OntarioOntario Reef Producers' Attif1.!des aboutabout .t'-.1iificialBeef Producers’ Attitudes Artificial InseminationInsemination

WayneWayne H.H. HowardHoward andand JohnJohn CranfieldCranfield

1Associate professor,professor, DepartmentDepartment ofof AgriculturalAgricultural EconomicsEconomics andand Business,Business, UniversityUniversity ofof‘Associate Guelph,Guelph, Guelph,Guelph, Ontario;Ontario; whilewhile thethe final versionversion waswas beingbeing completed,completed, VisitingVisiting academic,academic,finaZ

Dt:partment ofof AgricultureAgriculture andand ResourceResource Econonlics, UniversityUniversity ofof NewNew England.England. 22 GraduateGraduate researchresearch assistant,assistant, DepartmentDepartment ofof AgriculturalAgricultural EconomicsEconomics andand Business,Business,

UniversityUniversity ofof Guelph,Guelph, Guelph,Guelph, Ontario.Ontario.

Department Economics,

CharacteristicsCharacteristics andand attitudesattitudes ofof OntarioOntario beefbeefproducersproducers whowho useuse artificialartificial insemiTUltion andand thosethose whowhoinsemination

useuse TUltural breedingbreeding areare compared.compared. NaturalNatural breedersbreeders areare characterizedcharacterized asas largerlarger asas wellwell asas moremore

commercialcommercial andand profitprofit oriented.oriented. Time,Time, convenienceconvenience andand problemsproblems withwith heatheat detectiondetection areare thethe mainmain natural

problemsproblems TUltural breedersbreeders associateassociate withwith artificial insemiTUltion.natural artiBcia1 insemination.

NousNous avons comparecompare lesles caractiristiques etet lesles comportementscomportements desdes producteursproducteurs dede bovinsbovins dede boucherieavons caracteristiques bouchetie dede I'Ontario quiqui recourentrecourent dd I'insemination artificielle (fA) avecavec celie desdes producteursproducteurs utilisantutilisant La montemonte1‘Ontario 1‘insdmination artifkielle (IA) celle la

naturelle.naturelle. LesLes exploitationsexploitations enen montemonte naturellenaturelle sontsont plusplus grandesgrandes et davantagedavantage axles sur Ie march!et a&es sur le marcht et sur La rentabiliti. Le tempstemps requis,requis, Ie manquemanque dede commoditi et lesles difficultis de detection desdes chaleurschaleurset sur la rentabilite. L.e le commoditt! et dificultes & aVtection

sontsont ies principauxprincipaux probiemes queque ces eieveurs associenr avec La pratiquepratique dede i'insemiTUltion anificielle.les probl2mes ces eleveurs associent avec la 1‘insemination artificielle.

qualityquality bullbull usuallyusually costscosts lessless thanthan thethe per-headper-headINTRODUCTIONINTRODUCTION

annualizedannualized costcost ofof owTring andand maintairring thatthatowning maintainingTheThe dairy,dairy, swineswine andand poultrypoultry sectorssectors havehave

bull.bull. Hence,Hence, AIAI can helphelp smallersmaller operationsoperationsmademade largelarge gainsgains inin proouctivirj inin partpart duedueproductivity

can toto accessaccess betterbetter geneticsgenetics atat a lowerlower cost.cost. ThereThere

toto geneticgenetic selectionselection throughthrough artificialartificial insemi­ ainsemi- C3&'1 bebe difficultiesdifficulties associatedassociated \vitll AA~. CowsCowscan with AI.

nationnation (AI).(AI). TheThe beefbeef sectorsector hashas notnot keptkept pacepace inin heatheat needneed toto bebe identified,identified, collectedcollected andand

withwith thisthis rapidrapid geneticgenetic improvement.improvement. BeefBeef inseminated,inseminated, whichwhich requiresrequires more managerialmanagerial

producersproducers use AI,AI, butbut notnot toto thethe extentextent thatthat more use abilityability andand laborlabor timetime tha.n doesdoes naturalnatural

otherother livestocklivestock producersproducers do.do. ForFor example,example, than breeding.breeding. MoreMore facilitiesfacilities to workwork andand holdhold

thethe OntarioOntario AIAI CentresCentres estimateestimate thatthat over 9595 %% toover cows are aiso requiredrequired withwith AI.AI. However,However, AIAI

ofof thethe dairydairy producersproducers inin theirtheir areas use AI,AI, cows are alsoareas use isis generallygenerally regardedregarded as bothboth efficientefficient andand

butbut ordy 5-10% of thethe beefbeef producersproducers dodo asonly 510% of beneficial.beneficial. GivenGiven thethe relativerelative advantagesadvantages of AIAI(O'Connor 1993).1993). of(O’Connor inin die beefbeef industry', u'ie questionquestion is:is: "'by dodo

TheThe primaryprimary advantageadvantage ofof AIAI over naturalnatural the industry, the Whyover so fewfew beefbeef producersproducers use AIAI on theirtheir herds?herds?

breedingbreeding (NB)(NB) isis thethe fasterfaster spreadspread of geneticgenetic so use onof improvementimprovement throughoutthroughout a herdherd (Lasley' ThisThis paperpaper isis an analysisanalysis of characteristicscharacteristicsana (Lasley of 1981). There alsoalso ca.. bebe cost advantagesadvantages fromfrom andand attitudesattitudes of OntarioOntario beefbeef producersproducers aboutabout1981). There can cost of

AI.AI. InIn particular,particular, AIAI users andand nonusers areAI.AI. For an average-sizedaverage-sized (30(30 cow)cow) OntarioOntario usersFor an nonusers are cow-calf operation (Howard and Filson 1994), an ampoule of semen from a high-

identified in terms of farm and personal characteristics, attitudes about breeding

cow-calf operation (Howard and Filson 1994), an ampoule of semen from a high-

identified in terms of farm and personal characteristics, attitudes about breeding

objectives,objectives, easeease ofofAI,AI, andand businessbusiness strategy.strategy. ItIt isis hypothesizedhypothesized thatthatbeefbeefproducersproducers whowhouseuse AIAI maymay receivereceive moremore marginalmarginal utilityutility fromfrom owningowning andand workingworking cowscows andand fromfrom thethe pres­tigetige associatedassociated withwith herdherd improvementsimprovements thanthan

pres-

fromfrom profitsprofits fromfrom theirtheir beefbeefoperations;operations; Le., aa beefbeef enterpriseenterprise maymay havehave anan aspectaspect ofof “hobby enterprise”"hobby enterprise" com-

i.e.,

eveneven onon otherwiseotherwise com­mercialmercial farms.farms. ResultsResults fromfrom thisthis analysisanalysis provideprovide insightsinsights aboutabout technologytechnology adoptionadoption withwith resPect toto sizesize ofofoperationsoperations andand "hobbyrespect “hobby farm" enterprises.enterprises. TheseThese insightsinsights cancan helphelp AIAI CentresCentres withwith thethe marketingmarketing ofof theirtheir servicesservices toto beefbeef producers.producers.

farm”

THEORETICALTHEORETICAL MODELMODEL

GeneticGenetic imProvement cancan bebe viewedviewed asas aa formform ofof technicaltechnical change;change; inin effect,effect, anan improvedimproved geneticgenetic traittrait isis aa modificationmodification ofof thethe existingexisting beefbeef productionproduction technology.technology. BeefBeef producersproducers implicitlyimplicitly knowknow thethe valuevalue ofof aa specificspecific geneticgenetic trait,trait, andand bidbid upup thethe priceprice ofof aa bullbull possessingpossessing thatthat traittrait (Kerr(Kerr 1984).1984). ThisThis scenarioscenario assumesassumes thatthat beefbeef producersproducers havehave perfectperfect informationinformation

improvement

aboutabout aa bull's geneticgenetic traitstraits andand thatthat theirtheirbull’s objectivesobjectives areare economic;economic; e.g.,e.g., profitprofit maxi­mization,mization, costcost and/orand/or riskrisk minimizing .

maxi-minimizing.

