- Appellation, Variety, and the Price of California Wines. This research paper by Oh Sang Kwon, Hyunok Lee, and Daniel A. Sumner shows how variety and California appellation interact to affect premium wine prices. University of California Giannini Foundation of Agricultural Economics. ARE Update. Vol. 11, No. 4, March/April 2008.
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Recent Trends in the California Wine Grape Industry. Over the last 30 years the wine grape industry has expanded rapidly in acreage and production. As shown in this paper by Richard Volpe, Richard Green, Dale Heien and Richard Howitt growth has has been driven by changes in consumer demand and has not been uniform across grape varieties or in the major growing regions. University of California Giannini Foundation of Agricultural Economics. ARE Update. Vol. 11, No. 4, March/April 2008.
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Current Economic Trends in the California Wine Industry. The number of wine grape growers is growing slowly but the number of wineries has doubled in the past decade. Rachael E. Goodhue, Richard D. Green, Dale M. Heien and Philip L. Martin. University of California Giannini Foundation of Agricultural Economics. ARE Update. Vol. 11, No. 4, March/April 2008.
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Market Power in the Corn Sector: How Does It Affect the Impacts of the Ethanal Subsidy? University of California Agricultural Issues Center, 2008 - Market power is discussed frequently in debates about subsidies for ethanol production. The structural conditions in the corn industry create a case for concerns about market power. This paper by Tina L. Saitone, Richard J. Sexton and Steven E. Sexton develops an analytical model for determining the production and price impacts and the distribution of benefits from the U.S. ethanol subsidy when upstream sellers in the seed sector and downstream buyers in the processing sector may exercise market power. Results demonstrate that the impacts on prices and output are limited for modest departures from competition. Distributional impacts are much greater. Seed producers and corn processors with market power are able to capture relatively large shares of the benefits of the subsidy.
- Minimum Quality Standards, Industry Self Regulation, and Economic Welfare, February 2008 - This paper by Tina L. Saitone and Richard J. Sexton at the University of California, Davis addresses the impact of producers collectively imposing minimum quality standards (MQS) on their own industry. One benefit of an imposed MQS is that it enhances quality in production, however with a voluntary program, consumers actually lose and it may create a net loss to the economy as a whole.
- Wild Pigs in California: The Issues. Marcia Kreith, AIC Issues Brief No. 33, December 2007 - The story of the wild pig in California, its economic and environmental impacts and evolving policy concerns.
- California's International Agricultural Exports in 2006, Omid Rowhani and Daniel A. Sumner, AIC Issues Brief No. 32, December 2007.
- Farm Subsidies and Obesity in the United States, Julian M. Alston, Daniel A. Sumner and Stephen A. Vosti, November/December 2007 - This University of California study finds no evidence to support the claim that farm subsidies have contributed significantly to obesity.
- Trends in the Marketing of Fresh Produce and Fresh-cut Products. Roberta Cook, Agricultural Issues Center University of California, November 2007.
- Effects of Milk Marketing Order Regulation on the Share of Fluid-grade Milk in the United States, Joseph V. Balagtas, Aaron Smith and Daniel A. Sumner, Paper forthcoming in the American Journal of Agricultural Economics, 2007 - The share of raw milk meeting fluid quality (Grade A) standards in the United States rose steadily through the latter half of the 20th Century, but a shrinking portion of that milk was used in fluid products. The authors' findings support the hypothesis that marketing orders significantly encouraged the growth in Grade A share of milk, which has been increasingly used for manufactured dairy products.
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The Farm Bill and California Food and Agriculture, by Daniel A. Sumner, July 2007 - Every five years or so the United States reconsiders its major food, farm and rural policies in a new "Farm Bill." AIC Farm Bill Brief #1 provides an overview for considering the options for the 2007 Farm Bill.
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Nutrition Issues to Address in the Farm Bill 2007: A California Perspective, by Lucia Kaiser and Catherine Lamp, AIC Farm Bill Brief #2, July 2007 - The Nutrition title of the 2007 Farm Bill provides Congress the vehicle to revise these programs and reorient the outlays to the most important national priorities. California consumers, producers and taxpayers have a major stake in assuring that revisions be undertaken in the interest of more effective programs.
