OLD SERA35: Delta Region Farm Management and Agricultural Policy Working Group
(Multistate Research Coordinating Committee and Information Exchange Group)
Status: Inactive/Terminating
OLD SERA35: Delta Region Farm Management and Agricultural Policy Working Group
Duration: 10/01/2010 to 09/30/2015
Administrative Advisor(s):
NIFA Reps:
Non-Technical Summary
Statement of Issues and Justification
The lower Mississippi River Delta region of Arkansas, Louisiana and Mississippi, along with adjacent production regions along the Gulf Coast and the High Plains of Texas, comprise one of the largest agricultural production areas in the southern region of the United States. Cotton, rice, soybeans and sugarcane are the major agricultural row crops produced in the region, along with sizeable acreages of corn, sorghum and wheat. Arkansas, Louisiana, Mississippi and Texas are ranked first, third fourth and sixth in the United States in terms of rice acreage. In 2009, Arkansas harvested 1.47 million acres of rice, Louisiana harvested 464,000 acres, Mississippi harvested 243,000 acres, and Texas harvested 170,000 acres. Texas was the nation's leading cotton producing state in 2009, with 3.52 million harvested acres, followed by Arkansas (ranked 3rd) with 500,000 harvested acres, Mississippi (ranked 5th) with 305,000 harvested acres, and Louisiana (ranked 8th) with 230,000 harvested acres. Harvested soybean acreage in the four states in 2009 was 3.42 million acres in Arkansas, 1.02 million acres in Louisiana, 2.16 million acres in Mississippi and 215,000 acres in Texas. Louisiana is a major sugarcane producing state with 425,000 acres of sugarcane in 2009. Texas also produces a small quantity of sugarcane, with 41,000 acres. Commercial farming operations across the region share similar characteristics and challenges. Farm enterprise mix tends to have corn, cotton, rice and soybeans as primary commodities with production of sorghum or wheat available for crop diversification. Although some differences exist across the region, machinery complements and production cost structures are relatively similar for major crops produced by states in the region. In addition, farming operations across the region also face similar current challenges related to the long term economic viability of row crop agricultural production. Some of these challenges or issues include: (1) adoption of new production technologies to reduce per unit production costs, (2) optimal enterprise mix and farm size as production costs change over time, (3) impact of rising fuel and fertilizer prices on farm profitability, and (4) the impact of potential changes in the structure of farm program price supports on farm size and profitability, particularly for rice and cotton production. The purpose of the Delta Region Farm Management and Agricultural Policy Working Group, as outlined in this SERA group renewal proposal, is to address these and other relevant issues and to analyze the impact of such issues on the economic viability of commercial farming operations in the region from a farm management perspective.
Objectives
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Work jointly on the development, estimation and publication of production costs for major agricultural crop and livestock commodities in the major crop production regions of Arkansas, Louisiana, Mississippi and Texas.
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Evaluate the relative economic feasibility of alternative crop production technologies and other farm management decisions within a single enterprise and whole farm context.
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Evaluate implications of farm policy changes on the production economics of major crops produced in the region.
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Evaluate other relevant issues which impact farming operations in the region, from an economic perspective, including marketing, transportation, new enterprises, etc.
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Communicate ongoing research and extension programs in farm management and production economics related to crop and livestock commodities as well as forestry and forest products, identify research and extension needs, and discuss approaches for addressing those needs.
Procedures and Activities
This SERA group would include participants in the farm management area of the agricultural economics discipline. The activity would be a multi-state effort with primary research and extension participants from the states of Arkansas, Louisiana, Mississippi and Texas. Research activities will focus on the production economics of major agricultural row crops and livestock enterprises in the region. This activity is primarily related to three of the five federal-state partnership goals as specified by the Southern Association of Agricultural Experiment Station Directors. These three goals, with relevant activities from this proposed SERA group identified, include: Goal 1: An agricultural system that is highly competitive in the global market (integrated and sustainable agricultural production systems, precision agriculture, competitiveness in international markets), Goal 4: Greater harmony between agriculture and the environment (multiple uses of agricultural lands, nutrient management in agricultural systems, environmental policy and regulations), and Goal 5: Enhanced economic opportunity and quality of life for Americans (economic and policy analysis of agricultural industrialization, risk management and assessment in agricultural systems). Extension activities will be in the area of production agriculture, focusing on research and educational information and programs which can assist producers facing farm management and crop/livestock production decisions contributing to the long term economic viability of production agriculture across the region.
Expected Outcomes and Impacts
- Objective one will be accomplished through the continuation of ongoing collaborative work related to the estimation of production costs for major agricultural commodities in the region. The Mississippi State Budget Generator will continue to be the primary quantitative tool used in developing production cost budgets for various crop and livestock production systems commonly found across the region. Expected outcomes from this activity will include development of agricultural production data bases which can be utilized for research and analysis of various farm management and policy issues as well as the annual publication of estimated production costs for major row crops, livestock enterprises and production technologies.
- Objective two will focus on the economic evaluation of alternative crop production technologies and other farm management decisions within a single enterprise and whole farm context. Expected outcomes from this activity will include research and extension publications on topics such as crop variety selection, alternative herbicide programs, alternative tillage systems, irrigation systems, land tenure and other farm management decision choices which impact the structure and economics of the farming operation.
- Objective three will focus on the analysis of implications of changes in farm program parameters involving commodity price support, particularly for rice and cotton. A representative farm analysis approach will be used to investigate potential impacts of policy changes on the income and expense structure of typical farming operations in the region. Expected outcomes from this activity will include publication and presentations of analysis results to relevant clientele groups.
- Objective four includes research and extension activities on other relevant topics which have a direct impact on the economics of farming operations in the region. Such topics may include crop and livestock enterprise marketing options, product transportation issues, new enterprises such as biofuel feedstock crops and other related topics. Expected outcomes from this activity would include research and extension publications and presentations on the impact of these factors on the structure and economics of farming operations in the region.
- Objective five will focus on the multi-state coordination of farm management and policy research and extension activities. Communication among farm management economists in the three states will identify research and extension needs as well as potential areas of collaborative multi-state research and extension activities required to address those needs.
Projected Participation
View Appendix E: ParticipationEducational Plan
Research and extension information will be disseminated to stakeholder groups through means of publication and presentations. Electronic copies of all analyses, reports and publications developed will be posted on the respective host institution s web page. Presentations of analysis results of specific issues addressed will be given to clientele groups as requested.
Organization/Governance
A chairman and vice chairman for the proposed SERA group will be selected on an annual basis. This group will have a formal meeting annually to be held at a mutually agreed upon time and location. Furthermore, additional meetings may be held on an as needed basis to facilitate collaborative research and extension activities of the group.