However,However, noneconomicnoneconomic objectives,objectives, suchsuch asas socialsocial andand personalpersonal factors,factors, havehave notnot beenbeen rejectedrejected forfor small,small, part-timepart-time beefbeef operatorsoperators (Young(Young andand ShumwayShumway 1991).1991). Hence,Hence, itit maymay bebe reasonablereasonable toto assumeassume thatthat thethe objectiveobjective ofof somesome beefbeef producersproducers isis utilityutility maximization,maximization, wherewhere utilityutility isis a functionfunction ofof severalseveral eco­nomic,nomic, socialsocial andand personalpersonal factors.factors.

OntarioOntario beefbeef producersproducers cancan bebe assumedassumed

a eco-

toto behavebehave asas ifif theythey maximizemaximize utility, specifically:specifically:

utility,

U = U(P,I,EIZ) (1)(1)I.J = U(p,l,E)Z)

p = PF(NB,AI,L,KJZ)P = PF(NB,AI,L.~z) - CajAI - CnbNB ­- C&I - C*NB -

w(t,Al + t,,JVB ++ L)L) -- (2)w(tajAJ + t~B C(K)C(K) (2)

1 = 1[B(Q(AI,NB»,RIZ] (3)1 = 1[B(PW,NB)),RI 21 (3)

subjectsubject to:to:

T=L+l+t,+tb= L + 1 + taj + tb (4)(4)T

wherewhere UU == aa well-behavedwell-behaved utilityutility function,function, p == netnetprofitprofit fromfrom thethe beefbeefoperation,operation,P 11 == isis leisureleisure time,time, EE = = otherother income,income, andand ZZ = = aa vectorvector ofof socialsocial andand personalpersonal

characteristics.characteristics. BeefBeef isis producedproduced withwith aa well-behavedwell-behaved produc­tiontion function,function, F(.),F(.), byby AIAI oror NB,NB, operatoroperator labor,labor, L,L, andand otherother fixedfixed andand variablevariable inputs,inputs, K,K, includingincluding cows,cows, land,land, equipment,equipment, feed,feed, etc.etc. BeefBeef isis soldsold atat priceprice P.P. BreedingBreeding hashas positivepositive

produc-

nonlabornonlabor costscosts Caj andand Cnb andand requiresrequires timetime taitaj andand tnb,tnb' forfor AIAI oror NB,NB, respectively.respectively.

cd cd

BreedingBreeding timetime isis valuedvalued atat thethe farmer's oppor­farmer’s oppor-tunitytunity costcost wagewage rate,rate, W, andand otherother costscosts areare aa functionfunction ofof otherother inputs,inputs, C(K).C(K).

w,

Leisure,Leisure, I, isis aa functionfunction ofof thethe beefbeef enter­prise,prise, B(Q),B(Q), andand otherother activities,activities, R,R, wherewhere QQ isis anan indicatorindicator ofof "quality,"“quality, ” asas determineddetermined byby thethe showshow ring,ring, geneticgenetic potential,potential, oror somesome otherother attributeattribute thatthat providesprovides “bragging

1, enter-

"bragging rights" forfor thethe farmer.farmer. TheThe relationshiprelationship betweenbetween thethe quantityquantity ofof beefbeef producedproduced andand rights”

B(Q)B(Q) isis indeterminate,indeterminate, butbut B(Q)B(Q) > 00 ifif F(.) >> 0,0, B(Q)B(Q) == 00 otherwise,otherwise, andand 8B/8Q >> O.

> F( .) i?BlaQ 0.

Quality,Quality, Q,Q, cancan bebe obtainedobtained throughthrough eithereither AIAI oror NB.NB.

AvailableAvailable time,time, T,T, isis limited,limited, andand isis allocatedallocated amongamong productiveproductive (Le., income­generating)generating) laborlabor LL includingincluding beefbeef activitiesactivities (not(not includingincluding breeding),breeding), leisureleisure (which(which maymay

(i.e., income-

includeinclude beefbeef activities),activities), andand beefbeef breeding.· SolvingSolving Eq.Eq. 11 withwith constraintconstraint Eq.Eq. 44 andand

rearrangingrearranging yields:yields:

breeding. ’

C; + wt; (UIIUP)MVP;MWi == Ci + Wti -- (UI/Up)

(8118B)(8B/iJQ;) (5)(5)@llaB)(aBlaQi)

wherewhere i AIAI oror NB.NB. IfIf MVP;> MVPaj, thethei == MWi> MVJPd, producerproducer willwill useuse AIAI ratherrather thanthan NB;NB; other­other-wise,wise, NBNB willwill bebe used.used. However,However, thethe deci­sionsion isis notnot basedbased entirelyentirely onon thethe costscosts andand returnsreturns ofof thethe breedingbreeding method.method. IfIf thethe producerproducer receivesreceives utilityutility fromfrom havinghaving andand workingworking withwith cows,cows, andand AIAI providesprovides moremore

deci-

"quality" thanthan NBNB does,does, thenthen itit isis possiblepossible“quality”

thatthat thethe leisureleisure aspectaspect ofof AI,AI, thethe "bragging“bragging rights" associatedassociated withwith high-qualityhigh-quality beef,beef, areare moremore importantimportant thanthan thethe profitsprofits receivedreceived fromfrom thethe beefbeef enterprise.enterprise. Hence,Hence, itit isis reasonablereasonable toto hypothesizehypothesize thatthat thethe decisiondecision toto useuse AIAI oror NBNB maymay bebe basedbased onon thethe relativerelative costscosts andand returnsreturns

rights”

fromfrom AIAI andand NB, thethe timetime requiredrequired forfor breeding,breeding, whetherwhether oror notnot owningowning andand workingworking

Nl3,

cowscows entersenters thethe producer's utilityutility functionfunctionproducer’s directly,directly, andand thethe producer's relativerelative marginalmarginal utilityutility fromfrom leisureleisure andand profit.profit.

producer’s

METHODSMETHODS

Eq.Eq. 55 cannotcannot bebe directlydirectly estimated;estimated; thethe expectedexpected MPVMPV fromfrom AIAI oror NBNB isis difficultdifficult ifif notnot impossibleimpossible toto obtain,obtain, andand itit isis notnot possiblepossible toto directlydirectly observeobserve andand quantifyquantify aa farmer's marginalmarginal utilitiesutilities fromfrom profitprofit andand leisure.leisure. However,However, thethe decisiondecision toto useuse oror notnot useuse AIAI

farmer’s

isis observableobservable andand farmfarm andand farmerfarmer charac­charac-teristics, attitudes,attitudes, objectivesobjectives andand strategiesstrategies cancan bebe usedused asas indirectindirect proxiesproxies forfor thethe factorsfactors thatthat leadlead toto thethe breedingbreeding decision.decision. Hence,Hence, thethe breedingbreeding decisiondecision (AI(AI oror NB)NB) cancan bebe modeledmodeled

teristics ,

asas aa functionfunction ofof farmfarm andand farmerfarmer charac­charac-teristicsteristics andand attiqIdes. AA discussiondiscussion ofof thesethese characteristicscharacteristics andand attitudesattitudes expectedexpected toto affectaffect thethe breedingbreeding decisiondecision follows.follows.

attitudes.

