Progress 10/01/02 to 09/30/07
Outputs
OUTPUTS: Over the five-year project period, research has focused on small farm development (value-added and alternative products including meat goats); biodiesel and ethanol production for farm income and its community multiplier effect in terms of tax revenues and employment, natural resource development (forestry) and farmers markets; off-farm community development in terms of small businesses and bank lending in rural areas; and regional issues for the Black Belt Counties in the US Southeast and asset poverty in the region. In the final project-year research focused on three areas that affect farm and rural community development: production (new product development, inland shrimp and pasture poultry), markets (direct to restaurant and farmers markets) and policy. For production, small producers are using strategies to enter into non-traditional enterprises, for example, fresh- and salt-water inland shrimp and pasture poultry; and marketing plays a key role in farm success. For
shrimp production, one key venue is local restaurants: chain, fast food and specialty food diners. For pasture poultry, a traditional market strategy has consisted of local buyers. During one growing season, a local producer contracted with a single buyer. Regionally, an important area of growth for farmers markets and public markets is the larger urban areas. Consumer preference information is critical; specifically, socio-demographic characteristics and purchasing behaviors. Data were drawn from survey responses and results point to several factors that seem to be strongly correlated with consumer purchasing behaviors and attitudes toward shopping at public markets. Finally, key to production and marketing decisions by the farmer are federal agriculture programs that enhance production and provide security in times of financial and natural uncertainty. Farmers of color (African American, Asian, Hispanic/Latino and Native American) have not had equal access to these programs and
benefits. Primary reasons why farm programs disproportionately benefit whites compared with farmers of color include: major USDA support programs subsidize commodity crops like wheat, corn, rice, soybeans, and cotton, which increasingly are grown on relatively few large farms, virtually all of which are owned by whites; an emphasis on land ownership versus production, where farmers of color rent some or all of their land; and structural discrimination in the farm program process from notification to application to awarding of program benefits.
PARTICIPANTS: Robert Zabawa, overall project PI, policy, minority farmers and community development; Ntam Baharanyi, project investigator for policy, asset building and community development; Eunice Bonsi, project investigator for family, networking and community development; Mudiayi Ngandu, project investigator for natural resources; John Schelhas, project investigator of forestry and community development; Ellene Kebede, project investigator for natural resources, alternative fuels and community development; Arthur Siaway, project investigator for marketing and community development; Nii Tackie, project investigator for outreach, small farms and community development; and Tasha Hargrove, project investigator for marketing, evaluation and community development. Partner Organizations include: the Southern Food Systems and Education Consortium (SOFSEC); Ford Foundation; Oxfam America; Alabama Agricultural Land Grant Alliance (AALGA); Alabama A&M University; Auburn University, AL;
North Carolina State University, NC; University of Wisconsin, Madison, WI.
TARGET AUDIENCES: Target audiences include individuals, groups, market segments, or communities that were served by the project. Include population groups such as racial and ethnic minorities and those who are socially, economically, or educationally disadvantaged. These audiences include: Small-scale, limited resource, minority farmers and farmers of color (African American, Asian, Hispanic/Latino and Native American); Communities in the Black Belt Region of the Southeastern United States. Efforts, acts and processes include: one-on-one farmer producer technical assistance (site on farm; topics: production and marketing); On-site group training (site in the community; topics landloss, estate planning, and asset building); University-based training and information dissemination (site university and at professional meetings; topics: policy and program development and assessment).
