Source: UNIVERSITY OF WYOMING submitted to
OVERCOMING HONEY BEE POLLINATION MARKET INFORMATION DEFICIENCIES IN THE INTERMOUNTAIN WEST AND PACIFIC COAST
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
TERMINATED
Funding Source
Reporting Frequency
Annual
Accession No.
1005356
Grant No.
2015-67024-22952
Project No.
WYO-00624-15
Proposal No.
2014-05521
Multistate No.
(N/A)
Program Code
A1641
Project Start Date
Feb 1, 2015
Project End Date
Jan 31, 2018
Grant Year
2015
Project Director
Jones Ritten, C. A.
Recipient Organization
UNIVERSITY OF WYOMING
1000 E UNIVERSITY AVE DEPARTMENT 3434
LARAMIE,WY 82071-2000
Performing Department
Agricultural & Applied Economi
Non Technical Summary
The demand for high-value, animal pollinated crops has increased four fold since 1964. Concurrently, the national supply of honey bees has steadily decreased, creating concerns for long-term U.S. food security. Recent honey bee shortages have led to sharp pollination fee increases. Beekeepers are working to meet grower demand, but with limited market data. Beekeepers need complete pollination market information, including growers' pollination services preferences, to make optimal entrepreneurial management decisions.The long-term goal of this research is to determine the structure and competitiveness of the pollination market to create efficiency within the market to help safeguard U.S. food security. The objective of this application is to determine the value of key beekeeper and honey bee attributes to growers. This seed project will use the following research aims to meet these goals:1. Identify attributes of managed honey bees and beekeepers that growers value when negotiating pollination contracts and how these attributes vary across crops, and2. Estimate the value of honey bee and beekeeper attributes through determining grower's willingness to pay for such attributes in pollination contracts.The researchers will use focus groups and a conjoint designed survey to meet these aims. The results will provide beekeepers with avenues for entrepreneurship in the pollination market and increase the marketability of their bee colonies. The research will produce preliminary data that is essential for competitive endeavors to secure future funding aimed at improving pollination service marketing and market information.
Animal Health Component
0%
Research Effort Categories
Basic
75%
Applied
25%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60330103010100%
Knowledge Area
603 - Market Economics;

Subject Of Investigation
3010 - Honey bees;

