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Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
Southern Tier Agriculture: A Regional Resource and a Landscape in Transition
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Southern Tier Agriculture: A Regional Resource and a Landscape in Transition

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December 2005 Presentation by Nelson Bills, Krys Cail and Monika Roth.

December 2005 Presentation by Nelson Bills, Krys Cail and Monika Roth.

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  • .
  • .
  • Another component of this project was to conduct farmer interviews (case studies) to learn about farm business strategies for survival in a declining economy (both the farm economy and regional economy). How does a farmer adjust given what the secondary data show. What are the strategies being used by farms to adapt to the changing conditions. What can we learn from farmer’s experiences that will guide others decision-making.
  • Another component of this project was to conduct farmer interviews (case studies) to learn about farm business strategies for survival in a declining economy (both the farm economy and regional economy). How does a farmer adjust given what the secondary data show. What are the strategies being used by farms to adapt to the changing conditions. What can we learn from farmer’s experiences that will guide others decision-making.
  • Case study interviews focused on gathering information on the business background, how it evolved, major changes made in the last 10-15 years, why changes were made and what the impact of those changes has been on the farm’s future, in the local economy, for the farm and neighboring community, on the environment and the working landscape and what benefits if any for consumers. A total of 7 farms were interviewed, 2 examples will be highlighted in this presentation as they best illustrate the impacts that can result. Some generalizations are made to maintain confidentiality.
  • Case study interviews focused on gathering information on the business background, how it evolved, major changes made in the last 10-15 years, why changes were made and what the impact of those changes has been on the farm’s future, in the local economy, for the farm and neighboring community, on the environment and the working landscape and what benefits if any for consumers. A total of 7 farms were interviewed, 2 examples will be highlighted in this presentation as they best illustrate the impacts that can result. Some generalizations are made to maintain confidentiality.
  • This business example is a dairy farm that has been expanding steadily since 1941 to keep pace with the farm economy and to incorporate the next generation into the operation. Bob was able to buy a debt free farm business from his father in 1971 and immediately expanded the herd size with his own cows. In 1993, Bob was also operating a debt free farm and was considering retiring. However, his sons were interested in farming and in order to accommodate additional family members into the business a partnership and expansion was necessary. So instead of retiring, AA Dairy undertook a 1.5 million dollar expansion, purchased additional land, invested in a freestall dairy barn and digester. The expansion was motivated by the need to cut costs, increase income streams and eliminate negative environmental impacts (AA is located near the Village of Candor and Bob was concerned about manure handling issues associated with a larger dairy). Through the generations, off-farm income has been a key reason that the Aman family was able to operate relatively debt-free and expand when necessary to remain viable. Family living expenses were not dependent upon the farming enterprise. Managing cash flow with other sources of income beyond dairy has also been a key strategy for survival.
  • This business example is a dairy farm that has been expanding steadily since 1941 to keep pace with the farm economy and to incorporate the next generation into the operation. Bob was able to buy a debt free farm business from his father in 1971 and immediately expanded the herd size with his own cows. In 1993, Bob was also operating a debt free farm and was considering retiring. However, his sons were interested in farming and in order to accommodate additional family members into the business a partnership and expansion was necessary. So instead of retiring, AA Dairy undertook a 1.5 million dollar expansion, purchased additional land, invested in a freestall dairy barn and digester. The expansion was motivated by the need to cut costs, increase income streams and eliminate negative environmental impacts (AA is located near the Village of Candor and Bob was concerned about manure handling issues associated with a larger dairy). Through the generations, off-farm income has been a key reason that the Aman family was able to operate relatively debt-free and expand when necessary to remain viable. Family living expenses were not dependent upon the farming enterprise. Managing cash flow with other sources of income beyond dairy has also been a key strategy for survival.
  • Started out with no farming background. Purchased the farm ($60,000) with money from an inheritance (after being turned down by banks). Off farm income is important for health insurance. Started out with the poultry enterprise but have diversified over time, adding new enterprises, in response to consumer interest and by finding a unique niche in the marketplace (20% growth/year). Kingbird Farm feels that it’s success has coincided with the growth of consumer interest in local foods and by developing a loyal customer base. Direct to consumer sales started at the Ithaca Farmers’ Market, expanded to a local grocer and has increased over time with customers coming directly to the farm. Sales by market channel: 40% FM; 15-20% grocery; 30% at farm; 10-15% miscellaneous. A year-round selling strategy has also helped with cash flow as does the off-farm job. Michael has also become an organic feed distributor which results in additional cash flow beyond the production enterprises.