FarmFarm size,size, facilitiesfacilities andand typetype ofof opera­tiontion areare thoughtthought toto directlydirectly affectaffect MVPMVP ofof AIAI oror NB,NB, andand toto indirectlyindirectly affectaffect thethe marginalmarginal utilityutility receivedreceived fromfrom havinghaving andand workingworking cows.cows. AcresAcres ownedowned andand rented/leased,rented/leased, sizesize ofof herdherd asas indicatedindicated byby numbernumber ofof femalesfemales calving,calving, andand thethe percentagepercentage ofof thethe herdherd thatthat isis purebredpurebred areare expectedexpected toto affectaffect thethe breedingbreeding decision.decision. TypesTypes ofof restraintrestraint facilitiesfacilities areare expectedexpected toto bebe associatedassociated withwith thethe breedingbreeding decision,decision, asas itit isis easiereasier toto inseminateinseminate aa cowcow restrainedrestrained byby aa squeezesqueeze chutechute thanthan oneone restrainedrestrained byby aa headhead gategate oror aa tietie rail.rail.

PreviousPrevious studiesstudies indicateindicate thatthat aa farmerfarmer

opera-

withwith aa highhigh levellevel ofof humanhuman capital,capital, asas indi­catedcated byby education,education, experience,experience, andand industryindustry knowledgeknowledge andand involvement,involvement, isis betterbetter ableable toto seekseek out,out, process,process, andand useuse informationinformation aboutabout aa newnew processprocess oror technologytechnology (Kahldi(Kahldi 1975;1975;

indi-

RahmRahm andand Huffman 1984;1984; ZepedaZepeda 1990).1990). AgeAge cancan alsoalso bebe anan importantimportant factor,factor, asas olderolder

Hut&an

farmersfarmers maymay notnot havehave aa longlong enoughenough timetime horizonhorizon toto fullyfully benefitbenefit fromfrom aa newnew processprocess oror technology.technology. Hence,Hence, age,age, education,education, yearsyears farmingfarming andand attendanceattendance atat extension/farmextension/farm meetingsmeetings andand membershipmembership inin communitycommunity organizationsorganizations areare includedincluded asas explanatoryexplanatory variables.variables.

RelativeRelative marginalmarginal utilitiesutilities ofof profitprofit andand beefbeef cowscows asas aa leisureleisure activityactivity cannotcannot bebe directlydirectly estimated,estimated, butbut informationinformation aboutabout farmfarm andand familyfamily income,income, perceivedperceived debtdebt levels,levels, andand aa self-description ofof thethe beefbeef enterpriseenterprise asasself-description eithereither aa hobby,hobby, part-time,part-time, secondarysecondary oror full­full-timetime enterpriseenterprise indicateindicate thethe relativerelative impor­tancetance ofof thethe beefbeef enterpriseenterprise asas aa profit-

impor-profit­

generatinggenerating operation.operation. AmountAmount ofof timetime spentspent withwith cowscows byby seasonseason indicatesindicates thethe attentionattention givengiven toto thethe cowcow enterprise.enterprise. AdditionalAdditional infor­mationmation aboutabout thethe relativerelative importanceimportance ofof profitprofit inin thethe beefbeef enterpriseenterprise cancan bebe gathergather byby directdirect questioning.questioning.

WillingnessWillingness toto paypay forfor AIAI isis anan indicationindication ofof thethe importanceimportance ofof relativerelative pricesprices andand costscosts ofof AIAI inin thethe breedingbreeding decision.decision. Additionally,Additionally, producersproducers rankrank thethe importanceimportance ofof variousvarious breedingbreeding decisiondecision criteria,criteria, thethe usefulnessusefulness ofof

infor-

severalseveral informationinformation sourcessources forfor breedingbreeding deci­sions,sions, theirtheir reasonsreasons forfor choosingchoosing AIAI oror NBNB andand theirtheir generalgeneral levellevel ofof satisfactionsatisfaction withwith theirtheir locallocal AIAI Centres.Centres.

deci-

FarmFarm andand personalpersonal characteristics,characteristics, busi­busi-nessness strategies,strategies, attitudesattitudes andand breedingbreeding objec­tivestives areare comparedcompared betweenbetween thethe AIAI usersusers andand nonusersnonusers toto seesee ifif thethe twotwo groupsgroups couldcould bebe

objec-

differentiated.differentiated. T-statisticsT-statistics areare usedused toto deter­minemine ifif thethe meanmean valuesvalues ofof thethe characteristicscharacteristics

deter-

andand attributesattributes ofof thethe AI usersusers andand nonusersnonusers areare significantlysignificantly different.different.

AA censoredcensored TobitTobit regressionregression modelmodel isis usedused toto estimateestimate thethe relationshiprelationship betweenbetween AIAI useuse andand farmfarm andand farmerfarmer characteristicscharacteristics andand attitudes:attitudes:

Al

j{farm andand farmerfarmer characteristicscharacteristics andand attitudes)attitudes) (6)(6)

Al*AI* = = Afarm

TheThe dependentdependent variablevariable AIAI = = percentagepercentage ofof thethe herdherd bredbred usingusing AI,AI, whichwhich rangesranges fromfrom 0 100%.100%. TheThe TobitTobit modelmodel thetheo toto censorscensors predictedpredicted dependentdependent variablevariable AIAI suchsuch that:that:

AI*AI* == B’XB'X ++ ee (7)(7)

AIAI ==OifAI*0 if AI* << 00

AIA I =AI*ifOAI* if 0 < AI* SIl.01.0= CM*

wherewhere XX== anan nn xX nn matrixmatrix ofof independentindependent

variables,variables, BB== aa conformableconformable vectorvector ofof

parameters,parameters, andand ee== aa normallynormally distributeddistributed errorerror term,term,

2E [e ] == 00 andand E[e’e]E [e ' e ] == vv*.• MaximumMaximum likelihoodlikelihood proceduresprocedures yieldyield

EM

consistentconsistent parameterparameter estimatesestimates andand "asymp­totic” t-valuest-values (Judge(Judge etet alal 1982).1982).

‘ ‘asymp-totic"

ParameterParameter estimatesestimates fromfrom aa TobitTobit modelmodel cannotcannot bebe evaluatedevaluated directly,directly, asas inin anan ordi­narynary leastleast squaressquares (OLS)(OLS) oror GLMGLM regression.regression. GivenGiven aa TobitTobit modelmodel asas inin Eq.Eq. 7,7, thethe effecteffect ofof aa changechange inin anan independentindependent variablevariable XX onon AI*AI* cancan bebe obtainedobtained from:from:

ordi-

aE[AI*ilXi] laxi = BFi [ (B’Xi)IV] (8)

wherewhere Fj isis thethe cumulativecumulative distributiondistribution func­tiontion ofof aa standardstandard normalnormal randomrandom variablevariable evaluatedevaluated atat ZZi = XjB/v (Greene(Greene 1993,1993, 695).695).

