EVALUATING CHANGES IN THE FOOD AND FIBER PROCESSING INDUSTRY OF THE SOUTHERN PLAINS

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: COMPLETE
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 1001917
• Project Start Date: Nov 7, 2013
• Project End Date: Sep 30, 2018
• Program Code: [(N/A)]- (N/A)

Recipient Organization
OKLAHOMA STATE UNIVERSITY
(N/A)
STILLWATER,OK 74078

Performing Department
Food And Agriculture Products Center

Non Technical Summary
In recent years, the addition of new crops to the Southern Plains (e.g. winter canola and biofuel feedstock crops) and changes in production due to volatile commodity markets (e.g. more corn production due to biofuel policy) have changed the nature of value-added agricultural processing in these states. Furthermore, the emphasis on locally grown/processed items has introduced new opportunities for small-scale processing and marketing via farmers' markets, Farm-to-School programs, local food cooperatives, and Community Supported Agriculture (CSA) programs. Besides value-added processing of in-state commodities, population shifts and free trade with Mexico/Central/South America suggest that Oklahoma and the Southern Plains may have a competitive advantage for the primary processing of foods and agricultural products as a result of location and distribution factors. Stakeholders in the region need to better understandthe extent to which economic (and/or non-economic) factors impact the development of value-adding industries for both expanding cropsand niche market crops. There is also a need to examine the potential for economic growth through food distribution activities, given that Oklahoma's highway system and proximity to markets offer food processors from the Midwest and the Northeast access to markets in the South and Southwest. A third area for value-added assessment is the economic potential for biofuel production from a variety of feedstocks with different co-products as outputs. The ultimate goal of this project is to provide stakeholders in the region with information make rational choices related to theviability and sustainabilityof value-added agricultural processing activities.

Animal Health Component

70%

Research Effort Categories

Basic

30%

Applied

70%

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
604	6220	3010	60%
604	6210	3010	30%
503	5010	3010	10%

Knowledge Area
604 - Marketing and Distribution Practices; 503 - Quality Maintenance in Storing and Marketing Food Products;

Subject Of Investigation
6210 - Farmer cooperatives; 6220 - Marketing, processing, and supply firms other than cooperatives; 5010 - Food;

Field Of Science
3010 - Economics;

Keywords

value-added

food policy

processing

biofuels

Goals / Objectives
The overall objective of this project is to evaluate possible ways in which the value-added agribusiness and biofuels industries of Oklahoma and the Southern Plains may change in the near future. Specific objectives are: 1. Examine economic factors such as input availability, transportation costs, infrastructure requirements, and labor availability affecting the location and/or relocation of agribusinesses to Oklahoma and surrounding states. More specifically, identify factors that have led to an industry's presence, expansion, and/or decline. 2. Assess the market potential for new and/or niche value-added food and agricultural products and biofuels that may present opportunities for Southern Plains production agriculture. These assessments are a crucial component of the strategic planning process that will help ensure the success of small/niche agribusiness firms (Phillips and Peterson 1999). 3. Identify and evaluate the opportunities for and feasibility of value-added activities for Oklahoma's primary agricultural commodities (i.e., livestock, wheat, poultry, and now winter canola) and alternative crops (e.g. sweet sorghum, biomass crops, eastern red cedar, high-antioxidant horticultural crops like watermelons, etc.), including assessments of business and market risks. To achieve these objectives, research projects are proposed for testing the following hypotheses. Hypotheses associated with factors affecting agribusiness processing activities plant location decisions include: A. Policymakers and community leaders do not fully understand the many factors that play a role in the location, relocation, expansion, and/or statewide exit of value-added processing industries. For example, state policymakers and agencies often inquire as to why a state with extensive cattle and wheat production has no large cattle slaughtering facilities and a declining flour milling industry. Limited understanding of location factors and their impacts on plant locations has led to the disappearance of some industry sectors and many state-supported business failures. B. Given the increasing diversity of production agriculture in the Southern Plains and the increasingly innovative industrial uses for co-products from production agriculture, unexplored market opportunities exist for technology-generated derivatives from Southern Plains agriculture. C. Opportunities exist for agricultural producers and agribusiness firms to generate additional income from their raw agricultural production and by-products (respectively) through the development of additional processing operations and innovative marketing efforts.