Impacts
Results and conclusions from recent research find that direct marketing of an new product (shrimp) to retailer (restaurant) has potential to increase incomes to small-scale producers. Specific results showed that, of those restaurants that served shrimp, 77% purchased frozen shrimp; 57% purchased the shrimp from chain warehouses; a significant proportion of shrimp purchases by restaurants were from out of state sources; and half of the respondents stated that while they did not purchase from small producers they were willing to do so if the product was processed to their specifications. This is a growth area for producers particularly if they work together to provide consistent product volume and quality. For pasture poultry results from the single buyer relationship were not positive because purchases of the product were not timely, leading to more time and expense on the producer's part. As a consequence, this result led to a return to more local-based marketing. For
farmers markets and public markets key indices of consumer preference include: location, distance (from home and workplace), conveniences including parking, hours of operation (weekdays, weekends and evenings), competitive prices, ethnic products, and quality (no additives/hormones, and organic or near organic). In terms of USDA program participation by farmers of color, research found that three programs that could have a significant impact, Environmental Quality Incentives Program (EQIP), Value Added Producer Grant (VAPG), and Socially Disadvantaged Farmers and Ranchers Program (2501), were not reaching this clientele due to language difficulties and cultural misunderstandings, lack of awareness as a n accurate census of producers of color as well as to who and where the farmers are, a lack of sufficient funding to satisfy the applicant pool, and a lack of trust by farmers of government officials. Finally, outreach efforts through the Small Farm Project, the Rural Business and
Economic Development Program, and the Extension Program have led to farmers markets in Tuskegee and Selma becoming more sustainable, with more produce being sold and receipts reported. There were 3 microloans secured through the SBA Community Express Loan Program for a total of $125,000 that targeted small businesses, as well as 4 farm ownership loans for $333,000, 13 operating loans for $307,000, 9 equipment loans for $150,000, 12 housing loans for $662,000, and 9 livestock loans for $97,000, for a total of more than 30 jobs saved/created and an increase of more than $50,000 on average in home net worth. Initial strategic plans and/or networks are in place through SOFSEC, the Black Belt Action Network and Congressional contacts for targeted resource development and legislative input for small and minority farmers, as well as for a rural development in the region.
Publications
- Bukenya, J., M. Mukiibi, J. Molnar and A. Siaway. 2007. Consumer Purchasing Behaviors and Attitudes toward Shopping at Public Markets. Journal of Food Distribution Research (July).
- Gyawali, B., R. Fraser, W. Tadesse, J. Bukenya and J. Schelhas. 2007. Relationship Between Human Well-Being and Ecosystem Changes in the Black Belt Region of Alabama. Pp. 57-75. In Strategies to Influence the 2007 Farm Bill and Rural Policies: Impact on Diverse Cultures, Rural Communities and Underserved Farmers. Tuskegee University, AL.
- Gyawali, B., R. Fraser, Y. Wang, W. Tadesse, J. Bukenya, and J. Schelhas. 2006. Spatial analysis of the change in land cover and human well-being in the black-belt counties of Alabama. In Prisley, S., I-K. Hung, J. Kushla, and P. Bettinger (eds.). Proceedings of the 5th Southern Forestry and Natural Resources GIS Conference. June 12-14, 2006. Warnell School of Forestry and Natural Resources, University of Georgia, Athens, GA.
- Hamilton, J., R. Fraser and J. Schelhas. 2007. An Evolving Model of Outreach and Land Management Training for Limited Resource Minority Farmers. Pp. 76-82. In Strategies to Influence the 2007 Farm Bill and Rural Policies: Impact on Diverse Cultures, Rural Communities and Underserved Farmers. Tuskegee University, AL.
- Kebede, E. and M. Ngandu. 2007.Sustainable Forest Management and the Valuation of Ecosystem Services in Selected Caribbean Countries: A Conceptual Framework Proceedings of the 27th West Indies Agricultural Economics Conference, 23rd to 27th July, 2007, Belize.(forthcoming)
- Kebede, E., P. Duffy, and R. Zabawa. (2007 forthcoming).Impact of Ethanol Production and Rural Economies: The Case of Alabama, The Southern Business and Economic Journal.
- Kebede, E., M. Ngandu, J. Schelhas, and D. Batalia. 2006. Recreational Demand for Tuskegee National Forest: A Non-Market Valuation. The Business Review, Cambridge 6(1):232-238.
- Molnar, J. J., J. Schelhas, C. Holeski. 2007. Nonindustrial private forest landowners and the southern pine beetle: Factors affecting monitoring, preventing, and controlling infestations. Southern Journal of Applied Forestry 31(2):93-98.
- Tackie, N. O., R. Zabawa, N. Baharanyi and W. Hill, editors. 2007. Strategies to Influence the 2007 Farm Bill and Rural Policies: Impact on Diverse Cultures, Rural Communities and Underserved Farmers. Tuskegee University, AL.
- Tackie, N.O., M. Ngandu, and J.D. Allen. (At-Press, 2007). Meat Goat Enterprise Budgets for Small Farmers. Tuskegee University Cooperative Extension Program Publication No. TUAG-1207-01.
