Applied Economics Education & Extension

an AAEA Journal

Agricultural and Applied Economics Association

Volume 8, Issue 2, 2026

Cover, TOC and Front Matter

Applied Economic Insights


THEMATIC SECTION: Implications of New Immigration Policies for Specific U.S. Agricultural Sectors

Theme Overview: Implications of New Immigration Policies for Specific US Agricultural Sectors

Stephen Devadoss

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First Published Online: May 6, 2026
DOI: https://doi.org/10.71162/aeee.789436

Abstract: The agricultural sector is a leading employer of undocumented workers and experiences chronic labor shortages. The Trump administration’s deportation policies have intensified this labor scarcity. The articles in this theme evaluate the effects of deportation policies on labor-intensive sectors: fruit & nut, vegetable, nursery, greenhouse, floriculture, and dairy.

Keywords: deportation, economy, theme overview, undocumented workers

Immigration Reform and Implications for the US Fruit Industry

Diane E. Charlton

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First Published Online: May 5, 2026
DOI: https://doi.org/10.71162/aeee.607216

Abstract: Stricter immigration policies could drastically reduce US fruit production. Rising farm wages have increased mechanization efforts, but many tasks are still done by hand. This paper reviews recent literature on the current farm labor market conditions and the outlook for automation.

Keywords: farm labor, fruit & nut sector, immigration

Impacts of Deportation on Employment, Wages, and Output in California Vegetable Production

Umesh Gautama and Stephen Devadoss

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First Published Online: May 6, 2026
DOI: https://doi.org/10.71162/aeee.358040

Abstract: California is the leading producer of lettuce, tomatoes, carrots, broccoli, and cauliflower, and accounts for 36.84 percent of US vegetable production, valued at $10.5 billion. Labor-intensive sectors, such as vegetable production, endure chronic labor shortages. The deportation of undocumented workers will drastically reduce vegetable production in California because domestic workers are unwilling to take field jobs and readily bringing in guest workers is not feasible.

Keywords: California deportation, farm-labor shortages, vegetable production

Who Will Harvest? Immigration Policy and Labor Dependence in Florida’s Specialty Crop Sectors

Samiul Haque, A. Malek Hammami, and Hayk Khachatryan

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First Published Online: May 6, 2026
DOI: https://doi.org/10.71162/aeee.465083

Abstract: Florida’s nursery, greenhouse, and floriculture (NGF) sector and fruit and vegetable (FV) sector are among the most labor-intensive in US agriculture, with hired labor comprising 25%–40% of production costs. Both depend heavily on unauthorized workers. Using a transparent simulation framework, we estimate the short-run effects of deporting 25%–75% of unauthorized workers. Results show substantial increases in production costs, reduced output, sales losses, and significant job cuts in both sectors. These findings underscore the sectors’ vulnerability to mass deportation and highlight the urgent need for multipronged responses.

Keywords: agricultural labor, deportation shock, immigration enforcement, specialty crops

Deportation Effects on the Dairy Industry

Hernan A. Tejeda, Philip Watson, and Timothy Nadreau

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First Published Online: May 6, 2026
DOI: https://doi.org/10.71162/aeee.554166

Abstract: The Trump administration has aggressively pursued deporting undocumented migrants, including those employed in the agricultural and food sector. We examine the economic impacts of deporting undocumented labor throughout the dairy supply chain and across related sectors of the US economy and, as an illustrative example, the representative dairy-producing state of Idaho.

Keywords: agricultural employment, agricultural labor market, dairy, deportation, undocumented migrants


Individual Articles

Plant Breeders Have Key Role to Play in Enhancing Field Pea for the Plant-Based Ingredients Market

Kim Sanderson, Vitaliia Mishchenko, Sandro Steinbach, and Nicholas Tyack

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First Published Online: May 6, 2026
DOI: https://doi.org/10.71162/aeee.715729

Abstract: Plant breeding is key to growing the pea-processing sector. Interviews with processors revealed that attributes that enhance processing efficiency and the functional value of pea ingredients are highly valued. Concerns included undesirable traits in some high-protein pea varieties and consumer response to the use of gene editing in breeding.

