Source: UNIVERSITY OF FLORIDA submitted to NRP
IMPROVING PROFITABILITY AND ENVIRONMENTAL STEWARDSHIP FOR SMALL AND MEDIUM-SIZED FARMS BY IDENTIFYING NEW MARKET OPPORTUNITIES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1018728
Grant No.
2019-68006-29324
Cumulative Award Amt.
$499,889.00
Proposal No.
2018-08378
Multistate No.
(N/A)
Project Start Date
Apr 15, 2019
Project End Date
Apr 14, 2024
Grant Year
2019
Program Code
[A1601]- Agriculture Economics and Rural Communities: Small and Medium-Sized Farms
Recipient Organization
UNIVERSITY OF FLORIDA
G022 MCCARTY HALL
GAINESVILLE,FL 32611
Performing Department
Food & Resource Economics Dept
Non Technical Summary
The increased concern and awareness of the impact of agricultural production on the environment among public create new market opportunities for sustainably produced crops. A large body of literature shows that consumers are willing to pay more for eco or sustainable labeled food products (Bougherara and Combris, 2009, Gao et al. 2017, Chen et al. 2018, Xu et al., 2012). Marketing strategies to increase consumers' and producers' buy-in for environmental policies has been pinpointed as a priority research direction by the marketing literature (McDonagh and Prothero 2014).Best management practices (BMPs) are broadly defined as sustainable practices that aim at optimum plant production with minimal adverse impact on the environment (following existing literature, hereafter we mean BMPs when we mention sustainable and conservation practices). Developing novel BMPs to respond to increasing societal demands on agriculture and to enhance environmental and social outcomes is key priority for federal and state agencies, land-grant universities, producer associations, and other stakeholder groups. New economic opportunities will emerge when small and medium-sized farmers producers start tailoring their BMP choices to consumers' preferences for both agricultural products and environmental outcomes. This opportunity will depend on producers' skills and strategies used to communicate their BMP choices and the BMP outcomes to consumers through effective marketing strategies. With access to new marketing strategies, producers choosing to adopt various BMP sets can differentiate their products, thus earning a price premium and increasing farm profitability. Product differentiation in the marketplace allows new opportunities for socially disadvantaged small and medium-sized farmers to succeed while enhancing environmental sustainability.The proposed project is an integrated research and Extension project that will investigate consumer and producer attitudes toward sustainable agriculture, specifically agricultural BMPs, aiming to increase small and medium-sized farms' profitability by bridging the information gap between consumers, growers, researchers, and other stakeholders. The long-term goal is to aid small and medium-sized farms in providing specialty crops that are produced with sustainable and environmentally-sound practices, which meet consumer demand for sustainable food and generate additional farm income. We expect to identify the specific needs and preferences of small and medium-sized growers and consumers that, if met, would contribute to the long-term sustainability of the whole food system.The proposed project uses experimental auctions, grower survey as extension activities to systematically study small and medium-sized farm owners' attitudes towards sustainable farming practices and consumer preferences for products grown using sustainable farming practices. It also examines the impact of marketing information on producers' adoption of sustainable farming practices. This systematic approach will bridge the information gaps between consumers, growers, agencies, researchers, and outreach professionals.The findings are expected to contribute to the prosperity of small and medium-sized farms, improve the adoption rate of environmentally-friendly production practices, and deliver healthy specialty crops to consumers in a manner they prefer. This project benefits U.S. agriculture as a whole by providing marketing information to various agricultural industries (such as the nation's vegetable growers) and by enabling U.S. federal and state policymakers to enact the appropriate policies to keep growers on the land and increase the profitability of small and medium-sized farms.
Animal Health Component
70%
Research Effort Categories
Basic
30%
Applied
70%
Developmental
0%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6076299301060%
6031499301040%
Goals / Objectives
The United States government has historically promoted various sustainable farming practices such as best management practices (BMPs). However, small and medium-sized farms have unique challenges affecting their BMP adoption rates. The purpose of this project is to increase small and medium-sized farms' profitability and environmental stewardship by bridging the information gap between consumers, growers, researchers, and stakeholders. Considering cost and return are both components of the profitability equation, identifying new market opportunities that increase returns of adopting BMPs may significantly reduce resistance to BMPs. In addition, identifying the specific needs of small and medium-sized growers for BMP adoption and transferring this information to researchers and other stakeholders may help design customized BMP policies and programs that are more economically viable and likely to be accepted by these growers. Using an integrated research and extension approach, this project aims to accomplish three objectives: 1) determine consumers' current knowledge, perceptions, and attitudes towards sustainable agricultural practices, as well as willingness to pay for fresh produce with various BMP labels representing different environmental benefits; 2) determine small and medium-sized specialty crop farms' barriers and opportunities for adoption of specific sustainable practices, and how various attributes of agricultural BMPs, along with market information affect growers' BMP adoption and profitability; and 3) implement an Extension program enabling small and medium-sized growers and managers to develop skills and utilize decision tools necessary for successful marketing and decision making. Results of the project help small and medium-sized farms' gain extra income using new market opportunities.
Project Methods