- Tackie, N. O., A. Pierce, A. Deanes and O. Ojuma. 2007. Residential Consumers' Perceptions on Usage of Utilities. Pp. 28-39. In Strategies to Influence the 2007 Farm Bill and Rural Policies: Impact on Diverse Cultures, Rural Communities and Underserved Farmers. Tuskegee University, AL.
- Tackie, N. O. and A. Deanes. 2007. An Assessment of Shrimp Procurement and Sales by Restaurant Managers. Pp. 111-122. In Strategies to Influence the 2007 Farm Bill and Rural Policies: Impact on Diverse Cultures, Rural Communities and Underserved Farmers. Tuskegee University, AL.
- Yeboah, O., E. Kebede, V. Ofori-Boadu, and A. Allen. 2007. BSE and the US Economy: Input-Output Model Perspective, Journal of Agriculture and Applied Economics Available online http://www.aces.edu/~hkinnuca/JAAE.
- Zabawa, R., T. Hargrove, N. Baharanyi and R. Levins, contributors. 2007. Shut Out: How US Farm Programs Fail Minority Farmers. Oxfam America, Boston, MA.
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Progress 10/01/05 to 09/30/06
Outputs
The importance of meat goat production in the U.S. can be attributed to a strong demand for goat meat, particularly among Latino, African, and Muslim populations and health conscious consumers. Meat goats fit well with other enterprises, particularly cattle, and small-scale and part-time operations, and may be used to control noxious weeds and brush to improve pastures. Results from an economic examination of goat production found that farmers had diverse operations in terms of livestock: cattle, hogs, poultry and with row crops, fruits and vegetables and aquaculture. Ninety-Six percent of the farmers broke even after 3 years and 54% were profit generating within 6 years. Goat meat marketing is not well organized and is an individual venture where prices vary widely. The main outlet for goat meat is the auction market. Small producers have to know how to enter the market through relationships with wholesalers, out-of-state retailers, processors and ethnic groups.
Survey results of retail and wholesale store managers in 4 metropolitan cities found that 37% of all stores listed as selling meat and poultry were also selling goat meat; 89% of goat meat consumers were people of ethnic origin; store managers prefer a 50-80 lb carcass; 67% of the stores sell fresh, and 24% sell frozen; 70% of the stores had been in business more than 5 years; and that new entrants are becoming retailers is an indicator of business stability and product demand. A traditional small farm product, corn, was investigated as a source for a non-traditional product, ethanol. Demand for ethanol as a fuel blend is increasing. Current U.S. fuel ethanol production is corn based. Corn production in Alabama has been declining due to depressed prices and increasing costs of production. Research was conducted to see the impact of corn for ethanol production on farm incomes. Regression results show that corn supply is sensitive to price changes. Using a 15-million gallons per year
ethanol fuel plant as the source for corn, the revenue and operation costs of the plant were applied to an input-output model to estimate direct, indirect and induced output, employment and value-added generated to the state economy. Results showed that the plant would generate a total of $30 million worth of output and $23 million of value-added composed of income and indirect business taxes. Indirect business taxes to the government would be approximately $12 million. Corn production had a multiplier of 1.57 and accounted for about $12.8 million which generated $423,059 of indirect output. Ongoing research assessed the asset poverty conditions and depth among Whites and Blacks in terms of home ownership in Black Belt Counties (BBCs) versus non-BBCs in Alabama. Assets can be defined as the enduring resources that individuals and communities acquire, develop or improve and can be transferred across generations. Results suggest that home ownership for Whites in BBcs and Non-BBCs is
higher than that of Blacks and that Whites in BBCs have a higher rate of home ownership than their counterparts in non-BBCs. In terms of value and quality, Whites owned higher valued houses than Blacks in both BBCs and Non-BBCs.
Impacts
Outreach efforts through the Small Farm Project, the Rural Business and Economic Development Program, and the Extension Program have led to farmers markets in Tuskegee and Selma becoming more sustainable, with more produce being sold and receipts reported. There were 11 microloans secured from through the SBA Community Express Loan Program for a total of $206,000, as well as 3 farm ownership loans for $1,006,000, 17 operating loans for $290,000, 7 equipment loans for $111,000, 13 housing loans for $561,000, and 9 livestock loans for $108,000. Initial strategic plans and/or networks are in place through SOFSEC, the Black Belt Network and Congressional contacts for targeted resource development and legislative input for small and minority farmers, as well as for a potential federal Commission for community development in the region.