Project Methods
To address Objective 1 and Hypothesis A, location modeling and other mathematical programming procedures will be utilized to identify optimal locations for food, fiber, and biofuel production facilities. Depending on the ability to collect appropriate primary data and the availability of adequate secondary data, a number of modeling possibilities are possible for determining the impacts of factors on location decisions. The data gathered may also be used to assess the net economic impact of existing operations upon the communities in which they reside and the return on investment to the state and communities that offered incentives to attract these businesses using the IMPLAN model. For Objectives 2 and 3 and Hypotheses B and C, value-adding alternatives for some of the region's agricultural commodities (major and minor) will be assessed for economic feasibility at both a state-wide level and at the firm level using economic engineering models. Economic engineering models are mathematical representations of production and marketing processes in which engineering and economic information are combined. The engineering information includes estimates of facility and equipment as well as labor and raw materials requirements. The economic component determines the costs for all inputs such as wage and raw materials and considers capital structure, tax effects in calculating a detailed projection of after-tax cash flows. As part of these assessments, market analyses will be performed to determine consumer perceptions (and acceptance) of potential products. In addition, spreadsheet-based programs such as SIMETAR™ will allow for these models and business planning exercises to incorporate risk parameters and thus provide measures of operational feasibility under a variety of operating conditions. Any resulting new enterprises would then be utilized as case studies and subjects for economic impact studies. Several opportunities for such studies have presented themselves in recent years: Increased interest in biofuel and bio-products production from "non-traditional" agricultural commodities. Handling, further processing, and distribution efforts related to the local food movement, including efforts aimed at "Farm-to-School" programs and local food cooperatives. State and federal laws related to food safety, sodium reduction, dietary guideline compliance, and the inclusion of locally grown fruits and vegetables in institutional nutrition programs. Increased production of "natural" (no antibiotics or growth hormones) and certified organic meats has resulted in producers wanting to consider collaborative ventures to process and market the own branded meat (beef, lamb, pork, and poultry) products. The availability and increased planting of winter canola and other "new" crops have triggered interests in regional (and in many cases producer-owned) processing ventures. Each research opportunity listed above brings with it certain challenges that may require a variety of economic modeling techniques and evaluation steps. For determining the most economically efficient location for a centralized processing facility, a mixed-integer mathematical programming model along the lines of Tembo et al. (1999) might be appropriate. Economic engineering models can be developed to determine the costs of constructing and operating processing facilities, as well as providing the framework for risk analyses along the lines of Kenkel and Holcomb (2005). Market studies for new value-added items may require an estimation of the values consumers place on the characteristics (e.g. functionality, convenience, environmental friendliness, etc.) associated with these products, which is especially relevant in the case of the increasingly popular local foods and "functional" foods that are manufactured to provide specific benefits to the consumer. There is a myriad of literature related to market studies utilizing willingness-to-pay models and variations of the consumer goods characteristics model (CGCM) defined by Ladd and Suvannunt (1976) that can be extended and/or modified for these research purposes. All of these components are needed to comprise a true feasibility study for any innovative value-added industry, which must go far beyond simply assessing the economic viability of a processing establishment.

