The Impact of the Livestock Friendly Designation on the Nebraska Cattle Industry: A Difference-in-Difference with Staggered Treatment Analysis

Abstract

In 2003, the Nebraska Legislature enacted the Livestock Friendly County designation program to promote the livestock industry in the state. Forty-nine of the state's 93 counties received the designation at staggered years. Our paper estimates the causal effect of the program on the state's cattle industry using a fixed effect difference-in-difference model that accounts for self-selection and staggered designation. Results indicate that the program does not appear to have a statewide effect on livestock expansion, but it is effective in some crop reporting districts. We offer some hypotheses on why this may be the case and draw some policy implications.