ECONOMICS OF SUSTAINABLE FARMING PRACTICES AND SYSTEMS IN NEW MEXICO

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: COMPLETE
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 0217447
• Project Start Date: Apr 1, 2009
• Project End Date: Sep 30, 2013
• Program Code: [(N/A)]- (N/A)

Recipient Organization
NEW MEXICO STATE UNIVERSITY
1620 STANDLEY DR ACADEMIC RESH A RM 110
LAS CRUCES,NM 88003-1239

Performing Department
Agri Economics & Agribusiness

Non Technical Summary
Organic production may be particularly suitable for New Mexico farmers, given small farm sizes, and conducive production conditions in the state. Certified organic producers of chile and pecans already are earning higher prices than conventional counterparts in southern New Mexico. Two chile processors in southern New Mexico were recently certified organic by the New Mexico Organic Commodity Commission. Optimistic market conditions for organic growers also indicate untapped potential for southern New Mexico vegetable growers.

Animal Health Component

(N/A)

Research Effort Categories

Basic

(N/A)

Applied

(N/A)

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
608	5010	3010	60%
608	6050	3010	40%

Knowledge Area
608 - Community Resource Planning and Development;

Subject Of Investigation
6050 - Communities, areas, and regions; 5010 - Food;

Field Of Science
3010 - Economics;

Keywords

organic farming

new crops

market analysis

value-added commodities

Goals / Objectives
The objectives of this project are: (1) To analyze the economics of season extension, mulch systems, crop rotations, fertility management, and other alternative and organic crop production practices; (2) To analyze the feasibility of agribusinesses, particularly packing and processing facilities that will help agricultural producers get their products to the marketplace; (3) To analyze marketing opportunities for new crops and value-added agricultural enterprises.

Project Methods
1) Economic analysis of alternative production practices usually involve partial budget analysis that isolates and estimates only the costs and revenues which are impacted by the proposed technology or innovation. Sensitivity analysis can be included to test sensitivity to certain assumptions or key variables, such as market prices. Sometimes the proposed intervention affects so many aspects of the farming operation that a whole farm simulation model is required. Such models can be expanded to include stochastic variables so that the impacts of risk can be evaluated. Impacts on yields are usually analyzed with multivariate statistics, using F tests to look at main effects, and post-hoc analyses such as pair wise comparisons to do means separation. (2) The focus of this objective will be on organic products or cooperative efforts that help small farmers. Agribusiness feasibility analysis and business planning usually involves one or two approaches. One common methodology is capital budgeting techniques in which accounting cash flows are estimated and discounted to the present for various alternative scenarios contemplated. These studies entail obtaining substantial amounts of information regarding costs of equipment, operating expenses, costs of raw materials, and labor, selling prices, volume to be produced, and potential marketing channels. A second approach involves the preparation of detailed financial statements for a few years, and may include simulation to evaluate the sensitivity of the results to price or output risk. (3) Survey work will be used to analyze markets for new crops and products. Analytical techniques such as conjoint analysis, chi-square analysis, and other marketing research quantitative methods will be used as appropriate.

Progress 01/01/13 to 09/30/13

Outputs
Target Audience: Nothing Reported Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported 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? Nothing Reported

Impacts
What was accomplished under these goals? The PI retired. There is nothing to report.

Publications

Progress 04/01/09 to 09/30/13

Outputs
Target Audience: Nothing Reported Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported 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? Nothing Reported

Impacts
What was accomplished under these goals? The PI has retired. There is nothing to report.

Publications

Progress 01/01/12 to 12/31/12

Outputs
OUTPUTS: I am participating in the WSARE project, "Winter Production of Leafy Greens in the Southwestern USA using High Tunnels," with Steve Guldan, Mark Uchanski, Del Jimenez, and Manoj Shukla. My graduate student completed his thesis in the summer and presented work from it at a professional conference. We are working on manuscripts from this project. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
The WSARE project will add to the body of work on season extensions, helping to determine whether unheated hoop houses (high tunnels) are economically feasible for winter production of lettuce and spinach.

Publications

• Blandon, S. and C. L. Falk. 2012. Market Window Analysis for Selected Vegetables for Southern New Mexico. New Mexico State University Agricultural Experiment Station Research Report 775.
• Hecher, E., C. L. Falk, M. E. Uchanski, and S. L. Guldan. 2012. The Economics of high tunnels for season extension in the Southwestern US. Selected paper, Western Economic Association International, San Francisco, CA, August 2012.
• Zhou, Yuhui, C. L. Falk, and D. M. VanLeeuwen. 2012. Retail Demand for Natural Dye Plants and Dye Plant Products: A Conjoint Analysis. Journal of International Food and Agribusiness Marketing. 24(1):66-75.