Field Of Science
3010 - Economics;
Goals / Objectives
The long-term goal of this research is to determine the structure and competitiveness of the pollination services market in order that this information will create efficiency within the market and produce the optimal quantity of honey bee colonies to help safeguard U.S. food security. The objective of this application is to determine growers' value for specific honey bee and beekeeper attributes across a variety of crops. The central hypothesis is that growers value specific beekeeper and honey bee attributes, which may be expressed through varying willingness to pay (WTP) for pollination services in pollination contracts with heterogeneous beekeepers. This study proposes to collect preliminary focus group and survey data from growers that contract with beekeepers for pollination services in the Intermountain West and Pacific Coast to determine which attributes are most valuable and how much growers are willing to pay for such attributes when entering into pollination contracts.The following research aims will be used to meet the present objective and long-term goal:1. Identify attributes of managed honey bees and beekeepers that growers value when negotiating pollination contracts and how these attributes vary across crops2. Estimate the value of honey bee and beekeeper attributes through determining grower's WTP for such attributes in pollination contracts
Project Methods
The main focus of this study is to determine how growers determine how much to pay for certain attributes of beekeepers and their bees for pollination services. The use of focus groups with key grower associations will help in understanding the possible beekeeper attributes valued. Focus Group Experimental Design: The proposed work will include focus groups with key grower associations to understand the possible beekeeper attributes that are valued, such as the 2015 winter meetings of the Almond Board of California and Washington State Tree Fruit Association. An additional focus group will be conducted of Wyoming alfalfa and row-crop (e.g., sunflower and canola) growers at the University of Wyoming's Sheridan Research and Extension Center in the fall of 2015. The focus groups will facilitate in-depth group discussions regarding growers' perceptions and preferences for pollination services, beekeeper attribute preferences, and general output marketing needs.Two focus groups will be conducted at each location, each consisting of five to eight participants randomly selected from conference attendees (for the almond and tree fruit scenarios) and regional commodity group members (in Wyoming). Each focus group is expected to last one to two hours to allow for in-depth discussion of issues and concepts and will be recorded for audio. All participants will be paid for their time and additional travel expenses.While the focus groups will provide important groundwork to understanding which subset of the possible beekeeper attributes growers are most interested in, they will not enable economic valuation of such attributes. Such valuation will be reflected in the contract prices different beekeepers receive. Unfortunately, especially due to the private nature of these contracts, it is difficult to break down such prices and determine attribute valuation in the market place. Thus, this research will utilize the conjoint survey methodology to estimate growers' beekeeper attribute WTP. Conjoint Survey Experimental Design: Conjoint surveys are a tool to obtain customer values of products and services with varying levels of attributes. These surveys are employed to understand consumer demand for food at the retail end of the supply chain and to understand intermediary demand along the supply chain. The objective of the conjoint survey in this project will be to attain grower WTP for pollination services through growers' ranking and estimating the value of various beekeeper attributes. Following conjoint survey methodology, the stated working hypotheses suggest growers' pollination services benefit (or utility) depends on beekeepers' management, marketing and communication, bee health, and responsiveness during bloom periods. The assignment of the different attribute levels across beekeepers will be informed by focus group results along with any additional attributes needed for proper survey development. When the surveys are administered, growers will rate each hypothetical beekeeper on a scale of one to seven, with one being least desirable and seven most desirable. Additional survey questions will be used to gather data related to the growers' farm operation and business, socio-economic characteristics, age and race demographics, and location.The conjoint survey will be administered by mail to a randomly selected sample of 1,150 growers including California almond growers, Pacific Northwest tree fruit growers, and Intermountain canola, sunflower, and alfalfa growers. The names and contact information for the growers will come from growers associations in the respective areas and industries.Efforts: The findings from the conjoint analysis will provide information about both the value and relative importance of beekeeper attributes to growers across different crops. Outcomes regarding the hypothesized role of selected beekeeper attributes in grower selection decisions will be tested. The relative importance of attributes ratings may provide guidance for beekeepers working to improve their pollination service marketing efforts. The results from this survey will enable better pollination servicing to growers. These results will be transferred to growers and beekeepers through extension and outreach through the University of Wyoming, specifically University of Wyoming Extension's Bee College, and through presentations at beekeeper associations.Evaluation: The focus groups are expected to expand the current understanding of growers' beekeeper selection decision, including how pollination service selection relates to other input factor decisions. Most importantly, the focus groups will decrease the likelihood that important pollination service valuation attributes will be excluded in the survey development. The survey instrument will be designed based on the data collected during the focus groups. The instrument will be pretested for accuracy. Survey data will be collected for grower willingness to pay for beekeeper attributes. This data will be analyzed to meet the aims of the project; Identify attributes of managed honey bees and beekeepers that growers value when negotiating pollination contracts and how these attributes vary across crops, and estimate the value of honey bee and beekeeper attributes through determining grower's WTP for such attributes in pollination contracts. If the data lead to statistically significant attributes that influence growers' willingness to pay for pollination services, then these research outcomes will be fulfilled.