Publications
- Hargrove, Tasha and Jones, Lynn. 2006. An Analysis of the 2501 partnership between USDA and 1890 Land-Grant Universities: Implications for African American Farmers. Agriculture and Human Values.
- Kagochi, J. and N.O. Tackie. (2006) Accepted and Forthcoming. An Analysis of the Impacts of Freedoms on Economic Growth. Journal of African Development.
- Kebede, Ellene and M. Ngandu. 2006. Payment for Ecosystem Services for Sustainable Forest Management: A Review of Selected International Experiences. Tuskegee University, George Washington Carver Agricultural Experiment Station, Publication No.114-506.
- Kebede, Ellene, P. Duffy and R. Zabawa. 2006. The Effect of Ethanol Production Agricultural Production in the State of Alabama, Journal of Agricultural & Applied Economics http://www.aces.edu/ pct 7Ehkinnuca/JAAE/ .
- Kebede, Ellene. 2005. Goat Meat Demand in the U.S. and Goat Meat Marketing Potential in the Southeast, Tuskegee University, George Washington Carver Agricultural Experiment Station, Publication No.113-905.
- Rigdon, Leah, J. Bukenya, J. Molnar, A. Siaway, M. Mojica, A. Brady. 2006. Augmenting the Retail Capacity of the Birmingham Farmers Market, Feasibility and Strategy. A Technical Poster Presented at the Jefferson County Growers Association Conference (August).
- Robinson, Kenneth, Ralph Christy and Ntam Baharanyi, Eds. (2005). Rural Community Economic Development Experiences from the 1890 Land-Grant Institutions. Proceedings of the Conference on the 1890 Entrepreneurial Outreach Initiative, Tuskegee University, Tuskegee, AL, December 2004.
- Schelhas, John, and Max J. Pfeffer. 2005. Forest values of national park neighbors in Costa Rica. Human Organization 64(4):385-397.
- Siaway, Arthur. 2006. Marketing West African Cotton: The Economics and Politics, A Technical Paper Presented to the West African Entomologists (July).
- Siaway, Arthur. 2006. The Purpose and Potential Impact of the Governance Economic Management Program (GEMAP) for Liberia, A Technical Report Presented on Radio Free Liberia (March).
- Tackie, N.O., M.M. Fields and A. Siaway, 2005. Education of Women as a Contributor to Economic Growth in Africa. In Women in African Development: The Challenges of Globalization and Liberalization in the 21st Century, ed. Sylvain H. Boko, Mina Baliamoune-Lutz, and Sitawa R. Kimuna. Trenton, NJ: Africa World Press/The Red Sea Press.
- Tackie, N.O. 2006. The Basics of Household Budgeting. Tuskegee University Cooperative Extension Program Publication No. TUCED-0306-01.
- Tackie, N.O. 2005. Record-Keeping for Very Small Business Owners and Limited Resource Farmers. Tuskegee University Cooperative Extension Program Publication No. TUCED-0805-01.
- Tackie, N.O. and Athoney S. Deanes. 2005. An Assessment of the Perceptions of Alabama Consumers on Shrimp Marketing. Prepared for the College of Agricultural, Environmental and Natural Sciences and Cooperative Extension Program, Tuskegee University, Tuskegee, AL.
- Tackie, N.O. and Athoney S. Deanes. 2005. An Analysis of the Perceptions of Restaurant Managers and Grocery Store Seafood Managers on Shrimp Marketing. Prepared for the College of Agricultural, Environmental and Natural Sciences and Cooperative Extension Program, Tuskegee University, Tuskegee, AL.
- Zabawa, Robert and Ntam Baharanyi, editors. Southern Rural Sociology. Journal of the Southern Rural Sociological Association. Vol. 20, No. 1, 2004 and Vol. 20, No. 2, 2004 (published in 2005).
- Bukenya, James, Joseph J. Molnar, Arthur Siaway, and Don Wambles. 2006. Augmenting the Retail Capacity of the Birmingham Farmers Market, Feasibility and Strategy: A Technical Report to the Board of Directors of the Birmingham Farmers Market (June).
- Gan, Jianbang and Ellene Kebede. 2005. Multivariate probit modeling of decision on timber harvesting and request for assistance by African-American forestland owners. Southern Journal of Applied Forestry, Vol. 29, No 3.