Fi func-

= XiBIV

RESULTSRESULTS DataData OntarioOntario beefbeef producersproducers werewere surveyedsurveyed byby mailmail inin thethe summersummer ofof 1993.1993. TheThe initialinitial purposepurpose ofof thethe surveysurvey waswas toto determinedetermine differencesdifferences betweenbetween AIAI usersusers andand nonusersnonusers inin orderorder toto improveimprove marketingmarketing ofof AIAI toto nonusers.nonusers. FifteenFifteen hundredhundred randomlyrandomly selectedselected participantsparticipants inin thethe OntarioOntario BeefBeef HerdHerd ImprovementImprovement ProgramProgram plusplus anan additionaladditional 385385 producersproducers whowho hadhad anan accountaccount withwith oneone ofof threethree OntarioOntario AIAI CentresCentres fundingfunding thethe studystudy werewere surveyed.surveyed. ThisThis latterlatter groupgroup diddid notnot necessarilynecessarily useuse AIAI exclusively,exclusively, butbut theythey hadhad hadhad contactcontact withwith anan AIAI CentreCentre inin thethe pastpast twotwo years.years. ThisThis nonrandomnonrandom samplesample waswas mixedmixed withwith thethe randomrandom samplesample toto increaseincrease thethe numbernumber ofof AIAI useruser responses.responses. InitialInitial esti­matesmates fromfrom thethe AIAI CentresCentres werewere thatthat onlyonly

esti-

5-10% ofof OntarioOntario beefbeef producersproducers usedused AI;AI; aa smallsmall responseresponse raterate wouldwould havehave mademade statisticalstatistical comparisoncomparison ofof AIAI usersusers andand nonusersnonusers difficult.difficult.

510%

TheThe surveysurvey responseresponse raterate waswas 25%)25 %, whichwhich isis lowlow consideringconsidering thatthat Dillman's TotalTotalDillman’s DesignDesign MethodMethod waswas used. 2 GivenGiven thethe sam­plingpling procedure,procedure, thethe resultsresults areare expectedexpected toto

used.* sam-

bebe biasedbiased towardtoward AIAI use:use: 49% ofof thethe respon­dentsdents saidsaid theythey usedused AI,AI, whichwhich isis thoughtthought toto bebe muchmuch higherhigher thanthan thethe frequencyfrequency ofof AIAI useuse byby OntarioOntario beefbeef producers.producers. However,However, thethe samplesample allowedallowed forfor comparisoncomparison ofof thethe characteristicscharacteristics andand attitudesattitudes ofof AIAI usersusers andand nonusers.nonusers.

FewFew respondentsrespondents usedused 100%100% AIAI breeding.breeding. FarmersFarmers whowho considerconsider themselvesthemselves AIAI usersusers oftenoften havehave aa “clean-up”"clean-up" bullbull toto breedbreed thosethose cowscows notnot bredbred byby AI.AI. Similarly,Similarly, manymany farmersfarmers whowho useuse aa bullbull forfor mostmost ofof theirtheir cowscows maymay useuse AIAI onon selectedselected cowscows oror heifers.heifers.

49% respon-

ToTo includeinclude thesethese farmersfarmers whowho werewere "mostly“mostly AIAI using" oror "mostly nonusing," farmersfarmers werewere classifiedclassified asas AIAI usersusers ifif theythey usedused AIAI onon

using” “mostly nonusing, ”

atat leastleast 85 % ofof theirtheir herd,herd, andand asas nonusersnonusers85% ifif ther usedused AIAI onon lessless thanthan 15%15% ofof theirtheirthe

iyherd.herd. WithinWithin thethe AIAI useruser group,group, 57%57% usedused AIAI onon allall theirtheir animals,animals, withwith 40%40% indicatingindicating useuse ofof aa clean-upclean-up bull.bull. WithinWithin thethe nonusernonuser group,group, 60%60% saidsaid theythey hadhad nevernever usedused AI;AI; 40%40% hadhad usedused AIAI atat oneone timetime butbut nono longerlonger did.did. TheThe sortedsorted samplesample waswas 130130 AIAI usersusers andand 160160 nonusers.nonusers.

FarmFarm andand PersonalPersonal CharacteristicsCharacteristics FarmFarm sizesize andand facilitiesfacilities ofof thethe twotwo groupsgroups areare reportedreported inin TableTable 1.1. TheThe nonusers' operationsoperationsnonusers’ werewere approximatelyapproximately twicetwice thethe sizesize ofofAIAI users' operationsoperations inin termsterms ofof acresacres ownedowned andand acresacres rented/leasedrented/leased andand femalesfemales calving.calving. OwnershipOwnership ofof restrainingrestraining equipmentequipment waswas mixed.mixed. AIAI usersusers hadhad significantlysignificantly moremore tietie stalls/headrails,stalls/headrails, butbut nonusersnonusers hadhad moremore headhead gatesgates andand squeezesqueeze chuteschutes thanthan diddid users.users. OnlyOnly 44%%ofof thethe AIAI andand 2%

users’

2 % ofof thethe nonusersnonusers diddid notnot reportreport anyany typetype ofof restraint.restraint. NonusersNonusers werewere lessless likelylikely toto havehave aa purebredpurebred herd,herd, oror conversely,conversely, nonusersnonusers werewere moremore likelylikely toto havehave aa cross-bred,cross-bred, com­mercialmercial herd.herd.

ThereThere waswas onlyonly oneone significantlysignificantly differentdifferent demographicdemographic characteristic:characteristic: onon average,average, AIAI usersusers werewere threethree yearsyears olderolder thanthan nonusersnonusers (Table(Table 1).1). ThereThere waswas nono significantsignificant differencedifference inin yearsyears farming,farming, off-farmoff-farm workwork byby selfself oror

com-

TableTable 1.1. DescriptiveDescriptive statisticsstatistics ofof AIAI usersusers andand nonusersnonusers inin thethe OntarioOntario beef industry8heef industrv”

CharacteristicCharacteristic

AcresAcres ownedowned AcresAcres rented/leasedrented/leased No.No. ofof femalesfemales calvingcalving RestraintRestraint facilities:facilities:

tie/headrail headhead gategate squeezesqueeze chutechute

PercentagePercentage ofof herdherd purebredpurebred

AgeAge YearsYears farmingfarming Extension/farmExtension/farm meetingsmeetings CommunityCommunity organizationorganization Off-farmOff-farm work:work:

selfself spousespouse

TimeTime spentspent withwith cows:cows: breedingbreeding seasonseason calvingcalving seasonseason restrest ofof yearyear

tie/he&ail

WillingWilling toto paypay forfor AIAl

UnitUnit

acresacres acresacres headhead

percent percentpercent Percent

percentPercent percent years

Percent

Years yearsYears

no.no. ofof meetingsmeetings % membersmembers4%

weeksWC&S

weeksWe&S

hours/dayhours/day hours/dayhours/day hours/dayhours/day

dollarsdollars

AIAI UserUser NonuserNonuser

134***134*** (113)(113) 220***220*** (206)mm 47***47*** (96)(96) 128***128*** (224)(224)

1f3*** (17)(17) (32)(32)18*** 39***39***

47***47*** (0.50)(0.50) 22***22*** (0.41)(0.41)

53***53*** (0.50)(0.50) 79***79*** (0.40)(0.40)

40**40** (0.49)(0.49) 57**57** (0.49)(0.49) 46***46*** (0.45)(0.45) 30***30*** (0.39)(0.39)

51**51** (13)(13) 48**48** (13)(13) 2525 (16)(16) 2525 (14)(14)

3.5***3.5*** (6.3)(6.3) 5.6***5.6*** (7.2)(7.2)

63*63* (0.49)(0.49) 75*75* (0.43)(0.43)

3232 (25) 2828 (25)(25)(2% 4343 (42)(42) 4040 (42)(42)

3.4*** (5.0)(5.0) 1.7***1.7*** (2.2)

4.5**4.5** (4.1) 5.9**5.9** (5.2) 3 4*** (2.2).

