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Playing It Safe -- MAES Research Shows that People Avoid Risk in the Face of Mounting Economic Losses

Joe ArvaiIndividual investors are liquidating their holdings at record levels as financial markets sink, often absorbing losses to avoid possibly worse pain later. Contradicting the counsel of many financial advisers, it also flies in the face of widely accepted behavioral theory and reinforces recent research by an MAES scientist.

In short: People suffering lengthy periods of economic loss tend to swallow their losses, cash out and hunker down. Nobel Prize-winning "prospect theory," meanwhile, predicts that people will be more likely to gamble to recoup their losses.

"Our results challenge prospect theory," said Joe Arvai, associate director of the MSU Environmental Science and Policy Program and MAES scientist. "As people are pulling money out of their retirement accounts and choosing the relatively safe, risk-averse option of putting it in a bank, they're validating our results."

Arvai is a member of the MSU Cognitive Science Program. In research he published last December with Louie Rivers, MSU assistant professor who studies decision making and risk, people were given money to play a simple game. It was set up so people repeatedly lost money. Prospect theory predicts that players would gamble to recover their losses so after the game ended, players were given an opportunity to enter a lottery in which they could win back their money.

"What we found was that people didn't like gambling in this context," Arvai said. "They were very averse to risk and preferred to take a sure loss over a big gamble to get their lost money back."

"In today's economic situation, leaving money in a 401(k) account is a gamble, the higher-risk option," Rivers explained. "The safer but costly approach is to pull the money out and that's what many people seem to be doing."

Record redemptions from equity mutual funds and flight from bond funds have been recorded the past two months, while cash is being stashed in what one financial analyst called "mattress-equivalent savings vehicles" by worried investors.

The research was funded by the National Science Foundation. Arvai's research also is supported by the Michigan Agricultural Experiment Station.


MSU Leverages Public, Private Funds for Farm Waste-to-Energy Project

Steve SaffermanState and foundation grants exceeding $3 million will assist Michigan State University researchers in developing technology for small farms to turn animal waste into usable heat, electricity and other valuable products.

MSU's planned Anaerobic Digestion Research and Education (ADRE) Center will consolidate new and existing programs in a 3,280-square-foot building south of the main campus, at MSU's expanding farm animal and environmental research complex.

Researchers aim to develop and commercialize turnkey digester/microturbine modules for affordable waste-to-power systems for small and mid-sized farms.

"The initiating of the center completes our vision for a continuum of research capabilities from theoretical calculations to laboratory-scale, bench-scale, pilot-scale and farm-scale anaerobic digestion research," said Steven Safferman, the center's director and MAES biosystems and agricultural engineering scientist.

A two-year, $1.5 million Michigan Public Service Commission research grant "recognizes MSU's strong capacity to address the critical issues of sustainability of animal agriculture and the need for renewable energy and economic development in Michigan," said Ajit Srivastava, chairperson of the Department of Biosystems and Agricultural Engineering.

An additional three-year grant totaling $1.5 million from a private southeastern Michigan foundation to build the facility and fund new programs "is an excellent example of how universities and foundations can work together to address critical issues of society such as food, environment and energy," Srivastava added. (The foundation prefers to remain anonymous.)

Farm waste management is a growing issue because of concerns over food contamination, pollutant runoff, odor and, most recently, greenhouse gas emissions. Petrochemical cost spikes, meanwhile, have added to farmers' costs for fertilizer and fuel. The MSU ADRE Center will develop ways to efficiently convert manure liquids into methane for heat and electricity while extracting fiber for soil enrichment or ethanol manufacture and water for irrigation. Other valuable outputs could include animal feed and algae, which can be processed into biofuels.

Anaerobic digestion is not a new concept and has been applied in recent years by some large dairy farms to generate power. Development of scalable modular systems could allow smaller farms, those with fewer than 500 head of cattle, to convert waste into valuable resources. Despite the loss of two-thirds of U.S. dairies since 1988, such smaller operations still account for 53 percent of the 71,510 remaining dairies and 48 percent of U.S. milk production, according to the U.S. Department of Agriculture.

"The enhanced revenues and reduced pollution from the proposed system will significantly improve the quality of life and health of residents in rural communities and turn an environmental and economic liability into a public and private asset," said project lead investigator Wei Liao, an assistant professor of biosystems and agricultural engineering. "It is our hope that success at this level will lead to extensive applications of similar technology throughout Michigan and the nation."

The ADRE Center also is expected to conduct contract testing of related equipment and processes to help support itself, and to house a recently created farm energy auditing program that could conduct digester/power system feasibility studies for dairy clients. The center is slated for completion by mid- to late 2009.