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Organic Agriculture in the 2007 Farm Bill, by Karen Klonsky, AIC Farm Bill Brief #3, July 2007 - The 2007 Farm Bill is likely to address issues important for producers and consumers, especially research and development and additional support to facilitate the growth of the organic industry.
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Agricultural Research Policy and the 2007 Farm Bill: Some California Perspectives
, by Julian M. Alston and Philip G. Pardey, AIC Farm Bill Brief #4, July 2007 - USDA spending under "Research, Education and Economics" accounted for $2.7 billion, only 2.2 percent of USDA spending in 2005, but is much more important than the expenditure share would suggest.
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The Farm Bill and California Dairy, by Joseph Balagtas, Hayley Boriss and Daniel A. Sumner, AIC Farm Bill Brief #5, July 2007 - Dairy policy is particularly important to California. Dairy producers, consumers and the rural economy and environment all have a stake in federal dairy policy. Dairy is by far the largest agricultural industry in California, accounting for about 14 percent of agricultural value in the state.
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Agricultural Conservation and the 2007 Farm Bill: A California Perspective, by Antoine Champetier de Ribes and Daniel A. Sumner, AIC Farm Bill Brief #6, July 2007 - Revising conservation programs can have significant impacts on both agricultural production and environmental quality. The brief describes the main environmental programs in the Farm Bill and considers their implications from a California perspective.
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Farm Bill Energy Provisions: A California Perspective, by Hyunok Lee and Daniel A. Sumner, AIC Farm Bill Brief #7, July 2007 - Energy is among the most discussed topics in the lead up to the 2007 Farm Bill. While the high cost of energy to farmers and ranchers has been raised, that issue has not been central to the discussion. Instead, the main focus has been on programs related to agriculture as a producer of energy, especially biofuels.
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Dissipation of Regulatory Rents: Neglected Cost of Milk Marketing Orders, University of California Agricultural Issues Center Working Paper, June 2007 - Joseph V. Balagtas and Daniel A. Sumner's paper models and measures the losses incurred when farmers compete for access to the program benefits in the context of milk marketing orders in the United States. Participation costs are shown to significantly reduce producer benefits and increase social costs of the regulation. Gains from program participation attracted entry into the regulated market, resulting in excess production of beverage quality milk for the manufacturing milk market.
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The Growth and Direction of the Biodiesel Industry in the United States, Nick D. Paulson and Roger G. Ginder, Center for Agricultural and Rural Development (CARD) Working Paper 07-WP 448, Iowa State University, May 2007.
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Impact of High Crop Prices on Environmental Quality: A Case of Iowa and the Conservation Reserve Program, Silvia Secchi and Bruce A. Babcock, Center for Agricultural and Rural Development (CARD) Working Paper 07-WP 447, Iowa State University, May 2007.
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Statistical Review of California's Organic Agriculture 2000-2005, Karen Klonsky and Kurt Richter, University of California Agricultural Issues Center, May 2007 - This publication quantifies the current size and growth of the organic industry in California in terms of acres, farm gate sales and number of growers statewide and by commodity, commodity group, county and region, based on California Department of Agriculture registration data from 1999-2005.
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Watching Corn Grow: A Hedonic Study of the Iowa Landscape, Silvia Secchi, Center for Agricultural and Rural Development (CARD) Working Paper 07-WP 445, Iowa State University, April 2007.
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After the Ban: The Japanese Market for U.S. Beef, Roxanne Clemens, Midwest Agribusiness Trade Research and Information Center (MATRIC) Briefing Paper 07-MBP 12, Iowa State University, April 2007.
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California's International Agriculture Exports in 2005, Omid Rowhani and Daniel A. Sumner, AIC Issues Brief No. 31, April 2007.
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Agriculture's Role in the Economy, University of California Agricultural Issues Center (UC AIC), March 2007 - This report summarizes the direct and multiplier effects of agriculture in the California economy and regions of the state. It also discusses California agriculture in the global context. Preprint of Chapter five in UC AIC's "The Measure of California Agriculture, 2006."