1. Specific aim #1: Determine consumers' current knowledge of, perceptions of, and attitudes towards sustainable agriculture, as represented by BMPs, as well as consumer WTP for fresh produce (fruits and vegetables) with various BMP labels associated with different environmental and social benefits1.1Experimental DesignWe will useexperimental auctionsto achieve this objective.In experimental auctions, consumers are given one good (e.g., tomato) and are asked to indicate the most they are willing to pay to exchange their good for another (e.g. tomato identified as grown in a "sustainable" manner). In a Becker-DeGroot-Marshack (BDM) auction (Becker, et al., 1964), if a respondent's bid is higher than some randomly drawn price, the participant pays the random price and makes the exchange. The BDM method allows the auctions to be easily administered at the location where fresh produce is purchased, and the costs are reduced because participant recruitment and facility rental are avoided.In two cities in the Eastern United States (one in the northeast such as Boston and one in southeast such as Orlando), the experimental auctions will be conducted at grocery stores and direct marketing channels such as farmers markets. Multiple sessions at different times of a day will be used so that a representative sample of different shoppers can be captured. In addition, two products will be studied (depending on product availability and timing of the studies) to avoid potential product-related bias. Each product will have five manipulations, being presented as a traditionally grown product (used as an endowment) compared to one that is sustainably produced with BMP.After the initial rounds of the auction, consumers will be given a definition of sustainability/BMPs/Responsibly Grown/GAP/GHP, and asked to bid for the products again. This is to determine the best strategies to label products: whether a simple sustainable/BMP label is more effective than the BMP labels emphasizing a specific environmental benefit, and how improved knowledge affects consumer WTP forBMP-grownfresh produce.2. Specificaim#2: Determine small and medium-sized specialty crop growers' perceptions of and attitudes toward sustainable practices and technologies, and how various attributes of agricultural BMPs, along with market information (such as consumer WTP for sustainably produced products), affect growers' BMP adoption choice2.1Experimental DesignWe will start the study by examining property appraiser datasets for the Central Florida counties to develop a database that includes all small and medium-sized farms in these counties. The property appraiser database will be compared with the land use/land cover information available from state and federal agencies. This database will then be matched with the FDACS dataset and datasets requested from Florida's Water Management Districts (FWMD). Next, agricultural operations identified through the property appraiser and land use/land cover data, as well as the FDACS dataset, will be surveyed regarding their knowledge of BMPs and their BMP adoption behavior. The survey will be designed and administered using Dillman's tailored design method. Both mail and online surveys will be used to accommodate a wide range of growers that may have different preferences for survey modes (Dillman 2011). Responses will be analyzed using conditional logit and other applicable regression methods. Overall, the econometric analysis will identify the determinants for the following decisions made by small and medium-sized specialty crop growers: (1) whether to implement key BMPs or not; (2) the number of key BMPs to implement; and (3) the acreage on which to implement the BMPs. We will also identify the key barriers to BMP adoption.3Specific aim #3:Implement an Extension program enabling small and medium-sized growers and managers to develop the skills and utilize decision tools necessary for successful marketing and decision making.3.1.Outreach ApproachThe first stepis to develop guidelines for BMP labels/claims. The draft guidelines developed with FDACS will be discussed extensively at advisory meetings and be presented at multiple Extension and grower meeting for input. The guidelines will be presented on two websites, social media, grower workshops, and in-service trainings.The second stepis to identify and understand the audience of growers who have yet to adopt BMPs but may do so in the future, as well as those who have adopted BMPs and are interested in marketing opportunities. This process begins inaim #2with the producer survey. The information acquired from this survey enables us to identify and target potential BMP adopters and directly address their most pressing concerns. The third stepis to design the curriculumfor Extension activities that will address the informational needs of the target audiences. Curriculum design will involve translating the research results into materials that effectively communicate the information to the producers, using appropriate language and framing (see#2 Curriculum development). Curriculum design also involves developing strategies to facilitate the dialog with the target audience, allowing for two-way communication between the research team and the growers and decision-makers.Anadvisory committeewill be assembled from selected representatives of producer associations, state and regional agencies (e.g., FDACS), and Extension faculty.To traincounty and regional Extension faculty, we will implementat leasttwo ISTs, targeting different geographical areas. The ISTs will be publicized through UF and FAMU Extension networks. Special emphasis will be on reaching the UF/FAMU Small Farms & Alternative Enterprises program and the UF/IFAS farm economics, entrepreneurship, and management initiative.To train agricultural producers, several venues will be used. We will collaborate with the UF/IFAS farm economics, entrepreneurship, and management initiative team, which established a network of important contacts to design and deliver educational programs on the topics of farm economics and agricultural marketing. We will utilize the websites hosted by UF/IFAS and FAMU Extension programs. These websites provide frequently updated enterprise budgets for selected Florida agricultural commodities as well as information on developing new marketing channels to capitalize on heterogeneous consumer interests.To train decision-makers, we will use the UF/IFAS Extension Water School for Decision-Makers, which is aimed at empowering communities to make more efficient, consensus-based water resource management decisions. The target audience for this program is decision makers, including city, county, and other elected officials who have the authority over water management and/or economic development decisions, professional association leaders, and other influential individuals.3.2.Evaluation strategyWe will conduct pre-, post-, and follow-up surveys of and interviews with the participants to measure knowledge gain, change in skills, and intended and actual behavioral changes from the Extension activities. Knowledge gain will be assessed using a conventional scale. For IST participants, we will also use 6-month follow-up surveys. In addition, as a part of project research objective #2, the growers' survey will include questions about access to Extension services. Using this information, we will assess if there is a correlation between Extension activities and the adoption of BMPs. Finally, to measure behavioral change (practice adoption), we will compare the BMP enrollment and implementation rate of key BMPs in areas targeted by Extension activities with the rates observed among similar producers in other areas. We will use the FDACS and FWMD databases to perform this evaluation.

