New study looks at concerns, attitudes of US farmers and ranchers

A new study conducted by Purdue University can help agribusiness leaders better understand their farmer customers. The Large Commercial Producer (LCP) survey, conducted every five years by the Center for Food and Agricultural Business, explores the current concerns, preferences, behaviors and attitudes of U.S. farmers and ranchers. The 2014 survey features results from nearly 1,700 producers.
"Our goal is to help agricultural producers and agribusinesses reach higher levels of success," says Mike Gunderson, Purdue professor and associate director of research at the center. "Armed with information and insights about their farmer customers, agribusinesses can create new business strategies based on what their customers value. That approach results in more effective partnerships with key clients."
Started in 1998, the LCP survey focuses on corn/soybean, wheat/barley, cotton, fruit/nut/vegetables, dairy, hog and cattle producers from across the United States. The 2014 survey generated more than 400,000 data points, which the center research team, led by Gunderson, condensed into four themes - producer strategy, loyalty, buying preferences, and information and the salesperson.
Gunderson says the research team, consisting of Purdue agricultural economists, modified the survey tool for this iteration to include questions about "how producers think about the strategies that make them successful, what amount of time it takes to implement those strategies and what worries them at night." Farmers answered questions about five different strategies: managing their production, managing people, controlling their costs, spending time marketing their output, and controlling land, equipment and facilities.
"We found it interesting that what farmers think makes them successful and what they actually spend their time focusing on are not always the same," Gunderson explains.
The team also studied farmer loyalty across different products - seed, crop protection, feed and nutrition, animal health, fertilizer and capital - at the brand and local dealer/retailer level. They used the same products to evaluate buying preference based on three attributes: price, performance and relationship.
The role of information and salespeople has been included in each iteration of the LCP survey. This version reflected changes in Internet-based technologies, including the addition of questions about social media, emails and text messaging. The team looked at how the importance of different media sources, information sources, salesperson activities and salesperson attributes affected producer decision making.
Results from the LCP survey are now available online. For questions about survey methods, contact David Widmar, research associate, at dwidmar@purdue.edu.

Montana ranchers need hay after fires destroy crops

Montana ranchers are in need of hay donations to feed their livestock to help offset the 300,000 acres destroyed in recent fires, according to reports.
Calls have been sent out to the surrounding areas by disaster and emergency services, but responses have been sparse so far. “We’ve been so dang dry, we haven’t had much of a hay crop,” said Chuck Lee, Fallon County Disaster and Emergency Services coordinator in Baker County, Montana. “Anyone who has any hay is hanging on to it in case they need it.” In addition, say coordinators, those affected may not yet know what or how much they need.
The Farm Service Agency is putting together a letter to the state Farm Services Office asking for assistance. From there, the request will be sent to Washington, D.C. The committee is likely to seek implementation of the Emergency Conservation Program, which will allow the use of land in the Conservation Reserve Program by victims of the fire. Conservation Reserve Program lands are generally marginal lands that farmers are paid not to use, even for grazing.

Farm income up 31% in 2010 according to USDA

The U.S. Department of Agriculture (USDA) released its Farm Income Report, which shows a 31% increase in farm income for 2010 over 2009 numbers.
The forecast puts 2010 income at $81.6 billion—26% higher than the 10-year average ($64.8 billion) for 2000-2009. Net cash farm income set a new record at $92.5 billion, 2.3% above the previous record attained in 2008. “Today’s farm income report shows that America’s farmers and ranchers are helping to lead the country’s economic recovery," said Agriculture Secretary Tom Vilsack. "All three measures of farm sector earnings have experienced a rapid rebound in 2010 and other indicators—such as farm asset values—point to a sustainable recovery."
Vilsack said some credit for the positive numbers should be given to the 2008 Farm Bill, the Obama Administration's Recovery Act and increased agricultural exports.

Vilsack appoints members of Advisory Committee on Beginning Farmers and Ranchers

U.S. Agriculture Secretary Tom Vilsack has appointed 11 new people to join eight incumbents as members of the Advisory Committee on Beginning Farmers and Ranchers.
The Committee's role is to advise the Secretary on ways to support beginning farmers and ranchers while maximizing their opportunities. "Beginning farmers are a key to 21st-century agriculture and I look forward to working with this committee to help ensure that," said Vilsack. "These new agricultural entrepreneurs are the cornerstone to a vibrant rural America and to the future of all agriculture."
Members serve a two-year term and can be reappointed for up to six consecutive years.

US farm, ranch survey shows income up

A new survey by Rabobank shows that income for U.S. farmers and ranchers improved over findings of two prior surveys. Beef, dairy and row crop farmers surveyed in the Rabobank U.S. Farm & Ranch Survey reported a 24% improvement in income since fall 2009, while about half of U.S. producers state that their income was worse when compared to last year.
Half of producers expect income to improve while half expect income to decline in the next year. The survey found that 43% reported a decline in profitability. About 20% more producers reported higher costs. View a full copy of the report online at the Rabobank website.