The farm energy audit program is supported by a two-year, $250,000 grant, also from the private foundation. MSU will contribute another $230,000 toward the cost of managing and operating the ADRE Center.


MSU Scientists Find New Gene that Helps Plants Beat the Heat

MSU plant scientists have discovered another piece of the genetic puzzle, one that controls how plants respond to high temperatures. That may allow plant breeders to create new varieties of crops that flourish in warmer, drier climates.

The MSU researchers found that the gene bZIP28 helps regulate heat stress response in Arabidopsis thaliana, a member of the mustard family used as a model plant for genetic studies. This is the first time bZIP28 has been shown to play a role in heat tolerance. The research was published in the Oct. 6 issue of the Proceedings of the National Academy of Sciences.

"We also found that bZIP28 was responding to signals from the endoplasmic reticulum, which is the first time the ER has been shown to be involved with the response to heat," said Robert Larkin, assistant professor of biochemistry and molecular biology and corresponding author of the paper. "We're finding that heat tolerance is a more complex process than was first thought."

Previous research has shown that the nucleus, the "brain" of the cell, and cytosol, the fluid inside cells, play a role in how plants respond to heat. The endoplasmic reticulum, a membrane in the cell that consists of small tubes and sac-like structures, is mainly responsible for packaging and storing proteins in the cell.

Christoph Benning, MAES biochemistry and molecular biology scientist and a member of the research team, said the scientists were looking for genes that turn other genes on and off and are tied to cell membranes. These membrane-tethered gene switches are seen in animals but hadn't been studied in great detail in plants.

"The bZIP28 protein is anchored in the endoplasmic reticulum, away from its place of action," Benning explained. "But when the plant is stressed by heat, one end of bZIP28 is cut off and moves into the nucleus of the cell, where it can turn on other genes to control the heat response. Understanding how the whole mechanism works will be the subject of more research."

Plants with an inactive bZIP28 gene die as soon as temperatures reach a certain level.

Other scientists on the research team are Federica Brandizzi, MSU associate professor of plant biology and member of the Plant Research Lab, and Hangbo Gao, former MSU postdoctoral research associate.

The work was sponsored by the MSU-DOE Plant Research Lab. Benning's research also is supported by the Michigan Agricultural Experiment Station.


MAES Dry Bean Breeder Named CSSA Fellow

Jim KellyJames D. Kelly, MAES crop and soil sciences researcher, has been named a fellow of the Crop Science Society of America (CSSA). It is the highest recognition bestowed by the CSSA, awarded to no more than 0.3 percent of the organization's active and emeritus members annually.

Kelly directs the MSU dry bean breeding and genetics program, using molecular markers to assist in selection for enhanced yield, plant architecture, processing quality, drought tolerance and disease resistance. He is serves as faculty coordinator of the Saginaw Valley Dry Bean and Sugar Beet Research Farm, one of 14 MAES field stations.

Kelly pioneered the development of basic molecular tools to enhance the efficiency of bean breeding that are now widely used by bean breeders throughout the world. He has released 34 dry bean varieties in 11 commercial seed classes that have helped diversify bean production in Michigan and contributed to lower production costs.

"This is a very well-deserved honor," said Doug Buhler, MAES associate director. "Jim is a world leader in dry bean breeding and genetics research and his contributions have benefited people in Michigan and around the world."

Kelly's international work includes serving as principal investigator for the Pulse Collaborative Research Support Program, which has resulted in the release of six successful bean varieties for Mexico and four varieties for Ecuador. He is also president of the Bean Improvement Cooperative (BIC), a volunteer organization promoting the exchange of information and materials for the improvement of bean production worldwide.

Kelly received a bachelor's degree in botany and a bachelor of agriculture degree in agricultural botany from Queens University of Belfast, Northern Ireland, and master's and doctoral degrees in plant breeding and genetics from the University of Wisconsin. He has been an MSU faculty member since 1980. He received the Distinguished Faculty Award from MSU in 2007. Kelly also has been honored by the Michigan Crop Improvement Association with an Honorary Membership Award, the Meritorious Service Award and the Distinguished Achievement Award.


MAES Scientist Named Editor of International Plant Research Journal

Christoph BenningIn recognition of his ability to recognize and review original research, as well as his own scientific contributions, Christoph Benning, MAES biochemistry and molecular biology researcher, has been named the next editor-in-chief of The Plant Journal, an international journal devoted to publishing original research papers on fundamental plant biology problems.

"It is an awesome responsibility but also a tremendous opportunity to serve the scientific community in this way," Benning said. "The Plant Journal is one of the top three peer-reviewed journals in the plant sciences. I've served on the journal's editorial board for almost seven years and recently co-edited a special issue of The Plant Journal on using plant biomass for biofuels and biomaterials, which gave me additional insights into the inner workings of publishing."