(4.1) (5.2) 2.22.2 (1.8)(1.8) 1.81.8 (1.8)(1.8)

17.4717.47 (20.11)(20.11) 14.3014.30 (7.72)(7.72)

8Standard deviationsdeviations areare inin parentheses.parentheses. MeansMeans areare significantlysignificantly differentdifferent fromfrom oneone anotheranother atat thethe *** == 0.010.01 level,level, **** == 0.050.05 level,level, andand ** == 0.100.10 level.level. aStandard ***

spouse,spouse, oror levellevel ofof educationeducation (education(education reportedreported inin TableTable 2.)2.)

TheThe producersproducers werewere askedasked toto estimateestimate thethe amountamount ofof timetime theythey spentspent withwith theirtheir cowscows atat differentdifferent timestimes of thethe yearyear (Table(Table 1).1). Artifi­cialcial inseminationinsemination usersusers reportedreported spendingspending twicetwice asas muchmuch timetime withwith theirtheir cowscows duringduring

of Artifi-

breedingbreeding season as diddid nonusers. ThisThis differ­season as nonusers. differ-ence isis not surprising,surprising, givengiven thatthat AIAI requiresrequiresence not handlinghandling andand restrainingrestraining a cow,cow, whilewhile NBNBa requiresrequires onlyonly puttingputting a bull in a pasturepasture withwith one’s cows. NotNot soso easilyeasily explainedexplained is thatthatis

a buIl in a one's cows. nonusers reportedreported spendingspending more timetime withwithnonusers more theirtheir cows duringduring calvingcalving season thanthan diddid AIcows season AI users. It is possiblepossible thatthat AI usersusers selectselectbreedsbreeds

andand specificspecific bullsbulls forfor calvingcalving ease,ease, especiallyespecially withwith first-calffirst-calf heifers.heifers. NonusersNonusers likelylikely havehave

users. It is AI

onlyonly one bull for thethe entire herd,herd, and maymayone bull for entire and selectselect forfor a characteristiccharacteristic otherother thanthan calvingcalvinga ease. Subsequently,Subsequently, theythey have to spendspend moreease. have to more time assistingassisting withwith calving.calving. The time spentspenttime The time with cows is notsignificantlysignificantlydifferentdifferent the restwith cows is not the rest of the year.of the year.

NonusersNonusers appearedappeared toto bebe moremore sociallysocially activeactive thanthan AIAI users.users. NonusersNonusers attendedattended significantlysignificantly moremore extension/farmextension/farm meetingsmeetings perper year,year, andand werewere moremore likelylikely toto bebe aa membermember ofof aa communitycommunity organization.organization.

However,However, therethere waswas nono significantsignificant differencedifference inin membershipmembership inin professionalprofessional organizations.organizations.

QuestionsQuestions on farmfarm andand off-farmoff-farm familyfamily

incomesincomes .were.were categorical,categorical, asas reportedreported inin TableTable 2.2. BothBoth groupsgroups hadhad meanmean farmfarm incomesincomes

on

inin thethe $0-15,000 category,category, butbut nonusersnonusers hadhad

significantlysignificantly moremore producersproducers inin higherhigher incomeincome categories.categories. NonusersNonusers alsoalso hadhad moremore off-farmoff-farm familyfamily income.income. Self-assessedSelf-assesseddebtdebt levelslevels werewere

alsoalso categoricalcategorical (Le., "Mydebtdebt levellevel isis none,none,

$O-15,000

(i.e., “My low,low, moderate,moderate, high"). BothBoth groupsgroups hadhadhigh”). means “moderate”means inin thethe "moderate" category,category, butbut thethe

nonusersnonusers groupgroupcomprisedcomprised significantlysignificantly more

producersproducers whowho thoughtthought thatthat theythey hadhad higherhigher

levelslevels of debt.debt.

more

of TheThe producersproducers were askedasked to classifyclassifywere to

theirtheir farmsfarms as eithereither a hobby,hobby, part-time,part-time,as a secondarysecondary enterpriseenterprise oror full-timefull-time operation.operation.

TableTable 2.2. DescriptiveDescriptive statisticsstatistics ofof categoricalcategorical responsesresponses ofof AIAI usersusers andand nonusersnonusers inin thethe OntarioOntario beefbeef

industryindustry8a

CharacteristicsCharacteristics categorycategory

FarmFarm income:··· lessless thanthan $0$0

income:***

$0-15,000

$15,001-30,000$15,001-30,000

$30,001-50,000$30,001-50,000

50,001-100,00050,001-100,000

overover $100,000$100,000

!§O-15,000

FamilyFamily income:··· lessless thanthan $0$0

income:***

$0-15,000

$15,001-30,000$15,001-30,000 !§O-15,000

$30,001-50,000

50,001-100,00050,001-100,000 $30,001-50,000

DebtDebt level:··· nonenone

lowlow

moderatemoderate

highhigh

level:***

DescriptionDescription of beefbeef operation:•••

hobbyhobby

part-timepart-time

secondsecond enterpriseenterprise

full-timefull-time

of operation:***

"Profit isis mymy highesthighest priority" agreeagree

somewhatsomewhat agreeagree

somewhatsomewhat disagreedisagree

disagreedisagree

“Profit priority”

HighestHighest levellevel of education:education:

elementaryelementary of

some highhigh schoolschool

completedcompleted highhigh schoolschool some

some college/universitycollege/university

collegecollege diplomadiploma

universityuniversity degreedegree

some

graduategraduate or professionalprofessional degreedegreeor

FrequencyFrequency ofof

AIAI useruser

(96)(%)

1414 5353 2121

33 55 22

33 1010 3030 2424 2727

5050

3131 1616 44

99

2828

1515

4949

2424

5858

1313

66

1313

2323

2121

1010

1414

99

1010

NonuserNonuser

1111

3636 2727 1212 99 55

11 1111

1919 2727 1010

3333 3434

2323 1010

55 1717 2424

5454

3737

5151

88 44

1212

2323

1717

1111

1919

77

1212

3Mean categoricalcategorical responsesresponses significantlysignificantly differentdifferent fromfrom oneone anotheranother atat thethe *** = 0.010.01 levellevel andand **aMean *** = ** = 0.050.05 level.level.=

The meanmean forfor bothboth groupsgroups waswasTne responseresponse "secondary enterprise,"” butbut AIAI usersusers werewere

“hobby” “part-time” “secondary enterprise, moremore likelylikely toto havehave "hobby" oror "part-time" beefbeef enterprises.enterprises. ProducersProducers werewere alsoalso askedasked aa numbernumber ofof questionsquestions aboutabout theirtheir businessbusiness _ ...._ ..__ • TT_= T =1__.... 1_ 1'1 AI

;su itu::gy. agree, 4strategy. Using a Likert scale (1U :Ullg it LoJAta L ;S"'illC \ 1 --= itgl C;C;, '1'

= = disagree),disagree), therethere waswas nono differencedifference betweenbetween thethe twotwo groupsgroups aboutabout definitionsdefinitions ofof success,success, wishwish toto passpass thethe familyfamily farmfarm toto thethe nextnext generation,generation, oror thethe imPortance ofof recom­importance recom-mendedmended busilless practices.practices. However,However, sigrJfi­business signifi-cantlycantly moremore nonusersnonusers agreedagreed thatthat "profit maxhmzation priority” thanthan diddid Ai

“profit maximization isis mymy toptop priority" AI users.users.

