Performing Department
Business Administration
Non Technical Summary
The project's core objective is to develop and implement an integrated teaching, research, and extension model. Its primary focus is on bolstering the Digital Commerce capabilities of small farm-based businesses in South Carolina and enhancing their participation in the online marketplace. This strategic approach is crucial as it directly addresses the challenges faced by small farm-based businesses in South Carolina, particularly in the context of the state's leading industry, agribusiness, which is a key driver of rural development and growth. It's worth noting that approximately 95% of the 25,000 farms in South Carolina are family-owned, with about half of them being small farms of less than fifty acres in size.Despite consistent growth in the agribusiness sector, small farms and farm-related businesses in South Carolina are facing increased pressures to remain viable and profitable in today's dynamic and technologically advanced business environment. One of the main challenges for small farms is consistently finding customers for their products through the right marketing channels and successfully selling their products. Unlike big farms that traditionally sell through wholesalers, small farms rely on direct marketing channels (DTC) such as Farmer's Markets, On Farm Sales, Community Supported Agriculture (CSA), and online sales to maximize revenue by omitting the middlemen. The rise in interest and demand for local produce and food products also favors direct-to-consumer marketing.Regardless of the choice of DTC format, some level of online presence is necessary for the viability of any business in the current market environment. Consumers increasingly use online platforms to begin their search, evaluate offerings, and make purchase decisions. Food and beverage sales in the U.S. totaled almost $ 24 billion in 2020 and are expected to reach $38 billion in 2023. It is estimated that approximately 55% of consumers will buy their groceries using online channels by the end of 2024. Consequently, farmers have also increased their internet usage for sales and marketing. Data from the U.S. Department of Agriculture (USDA)'s Local Food Marketing Practice Survey found that direct-to-consumer online sales in 2020 accounted for 10.4%, an increase from the 8% level in 2015. The COVID-19 pandemic has also highlighted the advantages of online marketing for all business types.The ability to leverage technology across activities ranging from production to final sale is becoming increasingly important for a profitable and sustainable enterprise. This is particularly true for small farmers, especially those located in rural areas. By leveraging technology, these farmers can increase the visibility of their offerings, connect with customers, and market their products to a wider audience. The increased Federal and State investment in bringing high-speed internet to rural South Carolina further reduces the barriers to the adoption of online marketing by farmers in the State, thereby enhancing their digital commerce capabilities.It is proposed that a lack of appropriate technological knowledge and skills and the affordability of professional assistance have greatly influenced small farmers' adoption of online marketing and sales, consequently hindering their ability to harness the power of electronic marketplaces. This project aims to improve the sales and profitability of small farm-based businesses in South Carolina by increasing farm owners' adoption of digital commerce practices. This will be accomplished by (1) conducting research to identify issues encountered by small farm-based businesses when adopting and utilizing online marketing and sales platforms (2) creating an Agribusiness Digital Commerce Center to recruit, train, mentor, and encourage farmers to market and sell directly to customers using the internet and (3) developing and implementing a new course in Agribusiness Digital Marketing and E-Commerce to train the next generation of agribusiness leaders in the use of digital commerce technologies.
Animal Health Component
0%
Research Effort Categories
Basic
0%
Applied
40%
Developmental
60%
Goals / Objectives
The overall research goal is to improve small farms' profitability by increasingtheir participation in the online marketplace. It is proposed that the low adoption of the internet as a marketing and sales tool is due to (1) a lack of technological skills, i.e., farmer's inability to effectively navigate online platforms, and 2) an inability to marketing skills required on online platforms i.e., the inability of a farmer to create and execute a winning online market strategy. Therefore, it is proposed that farmers build competencies in online marketing and technology to become successful online sellers.Therefore the major goals of the project are to :Investigate and understand factors specific to South Carolina's small farms that deter them from adopting and efficiently using digital commerce to market and sell their products.Design and develop training programs for small farm operators to reduce barriers to digital commerce adoption.Train and assist farmers in utilizing digital commerce tools for marketing products and services.Develop and offer a college course in Digital Commerce to imbibe digital marketing skills in the next generation of agribusiness entrepreneurs.
Project Methods
The plan of operation and methodology for the project objectives are as follows:Objective 1- Identify the factors affecting digital commerce adoption by small farms in South Carolina.In collaboration with SC State 1890 Extension and Clemson Extension program, four focus groups with small farm operators representing the four regions (Upstate, PeeDee, Midlands, and Lowcountry) will be conducted to collect exploratory data related to awareness level, adoption issues, and competencies issues related to digital commerce. Based on the review of relevant literature and exploratory data, a survey instrument will be developed, pretested, and distributed to approximately 1000 small farmers in South Carolina.Objective 2: Establish an Agribusiness Digital Commerce CenterThe main objective of establishing the Agribusiness Digital Commerce Center is to promote the adoption of digital commerce among small farmers. The Center director will have oversight of all activities related to developing, scheduling, and delivering training programs to small farmers and conducting coaching sessions with them. The Center will also develop and make available online help resources to assist small farms in their online marketing needs.Objective 3: Develop and implement training programs for online marketing and technology skills.Agribusiness Digital Commerce Center will develop training programs to develop competencies in online marketing and digital technology skills. After analyzing the data collected under Objective 1, the exact topics for the training workshops will be identified. Faculty, consultants, and industry leaders will conduct the training workshops.Objective 4: Conduct digital commerce coaching sessions with farmers to increase online presence and sales. Small farmers, whether they aspire to sell online or are looking to expand their online sales, will benefit from personalized one-on-one coaching sessions. These sessions, conducted by qualified project staff and faculty with expertise in marketing and technology, are designed to address each farmer's specific needs and challenges.Objective 5: Develop and implement the interdisciplinary Agribusiness Digital Commerce Course. The course will be designed for students from various majors to develop digital commerce skills in farm-based businesses.