Keywords: gene editing, innovation in agri-food systems, plant-based food ingredients, plant breeding, supply chain coordination

The Downside Risks from Export Market Concentration: The Case of Canadian Canola

Farzana Shirin, William Ridley, and Guillaume Lhermie

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First Published Online: May 6, 2026
DOI: https://doi.org/10.71162/aeee.649679

Abstract: Canada’s multi-billion-dollar canola industry faces headwinds from Chinese tariffs and uncertainty in Canada–US trade relations. We analyze the economic fallout of ongoing trade disputes and other current market and policy challenges facing Canadian canola, challenges which are also relevant for other export-reliant agricultural commodities facing trade retaliation.

Keywords: biofuels policy, Canada, canola, China, trade retaliation

Halal Foods in the United States Present Opportunities and Challenges

Subin Poudel and Hikaru Hanawa Peterson

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First Published Online: May 6, 2026
DOI: https://doi.org/10.71162/aeee.600751

Abstract: The US halal food market, growing 7.5 percent annually, reflects rising demand and demographic shifts. We discuss challenges in pricing, supply, and certification. Findings reveal a halal premium ranging from 4 percent to 118 percent, reliance on imports, and regulatory gaps, underscoring the need for stronger domestic production and supply chain standards.

Keywords: food access, food certification, halal food, Muslim Americans, premium


Case Studies

The Cost of Capital of Walmart, Kroger, Albertsons, Costco, and Publix in 2025

Carlos J.O. Trejo-Pech

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First Published Online: May 6, 2026
DOI: https://doi.org/10.71162/aeee.328338

Abstract: The goal of this case study is to explore the complexities and relevance of accurately estimating the cost of capital, which serves as a reference for key decisions in corporate finance and equity valuation. Despite the simplicity of a company’s cost-of-capital formula, in practice, estimating the cost of capital is not simple because it requires substantial judgment, and alternative approaches exist. This prevents a straightforward method for calculating the cost of capital, leading to inaccuracies. This case study features an equity analyst reviewing survey-based studies on best practices for cost-of-capital estimation and gathering data to estimate and analyze the cost of capital for leading US grocery firms. A technical note on the cost of capital is appended to support the development and solution of the case. Broadly, this study highlights the lack of consensus among practitioners on several aspects of cost-of-capital estimation and underscores the importance of making informed judgments based on finance and economics principles.

Keywords: agribusiness finance, corporate finance, case studies, grocery and agribusiness firms, food and beverage, the weighted average cost of capital


Special Issue on Artificial Intelligence and Data Analytics Use in the Classroom and Academy

Teaching Approaches to Ethical Generative Artificial Intelligence Use in Agricultural Economics Classrooms

Bailey Peterson-Wilhelm, Merri E. Day, Priyanka Sharma, Jiyeon Kim, Lonnie Hobbs Jr.,. et.al

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First Published Online: May 6, 2026
DOI: https://doi.org/10.71162/aeee.403234

Abstract: With the introduction of generative artificial intelligence (AI)-powered tools, such as ChatGPT, Google Gemini, Copilot, and others, professionals and students in higher education institutions have altered their approaches to teaching and learning. While varying opinions exist on the implementation of AI in higher education, there is need for both students and educators to understand the ethical dimensions of its use for both students and educators. This article demonstrates a three-module instructional approach for integrating generative AI and its ethical use into undergraduate coursework. The modules include (1) AI introduction, (2) how to use AI, and (3) ethical dimensions. The three-module approach was implemented in a first-year, computer-based course designed to develop skills for agribusiness decision making. Students reported improved understanding of generative AI and its ethical implications after completing the lecture, irrespective of section or class level. This modular framework offers a practical guide for instructors aiming to integrate ethical AI education into agricultural economics curricula.

Keywords: agricultural economics, artificial intelligence, ethics, learning, teaching