Progress 04/15/19 to 04/14/24

Outputs
Target Audience:The target audiences of the project included a diverse group: specialty crop producers (including smallholders, small farms, and urban farm growers) from several North Florida and southwest Georgia counties; small farm populations, indigenous farmers, black farmers, and farmers of color through outreach at the FAMU Research and Extension Center; key stakeholders of various Florida agricultural departments and organizations; agricultural economics professionals and students; and the general public via a national online survey. Changes/Problems:In the proposal, we proposed to use the auction to estimate consumer WTP in multiple cities in the US. However, the COVID-19 pandemic prevents us from traveling and gathering consumers together to conduct the auction. We contactedthe program manager regarding changing the research method. We proposed changing the auction to a choice experiment or contingent valuation that does not require in-person contact.We proposed using an online survey to collect nationwide data for the consumer study, which will help achieve the same objectives proposed in the proposal. The program manager agreed with our plan. Because of the change in research method, we were not able to finish the consumer studies as we had planned.Weextended the final budget period for 12 months due to the difficulty caused by COVID-19. We will continue working on the data collected for this project for more presentations and publications. What opportunities for training and professional development has the project provided?The project has provided opportunities to train many students in developing research skills. These skills include survey development, data analysis, choice modeling, database development, writing manuscripts,presentations at conferences, and using Power BI to visualize data. How have the results been disseminated to communities of interest?Results have been disseminated using various methods at different events, such as annual advisory council meetings, extension workshops, publications, surveys to consumers and growers, professional meetings, and manuscripts. During the advisory council meeting, the definition of BMP (Best Management Practices) focused on consumer benefits and potential BMP claims and labels were presented to stakeholders and growers. Input from stakeholders, particularly from the Florida Department of Agriculture and Consumer Services (FDACS). Updates on the consumer and grower surveys were shared with staff at the Florida Department of Environmental Protection and the Florida Farm Bureau Foundation, who provided feedback on the survey questionnaire. Additionally, research on BMP marketing strategies was incorporated into the marketing curriculum for agricultural economics students and the University of Florida's horticulture sciences club. Results from the BMP consumer survey were presented at various advisory committee meetings, the Florida Water Institute Symposium, the IFAS BMP summit, the Southern Agricultural Economics Association (SAEA), and the Agricultural and Applied Economics Association (AAEA) meetings. Consumers' WTP for the BMP label was included in the grower survey, communicating the potential marketing opportunities of BMP-labeled products to growers. In addition, a Virtual Ag BMP Summit in included presentations on improving profitability and environmental stewardship for small and medium-sized farms, which highlighted the project's goals, objectives, and preliminary results to agricultural professionals, extension agents, and interested producers. A factsheet, "Benefits of Implementing Agricultural Best Management Practices (BMPs)", was developed and submitted for review in the EDIS publication system at the University of Florida. At last, Power BI dashboards were created to visualize the research on consumer WTP for sustainable food labels. A broad group audience can use this dashboard to gain a comprehensive understanding of consumer preference and WTP for different sustainable labels for various food products. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? For Aim #1:We developed and collected data from four rounds of consumer surveys to estimate consumer preferences for specialty crops with BMP labels. We used both choice experiments and the contingent valuation method to estimate consumer willingness to pay (WTP) for crops such as strawberries, tomatoes, and other important crops in Florida. During the surveys, we introduced information treatments to determine their effect on consumer WTP. We also used BMP labels certified by different certification agents (EPA, USDA, and state agents). In each round of consumer surveys, we collected nationally representative samples of primary household grocery shoppers in the United States. All the data collected for age and income are similar to U.S. Census data. Our data have more females (ranging between 53% and 60%). Our samples generally have a larger percentage of respondents with higher education levels. Our results show that U.S. consumers are willing to pay a higher premium for specialty crops with a BMP label. The WTP premium for specialty crops with BMP labels ranges from $0.41 to $3.00 per pound compared to products without such labels. However, the WTP varies. For example, the WTP premium for strawberries with EPA BMP labels is as high as $3.00 per pound when using a choice experiment. The WTP premiums for tomatoes, strawberries, navel oranges, orange juice, sweet corn, and watermelon are $0.41, $0.45, $0.43, $0.44, $0.43, and $0.45 per pound, respectively, when using the contingent valuation method (CVM). Furthermore, when consumers receive information that combines the importance of agriculture for society (positive information) with the negative impact of agriculture on the environment and its consequences (negative information), WTP for the BMP labels increases compared to a no-information or partial-information scenario. Our research shows that consumers demonstrate a positive WTP for BMP labels. In some cases, the WTP for BMP labels is comparable to that for organic labels. The results suggest that introducing BMP labels into the market may be successful, providing a financial incentive to growers who adopt BMPs on their farms. Our findings also suggest that regulators should identify the appropriate label design and educational messages to promote BMP labels effectively. Our research enhances the understanding of consumer preferences for specialty crops with BMP labels. This information is essential for policymakers and stakeholders to decide whether action should be taken to introduce and provide guidance for using BMP labels in the market. By participating in our survey, respondents improved their knowledge of agricultural production and BMPs. For Aim #2:We have completed the data collection for grower survey to assess grower preference for a BMP label certification marketing program. We collected data from Florida farmers through both online and mail surveys, receiving a total of 317 responses. In the grower survey, we asked specialty crop growers about their likelihood of and WTP for joining a BMP label marketing program. After excluding 121 ineligible responses due to issues such as non-consent, incomplete responses, crop type restrictions etc., we were left with 196 complete and eligible responses for analysis. Results show that approximately 55.5% of the respondents indicated that they would like to join the marketing program, while the remaining respondents were unlikely to participate. For the 100 respondents who indicated a positive WTP, the mean was $859.51, with a median of $304.69. For the 109 respondents willing to join (WTJ) the program, the mean WTP was $971.15, with a median of $327.41. Among non-protest respondents who accepted the premise of the survey outright, the mean WTP was $1,072.14, with a median of $402.33. When considering all 196 eligible responses, the mean WTP was $577.20, with a median of $119.61. These results indicate that those willing to join the program are, on average, willing to pay approximately $971.15, but this value decreases to $577.20 when all respondents are considered. The findings from the grower survey reveal that not only do consumers see value inthe BMP label marketing program, but more than 50% of the producers also recognize the benefits and are willing to participate the BMP label marketing program. The positive WTP estimates suggest that growers are willing to contribute financially to the marketing program to help cover its costs and ensure its viability in the market. Our research provides critical information on grower attitudes toward the BMP label marketing program. Policymakers and stakeholders can use the information to assess the benefits of establishing the BMP label marketing program and whether it has a chance of succeeding among growers. By participating in the grower survey, specialty crop growers gain knowledge of the benefits of labeling their products as produced under BMPs. This may motivate growers adopting BMPs to claim their product as BMP produced, therefore, to obtain some premiums for their products. For Aim #3:We have developed an educational curriculum based on the findings from Aim #1 and Aim #2 and expanded our outreach efforts by integrating the results to Aim #3. Throughout the project, we held annual advisory committee meetings to gather input on the design of consumer and grower survey instruments and to keep the committee informed about research progress and results. The advisory committee found the research findings valuable for both growers and policymakers. However, they recommended that these findings be communicated to growers through existing extension programs rather than through independent training sessions. Following their advice, we have integrated the findings into existing extension programs that target small- and medium-sized growers, policymakers, and other stakeholders. Furthermore, we developed an ecolabel preference database using data from 285 published papers that examine consumers' willingness to pay (WTP) for various sustainable labels in the food market. Using this data, we created an online Power BI panel that provides dynamic visualizations of consumers' WTP for sustainable labeled food products. This tool enables farmers to gain valuable insights and make informed decisions about adopting the BMP labels. The link is provided below: https://app.powerbi.com/view?r=eyJrIjoiZTVlMTA1NGQtYTc4YS00ZTdiLTgxNGQtZTFlNWRlNDc5MDdhIiwidCI6IjBkNGRhMGY4LTRhMzEtNGQ3Ni1hY2U2LTBhNjIzMzFlMWI4NCIsImMiOjF9. The ecolabel preference database revealed several key insights: organic and local labels are the most popular sustainable labels and the average consumer WTP is 55% for organic-labeled products and 45% for locally labeled products. The advisory committee affirmed that our project is crucial and impactful for stakeholders, particularly in exploring strategies to encourage growers' adoption of BMPs, such as utilizing BMP labels. The consumer WTP premiums and growers' willingness to participate in the BMP labeling certification program suggest that establishing such a program in the market could be successful. One of the extension workshops that incorporated our research findings, held in Homestead, FL, on "Business Planning and Tax Management for Farmers and Ranchers," was particularly well-received. The workshop attracted 72 attendees and received positive feedback; all 24 respondents who returned evaluations indicated they would recommend the course to others, and 22 found the topics covered to be helpful for their business. Our extension activities enhance the understanding of growers, policymakers, and stakeholders regarding the marketing opportunities for BMP-labeled products. This knowledge will assist growers and policymakers in making informed decisions related to the production, marketing, and policy development related to BMPs and BMP labels.