AttitudesAttitudes andand Breed-IDg ObjectivesObjectivesBreeding NotNot surprisingly,surprisingly, AIAI users statedstated a greatergreaterusers a willingnesswillingness toto paypay forfor AI,AI, butbut thethe amountamount waswas not significantlysignificantly differentdifferent fromfrom thethe amountnot amount statedstated byby nonusers, as reportedreported inin TableTable 1.1.nonusers, as TheThe variancevariance aroundaround thethe AIAI users' responseresponseusers’ was significantlysignificantly largerlarger thanthan thethe nonusers'was nonusers’ response,response, possiblypossibly indicatingindicating t.lte widewide rallgethe rangeof semen prices.prices.of semen

AU producersproducers were askedasked to rankrank (1(1 =All were to = very importantimportant to 5 = not important)important) theirvery to 5 = not their decision criteria for a breedingbreeding decision,decision,decision criteria for a and/orand/or buyingbuying a bull.bull. Both A-.l users andanda Both AI users nonusers ranked in order of importanceimportance breed,breed,nonusers ranked in order of tempenUllent, calvingcalving ease and iilatemaltemperament, ease and maternal ability.ability. There were no significantsignificant differencesThere were no differences between the rankingsrankings of the top four criteria.between the of the top four criteria. However, there were significantsignificant differencesHowever, there were differences between the top four criteria and second tierbetween the top four criteria and second tier criteria: weaningweaning weight,weight, yearling weightweight a!ldcriteria: yearhng and estimated progeny difference (an(an indicator ofestimated progeny difference indicator of how much iaeger a buH's offspringoffspring wiu be).be).how much larger a bull’s will Cost (ofAI or a bull) was significantlysignificantly rankedCost (of AI or a buIl) was ranked as least important. Even though productivityas least important. Even though productivityindicators were second-tier criteria, when allindicators were second-tier criteria, when allproducers were asked in a separate questionproducers were asked in a separate questionto rank ta'te benefits of AI, known ratings onto rank the benefits of AI, known ratings oncalving ease, weight gain, etc., were rankedcalving ease, weight gain, etc., were rankedsecond to superior genetics. Added geneticsecond to superior genetics. Added geneticalternatives was ranked third.alternatives was ranked third.

Both nonusers and AI users who had aBoth nonusers and AI users who had abull for selected cows ran..ked convenience amibull for selected cows ranked convenience anddifficulties with heat detection as the mostdifficulties with heat detection as the mostimporumt ieasons fOi using :r--...1J. Cost ofimportant reasons for using NB. Cost of semen, total AI costs and lack of facilities semen, total AI costs and lack of facilities

werewere rankedranked asas notnot importantimportant reasonsreasons forfor usingusing NB.NB. Convenience,Convenience, timetime requiredrequired forfor AIAI andand difficultiesdifficulties withwith heatheat detectiondetection werewere alsoalso citedcited asas reasonsreasons forfor produc.ers whowho hadhad use.d AIAI inin thethe pastpast butbut stopped.stopped.

UsersUsers andand nonusersnonusers hadhad differentdifferent

producers used

rankingsrankings forfor thethe usefulnessusefulness ofof sourcessources ofof infor­infor-mationmation forfor breedingbreeding andand managementmanagement deci­sions.sions. ForFor breedingbreeding decisions,decisions, usersusers ranked,ranked, inin orderorder ofof usefulness,usefulness, leadingleading breeders,breeders,

deci-

veterinariansveterinarians andand ~J\.I technicians.technicians. ForFor nonusers,nonusers, thethe orderorder was veterinarians,veterinarians, leadingleading

AI was

magazines/newspapers. BothBothbreedersbreeders andand magazinesinewspapers.

groupsgroups rankedranked veterinariansveterinarians as theirtheir secondsecondas mostmost importantimportant source ofmanagementmanagement infor­source of infor-mation,mation, butbut users rankedranked magazines/magazines/users newspapersnewspapers firstfirst andand extensionextension agentsagents third,third,

whilewhile nonU&eiS reversedreversed ta'ie rankings.rankings.nonusers the NotNot surprisingly,surprisingly, AIAI users were moreusers were more

satisfiedsatisfied withwith thethe serviceservice andand informationinformation

providedprovided byby theirtheir AIAI technicianstechnicians thanthan werewere nonusers. in fact,fact, nonusers citedcited superiorsuperiornonusers. In nonusers genetics,genetics, L'llproved service,service, a...'ld more com­improved and more com-pleteplete informationinformation aboutabout AIAI bullsbulls as thethe mostas most importani factorsfactors thatthat AIAI CentresCentres can provideprovideimportant can in order to make AI more attractive.in order to make AI more attractive. However,However, nonusers preferredpreferred picturespictures andandnonusers videos tapestapes of a bull to a page of statisticsvideos of a bull to a page of statistics on that bull's productionproduction indices. There wason that bull’s indices. There was no significantsignificant difference in demographicsdemographicsno difference in between the two groups, other than age, butbetween the two groups, other than age, but this preferencepreference for picturespictures and videos overthis for and videos over statistics indicates that AI users may have astatistics indicates that AI users may have a higher level of human capital than- the NBhigher level of human capital than the NB producers.producers.

Tobit lYiodeiTobit Model Only 115 surveys reported all the variablesOnly 115 surveys reported all the variables listed in Tables 1 and 2. There are 40 limitlisted in Tables 1 and 2. There are 40 limit observations (i.e., 0 or 1) and 75 nonlirnitobservations (i.e., 0 or 1) and 75 nonlimitobservations (i.e., between 0 and 1). Indepen­observations (i.e., between 0 and 1). Indepen-dent vL~ables ue t.lte continuous va..';ablesdent variables are the continuous variables reported in Table 1, which enter the modelreported in Table 1, which enter the model at their vaiue, and the categoricai variabiesat their value, and the categorical variablesreported in Table 2, which enter as integersreported in Table 2, which enter as integerscOrresponding to the category level (e.g.: forcorresponding to the category level (e.g., forfarm income, 1 = less tha..n $0, 2 = farm income, 1 = less than $0, 2 = $0-15,000, etc.). The model is estimated$O-15,000, etc.). The model is estimatedusing U~fDEP 6.0, which allows bota'i upperusing LIMDEP 6.0, which allows both upperand lower limit truncation (Greene 1987).and lower limit truncation (Greene 1987).