Progress 02/01/15 to 01/31/18

Outputs
Target Audience: Our target audience includes argicultural professionals, specifically almond growers and beekeepers, together withresearchers interested in pollination service markets. Beekeepers in the Northern Rockies and almond growers in California who are engaged in pollination contractsare our main target. Changes/Problems: As noted on the last report, we have contracted with Wyoming Statistical and Analysis Center to administer the survey to 3,000 almond growers. Because the surveys are being sent from a non-California University, we have experienced a relatively low response rate of just over 20%. What opportunities for training and professional development has the project provided? This project has led to multiple opportunities for training and professional development. The graduate student has had the opportunity to train on how to conduct meaningful research and has attendedand presented at academic meetings. This project has also given Dr. Jones Ritten the opportunity to develop professional relationships with other researchers in the field. How have the results been disseminated to communities of interest?The results of this study have been presented at the Pacific Northwest Regional Economic Conference Annual Meetings in Tacoma, WA, on May 32, 2018 and will be presented at the Western Agricultural Economics Association Annual Meeting held in Anchorage AK, June 24-26, 2018. Preliminary results were presented at the NIFA Agricultural Economics and Rural Communities Project Directors Workshop at the American Agricultural Economics Association Annual Meeting in Chicago, IL, on August 2, 2017. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Impact: Although pollination services completed by managed honeybees are critical to the sustainability and production of most crops produced in the United States, there is limited information about the pollination services industry, especially in the Northern Rockies region. Specifically there is no general information on the value almond growers place on attributes of beekeepers and their bees, limiting beekeepers ability to effectively adjust to almond grower demands. To address the void, we sent 3,000 surveys to almond growers to measure their value of various beekeeper and honeybee attributes. From the 676 returned surveys, we found that most (65%) almond growers contract with beekeepers that are located in California (the same state as the almond growers), use only one beekeeper (85%), have long-established relationships with beekeepers (13 year relationship on average), and pay $171 per colony for pollination services on average. We assessed beekeepers value for various attributes by giving each almond grower four hypothetical situations in which they would require a new beekeeper to pollinate their almonds. We presented the almond grower with two different potential beekeepers that varied on various attributes. These attributes included location of the beekeeper (either located in California or not), the ability of the beekeeper to pollinate the entire crop of almonds (either able to pollinate all almonds or not), the density of bees per colony (frames per colony varied between 8, 10, and 12), and pollination fee per colony (15% more, 15% less, or the same as their current pollination contract). Almond growers where then instructed to selected one of the two beekeepers or neither. Using a Random Parameters Logistic Regression model, we found that almond growers are more willing to select a beekeeper that has enough colonies to pollinate all of their almond crop (thus they do not have to hire additional beekeepers), is located in California, has more frames per colony, and has a lower pollination fee. The mean amount beekeepers are willing to pay for a beekeeper that can pollinate all almonds, is located in California, and the frames per colony is currently being estimated. These results are of utmost importance to beekeepers that are currently involved in the pollination market, or are contemplating entering it. This information is of particular importance to those beekeepers in the Northern Rockies, since results show a market advantage for California beekeepers. Results suggest that beekeepers outside of California should increase their size and frames per colony, while still offering competitive fees to secure pollination contracts. The information garnered from this project helps identify the structure of the pollination services market and aids beekeepers in their attempt to be competitive and adjust to grower demands. Research Aim 1. Identify attributes of managed honey bees and beekeepers that growers value when negotiating pollination contracts and how these attributes vary across crops 1. Major activities completed: During the first year of the project, a new graduate student joined the research team and completed background research and interviewed Wyoming beekeepers and California almond growers to determine the characteristics that almond growers value. 2. Data Collected: Data was collected through transcriptions of the interviews conducted with Wyoming beekeepers and California almond growers 3. Summary Statistics and Discussion of results: From the collected data, we found that almond growers value the location of the beekeepers they hire, the beekeepers' ability to pollinate all of their almond crop (limiting their need to hire multiple beekeepers), the number of frames per colony (a measure of the number of bees per colony hired), and the fee paid per colony for pollination services. 4. Key outcomes or other accomplishments realized: Information garnered from the interviews conducted identified the attributes of beekeepers and their bees that almond growers value when negotiating pollination contracts. Research Aim 2. Estimate the value of honey bee and beekeeper attributes through determining grower's WTP for such attributes in pollination contracts 1. Major activities completed: During the second year of the project, we developed and deployed a survey to California almond growers. The survey used a choice experiment method that allowed us to estimate almond growers' WTP for various attributes of beekeepers, and thus meet our second research objective. The survey was sent to 3,000 almond growers in March of 2017. We received 676 completed surveys. The survey instrument was developed to determine specifics about almond growers' operations (including other crops grown, size, annual sales, and location), current contracting with beekeepers for pollination services (including location of current beekeeper, frames per colony, number of beekeepers hired, and average fee paid per colony), demographic information, and their value of certain beekeeper attributes. To measure this value, we gave each almond grower four hypothetical situations in which they would require a new beekeeper to pollinate their almonds. We presented the almond grower with two different potential beekeepers that varied on various attributes. These attributes included location of the beekeeper (either located in California or not), the ability of the beekeeper to pollinate the entire crop of almonds (either able to pollinate all almonds or not), the density of bees per colony (frames per colony varied between 8, 10, and 12), and pollination fee per colony (15% more, 15% less, or the same as their current pollination contract). Almond growers where then instructed to selected one of the two beekeepers or neither. 2. Data Collected: Data was collected from the 676 returned surveys. Data was collected on growers' operations (including other crops grown, size, annual sales, and location), current contracting with beekeepers for pollination services (including location of current beekeeper, frames per colony, number of beekeepers hired, and average fee paid per colony), demographic information, and their value of certain beekeeper attributes. 3. Summary Statistics and Discussion of results: From the 676 returned surveys, we found that most (65%) almond growers contract with beekeepers that are located in California (the same state as the almond growers), use only one beekeeper (85%), have long-established relationships with beekeepers (13 year relationship on average), and pay $171 per colony for pollination services on average. We assessed beekeepers value for various attributes by giving each almond grower four hypothetical situations in which they would require a new beekeeper to pollinate their almonds. Using a Random Parameters Logistic Regression model, we found that almond growers are more willing to select a beekeeper that has enough colonies to pollinate all of their almonds (thus they do not have to hire additional beekeepers), hire a beekeeper located in California, has more frames per colony, and has a lower pollination fee. The mean amount beekeepers are willing to pay for a beekeeper that can pollination all almonds, located in California, and frames per colony is currently being estimated. 4. Key outcomes or other accomplishments realized: Results from this study will be included in publications submitted to academic journals within the next six months. These publications are expected to lead to a change in knowledge and a change in action. The information from this study on attributes almond growers value is expected to increase the decision-making of beekeepers and change the behavior of beekeepers through improved knowledge to best meet demand for pollination services.