Publications

  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2024 Citation: Uddin, M. A., Gao, Z., Farnsworth, D., Gars, J. Spillover Effect of Food Safety Label Information. Selected paper presentation, Southern Agricultural Economics Association Annual Meeting, Atlanta, Georgia, US, February 3-6, 2024.
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2023 Citation: Uddin, M. A., Gao, Z., Farnsworth, D., Gars, J. Does Area-Specific Agri-Environmental Information Affect Consumer Preference for Specialty Crops? Selected paper presentation, American Agricultural and Applied Economics Association Annual Meeting, Washington DC, US, July 23-25, 2023.
  • Type: Other Status: Other Year Published: 2021 Citation: Soh, M., Wade, T., and T. Borisova. Protecting Water Resources Through Multiple-BMP Use: An Examination of Florida Vegetable and Agronomic Crop Producers with Plastic Mulch Production. In preparation for submission to the Journal of Soil and Water Conservation.
  • Type: Other Status: Other Year Published: 2021 Citation: Borisova, T., Wade, T., and M. Soh, M. Producers Current Best Management Practice Choices and Future Opportunities. In preparation for submission to HortScience.
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2021 Citation: Borisova, T., Wade, T., and M. Soh, M. 2021. Floridas Agricultural Water Quality Policy: Producers Current Best Management Practice Choices and Future Opportunities. Paper presented at the Annual Meeting of the Southern Agricultural Economics Association.
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2022 Citation: Uddin, MA., Z. Gao, D. Farnsworth, T. Borisova, and A. Bolques. 2022. Consumers Willingness to Pay for Environmental Labels. In 2022 Annual Meeting, February 12-15, New Orleans, Louisiana. Southern Agricultural Economics Association.
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2022 Citation: Uddin, MA., Z. Gao, D. Farnsworth, T. Borisova, and A. Bolques. 2022. The Us Consumers Willingness to Pay for Best Management Practice Labels. In 2022 8th UF Water Institute Symposium, February 22-23, Gainesville, Florida. Water Institute, University of Florida.
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2021 Citation: Bolques, A. Z. Gao. 2021. "Agricultural Best Management Practices: Understanding & Bridging the Gap Between Consumers, Growers, Researchers, & Stakeholders". 2021 Virtual Agricultural Best Management Practices Summit. IFAS, University of Florida
  • Type: Journal Articles Status: Other Year Published: 2024 Citation: Uddin, M. A., Gao, Z., Farnsworth, D., Borisova, T., & Bolques, A.To Display or Not to Display the Environmental Benefits on Ecolabels: Evidence from Consumers' Willingness to Pay for Best Management Practices (BMPs) Labels. Preparing for journal submission
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2022 Citation: Uddin, M. A., Gao, Z., Farnsworth, D., Borisova, T., & Bolques, A. (2022). Mitigation of Hypothetical Bias in Estimating Consumers' Willingness to Pay for Best Management Practice Labels. Selected paper presentation at 2022 American Agricultural and Applied Economics Association Annual Meeting, Anaheim, California, US
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2023 Citation: Uddin, M. A., Gao, Z., (2023). Do Consumers Only Look for Environmental Sustainability: Insight from US Consumers. Selected paper presentation at 2023 Southern Agricultural Economics Association Annual Meeting, Oklahoma City, Oklahoma, US
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2022 Citation: Duan, D., Uddin, M. A., Nian, Y., Nguyen, T.Y., and Gao, Z., 2022. Tracing the trend in consumer preferences for eco-labeled food: A text mining and topic modeling approach. Selected paper presentation at 2022 American Agricultural and Applied Economics Association Annual Meeting, Anaheim, California, US