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Adoption Subsidies and the Environmental Impacts of Alternative Energy Crops, Center for Agricultural and Rural Development (CARD) Briefing Paper 07-BP 50, Iowa State University, March 2007 - The authors estimate the costs associated with converting land from production of traditional crops to switchgrass. The results indicate that farmers will convert to switchgrass production only with significant conversion subsidies.
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The Recent International and Regulatory Decisions about Geographical Indications, Midwest Agribusiness Trade Research and Information Center (MATRIC) Working Paper 07-MWP 10, Iowa State University, January 2007 - As worldwide consumer demand for high-quality products and for information about these products increase, labels and geographical indications (GIs) can be used to indicate quality traits to consumers. In this paper, the authors discuss the dispute between the European Union (EU) and the United States, the World Trade Organization panel decision, and the EU response to the panel decision leading to a new regulation.
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Effects of Price Premiums for Multiple Product Attributes on Product Quality (pdf) by Corinne Alexander, Rachael E. Goodhue, Sandeep Mohapatra and Gordon C. Rausser, December 2006 - The authors examine how growers respond to price incentives and how these incentives interact for two important processing tomato quality attributes: limited use tomatoes and material other than tomatoes.
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An Analysis of the LInk Between Ethanol, Energy, and Crop Markets, Center for Agricultural and Rural Development (CARD) Working Paper 06-WP 435, Iowa State University, November 2006 - This study analyzes the impact of price shocks in three input and output markets critical to ethanol--gasoline, corn, and sugar--in the United States and Brazil.
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Traceability, Liability and Incentives for Food Safety and Quality by Sébastien Pouliot and Daniel A. Sumner, November 2006 - Pouliot and Sumner show how exogenous increases in food traceability create incentives for farms and marketing firms to supply safer food by increasing liability costs.
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The Long-Run Impact of Corn-Based Ethanol on the Grain, Oilseed, and Livestock Sectors: A preliminary assessment, Center for Agricultural and Rural Development (CARD) Briefing Paper 06-BP 49, Iowa State University, November 2006 - The ongoing growth of corn-based ethanol production raises some fundamental questions about what impact continued growth will have on U.S. and world agriculture. The authors estimate the long-run potential for ethanol production by calculating the corn price at which the incentive to expand ethanol production disappears.
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EU Support Reductions Would Benefit California Tomato Growers and Processors (pdf), Bradley J. Rickard and Daniel A. Sumner, California Agriculture, October-December 2006 - Article that presents a simulation model from a 50 percent reduction in European Union trade barriers and subsidies.
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Removal of U.S. Ethanol Domestic and Trade Distortions: Impact on U.S. and Brazilian ethanol markets, Center for Agricultural and Rural Development (CARD) Working Paper 06-WP 427, Iowa State University, October 2006 (revised) - Using a multi-market international ethanol model calibrated on 2005 market data and policies, the authors analyze the impact of trade liberalization and removal of the U.S. federal tax credit on U.S. and Brazilian ethanol markets. The removal of trade distortions and $0.51 per gallon tax credit to ethanol refiners induces a 16.5 percent increase in the world ethanol price.
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Food Retailers' Pricing and Marketing Strategies, with Implications for Producers (pdf). Lan Li, Richard J. Sexton and Tian Xia, University of California Agricultural Issues Center, September 2006 - This research paper examines grocery retailers' ability to influence prices charged to consumers and paid to suppliers. It also discusses the impacts of aspects of retailer behavior on the upstream farm sector.
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Clusters of Grapes and Wine, Rolf A.E. Mueller and Daniel A. Sumner, University of California Agricultural Issues Center, July 2006 - This research paper discusses the theory of clusters and the competitiveness and spatial organization of the California wine industry.
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Political Market Power of Milk Producers Reflected in U.S. Milk Pricing Regulations, Byeong-Il Ahn and Daniel A. Sumner, July 2006 - This University of California paper assesses the political market power of milk producers relative to buyers in two ways.