Progress 10/01/17 to 09/30/18

Outputs
Target Audience:Targeted audiences include agricultural producers interested in value-added agribusiness ventures, rural economicdevelopment specialists, and state and federal agency representatives working in the areas of value-addedagriculture, biofuels, and markets for small producers. Research on the regulatory compliance costs for local food marketing channels and the value laced on state brandshave been directed towards local food suppliers and in-state food processors. State lawmakers, the Oklahoma FoodPolicy Council, the Made In Oklahoma Coalition, and Oklahoma farmers market managers have used the resultinginformation to address issues impacting the growth of Oklahoma's local food hubs and the value of Made In Oklahomabrand. Changes/Problems:No changes are needed, and no major problems or delays have been experienced. What opportunities for training and professional development has the project provided?The food safety and traceability research directly supports the need for land-grant university faculty to become certified in foodsafety training programs. This would help researchers and stakeholders alike develop a greater understanding of thepolicy impacts resulting from the 2011 Food Safety Modernization Act. Additionally, the research related to food nutritionprograms may help future researchers and practitioners better understand the links between food support programs anddietary intake of low-income households. Furthermore, the development of an online bioprocessing feasibility program willhelp with training efforts in feasibility assessments for future graduate students and new faculty members. How have the results been disseminated to communities of interest?Results have been shared with various stakeholders and communities of interest. On a national level, communities ofinterest include FDA, legislators working on amendments for the next Farm Bill, and USDA. At the regional and national levelfor professional peers, findings have been shared via presentations at association meetings. What do you plan to do during the next reporting period to accomplish the goals?Next year's efforts will conclude the bioproduct production emphasis in the Southern Plains states, with specialconsiderations for the economics of crop production risk and value-added processing feasibility. More work will be done onthe impacts of food and nutrition policy alternatives on the expenditures and nutrient intakes of low-income households.

Impacts
What was accomplished under these goals? Major activities completed: Analyses of consumer understanding and values associated with FSMA compliance by fruit andvegetable farmers was assessed. Work was also completed on analyses of nutritional intakes and expenditures of SNAPhouseholds. Additionally, work was completed on the technical and economic development of an online computer model thathelps stakeholders assess the viability of bioprocessing efforts. Specific objectives met: Three presentations were presented at professional conferences in 2018. Significant results achieved: The studies have provided the first assessments of policy impacts related to FSMA ProduceSafety Rule requirements and the impacts of proposed food/nutrition policies for the next Farm Bill. Key outcomes: This information is useful to policymakers as they determine the real impacts of FSMA rules on both farmersand consumers, and to better understand the potential impacts of proposed SNAP program changes in the next Farm Bill.

Publications

• Type: Journal Articles Status: Published Year Published: 2018 Citation: Neill, C.L., R.B. Holcomb, K.C. Raper, and B.E. Whitacre. Effects of Spatial Density on Veterinarian Income: Where Are All of the Veterinarians? Applied Economics DOI 10.1080/00036846.2018.1527461 (October 2018).
• Type: Journal Articles Status: Published Year Published: 2018 Citation: Holcomb, R.B., C.L. Neill, E. Bendfeldt, J. Lelekacs, M. Velandia, T.A. Woods, H.L. Goodwin, Jr., and R.L. Rainey. A Local Food System Glossary: A Rose by Any Other Name. Choices 33,3(2018). Available online at http://www.choicesmagazine.org/UserFiles/file/cmsarticle_644.pdf.
• Type: Journal Articles Status: Published Year Published: 2018 Citation: Neill, C.L., R.B. Holcomb, and B.W. Brorsen. Current Market Conditions for Veterinary Services in the U.S. Applied Economics DOI 10.1080/00036846.2018.1489518 (June 2018).
• Type: Journal Articles Status: Published Year Published: 2018 Citation: Bowser, T.J., and R.B. Holcomb. Financial Analysis Tools for On-Farm and Off-Farm Commercial Kitchens. Journal of Extension 56,2(April 2018):Article 2TOT3. Available online at https://www.joe.org/joe/2018april/tt3.php.