Progress 04/15/22 to 04/14/23

Outputs
Target Audience: Key members Florida Department of Citrus, the Florida Department of Agriculture and Consumer Services, the Florida Farm Bureau Foundation, and UF/IFAS extension professionals. They were updated about the consumer survey development progress and provided feedback for the survey questionnaire. Agricultural economics students, agribusiness professionals (through presentations at professional meetings), and stakeholders at extension workshops (e.g., the Florida Council of Cooperatives' Education and Leadership). BMP marketing strategies were used as examples of curriculum and outreach focusing on agricultural marketing and agribusiness. General public through national online surveys. Growers through the pilot study and interviews for grower surveys. Changes/Problems:We are slow in developing the growers' survey because it is hard to find growers willing to do the interview and comment on our surveys. Although we get a list of growers in Florida who are implementing BMPs, the response rate from the online survey is very low. We plan to use the mail survey methods and will intensively travel to different extension workshops in the fall of 2023. What opportunities for training and professional development has the project provided?The project has provided opportunities to train a Ph.D. student, Md Azhar Uddin (Ph.D. committee chair: Dr. Gao). In addition, several students supervised by Dr. Gao have participated in the survey development, providing them the training opportunities in survey design and consumer behavior research. How have the results been disseminated to communities of interest?1) Project results were shared with the Advisory Committee, which includes relevant stakeholders representing various parts of the Florida agriculture community. 2) Results and findings from the first-round consumer survey about the BMP label's WTP were presented at the i) Sothern Agricultural Economics Association Annual Meeting 2022 held in New Orleans, Louisiana, US. ii) University of Florida Water Institute Symposium 2022 held in Gainesville, Florida. iii) American Agricultural and Applied Economics Association Annual Meeting 2022, Anaheim, California, US. iv) Sothern Agricultural Economics Association Annual Meeting 2023 held in Oklahoma City, Oklahoma, US. 3) Project results were developed into manuscripts and submitted to prominent journals in the field. Upon acceptance and publication, these outlets will reach a wide range of experts in the field of agriculture. 4) Project results were developed into the curriculum that has been incorporated into marketing courses. 5) Project results have been incorporated into extension programming about agricultural marketing opportunities for Florida agribusinesses. 6) During the pilot and interview stage of the growers, survey, we informed participants about the findings about consumers' WTP for the BMP label. The consumer WTP information will also be included in the grower survey. What do you plan to do during the next reporting period to accomplish the goals?1) We will complete the second round of consumer surveys, analyze the data, and share the findings with growers, other stakeholders, and researchers doing research on BMPs and food marketing. 2) Complete the grower survey, analyze the data, and present the results on relevant platforms such as conferences and extension workshops. 3) Continuation of the work with the project advisory committee to develop a potential BMP labeling program in Florida. 4) Submit the results of consumer and grower surveys in renowned journals.

Impacts
What was accomplished under these goals? For Aim #1, We have developed and administered consumer surveys under the guidance of our advisory committee. The survey results have been analyzed and developed into journal articles and other outreach materials. We also finished developing the instruments for the second round of consumer surveys utilizing tomatoes as a focal product. The survey employs a choice experiment to examine consumer preferences for FDACS certified BMP labels. Additionally, we plan to expand the survey to include other crops like oranges and nursery products to gauge consumer preference for the BMP label across key products cultivated in Florida. Through this survey, we aim to determine the welfare impact of introducing the BMP label into the market. Several presentations have been made at regional and national professional meetings. One manuscript has been submitted, and several other manuscripts are under development. For Aim #2, We have pre-tested the grower survey with 10 crop growers from Florida. We have developed and begun administering the producer survey under the guidance of our advisory committee. We are conducting a grower survey to identify the challenges and advantages faced by small and medium-sized specialty crop farms when it comes to implementing best management practices (BMPs) in Florida. Additionally, we aim to assess growers' interest in participating in the BMP label marketing program, considering market information regarding consumers' willingness to pay for such a label. We anticipate using these survey results to develop journal articles and other outreach materials. For Aim #3, we have developed an educational curriculum based on the results of Aim #1 and begun disseminating information to relevant stakeholders. We will expand these efforts by incorporating research findings from Aim #3.

Publications

  • Type: Conference Papers and Presentations Status: Other Year Published: 2023 Citation: Uddin, M. A., Gao, Z., (2023). Do Consumers Only Look for Environmental Sustainability: Insight from US Consumers. Selected paper presentation at 2023 Southern Agricultural Economics Association Annual Meeting, Oklahoma City, Oklahoma, US
  • Type: Conference Papers and Presentations Status: Other Year Published: 2022 Citation: Duan, D., Uddin, M. A., Nian, Y., Nguyen, T.Y., and Gao, Z., 2022. Tracing the trend in consumer preferences for eco-labeled food: A text mining and topic modeling approach. Selected paper presentation at 2022 American Agricultural and Applied Economics Association Annual Meeting, Anaheim, California, US
  • Type: Journal Articles Status: Submitted Year Published: 2024 Citation: Uddin, M. A., Gao, Z., Farnsworth, D., Borisova, T., & Bolques, A. (2023).To Display or Not to Display the Environmental Benefits on Ecolabels: Evidence from Consumers' Willingness to Pay for Best Management Practices (BMPs) Labels. Journal of Environmental Economics and Management, Submitted.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2022 Citation: Uddin, M. A., Gao, Z., Farnsworth, D., Borisova, T., & Bolques, A. (2022). Mitigation of Hypothetical Bias in Estimating Consumers' Willingness to Pay for Best Management Practice Labels. Selected paper presentation at 2022 American Agricultural and Applied Economics Association Annual Meeting, Anaheim, California, US