Benning's research focuses on lipid metabolism in plants, algae and photosynthetic bacteria. He is using his basic research discoveries to develop new biofuel crops.

A prolific researcher, author, presenter and mentor, Benning also holds a number of patents and invention disclosures. He also serves on the editorial board of The Journal of Biological Chemistry and is former monitoring editor of Plant Physiology. He also serves on National Science Foundation review panels.

"I have worked with Christoph for several years and have been impressed by the breadth of his knowledge," said Harry Klee, current editor-in-chief of The Plant Journal. "It is essential that the editor-in-chief be able to understand and evaluate work covering the breadth of plant biology. I am very comfortable turning over this responsibility to Christoph."

Benning came to MSU as an assistant professor of biochemistry and molecular biology in 1998 and was named professor in 2005. He received his doctorate in genetics from MSU in 1991 and his master's diploma in biology in 1986 from Albert-Ludwigs-Universität in Freiburg, Germany.

Benning will begin serving as co-editor with Klee in 2009 and will become sole editor-in-chief in 2010.

View the special issue of The Plant Journal that Benning co-edited.


Former MAES Scientist Honored for Lifetime Achievements

Larry Copeland, professor emeritus of crop and soil sciences and former MAES researcher, received the 2008 Legacy Alumni Award from the Oregon State University College of Agricultural Sciences at its annual Dean's Dinner Oct. 31. Copeland was recognized for his distinguished record of professional achievements since graduating from his alma mater.

"Dr. Copeland is very deserving of this prestigious award," said Jim Kells, chairperson of the MSU Crop and Soil Sciences Department. "He is recognized nationally and internationally as a leading expert in seed science and technology, and his contributions to agriculture in Michigan and the United States are significant."

MAES associate director Doug Buhler concurred.

"Dr. Copeland has made tremendous contributions across the board in seed science and technology," Buhler said. "His work has benefited students, the industry and science. His books and publications assure that his work will continue to have a positive impact for years to come."

Copeland, also affiliated with MSU Extension, spent his entire MSU career teaching and conducting research on seed technology and field crops. He also consulted in seed technology programs in Southeast Asia, India and Africa, and he is author and co-author of several books on seed science and technology, including Seed Purity and Taxonomy, the first new handbook of seed testing and taxonomy in more than 50 years and the most comprehensive and up-to-date resource available for seed analysts. Published in June 2008, the book is available from MSU Press.


Project GREEEN Issues Call for Proposals

GREEEN logoProject GREEEN (Generating Research and Extension to meet Economic and Environmental Needs), Michigan's plant agriculture research initiative housed at MSU, has issued its request for proposals for fiscal year 2009 for new projects and current projects eligible for continued funding.

All proposals must address the critical needs of Michigan's plant industries. Plant commodity and stakeholder groups have submitted their research/educational priorities, which are available on the Project GREEEN Web site.

Employees of MSU and the Michigan Department of Agriculture are eligible to apply.

Proposals are due Jan. 5, 2009. For more information, visit the Project GREEEN Web site.


November Conference to Inspire Food Entrepreneurs

The Making it in Michigan conference might be the final ingredient to turn a small business idea into a recipe for success.

Making It in Michigan logoMaking it in Michigan, presented by the MSU Product Center for Agriculture and Natural Resources, will take place Nov. 13 from 8 a.m. to 4 p.m. at the Lansing Center, in Lansing, Mich.

Matthew Birbeck, MSU Product Center supply chain specialist and conference coordinator, said the event will give current and aspiring entrepreneurs three main take-aways -- information, networking and inspiration.

"People who have a secret recipe or a big idea can get their product off the ground on Nov. 13," Birbeck said. "Product Center business counselors and the industry experts they need -- financiers, packagers, suppliers, marketers, food industry representatives -- will be ready and waiting to help them."

The conference will feature four educational tracks that address common hurdles that entrepreneurs often encounter. Attendees can choose from business, regulatory, food or implementation topics such as food labeling, online marketing, business planning, local zoning considerations, and consumer health and wellness trends.

"We've planned a great range of educational sessions with dynamic speakers," Birbeck said. "Michigan State University researchers, Michigan Department of Agriculture regulators and representatives from county economic development corporations are just some of our presenters."

Eric Villagas, award-winning chef and host of the PBS television show "Fork in the Road," is the conference keynote speaker. Villagas will discuss local food, from the consumer trend to growing commercial business interest.

"Eric coined the phrase 'think global but buy and eat local,' which really represents the opportunities out there for emerging Michigan entrepreneurs," Birbeck said. "Consumers want to buy more local food, while, at the same time, there are so many opportunities for new products in the global marketplace."

