Abstract: The elimination of the quota program in 2002 reduced the barrier to entry into the peanut shelling industry. Peanut producers have expressed interest in integrating up to peanut shelling and marketing their own peanuts to peanut manufacturers. The peanut shelling and manufacturing sectors are concentrated, with little information available related to shelling costs and manufacturer purchasing characteristics for peanuts. A peanut buyer survey was conducted to gauge the willingness of buyers to purchase peanuts from a new player in the market and to identify what characteristics are important to the buyers. The results indicate buyers are satisfied with current suppliers. However, buyers use more than one supplier and are open to new suppliers in the market.
Key Words: cooperatives, food manufacturers, peanut marketing, peanut shelling, peanuts
Contact Author:
Nathan B. Smith
Dept. of Ag & Applied Economics
University of Georgia
Rural Development Center
P.O. Box 1209, RDC
Tifton, GA 31793
Phone: (229) 386-3512
Fax: (229) 386-3440
Abstract: This study examines factors that affect the participation behavior of limited resource farmers in agricultural cost-share programs in Alabama. The data were generated from a survey administered to a sample of limited resource farm operators. A binary logit model was employed to analyze the data. Results indicate that college education, age, gross sales, ratio of owned acres to total acres, and rented acres, as well as membership in a conservation association, had significant influence on cost-share program participation.
Key Words: binary logit, cost-share program, limited resource farmers, participation behavior
Contact Author:
Okwudili ("Odili") Onianwa
Department of Agribusiness
P.O. Box 1562
Alabama A&M University
Normal, AL 35762
Phone: (256) 372-4825
Fax: (256) 372-5906
Abstract: This study identifies and analyzes factors that contribute to the success of small farms. Particular attention is given to the effect of participation in marketing and supply cooperatives on the success of small farms. Using modified net farm income per dollar of assets and operator's labor and management income as measures of success, results show participation in marketing and supply cooperatives is positively correlated with success. Further, analysis findings indicate farm size, controlling for variable and fixed costs, type of ownership, management strategies used, working off the farm, and age of the operator are important factors that influence profitability (modified net farm income per dollar of assets and operator's labor and management income) and success.
Key Words: cooperatives, management strategies, marketing, small farms, success, supply cooperative
Contact Author:
Ashok K. Mishra
Room 4119
Resource Economics Division
Economic Research Service
U.S. Department of Agriculture
1800 M Street, NW
Washington, DC 20036-5831
Phone: (202) 694-5580
Fax: (202) 694-5756
Abstract: Nonagricultural factors impact land values to cause a divergence of discounted cash rents for agricultural land and land values in Georgia. General economic factors are represented by per capita income in nonmetro areas. Cash rents for cropland and pasture have positive impacts on land values. Nonagricultural factors are stronger influences on land values than are cash rents. Greater effective demand exists for pasture than for cropland because pasture is subject to relatively more pricing pressure in northern counties with higher incomes and population. Increased land values have led to increased net wealth for Georgia agricultural producers.
Key Words: capitalization, cash rent, cointegration, equilibrium, error correction mechanism, land values
Contact Author:
Archie Flanders
Dept. of Agricultural & Applied Economics
313-D Conner Hall
The University of Georgia
Athens, GA 30602
Phone: (706) 542-0751
Fax: (706) 542-0739
Abstract: Conversion to combine harvesters has resulted in Louisiana sugarcane growers delivering a more perishable product to raw sugar factories. Dextran formation increases as the time between harvest and milling is extended. Milling of freshly cut sugarcane reduces the formation of dextran and associated economic losses. One approach available to factories to reduce dextran formation is to extend the harvested sugarcane delivery schedule to the mill. A simulation model was developed to evaluate alternative delivery schedules at raw sugar factories. Economic losses in product value associated with dextran formation were estimated and compared for various extended delivery schedules.
Key Words: dextran, milling, product value, raw sugar factories, scheduling, sugarcane industry
Contact Author:
Michael E. Salassi
Department of Agricultural Economics
101 Ag Administration Building
Louisiana State University
Baton Rouge, LA 70803
Phone: (225) 578-2713
Fax: (225) 578-2716
Abstract: To generate additional income for their members, many cooperatives consider forward integrating into processing activities. However, many market, industry, and economic issues must be considered before choosing a value-added processing activity to pursue. Gathering the necessary information to evaluate various processing opportunities is a considerable undertaking and may require the expertise of university personnel, economic development specialists, and possibly professional consultants. Using an Oklahoma new generation cooperative case study, this paper outlines a market assessment process for value-added ventures.
Key Words: market entry strategies, "matrix" assessment, new generation cooperative, strategic planning
Contact Author:
Rodney B. Holcomb
Department of Agricultural Economics
Food & Agricultural Products Research & Technology Center, Room 114
Oklahoma State University
Stillwater, OK 74078-6055
Phone: (405) 744-6272
Fax: (405) 744-6313
