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The Economics of Commodity Promotion Programs

Lessons from California

Harry M. Kaiser, Julian M. Alston, John M. Crespi and Richard J. Sexton

Mandated agricultural commodity promotion programs – such as «Got Milk» – are highly visible, economically important, and controversial. In recent years, these programs have spent more than $1 billion on generic commodity promotion. They are authorized by producer referenda and funded using mandatory commodity taxes on producers and/or handlers. These programs have been the subject of much dispute and litigation, especially in California, which is home to a large number of them. This book takes a comprehensive look at the economic consequences and the resulting legal implications of commodity promotion programs in California, and distills the key consequences for similar programs on a national scale.
Contents: Julian M. Alston/John M. Crespi/Harry M. Kaiser/Richard J. Sexton: Introduction to the Economics of Commodity Promotion Programs – Hoy F. Carman/Julian M. Alston: California’s Mandated Commodity Programs – John M. Crespi: Generic Advertising’s Long History and Uncertain Future – Julian M. Alston/James A. Chalfant/Jason E. Christian/Erika Meng/Nicholas E. Piggott: The Benefits and Costs of Promotion Programs for California Table Grapes – Todd M. Schmit/J. Carlos Reberte/Harry M. Kaiser: An Economic Analysis of Generic Egg Advertising in California – Julian M. Alston/Hoy F. Carman/James A. Chalfant/ John M. Crespi/Richard J. Sexton: Evaluation of Prune Promotion by the California Dried Plum Board – Hoy F. Carman/R. Kim Craft: Evaluation of Avocado Promotion by the California Avocado Commission – John M. Crespi/Richard J. Sexton: Evaluating the Effectiveness of California Almond Promotion: How Much Did the Litigation Cost Producers? – Harry M. Kaiser: An Economic Analysis of the Walnut Marketing Board’s Promotion Programs – Harry M. Kaiser/Donald J. Liu/Ted Consignado: An Economic Analysis of California Raisin Export Promotion – Colin A. Carter/James A. Chalfant/Rachael E. Goodhue: The Red Edge: Demand-Enhancing Strategies for California Strawberries – Henry W. Kinnucan/Yuqing Zheng: National Benefit-Cost Estimates for the Dairy, Beef, Pork, and Cotton Promotion Programs – Julian M. Alston/James A. Chalfant/Jennifer S. James: Evaluation of Nutrition Education by the Dairy Council of California – Timothy J. Richards/Paul M. Patterson: The Economic Value of Spin Control: Food Safety and the Strawberry Case – Joseph V. Balagtas/Daniel A. Sumner: Returns to the Dairy Check-Off Investment in Research for New uses for Whey – Julian M. Alston/Henrich Brunke/Richard S. Gray/Daniel A. Sumner: Demand Enhancement through Food-Safety Regulation: A Case Study of the Marketing Order for California Pistachios – Julian M. Alston/John M. Crespi/Harry M. Kaiser/Richard J. Sexton: The Economics of Commodity Promotion Programs: Summary and Synthesis.