Progress 11/07/13 to 09/30/18

Outputs
Target Audience:The targeted audiences included agricultural producers interested in value-added agribusiness ventures, rural economicdevelopment specialists, and state and federal agency representatives working in the areas of value-addedagriculture, biofuels, and markets for small producers. Research on the feasibility of processing technologies, the regulatory compliance costs for local food marketing channels, and the value placed on state brandshave been directed towards local food suppliers,in-state food processors, and retail food marketers. State lawmakers, the Oklahoma FoodPolicy Council, the Made In Oklahoma Coalition, and Oklahoma farmers market managers have used the resultinginformation to address issues impacting the growth of Oklahoma's local food hubs and the value of Made In Oklahomabrand. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?The food safety and traceability research directly support the need for land-grant university faculty to become certified in foodsafety training programs. This would help researchers and stakeholders alike develop a greater understanding of the policyimpacts resulting from the 2011 Food Safety Modernization Act. Additionally, the state brand value survey provides the basisfor future training and professional development related to market demand studies and methodologies. Research related to food business legitimacy represents the basis for entrepreneurial educational programs at OSU and other land-grant institutions working with food businesses. How have the results been disseminated to communities of interest?Results have been shared with various stakeholders and communities of interest through presentations, publications, and information dissemination via social media. On a state level, communities of interestinclude Oklahoma lawmakers, the Made In Oklahoma Coalition and its food processor members, the Oklahoma Grownfarmers markets, and the Oklahoma Food Cooperative members. Nationally, communities of interest include food industry researchers, USDA, FDA, and peer economists. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Major activities completed: Collected data and subsequent analyses of consumer surveys addressing the values placed on both in-state and neighboring state branded food products. Examined consumer preferences for FSMA compliance by fresh produce farmers relative to produce supplied by non-compliant farms. Specific objectives met: Several publications related to the costs and benefits of food traceability, food regulatory compliance, and state branding werecompleted and/or published. Additional work included the completion of a study related to food industry legitimacy and the means by which small/new food businesses can attain a level of legitimacy. Significant results achieved: The state brand value survey provided an original insight into the relative values of state-branded products across an eight-state region. This information is the basis for evaluating the impacts of state brand promotion programs, both in-state and out-of-state. Analyses of income-earning potential for food animal veterinarians were acclaimed by the American Veterinary Medicine Association and used as information to help young veterinary students identify career paths. Key outcomes: The state branding study establishes a basis for similar studies by other states and regions. This information is useful to policymakers as they determine allocations to state marketing programs, and to food industry participants who use these state brands to promote their products. The FSMA produce safety rule study is the first of its kind to evaluate consumer perceptions of relative food safety after the implementation of the FSMA rules.

Publications

• Type: Journal Articles Status: Published Year Published: 2018 Citation: Neill, C.L., R.B. Holcomb, K.C. Raper, and B.E. Whitacre. Effects of Spatial Density on Veterinarian Income: Where Are All of the Veterinarians? Applied Economics DOI 10.1080/00036846.2018.1527461 (October 2018).
• Type: Journal Articles Status: Published Year Published: 2018 Citation: Holcomb, R.B., C.L. Neill, E. Bendfeldt, J. Lelekacs, M. Velandia, T.A. Woods, H.L. Goodwin, Jr., and R.L. Rainey. A Local Food System Glossary: A Rose by Any Other Name. Choices 33,3(2018). Available online at http://www.choicesmagazine.org/UserFiles/file/cmsarticle_644.pdf.
• Type: Journal Articles Status: Published Year Published: 2018 Citation: Neill, C.L., R.B. Holcomb, and B.W. Brorsen. Current Market Conditions for Veterinary Services in the U.S. Applied Economics DOI 10.1080/00036846.2018.1489518 (June 2018).
• Type: Journal Articles Status: Published Year Published: 2018 Citation: Bowser, T.J., and R.B. Holcomb. Financial Analysis Tools for On-Farm and Off-Farm Commercial Kitchens. Journal of Extension 56,2(April 2018):Article 2TOT3. Available online at https://www.joe.org/joe/2018april/tt3.php.

