ANR CE Specialist in Small Farm Economics

Position Title: CE Specialist in Small Farm Economics

Position: This new UCCE Specialist position focuses on the economics of small farms. It requires a doctoral degree in agricultural economics or economics. The position will be housed in UC Davis’ Department of Agricultural and Resource Economics (ARE). Given the diverse production, marketing, and management issues faced by smaller California farms, this statewide Specialist will work in a multidisciplinary fashion, with experts in specialty crop and livestock production, marketing and distribution, postharvest handling, community development and other disciplines. Specialist/ Academic Coordinator Shermain Hardesty currently addresses various small farm issues, but she plans to retire in 2017.

Justification: As noted in the Strategic Plan for the Sustainable Foods Systems Initiative, the needs and impacts of small- and mid-scale farms differ significantly from those of large-scale farms; they are not simply scale models of large farms. In 2012, California’s 64,221 commercial small farms comprised 82% of its total farms and 93% of the farms engaged in direct marketing. These farms utilized 38% of the state’s 255.5 million farmed acres. Lacking economies of size, they have higher production costs than larger farms and limited access to traditional marketing channels. Therefore, they need to enhance their economic sustainability by differentiating themselves with the products they produce, and where and how they market. They will benefit from economic analysis regarding: scale impacts on niche crop production costs; farm stands and other forms of agritourism; Community Supported Agriculture (CSAs) and other distribution channels; postharvest handling; and financing strategies. They are challenged by the costs to comply with food safety regulations. Research and education from this position will enhance the long-term sustainability of California’s agriculture and communities by contributing to the improved economic and environmental performance of smaller California farms.

Extension: The highly diverse clientele for this position includes: small- and mid-scale crop and livestock producers; farmers market associations; farmer training organizations-including veterans; food system, urban agriculture and minority farmer associations; regional agricultural marketing groups; and the USDA, FDA, CDFA and environmental health departments. Other stakeholders include downstream businesses--such as produce and meat distributors—including food hubs, the specialty food industry, cooperatives, and retail and foodservice firms. Nontraditional methods (such as webinars and appropriate forms of social media) will be utilized to expand outreach. ANR’s Communications Services will be consulted regarding communications methods to extend this position’s reach as an objective and insightful information source. The needs of producers with limited English-language skills and computer access will also be considered.

Research: This position will address a wide range of production, marketing, financial, management and policy issues facing small- and mid-scale farms, including urban agriculture, and beginning and immigrant farmers. Some examples include:

· Farms are facing an increasing array of regulations. How do the new FSMA regulations and farm labor laws affect small farms, particularly their profitability? Are different approaches needed depending on farm size, or does “one-size-fit-all”?

· While many smaller producers sell at famers markets, they have little or no ability to reach the broader consumer market. Some producers have engaged businesses and schools as delivery points for their CSAs. Can structures be developed to expand smaller producers access to regional grocers and foodservice chains? Can regional product aggregators/food hubs, processing and distribution facilities be economically viable?

· What systems can smaller farms use to irrigate their specialty crops more efficiently, particularly if they have limited tenure on the land that they typically rent?

· A recently completed ANR-funded project concluded that farmers engaged in direct marketing have a greater economic impact in the Sacramento Region than farms that do not market direct to consumers. Do these direct marketers also generate greater environmental benefits than commodity producers? Can market mechanisms be implemented to compensate smaller farms for the additional economic and environmental benefits they generate?

· A growing number of producers are turning to agritourism to diversify their market outlets, as well as to educate the urban population about agriculture. In a recent UCCE survey, agritourism operators identified permitting and zoning, along with other regulations and legal constraints as the most significant challenges they face. Many counties now include agritourism activities in their General Plan updates, and developing regulations related to the land use, public safety and food safety aspects of agritourism operations. Should a common set of regulations be developed for agritourism operations? What are the community benefits and costs of agritourism operations?

· Publication outlets for research include UC ANR publications such as California Agriculture, extension bulletins, and a new edition of the Small Farm Handbook. Peer-reviewed outlets for the applied research include: Applied Economic Perspectives and Policy, Journal of Agricultural and Resource Economics, Renewable Agriculture and Food Systems, Journal of Agriculture, Food Systems and Community Development, and other applied economics and social science journals.

ANR continuum: UCCE’s support is particularly crucial to smaller farms because they often lack the financial and managerial resources needed to address their challenges. Additionally, several new UCCE advisors and specialists who work on small farm issues have been hired recently. This specialist will collaborate with these UCCE academics using a multi-disciplinary research and outreach approach to ensure that there is overall coordination of the important economics component. Other collaborators include: other UCCE Specialists, including the new Livestock and Community Food Safety Specialists; ARE faculty; Human Ecology faculty; academics involved in ASI/SAREP; Postharvest Technology Center; various ANR Program Teams; and the Center for Produce Safety.

Support: This position will have two sources of internal support: the ARE department and the Giannini Foundation of Agricultural Economics (GFAE). As a GFAE member, the incumbent will have access to funding and graduate student assistants, and the GFAE’s Outreach Coordinator. The department will provide the usual office, administrative, technology and transportation support.

Other Support: Sources include various USDA programs, such as AFRI, Agricultural Marketing Service, Risk Management Agency, Specialty Crops Research Initiative grants, and ERS cooperative agreements; CDFA specialty crop block grants; and private foundations.

Location: This position’s location in the UC Davis ARE Department will enable frequent collaboration with other agricultural economists and other UCCE Specialists and AES faculty, and provide relatively easy access to UCCE advisors located throughout the state.

Developed and proposed by: The Department of Agricultural and Resource Economics and the Ag Production Management Systems Program Team developed this proposal. This proposal has been reviewed by the California Communities Program Team, Small Farms Workgroup, CDFA-Inspection Services Division, Ag Innovations Network, CCOF, Center for Land-Based Learning, SEE-LA, Pacific Coast Farmers Market Association, and the Ecology Center.

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