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Progress 10/01/04 to 09/30/05
Outputs
From the production side, regression results from small farm research showed that farm size, enterprise diversification, off-farm employment, record keeping, and education were significant and are important factors that affect the profitability of small and limited resource farmers. Due to the unique contribution of the off-farm employment to net farm income, the creation of farm related off-farm employment such as value-added processing, packing, and packaging of farm products are needed. These activities could also be included as enterprises in a farm diversification scheme making the off-farm jobs more readily available to the farmers to ensure their profitability. Farmers markets are a major outlet for small farm produce. Survey results showed that farmers were key players in establishing, governing, and planning farmers markets in Alabama. The initial organizations related to the markets themselves were the main sources of funding for the farmers markets. The
majority of farmers markets operate on a for-profit basis, with additional assistance for State agencies, local governments, and County Commissions. Most of the farmers who sold at the farmers markets were small, limited resource farmers. Products at the farmers markets were predominantly vegetables, flowers/ornamentals, and field crops. Quality of produce is the major reason for consumers patronizing the markets. However, managers and County Extension agents were not satisfied with the utilization of the markets. A key factor for placing farmers markets is to make sure that the location is easily accessible to both the farmers and consumers and where major food outlets are not concentrated. At a wider level, small farmers, and related business depend on access to credit to survive. Results of descriptive statistics from a state-wide survey showed that the number of lenders has been declining in Alabama. The decline has happened mostly in banks with assets lower than $100M. The banks
with assets greater than $10B provided more than 80% of loans in the urban areas and more than 70% of all loans in the State. These opportunities were significantly lower in the rural and the Black Belt areas. There was an unequal distribution in the number and the amount of loans between the urban, the rural and the Black Belt, with rural areas receiving fewer loans than the urban areas, and the Black Belt receiving fewer loans than the other rural areas. From the SBA guarantee loans, the Black Belt only received 1.88% in numbers and 5.15% in the amount. African Americans and other minorities received fewer in number and amounts of loans than their White counterparts. Women also received fewer loans in numbers and amounts than men, and even fewer when associated with men. Commercial and SBA guaranteed loans are not serving small business in the rural areas, in particular in the Alabama Black Belt. This situation reduces the ability of rural businesses to play an effective role in
their contribution to economic growth and development.
Impacts
Outreach effforts through the Small Farm Project, the Rural Business and Economic Development Program, and the Extension Program have led to farmers markets in Tuskegee and Selma becoming more sustainable, with more produce being sold and receipts reported. There was a record 20 microloans secured from out-of-state financial institutions through the SBA Community Express Loan Program, with more than 24 sources of revenues or employment saved/created. Initial strategic plans and/or networks are in place through SOFSEC, the Black Belt Network and Congressional contacts for targeted resource development and legislative input for small and minority farmers, as well as for a potential federal Commission for community development in the region.
Publications
- Fraser, Rory, Buddhi Gyawalli, and John Schelhas. 2005. Blacks in space: Land tenure and well-being in Perry County, Alabama. Small Scale Forest Economics, Management and Policy 4(1):21-33.
- Gan, Jianbang, Okwudili Onianwa, John Schelhas, Gerald C. Wheelock, and Mark R. Dubois. 2005. Does race matter in landowners participation in conservation incentive programs? Society and Natural Resources 18(5):421-435.
- Pfeffer, Max J., John W. Schelhas, Stephen D. DeGloria and Jorge Gomez. 2005. Population, conservation, and land use change in Honduras. Agriculture, Ecosystems, and Environment 110(1-2):14-28.
- Robinson, K., Christy, R, Baharanyi, N. 2004. Rural Community Economic Development: Experiences from the 1890 Land-Grant Institutions. Proceedings of the USDA-1890 Entrepreneuial Outreach Initiative. Tuskegee University, AL, December.
- Tackie, N. and Ojumu, O. 2005. A Comparative Analysis of Selected Development Indicators Between Latin American Economies and the Black Belt and Distressed Counties of Alabama --- Series in Applied Economics and Related Sciences Number 0605-01, George Washington Carver Agricultural Experiment Station.