Progress 10/01/16 to 09/30/17

Outputs
Target Audience:Targeted audiences include agricultural producers interested in value-added agribusiness ventures, rural economic development specialists, and state and federal agency representatives working in the areas of value added agriculture, biofuels, and markets for small producers. Research on the regulatory compliance costs for local food marketing channels and the value laced on state brands have been directed towards local food suppliers and in-state food processors. State lawmakers, the Oklahoma Food Policy Council, the Made In Oklahoma Coalition, and Oklahoma farmers market managers have used the resulting information to address issues impacting the growth of Oklahoma's local food hubs and the value of Made In Oklahoma brand. Changes/Problems:No changes are needed, and no major problems or delays have been experienced. What opportunities for training and professional development has the project provided?The food safety and traceability research directly supports the need for land-grant university faculty to become certified in food safety training programs. This would help researchers and stakeholders alike develop a greater understanding of the policy impacts resulting from the 2011 Food Safety Modernization Act. Additionally, the state brand value analyses have providedopportunities for training directors of marketing programs in multiple states on methods to assess the true impact of state branding programs. How have the results been disseminated to communities of interest?Results have been shared with various stakeholders and communities of interest. On a state level, communities of interest include Oklahoma lawmakers, the Made In Oklahoma Coalition and its food processor members, the Oklahoma Grown farmers markets, and the Oklahoma Food Cooperative members. At the regional and national level, findings have been shared via presentations at association meetings such as the Food Distribution Research Society meetings. What do you plan to do during the next reporting period to accomplish the goals?Next year's efforts will have greater research emphasis on opportunities for bio-product production in the Southern Plains states, with special considerations for the economics of crop production risk and value-added processing feasibility.An expansion of previous research related to the costs of food safety regulatory compliance for regional producers and processors will also take place in this fiscalyear.

Impacts
What was accomplished under these goals? Major activities completed: Analyses of consumer surveys addressing the impact of "state pride" and geographic proximity to state borders on willingness-to-pay were completed for both in-state and neighboring state branded food products. This information has served as the foundation for presentations made a professional conferences in FY 2018. Specific objectives met: A thesis on the value of state brands was begun and will be completed in FY 2018. Three presentations were developed and presented at a professional conference in early FY 2018. Significant results achieved: The state brand value survey provided an original insight into the relative values of statebranded products across an eight-state region. This information is the basis for evaluating the impacts of state brand promotion programs, both in-state and out-of-state. Key outcomes: The state branding study establishes a basis for similar studies by other states and regions. This information is useful to policy makers as they determine allocations to state marketing programs, and to food industry participants who use these state brands to promote their products.

Publications

• Type: Journal Articles Status: Published Year Published: 2017 Citation: Neil, C., R.B. Holcomb, and B.W. Brorsen. "Starting on the Right Foot: Does School Choice Impact Veterinarian Starting Salaries?" Journal of Agricultural and Applied Economics 49, 1(2017):120-138
• Type: Other Status: Published Year Published: 2017 Citation: Willoughby, C., T. Stevens, R.B. Holcomb, A. Graves, E. Johnson, and J. Brooks. "The Economic Impact of 'Made In Oklahoma' Coalition Member Companies on Oklahoma: 2015." OSU Department of Agricultural Economics paper AE-17006, October 2017.

