. has doubled since 1986 and will increase further still if tariffs are eliminated.
The tomato processing industry has expanded more rapidly in Mexico than the fresh tomato industry. Export of tomato paste to the United States has doubled since 1986 and will increase still further when the US. tariff is eliminated under the Free Trade Agreement (FTA). This will permit Mexico to displace other suppliers to the U.S. market (such as Chile, Turkey and Taiwan). It will probably cause lower prices for U.S. producers as well. (Editor's note: Most tonnage statistics in this paper are in metric tons. In a few cases, U.S. tons have been used, and so designated. For conversion purposes, 1 metric ton = 2,205 lb; 1 US. ton =2,000 lb.)
U.S.-Mexico production costs compared: Asparagus, broccoli production likely to shift to Mexicali
by Refugio A. González, George E. Goldman, Rafael Ruíz, José Santana
| Full text HTML  | PDF  
Lower labor costs at harvest lend an economic advantage to Mexican broccoli and asparagus farmers.
Farmers in the Mexicali Valley of Baja California-North growing two specialty crops, asparagus (Asparagus officinalis) and broccoli (Brassica oleracea) hold an economic advantage over farmers growing the same two crops in the Imperial Valley of California. Potential shifts in production from the U.S. to Mexico may have an effect on the number of jobs, the private sales sector, and personal income in Imperial County.
Genetic improvement of beneficial insect…: Guthion-resistant parasite ready for implementation in walnuts
by Marjorie A. Hoy, Frances E. Cave, Michael A. Caprio
| Full text HTML  | PDF  
The Guthion-resistant walnut aphid parasite Trioxys pallidus has performed well in laboratory and field evaluations.
Because pesticides may depress populations of beneficial insects as well as target pests, biological control has historically played a limited role in integrated pest management (IPM). However, recent research has shown that pesticide-resistant parasites selected in the laboratory can be established in the field and enhance IPM programs. Continuing studies indicate that a Guthion-resistant strain selected at UCB performs well in two California orchards, and could be used to colonize other walnut orchards throughout the state. Additional releases would accelerate this process. Otherwise, large-scale establishment might take 5 to 10 years. Pesticide-resistant beneficials — whether selected In the laboratory or genetically engineered — may someday play an expanded role in IPM programs and the reduction of pesticide use.
Controlling ash, olive tree pest: Study describes ash borer infestations, tests management method
by Pamela S. Bone, Carlton S. Koehler
| Full text HTML  | PDF  
One chlorpyrifos spray during moth flight season prevented serious tree injury.
The ash borer represents a serious threat to ash and olive trees. Larvae invade trunks, and branches throughout the canopy. A single spray of chlorpyrifos applied during the moth flight season protected landscape ash from serious injury.
Triticale: an alternative cereal grain in broiler starter diets
by Pran Vohra, Sally Bersch, Calvin O. Qualset, Robert Becker
| Full text HTML  | PDF  
Locally produced triticale could reduce the amount of corn and soybean meal necessary in poultry diets, saving producers the cost of Midwest shipments.
California poultry diets typically contain about 60% corn and 30% soybean meal even though the bulk of these ingredients have to be transported from the Midwest. Triticale is a viable alternative feedstuff for poultry because it has a substantially higher protein content than corn and reduces the amount of soybean meal needed in poultry diets. This potential California crop could save the industry a substantial portion of its current shipments of Midwest corn and soybean meal.
Implementing CIMIS at the farm level: a grower's experience in walnuts
by Allan E. Fulton, Robert H. Beede, Rebecca C. Phene
| Full text HTML  | PDF  
When CIMIS recommendations were applied in one walnut orchard, the grower's net income increased an average of $245/ac annually.
The California Irrigation Management Information System (CIMIS) originated in 1982. Its purposes were to provide estimates of crop water requirements as influenced by real-time weather conditions and to ensure reasonable use of limited water supplies for farming. This study documents the effects of managing on-farm irrigation practices, with and without using CIMIS information, in a Kings County walnut orchard. In this example, increased water use, increased production, and increased profits were experienced as a result of implementing CIMIS information.

News and opinion

EDITORIAL
North American free trade: a strategy for California agriculture
by Kenneth R. Farrell
Full text HTML  | PDF  
PEER-REVIEWED
U.S.-Mexico production costs compared: Imperial Valley holds advantage in alfalfa, wheat and cotton
by Refugio A. Gonzalez, Juan N. Guerrero, Rafael Ruiz, Jose Santana
Full text HTML  | PDF  

Comparisons in the Imperial and Mexicali valleys reveal Mexico's lower yields and higher finance and interest charges result in higher costs per unit produced.

PEER-REVIEWED
U.S.-Mexico production costs compared: At present, livestock production more favorable in Imperial Valley
by Juan N. Guerrero, Nyles Peterson, José Calderón, Alejandro Plasencia, Refugio A. González
Full text HTML  | PDF  

With current costs and prices, livestock and dairy cattle production is most cost-effective in the U.S.

PEER-REVIEWED
How asparagus imports affect U.S. prices, grower returns and total acreage
by Ben C. French, Lois Schertz Willett
Full text HTML  | PDF  

Fresh asparagus imports may reduce asparagus prices in the short run, but in the long run imports are offset by reductions in domestic production.

PEER-REVIEWED
Do American farmers have a future in the Hong Kong market?
by Colin A. Carter
Full text HTML  | PDF  

The lucrative Hong Kong market may be threatened when the People's Republic of China regains control in 1997.


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