The conference will also offer an afternoon marketplace trade show. More than 60 organizations will display their products and offer information and counseling, including Product Center clients, business consultants, regulatory officials, and food and farming groups.

"We want people to leave the conference packed with practical knowledge, industry resources and the confidence to put them to use," Birbeck said. "Our current clients will get a chance to show and sell their products and inspire the next generation of Michigan food, natural resource and bioeconomy entrepreneurs."

More information and conference registration are available at www.makingitinmichigan.msu.edu. Conference registration costs $60 and includes breakfast, lunch, educational sessions and parking at the Lansing Center.


New Faculty Members

The MAES is pleased to welcome five new faculty members with MAES appointments.

Joe MessinaJoe Messina, associate professor of geography, became affiliated with the MAES in August. His research interests include global change science, geospatial methodologies, and the intersection of health and the environment. Messina is involved in many projects throughout the world, including research on sleeping sickness and malaria in Kenya, climate change and rangeland degradation in China, sustainable rural development in Thailand, biodiversity in plantation forestry in Ecuador and human health in Michigan.

Before coming to MSU, Messina worked as a remote sensing scientist on a number of projects, including satellite-based precision agriculture for the SPOT Image Corporation in Chantilly, Va. Messina received his doctorate in geography from the University of North Carolina at Chapel Hill in 2001, and his master's degree in geography and bachelor's degree in biology from George Mason University in Fairfax, Va., in 1994 and 1992, respectively.

Hye-Jin PaekHye-Jin Paek, associate professor of advertising, became affiliated with the MAES in August. Her research focus is on the influence of media messages on individuals' health behaviors in conjunction with social perceptions, social interactions and social contexts. Her current research explores the role of food marketing in dietary behavior. Paek has also conducted research on the effects of tobacco and anti-tobacco media messages on adolescent smoking. She will be working with MSU researchers, community health officials and educators to promote food safety and community health and well-being.

Before joining MSU, Paek taught at the University of Georgia for three years. She also has seven years of professional experience as a broadcasting news reporter, an account executive and a copywriter, a political campaign consultant and an advertising columnist. Paek received her master's and doctoral degrees in mass communications from the University of Wisconsin-Madison in 2001 and 2005, respectively, and her bachelor's degree from Yonsei University in Seoul, South Korea, in 1994.

Kathy Stansbury, associate professor of family and child ecology, became affiliated with the MAES in August. Her research focuses on the mother-infant relationship and how differences in maternal behavior affect the development of the hypothalamic-pituitary-adrenocortical system -- a stress-sensitive system regulated by limbic areas in the brain. Stansbury is currently investigating how genetic variation in infants, maternal behavior and developmental history interact to predict infants' behavioral and stress responses.

Before coming to MSU, Stansbury served as a National Research Service fellow at the Institute of Child Development at the University of Minnesota from 1990 to 1992. She also held academic positions at the University of New Mexico from1993 to 2001 and Mount Holyoke College in South Hadley, Mass., from 2001 to 2004. She received her bachelor's degree in psychology from Santa Clara University in 1984 and her doctorate in developmental psychology from UCLA in 1990.

Zhiyong XiZhiyong Xi, assistant professor of entomology, became affiliated with the MAES in January. His research focus is on use of Wolbachia, a bacterium known to alter the reproductive capabilities of insects, to control mosquito-transmitted diseases such as dengue fever and malaria. Xi is currently investigating how Wolbachia and dengue virus interact with their mosquito host.

Prior to joining MSU in 2007, Xi served as a postdoctoral fellow at the Johns Hopkins University Bloomberg School of Public Health from 2005 to 2007. He received his doctorate in entomology from the University of Kentucky in 2005, his master's degree in pathogenic biology from Sun Yat-sen University of Medical Sciences in China in 1996 and his bachelor's degree in biological pharmaceutics from China Pharmaceutical University in 1991.

Jinhua Zhao, associate professor of economics and agricultural, food and resource economics, became affiliated with the MAES in August. His research interests include natural resource and environmental economics, energy, technology adoption and decision making under extreme uncertainty. Jinhua is currently conducting research on the design of an international environmental agreement that will succeed the Kyoto Protocol, and the social and economic impacts of biofuels.

Before coming to MSU, Zhao spent 11 years in the Department of Economics at Iowa State University. He received his doctorate in agricultural and resource economics from the University of California at Berkeley in 1997, his master's degree in agricultural economics at the University of Guelph in 1992, and his bachelor's degree in industrial engineering at the University of Science and Technology in Beijing in 1987.

Last Updated: March 17, 2009
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