Progress 10/01/15 to 09/30/16

Outputs
Target Audience:Targeted audiences include agricultural producers interested in value-added agribusiness ventures, rural economic development specialists, and state and federal agency representatives working in the areas of value added agriculture, biofuels, and markets for small producers. Research on the regulatory compliance costs for local food marketing channels and the value placed on state brands have been directed towards local food suppliers and in-state food processors. State lawmakers, the Oklahoma Food Policy Council, the Made In Oklahoma Coalition, and Oklahoma farmers market managers have used the resulting information to address issues impacting the growth of Oklahoma's local food hubs and the value of Made In Oklahoma brand. Changes/Problems:No changes are needed, and no major problems or delays have been experienced. What opportunities for training and professional development has the project provided?The food safety and traceability research directly supports the need for land-grant university faculty to become certified infood safety training programs. This would help researchers and stakeholders alike develop a greater understanding of the policy impacts resulting from the 2011 Food Safety Modernization Act. Additionally, the state brand value survey provides the basis for future training and professional development related to market demand studies and methodologies. How have the results been disseminated to communities of interest?Results have been shared with various stakeholders and communities of interest. On a state level, communities of interest include Oklahoma lawmakers, the Made In Oklahoma Coalition and its food processor members, the Oklahoma Grown farmers markets, and the Oklahoma Food Cooperative members. What do you plan to do during the next reporting period to accomplish the goals?As a progression of research completed in this fiscal year, next year's efforts will expand on state brand valuation by examining the role of ethnocentrism (state pride) and proximity to neighboring state borders in consumers' perceptions of state brand values. Also in the next year, greater research emphasis will also be placed on the study of factors impacting the perceived legitimacy of new food business by the overall food industry. An expansion of previous research related to the costs of food safety regulatory compliance will also take place in this fiscal year. As part of the research effort, I will become trained in one or more food safety protocols commonly used by food processors and work with small food businesses to assess the costs of implementing these protocols.

Impacts
What was accomplished under these goals? Major activities completed: Collected data and subsequent analyses of consumer surveys addressing the values placed on both in-state and neighboring state branded food products. This information has served as the foundation for both publications and some delivered and proposed training workshops to be undertaken in FY 2017. Specific objectives met: A publication related to the costs and benefits of food traceability was completed and published. A survey of food business examining their view of new food business legitimacy was completed during the year. Significant results achieved: The state brand value survey provided an original insight into the relative values of state-branded products across an eight-state region. This information is the basis for evaluating the impacts of state brand promotion programs, both in-state and out-of-state. Key outcomes: The state branding study establishes a basis for similar studies by other states and regions. This information is useful to policy makers as they determine allocations to state marketing programs, and to food industry participants who use these state brands to promote their products.

Publications

• Type: Journal Articles Status: Published Year Published: 2016 Citation: Adam, B.D., R.B. Holcomb, M. Buser, B. Mayfield, J. Thomas, C.A. OBryan, P. Crandall, D. Knipe, R. Knipe, and S.C. Ricke. Enhancing Food Safety, Product Quality, and Value-Added in Food Supply Chains Using Whole-Chain Traceability. International Food and Agribusiness Management Review 19, Issue A(2016):191-214. Available online at http://www.ifama.org/resources/Documents/Volume%2019%20Issue%20A/1020150140.pdf. Craige, C.C., M.D. Buser, R.S. Frazier, S.S. Hiziroglu, R.B. Holcomb, and R.L. Huhnke. Conceptual Design of a Biofeedstock Supply Chain Model for Eastern Redcedar. Computers and Electronics in Agriculture 121(February 2016):12-24.
• Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Velandia, M., T. Woods, E. Bendfeldt, J.M. Lelekacs, R.B. Holcomb, M. Palma, D. Lamie, R. Dunning, L. Meyer, H.L. Goodwin, Jr., R. Rainey, A. Collart, and D. Fields. Opportunities for Local Food Systems Research and Extension in the South  A Land Grant University Initiative. Proceedings of the 2015 Food Distribution Research Society meetings in Philadelphia, PA October 9-13, 2015. Journal of Food Distribution Research 47,1(March 2016):73-75.
• Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Neill, C., and R.B. Holcomb. Where Should All of the Veterinarians Go? An Examination of Supply and Cross-Sector Effects in the Veterinary Medicine Industry. Selected paper presented at the 2016 Southern Agricultural Economics Association meetings in San Antonio, TX, on February 8, 2016.
• Type: Conference Papers and Presentations Status: Other Year Published: 2016 Citation: Turner, J.M., P.L. Kenkel, R.B. Holcomb, and D.B. Arnall. Economic Potential of Unmanned Aircraft in Agricultural and Rural Electric Cooperatives. Selected paper presented at the 2016 Southern Agricultural Economics Association meetings in San Antonio, TX, on February 8, 2016.
• Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Velandia, M., T. Woods, E. Bendfeldt, J.M. Lelekacs, R.B. Holcomb, M. Palma, D. Lamie, R. Dunning, L. Meyer, H.L. Goodwin, Jr., R. Rainey, A. Collart, and D. Fields. Opportunities for Local Food Systems Research and Extension in the South  A Land Grant University Initiative. Presented at the 2015 Food Distribution Research Society meetings in Philadelphia, PA October 9-13, 2015.