  • Started out with no farming background. Purchased the farm ($60,000) with money from an inheritance (after being turned down by banks). Off farm income is important for health insurance. Started out with the poultry enterprise but have diversified over time, adding new enterprises, in response to consumer interest and by finding a unique niche in the marketplace (20% growth/year). Kingbird Farm feels that it’s success has coincided with the growth of consumer interest in local foods and by developing a loyal customer base. Direct to consumer sales started at the Ithaca Farmers’ Market, expanded to a local grocer and has increased over time with customers coming directly to the farm. Sales by market channel: 40% FM; 15-20% grocery; 30% at farm; 10-15% miscellaneous. A year-round selling strategy has also helped with cash flow as does the off-farm job. Michael has also become an organic feed distributor which results in additional cash flow beyond the production enterprises.
  • How do we measure agriculture’s economic impact. Agriculture generally cannot measure up to traditional economic yardsticks like jobs created. However, farms, whether traditional dairy operations or diversified small farms, contribute in a number of ways to the region’s rural character and economy. The contributions can be grouped by the above themes.
  • How do we measure agriculture’s economic impact. Agriculture generally cannot measure up to traditional economic yardsticks like jobs created. However, farms, whether traditional dairy operations or diversified small farms, contribute in a number of ways to the region’s rural character and economy. The contributions can be grouped by the above themes.
  • Examples: -the investment in the digester at AA Dairy has resulted in $25,000 per year savings in electricity costs, plus the farm generates approximately $15,000-20,000 additional income from the compost that is produced and sold. In the past few years when milk prices have been low, this additional income stream has been important to cash flow and the ability to pay down the debt taken on when the business expanded. -Kingbird Farm has expanded by diversifying product mix and market channels.
  • Examples: -the investment in the digester at AA Dairy has resulted in $25,000 per year savings in electricity costs, plus the farm generates approximately $15,000-20,000 additional income from the compost that is produced and sold. In the past few years when milk prices have been low, this additional income stream has been important to cash flow and the ability to pay down the debt taken on when the business expanded. -Kingbird Farm has expanded by diversifying product mix and market channels.
  • Examples: -AA Dairy invested 1.5 mil in their new facility, transitioned from 8 to 15 jobs (note the number of jobs per investment remains low for ag compared to other sectors in this case 1 job per $100,000 invested; ED programs often require 1 job per $15,000 invested for funding). -Construction of the new dairy barn and digester at AA Dairy resulting in jobs for local businesses as well as new farm jobs attracting new employees (Hispanics) that spend money in the local economy. -Inflow of cash – Kingbird farm was not able to obtain a mortgage from local banks so they used outside personal sources to purchase farm bringing new money into the local economy. -Taxes paid by large farmers are significant for rural economies even when factoring in ag assessment and the school tax credit.
  • Examples: -AA Dairy invested 1.5 mil in their new facility, transitioned from 8 to 15 jobs (note the number of jobs per investment remains low for ag compared to other sectors in this case 1 job per $100,000 invested; ED programs often require 1 job per $15,000 invested for funding). -Construction of the new dairy barn and digester at AA Dairy resulting in jobs for local businesses as well as new farm jobs attracting new employees (Hispanics) that spend money in the local economy. -Inflow of cash – Kingbird farm was not able to obtain a mortgage from local banks so they used outside personal sources to purchase farm bringing new money into the local economy. -Taxes paid by large farmers are significant for rural economies even when factoring in ag assessment and the school tax credit.
  • Example: - AA Dairy motivation for investing in the digester was largely because of their proximity to neighbors and the concern over protecting air and water quality.
  • Example: - AA Dairy motivation for investing in the digester was largely because of their proximity to neighbors and the concern over protecting air and water quality.
  • Example: - Kingbird Farm purchased a 80 acre abandoned farm. Investments in improving land and buildings have added to the assessed value of the property and restored the working landscape. -AA Dairy owns 2000 acres of land in part to buffer their farming operation from neighbors and in part for natural resource conservation. Based on interviews of other larger dairy farmers, it is clear they have a major impact on open space and the working landscape in rural areas. Often as farms expand they purchase more land or rent land from non-farming rural landowners, maintaining the working landscape, and keeping rural sprawl at bay.
  • Example: - Kingbird Farm purchased a 80 acre abandoned farm. Investments in improving land and buildings have added to the assessed value of the property and restored the working landscape. -AA Dairy owns 2000 acres of land in part to buffer their farming operation from neighbors and in part for natural resource conservation. Based on interviews of other larger dairy farmers, it is clear they have a major impact on open space and the working landscape in rural areas. Often as farms expand they purchase more land or rent land from non-farming rural landowners, maintaining the working landscape, and keeping rural sprawl at bay.