TableTable 3.3. MeanMean values,values, parametersparameters estimates,estimates, asymptoticasymptotic t-values, andand slopesslopes fromfrom aa truncatedtruncated TobitTobitf-values, modelmodel ofof percentagepercentage ofof herdherd bredbred usingusing AlaAS’

VariableVariable MeanMean f-valueParameterParameter t-value SlopeSlope

ConstantConstant N/AN/A 0.21530.2153 0.2560.256 N/AN/A AcresAcres ownedowned 197.96197.96 - 1.036-0.0005-0.0005 -1.036 -0.0004-0.0004 AcresAcres rented/leasedrented/leased 119.27119.27 o.ooo20.0002 0.3350.335 0.00010.0001 No.No. ofof femalesfemales calvingcalving 31.6831.68 -0.004-0.004 -1.281-1.281 -0.0031-0.0031 RestraintRestraint facilities:facilities:

tie/headrailtie/headrail 0.320.32 -0.0966-0.0966 -0.473-0.473 -0.0679-0.0679 headhead gategate 0.720.72 - 1.495-0.3415-0.3415 -1.495 -0.2400-0.2400 squeezesqueeze chutechute 0.550.55 0.14360.1436 0.7190.719 0.10090.1009

PercentagePercentage ofof herdherd purebredpurebred 55.0455.04 0.00660.0066 3.044**3.044** 0.00470.0047 FarmFarm incomeincome 2.742.74 -0.2247-0.2247 -2.686***-2.686*** -0.1579-0.1579 FamilyFamily incomeincome 4.294.29 0.08100.0810 0.8460.846 0.05690.0569 DebtDebt levellevel 1.991.99 0.04Q40.0404 0.3700.370 0.02840.0284 TypeType ofof beefbeef operationoperation 3.173.17 0.02860.0286 0.2480.248 0.02010.0201 ProfitProfit prioritypriority 1.901.90 -0.2334-0.2334 -2.020**-2.020** -0.1641-0.1641

AgeAge 46.7146.71 0.2900.290 2.544***2.544*** 0.2040.204 EducationEducation 4.204.20 -0.0518-0.0518 -0.940-0.940 0.01450.0145 Off-farmOff-farm work:work:

operatoroperator 28.5228.52 -0.0036-0.0036 -0.995-0.995 -0.0025-0.0025 spousespouse 25.4025.40 -2.11-0.0008-0.0008 -2.11 -0.0005-0.0005

YearsYears farmingfarming 20.7720.77 -0.0182-0.0182 -1.877*-1.877* -0.0128-0.0128 TimesTimes spentspent withwith cows:cows:

seasonbreedingbreeding season 2.572.57 0.14180.1418 2.877***2.877*** 0.09960.0996 calvingcalving seasonseason 5.495.49 -0.0190 -0.981-0.0190 -0.981 -0.0133-0.0133 restrest ofof yearyear 1.921.92 -0.0288 -0.640-0.0288 -0.640 -0.0202-0.0202

AIWillingWilling toto paypay forfor Al 15.6115.61 0.01630.0163 1.5371.537 0.01140.0114 ExtensionExtension meetingsmeetings 6.646.64 0.01020.0102 0.9930.993 0.00710.0071 CommunityCommunity organizationorganization 0.770.77 -0.5397 -2.426**-0.5397 -2.426** -0.3793-0.3793

at ***aSignificantaSignificant t-valuet-value at thethe *** = = **0.010.01 level,level, ** = = * =0.50.5 level,level, andand * = 0.10.1 level.level.

TheThe loglog likelihoodlikelihood functionfunction isis relativelyrelatively largelarge byby age,age, educationeducation andand experience)experience) are moreare more ( - 9 1.28)) seven of a new as(-91.28), andand seven of thethe 2323 independentindependent likelylikely toto adoptadopt a new technologytechnology suchsuch as AIAI variablesvariables havehave asymptoticasymptotic t-valuest-values significantsignificant isis notnot supportedsupported byby thesethese results.results. AgeAge isis posi­posi-atat thethe 0.100.10 levellevel or better,better, as reportedreported inin tivetive andand significant,significant, butbut educationeducation andand yearsyearsor as TableTable 3.3. farmingfarming are negative.negative.are

TheThe resultsresults of thethe TobitTobit modelmodel indicateindicate TypesTypes of restraintrestraint facilitiesfacilities appearsappearsof of thatthat large,large, commercialcommercial beef producersproducers dodo not to affectaffect thethe breedingbreeding decision.decision. HavingHaving abeef not to a use AI,AI, andand thatthat thethe producersproducers whowho do use AIAI headhead gate,gate, whichwhich isis usedused mainlymainly forfor admin­use do use admin-are not as commerciallycommercially orientedoriented as nonusers. isteringistering medications,medications, isis negative,negative, whilewhileare not as as nonusers. Acres owned,owned, number of femalesfemales calving,calving, havinghaving a squeezesqueeze chute,chute, whichwhich can bebe usedusedAcres number of a can farm incomeincome andand profitprofit as a prioritypriority havehave to restrain an animalanimal for both medicationfarm. as a to restrain an for both medication negativenegative parameters.parameters. PercentagePercentage of thethe herd and AI,AI, isis positive.positive. The magnitudemagnitude on theof herd and The on the thatthat isis purebredpurebred isis positivepositive andand significant.significant. slopeslope of thethe head gategate isis more thanthan twice thatof head more twice that The common a priori belief thatthat producersproducers of the squeeze chute,chute, but neither parameterparameterThe common a priori belief of the squeeze but neither with higherhigher levels of human capitalcapital (proxied(proxied is significant.significant.with levels of human is

TheThe amountamount ofof timetime spentspent withwith cowscows duringduring thethe breedingbreeding seasonseason isis positivepositive andand significant.significant. ItIt isis questionablequestionable ifif thisthis isis trulytruly anan independentindependent variable.variable. AIAI usersusers wouldwould naturallynaturally spendspend moremore timetime withwith theirtheir cowscows duringduring breedingbreeding seasonseason thanthan nonusers.nonusers.

TheseThese resultsresults areare notnot inconsistentinconsistent withwith thethe hypothesishypothesis thatthat thethe use/nonuseuse/nonuse ofof AIAI maymay bebe basedbased asas muchmuch onon thethe marginalmarginal utilityutility ofof "bragging rights" asas onon thethe relativerelative costscosts andand returnsreturns fromfrom AIAI andand NB.NB. SocialSocial characteristicscharacteristics appearappear asas importantimportant asas businessbusiness characteristicscharacteristics

“bragging rights”

inin explainingexplaining AIAI use.use. MembershipMembership inin aa com­com-munitymunity organizationorganization negativelynegatively andand signifi­cantlycantly affectaffect thethe percentagepercentage ofof thethe herdherd usingusing AI.AI. StatingStating thatthat profitprofit inin thethe beefbeef enterpriseenterprise

signifi-

isis aa highhigh prioritypriority isis alsoalso negativenegative andand signifi­signifi-cant,cant, butbut thethe slopeslope ofof thethe communitycommunity organi­organi-zationzation variablevariable isis moremore thanthan twicetwice thethe magni­tudetude ofof thethe slopeslope ofof thethe profitprofit variable.variable.

magni-

SUMMARYSUMMARY ANDAND DISCUSSIONDISCUSSION

AA surveysurvey ofof AIAI usersusers andand nonusersnonusers inin thethe OntarioOntario beefbeef industryindustry indicatesindicates severalseveral signifi­signifi-cantcant differencesdifferences betweenbetween thethe twotwo groups.groups. BeefReef producersproducers whowho preferprefer NBNB toto AIAI can bebe charac­can charac-terized asas havinghaving largerlarger operations,operations, are more likelylikely toto havehave cross-breedingcross-breeding strategies,strategies, andand are more commerciallycommercially orientedoriented thanthan theirtheir AI­

ter&d are more

are more AI-usingusing countercounter parts.parts. NonusersNonusers alsoalso havehave higherhigher farmfarm andand off-farmoff-farm incomesincomes thanthan usersusers (even(even thoughthough bothboth users andand nonusers workworkusers nonusers aboutabout thethe same numbernumber ofof weeksweeks off-farm),off-farm),same spendspend lessless timetime breedingbreeding theirtheir animals,animals, andand attendattend more extension/farmextension/farm meetingsmeetings andand aremore are more likelylikely to bebe membersmembers of communitycommunitymore to of organizations.organizations .