Progress 04/15/21 to 04/14/22

Outputs
Target Audience:The target audienceincluded key members of the Florida Department of Agriculture & Consumer Services and the Florida Farm Bureau Foundation, agricultural economics professionals, agricultural economics students, UF's horticulture sciences club, as well as organic farm producers including smallholders, small farms, and urban farm growers in several counties of Florida. At last, the audience includes the general public through a national online survey. Changes/Problems:The Covid-19 pandemic has made communication and meetings with growers challenging. We were able to collect the responses from four growers in the past six months. We were unsuccessfulwith recruiting survey participants in our grower survey by email, phone, or even visiting farms. The four responses were collected from farmers at the farmersmarket. We plan to continue visiting farmers markets at different locations in Florida. However, this would put a strong limitation on the conclusions that we can have regarding growers' preference for BMP labeling program.We are still exploring the best way to do the grower survey. But most likely, wewill use the mixed mode of mail and online survey and rely heavily on the help from extension agents to conduct the grower survey. The pandemic also reduced outreach opportunities through the extension system and necessitated modifications to the survey format. Normal extension programming starts to resume, and we can start to distribute our research findings from the extension workshop soon. What opportunities for training and professional development has the project provided?The project has provided opportunities to train a Ph.D. student, Md Azhar Uddin (Ph.D. committee chair: Dr. Gao). In addition, several students and postdoctoral supervised by Dr. Gao have participated in survey development, and model estimation, providing them the training opportunities in survey design and data analysis. How have the results been disseminated to communities of interest? 1) The results and findings from the BMP consumer survey were presented in the advisory committee meetings, at FloridaWater Institute Symposium, IFAS BMP summit, and SAEA meeting. 2) Consumers' WTP for the BMP label is used in the grower survey and farmers saw the results in the survey which is now in the pilot stage. These results will be reached to more growers when we distribute the final grower survey. What do you plan to do during the next reporting period to accomplish the goals? 1) We will complete the consumer survey regarding consumer preference for BMP labels for other specialty crops of Florida, such as tomatoes, oranges, and nursery crops. We will also analyze the data and prepare the results. 2) We will launch the grower survey to identify their willingness to join and pay for the BMP label certification program. 3) Continuation of the work with the project advisory committee to develop a potential BMP labeling program in Florida. 4) We will present the results at meetings and conferences and submit the results of BMP labels WTP to journals. 5) Extension materials based on consumer surveys will be developed.

Impacts
What was accomplished under these goals? 1) We have finalized the estimates of the willingness to pay (WTP) for the BMP labels using 16 oz. strawberry pack (one of the abundantly grown specialty crops in Florida). As BMP is a less-known concept to the respondents, we provided information treatment in the experiment. We introduced four different information framing into the experiment to understand the effect of information on the willingness to pay of BMPs. Our analysis shows that the WTP of the BMP label increased significantly when consumers get balanced information compared to negative, positive, or no information treatment. 2) We have developed another consumer survey, where we are using tomatoes (another largely grown specialty crop of Florida) in a choice experiment to analyze the consumer preference for the FDACS certified BMP labels. We will extend the survey to other crops such as oranges and nursery products to cover the consumers' preference for the BMP label across major products grown in Florida. 3) We developed a draft questionnaire to determine small and medium-sized specialty crop farms' barriers and opportunities for adopting best management practices and growers' willingness to join and pay for the BMP label certification program. In the first stage, we pretested the survey with student samples to improve the survey questionnaire in November 2021. In the second stage, we are conducting another pre-test of the survey with real farmers to get feedback to improve the survey.

Publications

  • Type: Conference Papers and Presentations Status: Other Year Published: 2022 Citation: Uddin, MA., Z. Gao, D. Farnsworth, T. Borisova, and A. Bolques. 2022. Consumers Willingness to Pay for Environmental Labels. In 2022 Annual Meeting, February 12-15, New Orleans, Louisiana. Southern Agricultural Economics Association.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2022 Citation: Uddin, MA., Z. Gao, D. Farnsworth, T. Borisova, and A. Bolques. 2022. The Us Consumers Willingness to Pay for Best Management Practice Labels. In 2022 8th UF Water Institute Symposium, February 22-23, Gainesville, Florida. Water Institute, University of Florida.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2021 Citation: Bolques, A. Z. Gao. 2021. "Agricultural Best Management Practices: Understanding & Bridging the Gap Between Consumers, Growers, Researchers, & Stakeholders". 2021 Virtual Agricultural Best Management Practices Summit. IFAS, University of Florida


Progress 04/15/20 to 04/14/21

Outputs
Target Audience:The audience targeted for this period included key members of the Florida Department of Environmental Protection and the Florida Farm Bureau Foundation, agricultural economics professionals, agricultural economics students, UF's horticulture sciences club, as well as organic farm producers including smallholders, small farm and urban farm growers from the Gadsden, Leon, Jefferson, and Wakulla Counties in North Florida and bordering southwest Georgia counties of Thomas, Grady, and Decatur. In addition, project outreach via the FAMU Research and Extension Center in Quincy, FL is focused on small farm populations, indigenous farmers, black farmers, farmers of color, and their communities. At last, the audience includes the general public through a national online survey. ? Changes/Problems:The Covid-19 pandemic has made communication and meetings challenging. The initial plan of the experimental auction was not possible because of the requirement of social distance. After consulting the program director at USDA, we change the auction to an online survey to estimate consumer knowledge, perception, and preference for BMP labeled products. Because of the change, other than simply focusing on one BMP, we decide to examine consumer preference for BMP certified by Federal agents and state agents using multiple online consumer surveys. The pandemic also reduced outreach opportunities through the extension system and necessitated modifications to the survey format. Normal extension programming should resume over time. In addition, through information from other projects, we realized that the online grower survey has a very low response rate. A mail survey may be required to ensure the adequate response rate of the Florida producers. The costs of mail surveys have been increasing recently. With multiple mailings and low response rates, the prices of mail surveys can be significant. We are still exploring the best way to do the grower survey at this point. What opportunities for training and professional development has the project provided?The project has provided opportunities to train a Ph.D. student, Md Azhar Uddin (Ph.D. committee chair: Dr. Gao). In addition, several students supervised by Dr. Gao have participated in the surveydevelopment, providing them the training opportunities in survey design and sampling research. How have the results been disseminated to communities of interest?1. Through emails and online meetings, staff at the Florida Department of Environmental Protection and the Florida Farm Bureau Foundation were updated about the consumer survey development progress. They provided feedback for the survey questionnaire. 2. The research on BMP marketing strategies was included in the marketing curriculum to be delivered to agricultural economics students and UF's horticulture sciences club. 3. The online survey was used to introduced sustainable agriculture and best management practices to respondents in the States. What do you plan to do during the next reporting period to accomplish the goals?1. Continue analyzing consumer survey results and presenting the results to stakeholders through advisory meetings, extension workshops, curriculum, professional meetings, and journal articles. 2. Preparation and launching the survey of agricultural producers to identify their willingness to accept payments for increased BMP adoption. 3. Continuation of the work with the project advisory committee to develop a potential BMP labeling program in Florida. 4. Submission of the papers summarizing the results of the current BMP use by Florida producers.