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Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare impacts and policy implications, Midwest Agribusiness Trade Research and Information Center (MATRIC) Working Paper 06-MWP 9, Iowa State University, May 2006 - This paper examines the incentive of agricultural producers within a specific geographic region to differentiate and collectively market products.
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Supply and Demand for Commodity Components: Implications of Free Trade versus the AUSFTA for the U.S. Dairy Industry, University of California Agricultural Issues Center, May 2006 - This paper presents a simulation model of world dairy markets and analyzes the effects on U.S. milk markets of both a hypothetical agreement allowing free bilateral trade in dairy products and the actual Australian-U.S. Free Trade Agreement.
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Health Information and the Choice of Fish Species: An experiment measuring the impact of risk and benefit information, Center for Agricultural and Rural Development (CARD) Working Paper 06-WP 421, Iowa State University, April 2006 - The impact of health information on consumers' choice between two different types of fish was evaluated in France. The results showed the significance of order and type of information as well as information about risks, rather than about benefits.
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Bee-conomics and the Leap in Pollination Fees. University of California Agricultural Issues Center, April 2006 - This paper describes honeybee supply, demand issues and the operation of the pollination market. Commercial pollination services are mostly provided by honeybees through a long-standing and well-organized market. Recently, honeybee pests and other problems have reduced available supplies, while expansion of almond acreage has increased peak-season demand. The resulting leap in pollination fees follows from these market fundamentals.
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Alpaca Lies? Do Alpacas Represent the Latest Speculative Bubble in Agriculture? Agricultural Issues Center, University of California, January 2006.
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Business Organization and Coordination in Marketing Specialty Hogs: A Comparative Analysis of Two Firms from Iowa (pdf), Center for Agricultural and Rural Development (CARD), Iowa State University, November 2005 - This working paper looks at the business organization and coordination of specialty-market hog production, using a comparative analysis of two Iowa pork niche-marketing firms. It describes and analyzes each firm's management of five key organizational challenges: planning and logistics, quality assurance, process verification and management of "credence attributes," business structure, and profit sharing.
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The U.S. Ethanol Industry: Where Will it be Located in the Future?, University of California Agricultural Issues Center, November 2005 - This Kansas State University report provides an overview of the potential demand for distillers grains based on the location of animal agriculture in the United States.
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Managing Quality Under Heterogeneous Consumer Demand and Product Quality, Center for Agricultural and Rural Development (CARD), Iowa State University, October 2005 - Based on accepted advances in the marketing, economics, consumer behavior and satisfaction literatures, this paper develops a micro-foundations model of a firm that needs to manage the quality of a product that is inherently heterogeneous in the presence of varying customer tastes or expectations for quality.
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Cooperatives and Contracting in Agriculture: The Case of West Liberty Foods, Center for Agriculture and Rural Development (CARD) Working Paper 05-WP 408, October 2005 - The West Liberty Foods turkey cooperative was formed in 1996 to purchase the assets and assume operations of Louis Rich Foods (an investor-owned processing firm), which, at the time, announced the imminent shutdown of its West Liberty, Iowa, processing facility. The paper studies the creation and performance of this "new generation" cooperative, using field interviews with grower members and company management.
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Economic Consequences of Invasive Species Policies in the Presence of Commodity Programs: Theory and Application to Citrus Canker, Review of Agricultural Economics, Vol 27, Number 3, September 2005 issue, pp 498-504. DOI: 10.1111/j.1467-9353.2005.00250.x
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Industry-Initiated Regulation and Food Safety: the New Federal Marketing Order for Pistachios, University of California Giannini Foundation of Agricultural Economics, ARE Update, Vol. 8, No. 6, July/August 2005.
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Economics of Strawberry Productions with Alternative Fumigants - A summary presentation on results of Oxnard and Watsonville field trials with alternatives to methy bromide fumigation in strawberry production.
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Money-Back Guarantees and the Value of Decision Time: An Empirical Analysis. August 2005 - This paper provides an empirical estimate of consumers' willingness to pay for return policies of different durations. Using data from California, the paper shows significant willingness to pay for longer return periods and higher premiums for purchases through catalogues and the Internet. Guarantees are crucial elements of marketing strategies, and understanding their economics and use is important. It is especially important to design effective guarantee policies to promote adoption of new technologies and to introduce new products. These two elements are strongly associated with rural development.