- Tackie, N. 2005. A Preliminary Assessment of the Best Practices of Small Black Business in the Black Belt --- Series in Applied Economics and Related Sciences Number 0605-01, George Washington Carver Agricultural Experiment Station
- Tackie, N., Fields, M. and Siaway, A. 2005. Education of Women as a Contributor to Economic Growth in Africa In Women in African Development: The Challenges of Globalization and Liberalization in the 21st Century, ed. Sylvain H. Boko, Mina Baliamoune-Lutz, and Sitawa R. Kimuna. Trenton, NJ: Africa World Press/The Red Sea Press.
- Zhang, Yaoqi, Daowei Zhang, and John Schelhas. 2005. Small-scale family forestry ownership in the United States: Rationale and implications for forest management. Silva Fennica 39(3):443-454.
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Progress 10/01/03 to 09/30/04
Outputs
Land loss phenomena and efforts to recoup it continue to be a challenge for African American farmers and other minority communities in Alabama and the rural south. Sustainability of related farm and other small business operations depends on factors and program or policy initiatives that are undertaken by governments, community based organizations and engaged institutions such as Tuskegee University. Research results suggest that the Class Action Lawsuit did not make a difference in Black farmer participation in the USDA loan programs, technical assistance programs, and other support programs as mandated by the settlement terms; the settlement money helped to improve productivity and profitability of those who received awards; and farmers strongly believed that they received inadequate information about the lawsuit and the process to get the settlement money. The settlement money was not enough to cover Black farmer losses endured for years of discrimination. It is
expected however that USDA would gradually revise policies about representation of minorities in the FSA County Committee System. Resettlement community programs were beneficial to the well being of families and offer, to some extent, a model for technical assistance in underserved communities and their micro-enterprises today. Use of enterprise facilitation in select minority communities reveals that initial seed/grant resources, staff support, and continued one-on-one technical assistance for a minimum of 5 years might lead to a successful local/community land ownership and a strategic development plan in place for Native American and other minority communities. In terms of business development, descriptive statistics showed a relatively high level of education (71.3% with some college and above), lower representation of younger age (9.6% for 39 years of age or younger), and relatively low Black representation (58.5%) among business owners in an 86% African American community. Those
who have sustained their businesses had a good-to-excellent credit history at the start of the business and today, with 74.4% and 83%, respectively. Corporations and sole proprietorships are the most common form of business organization (47.9% and 33%), and close to 80% have been in business for more than 5 years. A majority of business owners live outside of the business location (57.4%). Regression analysis results show that vendor or wholesaler-owner or retailer relationship, residence of the owner, ability or capacity to generate cash flow, and years in business had an impact on sustainability/viability of small businesses in the local/minority communities (coefficients of 1.42, -3.55, 0.61, and 3.94, respectively).
Impacts
Outreach efforts through the Small Farm Project, Rural Business and Economic Development Program, the Center for Minority Land and Community Security, the Cooperative Extension Program, and other Initiatives have resulted in greater success in the Class Action Lawsuit for Alabama farmers, more estate planning tools in place for farm families, increased loan applications for small farm and business owners, land ownership and development plan for the Cherokee Tribe of Northeast Alabama, initial/seed resources for more than 10 community-based organizations and other local enterprises.
Publications
- Fraser, R., Gyawalli, B., Schelhas, J.. 2004. Blacks in Space: Land Tenure and Well-Being in Perry County, Alabama.. Proceedings of the IUFRO symposium, Human Dimensions of Family and Farm Forestry. Washington State University Extension Bulletin MISC0526, Pullman, WA.
- Onianwa, O., Wheelock, G., Gyawali, B., Gan, J., Dubois, M., Schelhas, J. 2004. An Evaluation of Participation Behavior of Limited Resource Farmers in Cost-Share Programs in Alabama. Journal of Agribusiness 22(1):17-29.
- Pace, M. 2004. An Assessment of Flint River Farms on Black Land Ownership. M.S. Thesis. Agricultural Economics Program. Tuskegee University, Alabama.
- Schelhas, J., Zabawa, R. 2004. The Social Structure of Family and Farm Forestry in Alabama. Proceedings of the IUFRO symposium, Human Dimensions of Family and Farm Forestry. Washington State University Extension Bulletin MISC0526, Pullman, WA.
- Tackie, N.O. 2004. A Simple Approach to Key Financial Statements for the Limited Resource Farmer and the Very Small Business Owner. Tuskegee University Cooperative Extension Program Publication No. TUCED-0804-01.