Publications


    Progress 02/01/16 to 01/31/17

    Outputs
    Target Audience:Our target audience includes agricultural professionals, specifically almond growers in California and Beekeepers in the Northern Rockies. Beekeepersand almond growers thatcurrently engaged inpollination contractsin California are the main target of this research. Changes/Problems:Although we noted on the last report that we were collaborating with another research group, the collaboration was determined infeasible. As a result, we have contracted with Wyoming Statistical and Analysis Center to administer the survey to 3,000 almond growers. Because the surveys are being sent from a non-California University, we have experienced a relatively low response rate. What opportunities for training and professional development has the project provided?This project has lead to multiple opportunities for training and professional development. The graduate student has had the opportunity to train on how to conduct meaningful research and will be attending academic meetings this summer. This project has also given Dr. Jones Ritten the opportunity to develop professional relationships with other researchers in the field. How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?In the next reporting period, we plan on analyzing data received from the completed surveys to estimate almond growers' WTP for various beekeeper attributes. Further, the analysis will be the basis for academic presentations made at regional and national conferences along with submitted journals manuscripts.

    Impacts
    What was accomplished under these goals? 1. Identify attributes of managed honey bees and beekeepers that growers value when negotiating pollination contracts and how these attributes vary across crops Since the start of this project in August 2015, we have made significant progress. During the first year of the grant, we focused our efforts on the first research objective. During this time, a new graduate student joined the research team and completed background research and interviewed Wyoming beekeepers and California almond growers to determine the characteristics that almond growers value. 2. Estimate the value of honey bee and beekeeper attributes through determining grower's WTP for such attributes in pollination contracts During the second year of the project, we have developed and deployed a survey to California almond growers. The survey uses a choice experiment method that will allow us to estimate almond growers' WTP for various attributes of beekeepers, and thus meet our second research objective. The survey was sent to almond growers in March of 2017. We are still receiving completed surveys, but have nearly 400 returned thus far.

    Publications


      Progress 02/01/15 to 01/31/16

      Outputs
      Target Audience:Our target audience includes agricultural professionals, specifically almond growers in California and beekeepers in the Northern Rockies. Beekeepersthat currently engage in pollination contracts with almond growers in California are the main target of this research. Changes/Problems:We have encountered one major problem that will require a major change to the project that was proposed. Due to changes in regulations by the National Agricultural Statistical Service, the cost of administering the surveys has increased drastically. Therefore, we are working to collaborate with another research group in order to cost share. In order to accomplish this collaboration, we are forced to reduce our survey respondents to almond growers only. This change requires that we not survey fruit tree growers, although this group was included in the proposed project. What opportunities for training and professional development has the project provided?This project has lead to multiple opportunities for training and professional development. The graduate student has had the opportunity to train on how to conduct meaningful research. This project has also given Dr. Jones Ritten the opportunity to develop professional relationships with other researchers in the field through our collaboration efforts. How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?In the next reporting period, we plan on finalizing all interviews with almond growers and beekeepers. These interviews will provide us with the information necessary to meet our first research aim: Identify attributes of managed honey bees and beekeepers that growers value when negotiating pollination contracts. In addition, these interviews will be used to develop our survey instrument. We plan on administering the survey instrument to almond growers during the next reporting period.

      Impacts
      What was accomplished under these goals? Since the start of this project in August 2015, we have made significant progress on our first research aim: Identify attributes of managed honey bees and beekeepers that growers value when negotiating pollination contracts. During this time, a new graduate student joined the research team and has been completing required coursework along with background research for this project. As a research team, we have begun interviewing Wyoming beekeepers and California almond growers to determine the characteristics that almond growers value. In addition, the research team has been in contact with another research team that was a recipient of USDA funding to collaborate on research focused on almond grower's pollination practices. Together with this team, we have been developing a survey instrument to be sent to a random sample of almond growers in California. Results from this questionnaire will be used to meet our second research aim: Estimate the value of honey bee and beekeeper attributes through determining grower's WTP for such attributes in pollination contracts.

      Publications