Impacts
What was accomplished under these goals? 1. We developed a questionnaire aimed to estimate consumer knowledge, perception, attitude, and preference for sustainable agriculture, focusing on BMPs. The consumer survey was finalized in April and was launched in May 2021. 2. We analyzed the agricultural BMP dataset shared by the Florida Department of Agriculture and Consumer Services. Results show there are certain combinations of BMPs that producers widely adopt. Therefore, the analysis of synergies and complementarities among BMPs could in the future lead to reductions in costs needed to promote BMP adoption. 3. Preliminary research and feedback from the advisory committee have contributed to aim #3 - objective #2: develop curriculum. 4. Curriculum has been developed for grower workshops and in-service training, though these workshops and training are still awaiting survey results. 5. The preliminary results from the consumer survey are summarized below. 5.1 Consumers knowledge of Sustainable Agriculture and BMPs Results of the subjective knowledge show that consumers slightly agree that they know more about sustainable agricultural practice than an average person and the impact of sustainable agricultural practices on the environment. They also endorse that they know how to buy products that are better for the environment. The objective knowledge score is consistent with the subjective knowledge measure. To measure objective knowledge, we present eleven statements about the fact related to agriculture and their impact on the environment and society. The average knowledge score is 5.84 out of 11, which indicates that respondents, on average, correctly answer 53.13% of questions. About half of the respondents recognize agriculture runoffs as the primary water quality stressors in the U.S., and about 2/3 respondents know that irrigation management can reduce water runoffs to the environment. However, only 1/3 of respondents know that the government assists farms in adopting conservation practices. We also asked if the respondents know about BMPs and their primary purpose. Though 31.26% of respondents claimed that they heard about BMPs, among those who have heard about BMPs, only 37.46% know the primary focus of BMPs (minimize water quality impacts). It indicates that limited knowledge of BMPs among US consumers. Among all respondents, only 8.78% are aware of the BMPs and the primary focus of BMPs. 5.2 Consumers attitude towards the environment Consumers environmental attitude is measured using the New Ecological Paradigm (NEP) developed by Dunlap (2000). We used eight items of NEP to measure the individual environmental attitude. NEP Scale variables are measured using a 5-point Likert scale. Results indicate that respondents hold a pro-NEP attitude as they agree to the fragility of nature's balance and the possibility of an eco-crisis. Moreover, they do not support anti-anthropocentrism. It is important to note such attitude is not the dominant social paradigm. We also asked about attitudes specific to different components of the environment as well as the ecosystem. These results suggest that respondents consider preserving the water quality as the most important, followed by preserving air quality, preserving ecosystems, and preserving soil quality. However, their preference for maintaining different components of the environment is not significant. 5.3 Preference for BMP labels and slogan We have developed six hypothetical BMP labels with two formate (round vs. rectangle) and three slogans (preserving water quality, promoting sustainable water, vs. none). The results show that the round labels are preferred to the corresponding rectangle labels. In addition, the label with the slogan "preserving water quality" was the most preferred. We used EPA as a certification agency in the hypothetical labels to increase the credibility. To understand the preference for the certification agencies of the BMPs, we asked the respondents about their preferred certification agency, including state, federal, and third party (e.g., NGOs) agents. Results show that most respondents prefer state agents (27.65%) as the preferred agent to certify the BMP labels. This is followed by federal agents (25.58%), and third parties (1.03%). However, about 28% of respondents are indifferent between state and federal agents. 5.4 BMP Cost-share We informed the respondents that the adoption of BMPs is costly. Therefore, it will not be rational for the farmers to bear the cost alone. Respondents were asked how the additional cost of BMPs should be shared among different stakeholders involved in producing and consuming agricultural products. Respondents think the federal government should bear 30% of the cost of implementing BMPs, followed by the state government (26%). Consumers want to take responsibility for about 19% of the additional cost of BMPs implementations. 5.5 Willingness to pay for BMP labels: We used choice experiments to determine the willingness to pay for different BMP labels. We used 16oz. (1lb) clamshell strawberry pack as a product in the choice experiment. Then we defined attributes of the strawberries such as BMP, organic, GAP/GHP, origin, and price. The definitions of all the attributes were clearly explained to respondents before they answered the choice experiment questions. As BMP is a less-known concept to the respondents, we provided information treatment in the experiment. We introduced four different information framing into the experiment to understand the effect of information on the willingness to pay of BMPs. Four groups are- positive information, negative information, balanced information, and no information. In the positive information group, we mainly focused on the importance of fertilizer application on higher yield, affordable price, and food security. In the negative information group, we focus on the negative impacts on humans and other aquatic life caused by fertilizer application. In the balanced information group, respondents saw both positive and negative information. In the no information (control) group, the impact of fertilizer application on the environment and humans is provided. We estimated the WTP for different attributes from the experiment using the mixed logit model. For BMP labels, the base attribute level is no BMP label. Similarly, for organic, and GAP\GHP the base attribute level is no label. For origin, the product of your state is the base attribute level. BMP label with preserving water quality has the highest WTP among all three BMP labels in all groups except the negative information treatment group. We see that the WTP of the negative information treatment group is the lowest for most of the attributes. It is opposite to what we have expected. One possible explanation can be that as we portrayed too much negative information for the agriculture production process, overall WTP falls, even for the organic. In the positive and balanced information treatment group, the WTP of BMP labels is similar or higher than the organic label. However, WTP of organic is highest in the control group as expected. Moreover, all the BMP labels have lower WTP in the control group than the positive and balanced information treatment group, aligning with the expectation. WTP for the USA product is negative but insignificant compared to the product from a respondent's own state. 5.6 Perceived benefits of different labels of strawberries Respondents perceived that products with an organic label have the highest health benefit and BMP labels derived the highest environmental benefits. The perceived environmental benefit of organic and GAP/GHP is almost the same. Origin attributes- the product of your state and product of USA have the highest economic and social benefits compared to the other attribute label.