Progress 01/01/11 to 12/31/11

Outputs
OUTPUTS: I am participating in the WSARE project, "Winter Production of Leafy Greens in the Southwestern USA using High Tunnels," with Steve Guldan, Mark Uchanski, Del Jimenez, and Manoj Shukla. I am supervising an MS student assigned to this project. I also have helped initiate the Broccoli Brigade, an organic broccoli production and marketing project, with March Uchanski, Paul Gutierrez, Shahid Mustafa of the Mountain View Market food cooperative, Eduardo Medina, Khulbhushan Grover, and the graduate student Alex Benitez. We are growing broccoli on campus in a replicated trial, and off campus at four sites in Anthony and Chaparral, NM. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
The WSARE project will add to the body of work on season extensions, helping to determine whether unheated hoop houses (high tunnels) are economically feasible for winter production of lettuce and spinach. The broccoli brigade project is investigating organic fertility options. The community projects are introducing a new vegetable to new growers, and helping them successfully bring a new crop to market.

Publications

• Falk, C. L. and P. Pao. 2011. "Oasis at New Mexico State University." Fields of Learning: The Student Farm Movement in North America, eds. L. Sayre and S. Clark, Lexington, KY: University Press of Kentucky, 2011.

Progress 01/01/10 to 12/31/10

Outputs
OUTPUTS: I initiated a statewide survey of women in food and agriculture during my fall 2010 sabbatical. I will use the material gathered in these extensive conversations to prepare a book. Most of the interviews have been transcribed, but some are in the process of being transcribed. More interviews are scheduled in 2011. I am currently involved with two livestock slaughter facility projects, one a start-up on southern NM, and the other a lamb enterprise in northern NM. In both of these efforts, I've been invited to provide technical expertise in feasibility analysis. I am participating in the WSARE project, "Winter Production of Leafy Greens in the Southwestern USA using High Tunnels," with Steve Guldan, Mark Uchanski, Del Jimenez, and Manoj Shukla. I am supervising an MS student assigned to this project. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
This project has led to several local farmers developing CSAs in the Las Cruces area, either directly or indirectly, because of their association with the CSA project on campus or because of inquiries after the project ended: Luz Hernandez, Garden Hers Farm; Anna Underwood, SolarFlower CSA; Jeff Graham, Mysterious Horizons Farm; Joan Kief, Katys Herbs; and Jon Huerta, who is starting a CSA farm in 2011. The RMA crop diversification project has led to useful information about season extension technologies and market windows for new vegetable crops that can be successfully grown in southern NM. The WSARE project will add to the body of work on season extensions, helping to determine whether unheated hoop houses (high tunnels) are economically feasible for winter production of lettuce and spinach. The book on women in food and agriculture in New Mexico will provide a historical record of the many achievements of women in the state who have pioneered organic production systems, land conservation efforts, policy work, and other important accomplishments that have not been documented and analyzed.

Publications

• Kirschenmann, Frederick L. 2010. Cultivating an Ecological Conscience: Essays from a Farmer Philosopher. University of Kentucky Press, edited by Constance L. Falk.

Progress 01/01/09 to 12/31/09

Outputs
OUTPUTS: I continued working on the Risk Management Agency (RMA) row cover project on lettuce and spinach, and successfully helped Mark Uchanski add an additional experiment to the RMA grant, to examine the effects of row covers and two kinds of plastic mulch on broccoli and spinach production. I completed work writing a book chapter and editing a book which will be published in 2010: Falk, C. L. and P. Pao. 2010. "Oasis at New Mexico State University," in Farm Out, in press, University Press of Kentucky. Kirschenmann, Frederick L. 2010. Cultivating an Ecological Conscience: Essays from a Farmer Philosopher. In press at University of Kentucky Press, edited by Constance L. Falk. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
This project has led to several local farmers developing CSAs in the Las Cruces area, either directly or indirectly, because of their association with the CSA project on campus or because of inquiries after the project ended: Luz Hernandez, Garden Hers Farm; Anna Underwood, SolarFlower CSA; Jeff Graham, Mysterious Horizons Farm; Joan Kief, Katys Herbs. Two graduate students passed their master's thesis defenses in 2009, Yanmin Ma and Yuhui Zhou. Yanmin's thesis examined the effects of row covers on production of lettuce and spinach in organic production systems. Yuhui's thesis analyzed the national market demand for natural dye plants in retail quilting and fiber arts stores.

Publications

• No publications reported this period