Progress 10/01/14 to 09/30/15

Outputs
Target Audience:Targeted audiences include agricultural producers interested in value-added agribusiness ventures, rural economic development specialists, and state and federal agency representatives working in the areas of value added agriculture, biofuels, and markets for small producers. Research on the regulatory compliance costs for local food marketing channels has been well received by stakeholders. The work has met with professional peer acceptance, as noted by presentations at professional conferences. Additionally, the work has been used as outreach materials for various state programs designed to train local food suppliers about regulatory compliance and costs. State lawmakers, the Oklahoma Food Policy Council, and the Oklahoma Farmers and Ranchers Alliance have used the resulting information to address issues impacting the growth of Oklahoma's local food hubs. An associated farmers market supplier survey has resulted in requests by Oklahoma farmers markets to help develop a customer survey. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?The research has provided the incentives and opportunities for participation in food safety training programs. Examples include training programs designed to help both researchers and stakeholders develop a greater understanding of the 2011 Food Safety Modernization Act and the various accepted protocols of the Global Food Safety Initiative. Many of the final rules of the Food Safety Modernization Act are just now being implemented, so both researchers and industry members are striving to better understand the expectations and impacts of policy directives. Given the heightened emphasis on food safety practices, monitoring, and record-keeping systems, such training plays a key role in future research efforts. How have the results been disseminated to communities of interest?Results have been shared with various stakeholders and communities of interest. On a state level, communities of interest include Oklahoma lawmakers, small individual Oklahoma agricultural producers and food processors, the Made In Oklahoma Coalition, Oklahoma Farmers and Ranchers Association, Oklahoma Food Policy Council, and the Oklahoma Food Cooperative members. What do you plan to do during the next reporting period to accomplish the goals?During the next fiscal year, and as a progression of current research, efforts will examine the values consumers place upon local and state brands for food products. To accomplish this goal, a random sample of consumers from an eight state region will be surveyed to determine the values they place on products branded with their own state's label and the relative values placed upon food products promoted by the state labeling campaigns of neighboring states. The overall goal of this effort is to help state agricultural departments and their promotional programs better understand the value consumers place on their branding efforts. Additionally, large and small food business operations will be surveyed to identify the factors impacting the legitimacy and long-term viability of food business startups. The goal of this effort is to determine ways in which food business entrepreneurs can position their start-up operations to obtain the real and perceived benefits of industry recognition, i.e. legitimacy.