Publications

  • Type: Journal Articles Status: Other Year Published: 2021 Citation: Soh, M., Wade, T., and T. Borisova. (in preparation) Protecting Water Resources Through Multiple-BMP Use: An Examination of Florida Vegetable and Agronomic Crop Producers with Plastic Mulch Production. In preparation for submission to the Journal of Soil and Water Conservation.
  • Type: Journal Articles Status: Other Year Published: 2021 Citation: Borisova, T., Wade, T., and M. Soh, M. (in preparation). Producers Current Best Management Practice Choices and Future Opportunities. In preparation for submission to HortScience.
  • Type: Conference Papers and Presentations Status: Accepted Year Published: 2021 Citation: Borisova, T., Wade, T., and M. Soh, M. 2021. Floridas Agricultural Water Quality Policy: Producers Current Best Management Practice Choices and Future Opportunities. Paper presented at the Annual Meeting of the Southern Agricultural Economics Association.


Progress 04/15/19 to 04/14/20

Outputs
Target Audience:The target audiences during this period are stakeholder including people at the Florida Department of Agricultural Service, Florida Farm Bureau, specialty crop farmers. Changes/Problems:Despite the current challenges of COVID-19, we continue to pursue the objectives of this project. Activities that have continued with little or no interruption include: Two meetings with the advisory council were held virtually online. Literature review related to BMP definitions, regulations and consumer preference has been conducted. BMP definitions with a focus on consumer benefit have been defined; potential BMP claims/labels that can be used in consumer studies have been developed and discussed. The survey outline has been drafted, and the main method used to elicit consumer preferences has been determined. Sponsored project activities that have been temporarily impacted include: In the proposal, we proposed to use the auction to estimate consumer WTP in multiple cities in the US. However, the current COVID-19 prevents us from traveling and gather consumers together to conduct the auction. Expecting the problems, we contact the program manager regarding changing the research method. We proposed changing auction to choice experiment or contingent valuation that does not require in-person contact. We proposed using an online survey to collect national wide data for the consumer study, which will help achieve the same objectives proposed in the proposal. The program manager agreed with our plan. Because of the change of research method, we are not able to finish the consumer studies in the first year, we propose to extend the final budget period for at least12 months due to the difficulty caused by COVID-19. In addition, because of the COVID-19,the project related travel, conferences, seminars, or other assemblies that were delayed or canceled, and their associated costs, which also require us to request an extension of the budget period. What opportunities for training and professional development has the project provided?A Ph. D studentis hired to working on the project. The student will be trained to understand the BMP practices, guidelines, survey design, method to estimate consumer preferences, and related statistical method. How have the results been disseminated to communities of interest?During the advisory council meeting, the definition of BMP with a focus on consumer benefits, as well as potential BMP claims and labelshave been presented to stakeholders and growers. Obtaining stakeholders', particularly FDACS's opinion on the BMP labels is important because it is most likely to be the certification agents, and we need to make sure the labels/claims are in compliance with their BMP rules and regulations. What do you plan to do during the next reporting period to accomplish the goals?We will continue to work on the development of survey instruments to estimate consumer attitude, knowledge, perception, and preference for BMP labeled product. At least two formal advisory council meeting will be held to discuss the progress. Multiple information discussing with FDACS will be held to finalize the labels that can be implemented and used in the market. The online surveys for consumer study will be conducted.

Impacts
What was accomplished under these goals? The project aimed to have a better understanding of consumer preference and WTP for fresh produce under BMPs as well as the barriers and motives for small and medium-sized farmer's adoption fo BMPs. A higher premium for fresh produce under BMPs would provide new market opportunities for growers adopting BMPs, therefore improve their economic welfare. Besides, more understanding of the barriers and motives for BMP adoption help to extension agents and regulators developed better tools for growers to make a sound decision regarding BMP adoption as well as promoting both economically and environmentallysustainable practices. The main objectives of the project include: 1) Determine consumers' current knowledge of, perceptions of, and attitudes towards sustainable agricultural practices (i.e., BMP implementation), as well as consumer willingness to pay (WTP) for fresh produce (fruits and vegetables) with various BMP labels representing different environmental benefits. 2) Determine small and medium-sized specialty crop growers' perceptions of and attitudes toward sustainable practices and technologies, and how various attributes of agricultural BMPs, along with market information (such as consumer WTP for sustainably produced products), affect growers' BMP adoption choice. 3) Implement an Extension program enabling small and medium-sized growers and managers to develop the skills and utilize decision tools necessary for successful marketing and decision making. In the past years, we have accomplished the following activities to achieve the objectives of the project. 1) We formulate an advisory council that includes stakeholders (Florida Department of Agriculture Services/FDACS, Florida Farm Bureau, Florida Department of Citrus), specialty crop farmers, and extension agents. 2) Two advisory council meetings have been held. In the first meeting, we presented the advisory council the key goal of the project, inquired their feedback on the project, and obtained their adviceon the ways to accomplish the research objectives. The second meeting discussed the appropriate claims of best management practices (BMPs) that can be used in studying consumer preference. The feasibility of certifying growers who adopt BMPs and implementing BMP labels on products. The key conclusion is that the BMP claim should focus on the generic benefit of the BMPs (e.g. better water quality) rather than specific aspects of BMPs (e.g. reduction in fertilizer use). The committee also agreed that it a good strategy to work with Fresh from the Florida marketing program to prompt BMP labels. 3) Literature reviews on BMPs and related labels have been conducted. The definition of BMPs focusing on the benefits interested to consumers has been determined based on the BMP manual of fruit and vegetables published by the FDACS. 4) VariousBMP labels have been created. Because the ultimate goal is to put forward real labels that can be certified by theFDACS, we have an extensive discussion with them about usingFDACS names and logos on the label. The labels that incorporate BMP and Fresh from Florida labels werealso created. 5) The outline of the consumer survey has been determined. The survey will contain sections related to consumer attitudes, knowledge, perception, and preference/choice of BMP, GAP, GHP, labeled products, as well as demographics information. The research method that will be used to estimate consumer willingness to pay has been determined, which would be choice experiments.

Publications