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Religion, Religiosity, and the Consumption of Timesaving Foods, August 2005 - This draft paper demonstrates the importance of socioeconomic factors such as religious affiliation, age and intensity of belief in demand for food. It demonstrates that intensity of belief affects lifestyle and has a significant effect on portfolio of foods consumed. It is important for marketers to know how religion and other belief systems affect consumers' food preferences and the extent to which consumers adhere to religious or cultural norms.
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Marketing Institutions, Risk, and Technology Adoption, June 2005 - This preliminary draft paper aims to combine the results from several lines of research to analyze how marketing activities can be both risk and transaction-cost reducing and, therefore, enhance adoption. It provides a new framework for adoption that takes into account the influences of both extension and word of mouth with marketing tools like advertisements, sampling, and demonstrations.
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Fit Risk: Secondhand Market versus Money-back Guarantee, April 2005 - Analyzes effects of two post purchase mechanisms (money-back guarantees and secondhand markets) in reducing the fit risk consumers may face when they purchase products.
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The Welfare Economics of a Money-back Guarantee in Retailing, University of California Agricultural Issues Center, April 2005 - Analyzes the welfare economics of money-back guarantees for products provided by monopolies facing heterogeneous consumers.
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The Economics of Brands. University of California Agricultural Issues Center, April 2005 - This working paper presents a framework for producers of brands to determine the price premium based on the information of consumers' willingness to pay and the extra marginal cost required to produce brands.
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Grassfed Certification: The Case of the Uruguayan Beef Industry. University of California Agricultural Issues Center, May 2005 - Kansas State University and ORT University report on the development and operation of Uruguay's beef traceability (DIOSE) program and industry. Discusses whether U.S. producers could benefit from USDA Process Verification certification for grassfed beef production systems.
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The Changing Marketplace for California Crops: Focus on Fruits and Vegetables, Department of Agricultural and Resource Economics, University of California, Davis, March 2005 - A summary of production and market trends. PowerPoint presentation.
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Labeling Regulations and Segregation of First- and Second-Generation Genetically Modified Products: Innovation Incentives and Welfare Effects (pdf), Center for Agricultural and Rural Development (CARD), Iowa State University, April 2005 - This paper reviews issues and results on the economic effects of genetically modified product innovation, with emphasis on the question of labeling and the need for costly segregation and identity preservation activities.
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The Availability and Cost of Healthier Food Items, AIC Issues Brief No. 29, March 2005 - This study examines the availability of healthier food items in grocery stores and compares the cost of a standard market basket of foods to a healthier basket with low-fat meat and dairy, and whole grains.
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Mountain States Lamb Cooperative: Vertical Integration into Lamb Processing, Kansas State University, March 2005 - This case study outlines the role the cooperative played in shaping the future of the sheep industry for its members.
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Costs and Benefits of Marketing Differentiated Beef through Process-Verified Systems (pdf), University of California Agricultural Issues Center, February 2005 - This reports on analysis conducted at Kansas State University on the costs of developing and implementing a process-verified program. Extensive producer interviews provided input.
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Positioning California's Agricultural Cooperatives for the Future, University of California Giannini Foundation of Agricultural Economics, ARE Update, Vol. 8, No. 3, January/February 2005.
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California's International Agricultural Exports in 2003, AIC Issues Brief No. 28, December 2004.
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A Multinomial Logit Framework to Estimating Bid Shading in Procurement Auctions, With Application to Cattle Sales in the Texas Panhandle, Kansas State University and the University of California, Davis, June 2004 - In this paper, an empirical model is developed to estimate the magnitude of bid shading present in an auction based on multinomial probability models.
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Statistical Review of California's Organic Agriculture 1998-2003 (December 2005), Karen Klonsky and Kurt Richter, University of California Agricultural Issues Center - This publication quantifies the current size and growth of the organic industry in California in terms of acres, farm gate sales and number of growers statewide and by commodity, commodity group, county and region, based on California Department of Agriculture registration data from 1997-2003.
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