Economics of Livestock, Rangeland, and Ecosystem Sustainability
Position Description: The CE specialist will develop a research and outreach program in livestock, rangeland, and ecosystem management and sustainability that will both add an economic component to the ongoing research at UC related to livestock and rangeland, identify new avenues of research, and extend results to clientele groups and academic audiences.The position will require a PhD in agricultural economics or a related field and be housed in the Department of Agricultural and Resource Economics (ARE) at UC Davis.
Justification: Livestock is an important part of California agriculture. 19.2 million acres, or 61% of California’s agricultural land, is grazing land. Excluding dairy, total revenues from livestock were $2.5 billion in 2010, 26% of California’s total agricultural revenues. ANR has unparalleled depth and expertise in animal science, range management, and livestock production. However, the UCCE system does not have a Specialist who addresses the economic component of critical issues impacting the California livestock sector.[1] The successful candidate for this position will develop a program that will contribute significantly to the California livestock sector’s ability to develop and thrive as a key part of a competitive, sustainable food system.
Competitiveness of California’s livestock sector requires sustainable natural resource management. Targeted grazing and other intensive management techniques affect the productivity of rangelands. Environmental policies, including those designed to manage the effects of grazing practices on water quality and address ecosystem sustainability may have implications for economic sustainability. California rangeland is an important source of environmental amenities provided by agriculture, and policies designed to enhance and protect these amenities have implications for ecosystem and economic sustainability.
Livestock management and marketing practices and sustainable rangeland management encompass a broad range of specific research questions (see section below). Many research questions surrounding California’s livestock sector are inherently multidisciplinary in nature and require research and outreach collaboration involving the current teams of Specialists, Advisors, and AES faculty who focus on animal science, livestock production, and rangeland management. (See the ANR continuum below.) However, the absence of a Specialist with a programmatic focus in economics has meant that the critical needs and priorities of stakeholders regarding economic issues affecting the California livestock sector have not been addressed adequately by UCCE.
External groups including the California Cattlemen’s Association, the California Farm Bureau, and the California Woolgrowers Association were contacted and provided feedback regarding critical issues facing their industries. The Animal Health Branch of the CDFA and the Natural Resource Conservation Service of the USDA also provided feedback regarding critical issues. All contacted groups were highly supportive of the proposed Specialist position.
Extension: The Specialist will be an essential link between the agricultural industry, government policy makers, and UC researchers. The clientele for this position will include growers, grower organizations, environmental organizations, and staff in state agencies including CDFA, DWR, the Natural Resources Conservation Service, numerous Resource Conservation Districts, local governments, and other local interest groups and nonprofit organizations. In addition to participating in traditional Extension activities, newer methods such as webinars and appropriate social media will be used to expand outreach. Clientele will be a critical part of the research program both in identifying timely topics and providing data for analysis. Key groups include: CDFA, Animal Health Branch, Statewide Veterinarian;California Cattlemen’s Association;California Farm Bureau;California Woolgrowers Association;Natural Resources Conservation Service;and the CA Rangeland Conservation Coalition.
Research: The livestock sector faces many critical issues and challenges that require economic research.
Competitiveness and sustainability. Research addressing the competitiveness and economic and environmental sustainability of livestock production must look at the costs and benefits related to each decision and analyze the impacts on the profitability of the individual ranch business and the off-site environmental impacts affecting air and water quality. Livestock management decisions (e.g., when to calve, when to wean, how many and which animals to keep for breeding, etc.) should reflect expected profit, revenue and production costs, as well as environmental impacts of rangeland management. Growers will benefit from the latest innovations in decision tools.
Ranchers need to structure their enterprises for drought planning and an ability to respond to climate change. Off–stream water development for protecting water quality, riparian stream functions, and species habitat present a management alternative for providing water to cattle away from streams and waterways and at the same time providing access to additional forage. It also has the benefit of reducing fire risk in the newly grazed areas.
Marketing strategies. Production and marketing decisions are inexorably linked. About half of beef is now sold on a carcass basis with the price adjusted for carcass attributes, rather than on a liveweight per pound basis. Since many carcass characteristics are heritable, herd geneticsbecomes important. Marketing opportunities from niche markets (grass fed, natural, organic) provide an alternative for ranchers who are price takers in the broader beef market and are price disadvantaged by the distance from CA to processing capacity in the Midwest. Many producers are evaluating whether or not to join a marketing group targeting a niche market. New marketing alliances are springing up, most without any economic planningor business analysis.
Environmental services.Key research questions emanate from the emerging opportunities to enhance farm income while contributing to ecosystem sustainability. A new area of research is the development of markets for ecosystem services. NRCS or other government agencies could offer incentives such as through the EQIP program to adopt these practices. NGOs such as the National Fish and Wildlife Foundation, the Sierra Nevada Conservancy and the Environmental Defense Fund have already shown interest in partnering with land owners to create working landscapes by paying landowners to change their management practices in order to enhance environmental quality. Such market solutions to water and air pollution linked to livestock production offer alternatives to increased regulation of agriculture. For example, greenhouse gas emissions from livestock can be reduced with dietary manipulations while also increasing production efficiencies.Prescribed grazing can reduce fire risk and control weeds.Rangeland provides habitat for wildlife.
Management decision tools. Business succession, estate planning, and lease arrangements are critical topics for ranchers in California. The average age of California ranchers is over 60. A related topicis whether or not to put the ranch into a conservation easement, which also involves assessing ecosystem services. Ranchers need decision tools to determine the most appropriate strategies for them and their families.
Publication Outlets:Agricultural & Resource Economics Update, American Journal of Agricultural Economics, California Agriculture, Progressive Rancher, Journal of Animal Science, Journal of Agricultural & Resource Economics, Land Economics, Rangeland Ecology and Management, Western Economic Forum, Environmental Economics, Conservation Biology, Environmental and Resource Economics
ANR Continuum: The following people enthusiastically supported the position and contributed to the topics included under Research.UCD Specialists: Jim Oltjen, Alison Van Eenennaam, and Frank Mitloehner, Animal Science; John Maas, Veterinary Medicine; Ken Tate, Land, Air, and Water Resources; Karen Klonsky and Leslie (Bees) Butler, ARE. UCCE Farm Advisors: Larry Forero, Shasta and Trinity; Glen Nader Sutter – Yuba, and Butte; Dan Drake, Siskiyou County; Morgan Doran, Solano, Napa, and Yolo; Jim Sullins, Tulare County; Julie Finzel, Kern, Tulare, Kings Counties. AES UCD: Rachael Goodhue, Richard Sexton, Dan Sumner, ARE.
Support: This position will have two sources of internal support: the ARE department and the Giannini Foundation of Agricultural Economics. The department will supply the usual office, administrative, and transportation support. As a Giannini Foundation member, the incumbent will have access to funding and graduate student assistants. Also, the Giannini Foundation’s Outreach Coordinator is located in the ARE department at UCD, thus offering the incumbent a range of resources and assistance.
Other support:Various USDA programs such as AFRI and Risk Management Agency education grants, CDFA cooperative agreements, and private foundations are available to support this position.
Location: This position needs to be located in ARE to enable close contact and collaboration with the department’s other agricultural economists and talented cohort of graduate students. Research and outreach synergies will occur between this person and the UCCE and AES colleagues at Davis. Also, ARE houses computer services and support staff necessary for economic research and outreach programs. Finally, the position should be on the Davis campus for proximity to colleagues in Animal Science and Land, Air, and Water Resources.
[1] Specialist Steve Blank, who retired recently from Davis, oriented some of his program to cattle.