Impacts
What was accomplished under these goals? Collected data and subsequent analyses have provided the basis for educational programs related to food safety training, food safety budgeting, and the value placed upon the premises of local food production. This information has served as the foundation for both publications and some delivered and proposed training workshops to be undertaken in FY 2016. Specific objectives met: A survey of farmers market participants provided information on the costs of compliance with state and local food marketing and safety regulations. An analysis of National Restaurant Association data was used to assess the impacts of food safety recalls and health and nutrition press on restaurant industry performance using various measures of analysis. Participation in a survey of agribusiness employers provided the information needed to assess changes in industry expectations of graduating agribusiness students. Significant results achieved: The farmers market survey provided an original insight into the "costs of doing business" by farmers market vendors in Oklahoma. This information is the basis for efforts to train agricultural producers in the costs of pursuing farmers markets as a direct market outlet for their products. The restaurant data analysis is a unique model and examination of how publicized food recalls and media attention on health and nutrition impact restaurant traffic, sales, and the envisioned outlook of restaurant owners. The agribusiness survey will be used to help agribusiness programs at agricultural colleges and land-grant institutions prepare their students for future employment in the agribusiness sector. Key outcomes: Recent emphasis on local food systems has not addressed the regulatory compliance costs to participate in the systems, yet now for Oklahoma information and training programs exist to help producers better understand the challenges of participating in local food marketing channels. The information on employers' expectations of agribusiness students represents a modern take on a similar study from 30 years ago, but emphasizing the impacts of the electronic age on the expectations of employers.

Publications

• Type: Conference Papers and Presentations Status: Submitted Year Published: 2014 Citation: Osburn, M., and R.B. Holcomb. Impact of State and Local Food Regulations on the Marketing Decisions of Oklahoma Local Food Producers. Selected paper presented at the 2014 Food Distribution Research Society meetings in Salt Lake City, UT, on November 5, 2014.
• Type: Conference Papers and Presentations Status: Submitted Year Published: 2015 Citation: Pruitt, R., and R.B. Holcomb. Impacts of Food Recalls and Consumer Information on Restaurant Performance. Selected paper presented at the 2015 Southern Agricultural Economics Association meetings in Atlanta, GA, on February 3, 2015.
• Type: Conference Papers and Presentations Status: Submitted Year Published: 2015 Citation: Johnson, A.J., S. Downey, R.B. Holcomb, and A. Wysocki. What Agricultural Firms Value in Agribusiness Graduates: An Update to Previous Research. Presented at the WERA-72 annual meetings in Las Vegas, NV, on June 23, 2015.
• Type: Journal Articles Status: Published Year Published: 2015 Citation: Holcomb, R.B. Book Review  Growing Local: Case Studies on Local Food Supply Chains. American Journal of Agricultural Economics 2015; doi:10.1093/ajae/aav026.

Progress 11/07/13 to 09/30/14

Outputs
Target Audience: Targeted audiences include agricultural producers interested in value-added agribusiness ventures, rural economic development specialists, and state and federal agency representatives working in the areas of value added agriculture, biofuels, and markets for small producers. 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? Output: Output from the past year's research efforts include one journal article, four presented papers, and three working papers. The published journal article relates to the viability of biofuel production from switchgrass in Oklahoma. One of the working papers and three of the presentations relate to efforts associated with local food production, marketing, and regulatory compliance. One of the working papers and one of the presentations is related to the student feedback from a senior capstone experience course. The third working paper relates to the reliability of restauranteur survey data in forecasting future restaurant sales. Outcomes/Impacts: Research on the regulatory compliance costs for local food marketing channels has been well received by stakeholders. The work has met with professional peer acceptance, as noted by presentations at professional conferences. Additionally, the work has been used as outreach materials for various state programs designed to train local food suppliers about regulatory compliance and costs. State lawmakers, the Oklahoma Food Policy Council, and the Oklahoma Farmers and Ranchers Alliance have used the resulting information to address issues impacting the growth of Oklahoma's local food hubs. An associated farmers market supplier survey has resulted in requests by Oklahoma farmers markets to help develop a customer survey.

Publications

• Type: Journal Articles Status: Published Year Published: 2014 Citation: Haque, M., F.M. Epplin, J.T. Biermacher, R.B. Holcomb, and P.L. Kenkel. (2014) Marginal Cost of Delivering Switchgrass Feedstock and Producing Cellulosic Ethanol at Multiple Refineries. Biomass and Bioenergy 63, JBB3508. Available online at http://www.sciencedirect.com/science/article/pii/S0961953414000671.