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: 10/01/2005 to 09/30/2010
Administrative Advisor(s):
NIFA Reps:
Non-Technical Summary
Statement of Issues and Justification
Statement of Issue and Justification: The lower Mississippi River Delta region of Arkansas, Louisiana and Mississippi, along with adjacent production regions in those states, comprise one of the largest agricultural production areas in the southern region of the United States. Cotton, rice and soybeans are the major agricultural row crops produced in the region, along with sizeable acreages of corn, sorghum and wheat. Arkansas, Louisiana and Mississippi are ranked first, third and fourth in the United States in terms of rice acreage. In 2004, Arkansas harvested 1.55 million acres of rice, Louisiana harvested 533,000 acres and Mississippi harvested 234,000 acres. Mississippi was ranked third the U.S. with 1.1 million acres of harvested cotton in 2004. Arkansas harvested 900,000 acres of cotton that year, with Louisiana harvesting 490,000 acres. Arkansas was the largest producer of soybeans in the southern region with 3.15 million harvested acres. Harvested soybean acres in Mississippi was 1.64 million acres with 990,000 acres in Louisiana. Total acreages of cotton, rice and soybeans, along with corn, sorghum and wheat, comprised over 12.8 million acres of row crop agricultural production in states in the delta region in 2004. Commercial farming operations across the region share similar characteristics and challenges. Farm enterprise mix tends to have cotton, rice and soybeans as primary commodities with production of corn, 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. Agricultural economists in the region have been meeting annually on an informal basis for many years to discuss ongoing research and extension activities being conducted at the various universities to address these issues. It was decided to make this effort a more formal group, which would facilitate joint work and collaboration on the part of participating universities on specific issues of interest and importance. The purpose of the Delta Region Farm Management and Agricultural Policy Working Group, as outlined in this SERA 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: (1) Work jointly on the development, estimation and publication of production costs for major agricultural commodities in the Delta Region of Arkansas, Louisiana and Mississippi and adjacent production areas in other states as needed. (2) Evaluate implications of farm policy changes on the production economics of major crops in the region, particularly cotton, rice and soybeans. (3) Communicate ongoing research and extension programs in farm management and production economics, identify research and extension needs, and discuss approaches for addressing those needs. 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 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 and production technologies. Objective two 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 three 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. Internal and External Linkages: 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 and Mississippi. Research activities will focus on the production economics of major agricultural row crops 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 production decisions contributing to the long term economic viability of production agriculture across the region. Educational Plan: Research and extension information will be disseminated to stakeholder groups through means of publication and presentations. A web site will be developed which will provide electronic copies of all analyses, reports and publications developed. Presentations of analysis results of specific issues addressed will be given to clientele groups as requested. Governance: A chairman and vice chairman for the proposed SERA group will be selected on an annual basis. An executive board of the SERA group will form the primary decision making body and will include the chairman, vice chairman, and a member at large. Each of the three states (Arkansas, Louisiana and Mississippi) shall have a representative on the executive board. An internet web site will be developed for the group to disseminate research and extension reports and publications and to provide group contact information. This web site will reside at the Delta Research and Extension Center (DREC) in Stoneville, MS, a centrally located research and extension facility. For communication purposes, the physical mailing address for the group will also reside at the DREC facility in Stoneville. 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. One of the primary activities of this group will be to seek external funding opportunities to support the groups research and extension objectives. Potential external funding sources will include competitive grants as well as external funding from stakeholder groups and other sources.
Objectives
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Work jointly on the development, estimation and publication of production costs for major agricultural commodities in the Delta Region of Arkansas, Louisiana and Mississippi and adjacent production areas in other states as needed.
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Evaluate implications of farm policy changes on the production economics of major crops in the region, particularly cotton, rice and soybeans.
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Communicate ongoing research and extension programs in farm management and production economics, identify research and extension needs, and discuss approaches for addressing those needs.