TheThe hypothesishypothesis thatthat beef producersproducers whowhobeef use AIAI maymay receivereceive more marginalmarginal utilityutilityuse more from owrJ.ng a.~d workingworking CO\VS t!la..'1 fromfrom owning and cows than from profitsprofits from their beef operationsoperations cannot bebefrom their beef cannot rejectedrejected basedbased on thethe resuits of thisthis study.study.on results of Nonusers had largerlarger herds than did AIAI users,Nonusers had herds than did users,which indicates thatthat AIAI users may not bewhich indicates users may not be exploitingexploiting economjes of size. Nor were AIeconomies of size. Nor were AI users primarilyprimarily producingproducing for thethe slaughterslaughterusers for market: nonuseiS weie mOie likelylikely to havemarket: nonusers were more to have cross-bred herds,herds, which are often preferredpreferredcross-bred which are often over pure-bredpure-bred animals byby slaughterslaughter houses.over animals houses.

Moreover,Moreover, AIAI usersusers relativerelative toto nonusersnonusers werewere moremore likelylikely toto havehave beefbeef hashas aa secondary,secondary, part-timepart-time oror hobbyhobby enterprise.enterprise. Lastly,Lastly, nonusersnonusers werewere moremore oftenoften inin agreementagreement thatthat "profit maximization" waswas theirtheir toptop priority.

TheThe resultsresults ofof thisthis studystudy indicateindicate scalescale implicationsimplications withwith respectrespect toto AI:AI: smallersmaller beefbeef operationsoperations areare moremore likelylikely toto useuse itit thanthan areare largerlarger operations.operations. OneOne interpretationinterpretation ofof thisthis factfact isis thatthat breedingbreeding isis aa service,service, analogousanalogous toto businessbusiness oror productionproduction servicesservices suchsuch asas

“profit maximization” priority.

bookkeepingbookkeeping oror cropcrop spraying.spraying. LargerLarger opera­tionstions cancan economicallyeconomically maintainmaintain thethe personnelpersonnel andand equipmentequipment necessarynecessary forfor thethe serviceservice withinwithin thethe firm.firm. SmallerSmaller operationsoperations hirehire thethe serviceservice onon aa customcustom basisbasis asas necessary.necessary. ItIt isis

opera-

alsoalso possiblepossible thatthat AIAI hashas mademade geneticsgenetics avail­avail-ableable toto small-scalesmall-scale producersproducers thatthat werewere uneco­nomicalnomical withoutwithout AI,AI, butbut thatthat AIAI isis mostlymostly irrelevantirrelevant toto commercialcommercial producers.producers. AdvancesAdvances inin computers,computers, printersprinters andand copierscopiers hashas mademade desk-topdesk-top publishingpublishing economicaleconomical forfor veryvery smallsmall

uneco-

productionproduction runsruns ofofbooks,books, butbut large,large, commer­cialcial publisherspublishers stillstill useuse off-setoff-set pressespresses forfor

commer-

largelarge runsruns ofof books.books. WhateverWhatever thethe interpre­tation,tation, AIAI appearsappears toto havehave hadhad lessless impactimpact onon

interpre-

large,large, commercialcommercial beefbeef operationsoperations thanthan on thethe smallersmaller operationsoperations inin Ontario.Ontario.

can useuse thethe

on

TheThe OntarioOntario AIAI CentresCentres can informationinformation fromfrom thisthis surveysurvey toto improveimprove theirtheir marketingmarketing ofof AIAI toto nonusers. First,First,nonusers. time,time, convenienceconvenience andand heatheat detectiondetection werewere allall importantimportant factorsfactors citedcited forfor preferringpreferring NB.NB. DecreasingDecreasing thethe timetime requiredrequired forfor AI,AI, andand hencehence increasingincreasing itsits convenience,convenience, willwill

increaseincrease itsits attractivenessattractiveness to nonusers.to nonusers. Second,Second, veterinariansveterinarians are importantimportant sourcesare sources ofbreedingbreeding andand managementmanagement informationinformation forforof allall beef producers.producers. FormingForming strategicstrategicbeef alliances with veterinarians could be veryalliances with veterinarians could be verybeneficial to thethe AIAI Centres. Third,Third, the AIAIbeneficial to Centres. the Centres couid targettarget the greatergreater attendanceCentres could the attendance at extension/farmextension/farm meetingsmeetings andand membershipmembershipat inin communitycommunity organizationsorganizations throughthrough spon­spon-sorshipsorship of events and organizations.organizations. Lastly.of events and Lastly,the preferencepreference of nonusers for picturespictures andthe of nonusers for and videos indicates that visuals may be morevideos indicates that visuals may be more effective advertisingadvertising than a completecomplete list ofeffective than a list of expectedexpected geneticgenetic gains.gains.

NOTESNOTES

1’ LaborLabor isis restrictedrestricted toto operatoroperator laborlabor only.only. ThisThis restrictionrestriction simplifiessimplifies thethe analysis,analysis, butbut isis alsoalso consistentconsistent withwith OntarioOntario beefbeef production.production. Addi­Addi-tionallabor, eithereither familyfamily oror hired,hired, isis generallygenerally limitedlimited toto seasonalseasonal casualcasual laborlabor (e.g.,(e.g., haying)haying) oror tional labor,

toto professionalprofessional services,services, suchsuch asas forfor AIAI oror veteri­narynary activities.activities.

veteri-

2 SimilarSimilar surveyssurveys inin OntarioOntario usingusing Dillman's’ Dillman’s techniquestechniques havehave hadhad responseresponse ratesrates ofof 60-80%. However,However, thethe higherhigher responseresponse ratesrates werewere fromfrom surveyssurveys distributeddistributed inin thethe winter.winter. TheThe lowlow

60-802.

responseresponse raterate maymay havehave beenbeen duedue toto beingbeing dis­tributedtributed inin thethe summer.summer. 33 AA reviewerreviewer questionedquestioned thisthis separation.separation. CategorizingCategorizing intointo producerproducer groupsgroups whowho mostlymostly usedused AIAI andand whowho mostlymostly usedused NBNB isis necessarynecessary toto comparecompare thethe characteristicscharacteristics andand attitudesattitudes ofof AIAI andand NBNB breeders.breeders. 1518596

dis-

TheThe 15/85 % separationseparation isis somewhatsomewhat arbitrary,arbitrary, butbut thethe frequenciesfrequencies dodo clustercluster inin thosethose ranges.ranges.

ACKNOWLEDGMENTACKNOWLEDGMENT

ThisThis researchresearch waswas fundedfunded inin partpart byby thethe OntarioOntario AIAI CentresCentres andand thethe OntarioOntario MinistryMinistry ofof Agricul­ture,ture, FoodFood andand RuralRural Affairs.Affairs. TheThe paperpaper benefitedbenefited fromfrom commentscomments andand suggestionssuggestions mademade atat aa UniversityUniversity ofof NewNew EnglandEngland facultyfaculty seminar,seminar, andand fromfrom reviewers’reviewers' comments.comments. TheThe authorsauthors areare responsibleresponsible forfor allall opinionsopinions andand errors.errors.

Agricul-

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