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Progress 10/01/02 to 09/30/03
Outputs
Five areas of research important to small and limited resource producers/entrepreneurs, as well as communities include: natural resource development, alternative and value-added production, consumer preferences for farmers markets, small farm/business development, and assessment of regional/Black Belt initiatives. Forestry is important for small and minority farms in Alabama and the South, where almost half of the land in farms includes timber. Research is ongoing in two Alabama counties (Macon and Escambia) on the household and family structure of forest ownership, historical patterns of land ownership and use, social networks, forest values and knowledge, economic and institutional relationships, and forest practices of NIPF landowners. We have analyzed data from the census of population and the census of agriculture, and conducted key informant interviews in both counties. A key alternative product from the farm is biomass. Research is ongoing that investigates the
production of biomass for energy production for small farmers. Main sources of biomass include wood waste, energy crops like poplar and willow, animal waste and, most specifically, corn and soybean. At the same time, there are very few plants producing both biodiesel and ethanol in Alabama and in the Black Belt counties. An input-output model was used to see the direct and indirect effect of establishing a diesel plant producing 3MM gal/year. The results indicate that the plant requires 12,000,000 lbs of soybean. This would create a new market for soybean, as well as increase production and income on surrounding small farms supplying the plant. Farmers and consumers interact directly at local farmers markets. There has been increased interest in this strategy to address the direct income needs of the producer (without a middleman) and the needs of the consumer (higher quality, lower cost), particularly low income consumers. The Alabama Department of Agriculture and Industries placed a
farmers market in a lower income community. Initial assessment of the market indicates that users are: women (76%), African American (80%), lower income (65% earn less than $30,000), high school educated (38%) or less (16%), older (46% over 50 years), and lived close by (80% 5 miles or less). Preliminary regression analysis shows a positive relation between age, income and the consumption of vegetables. Data being collected on small and limited resource farms and enterprises suggest continued challenges with and low impact of the class action lawsuit for Black farmers, unprofitable price margins for local convenience stores that utilize outside vendors, and the need for both tangible and intangible factors for better use of computers in small businesses and rural communities. With respect to rural development initiatives, a community-based perspective requires that problems related to poverty in the Black Belt require that solutions that take racial issues into consideration. Proposed
characteristics of a Black Belt Commission would have a broad representation on its Board and comprehensively listen and respond to key issues and potential solutions in the poorest of census tracts.
Impacts
Increased participation of forestry programs (state and federal) by small-scale farmers. Increased production of biomass for biodiesel production and planning for biodiesel plant. Increased participation at farmers market sites by both producers and low income consumers.
Publications
- Gan, J. and E. Kebede. 2003 in press. Multivariate Probit Modeling of Decisions on Timber Harvesting and Requests for Assistance by African American Forest Landowmers. Southern Journal of Applied Forestery.
- Molnar, J. J., J. Schelhas, and C. Holeski. 2003. Controlling the Southern Pine Beetle: Small Landowner Perceptions and Practices. Bulletin 649. Alabama Agricultural Experiment Station, Auburn University, Auburn, AL
- Nii O. Tackie. 2003. A Guide to a Successful Marketing Plan for Limited Resource Farmers. Tuskegee University Cooperative Extension Program, Tuskegee, AL. Nii. O. Tackie. 2003. Finacial Ratios Made Simple: The Series. Tuskegee University Cooperative Extension Program, Tuskegee, AL
- Schelhas, J., R. Zabawa, and J. Molnar. 2003 In press. New Opportunities for Social Research on Forest Landowners in the South. Southern Rural Sociology
- Schelhas, J. 2002. Race, Ethnicity, and Natural Resources in the United States: A Review. Natural Resources Journal 42(4):723-763.
- Schelhas, J. 2003. New Trends in Forest Policy and Management: An Emerging Post-Modern Approach? In Forest Policy for Private Forestry: Global and Regional Challenges, L. Teeter, B. Cashore, and D. Zhang, (eds), pp 17-27. Wallingford, UK: CABI Publishing.
- Walter Hill, Robert Zabawa, Ntam Baharanyi, Alice Paris, Ava Hopkins, Veonica Womack, Merika Coleman, Amadou Diop. January 2003. Persistent Poverty in the South: A Community-Based Perspective. A Report of SOFSEC and Community-Based Organizations.
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