  • While these contributions are harder to measure, farmers contribute to their community in a variety of ways. Examples: -AA Dairy: actively involved in community activities and local government, provide services such as snowplowing for neighbors, host numerous tours for farm groups and school groups, etc. -Serving the farm community-as a member of Farm Bureau, CCE, FSA, SWCD, AFPB, NOFA, State level boards, etc. -Kingbird Farm: as a new farm, they have helped to stimulate interest in diversified farming among nearby rural landowners and have mentored many beginning farms; also they are a popular farm tour stop for farmer groups, agency personnel and community members.
  • While these contributions are harder to measure, farmers contribute to their community in a variety of ways. Examples: -AA Dairy: actively involved in community activities and local government, provide services such as snowplowing for neighbors, host numerous tours for farm groups and school groups, etc. -Serving the farm community-as a member of Farm Bureau, CCE, FSA, SWCD, AFPB, NOFA, State level boards, etc. -Kingbird Farm: as a new farm, they have helped to stimulate interest in diversified farming among nearby rural landowners and have mentored many beginning farms; also they are a popular farm tour stop for farmer groups, agency personnel and community members.
  • Consumers increasingly are valuing the opportunity to purchase their foods from local sources.
  • Consumers increasingly are valuing the opportunity to purchase their foods from local sources.
  • Another purpose of the case studies was to identify the strategies used by farmers to grow their enterprises. Two models are presented in the following slides.
  • Another purpose of the case studies was to identify the strategies used by farmers to grow their enterprises. Two models are presented in the following slides.
  • Kingbird Farm Example : Was not able to get a mortgage from local lenders therefore invested outside funds - family inheritance - to purchase farm. Full-time off-farm job to start with. Invested earnings back into farm-new barn. Invested in pastures, watering systems and pond with assistance from SWCD and SARE grants (a total of $20,000 in the past 9 years). Value of investment – has doubled.
  • Kingbird Farm Example : Was not able to get a mortgage from local lenders therefore invested outside funds - family inheritance - to purchase farm. Full-time off-farm job to start with. Invested earnings back into farm-new barn. Invested in pastures, watering systems and pond with assistance from SWCD and SARE grants (a total of $20,000 in the past 9 years). Value of investment – has doubled.
  • Kingbird Farm Contributions; -New money in community from both personal and government sources -Farm improvements increased value of facilities and land -Grants- see previous slide ($20,000) -Farm buildings – new barn (10 year exemption), hoop houses (temporary structures-tax exempt) – value of property increased but exemption helps offset increase in taxes -Government programs-SWCD programs -Consumers benefit from local source of organic/pasture raised meats -Jobs – only 1 part time job created thus far for a non-family member; 2 family members employed full-time (Michael & Karma); Importance of off-farm job-family health insurance affordability, keeps Michael involved in agriculture at a higher level-stays on top of farm programs and opportunities -Supplies are not always purchased locally as they are not available, hence, Kingbird Farm has developed a new enterprise as a feed dealer for organic grain.
  • Kingbird Farm Contributions; -New money in community from both personal and government sources -Farm improvements increased value of facilities and land -Grants- see previous slide ($20,000) -Farm buildings – new barn (10 year exemption), hoop houses (temporary structures-tax exempt) – value of property increased but exemption helps offset increase in taxes -Government programs-SWCD programs -Consumers benefit from local source of organic/pasture raised meats -Jobs – only 1 part time job created thus far for a non-family member; 2 family members employed full-time (Michael & Karma); Importance of off-farm job-family health insurance affordability, keeps Michael involved in agriculture at a higher level-stays on top of farm programs and opportunities -Supplies are not always purchased locally as they are not available, hence, Kingbird Farm has developed a new enterprise as a feed dealer for organic grain.
  • AA Dairy Example : -Investment made by borrowing from Farm Credit. -Incentive programs and grants were used to cover some investment costs (total system cost of about $460,000-$190,000 paid from grants and incentive programs).
  • AA Dairy Example : -Investment made by borrowing from Farm Credit. -Incentive programs and grants were used to cover some investment costs (total system cost of about $460,000-$190,000 paid from grants and incentive programs).
  • AA Dairy Contributions : -1.5 million invested-payments are $25,000 per month. When paid off, monthly payments will go down to $10,000-this will help the current tight cash flow situation. -Additional income - $15,000 per year from compost; $25,000 per year energy savings; also timber and beef sales generate cash. -Increased farm value and future farm viability for son involved in the business -One son left the business, not enough cash flow -Created jobs..15 at first, now 12 (due to cash flow) -Environmental protection-air and water quality due to improved manure handling -Family members are active in the community -Produce compost for local use-sales to organic farmers and landscapers.
  • AA Dairy Contributions : -1.5 million invested-payments are $25,000 per month. When paid off, monthly payments will go down to $10,000-this will help the current tight cash flow situation. -Additional income - $15,000 per year from compost; $25,000 per year energy savings; also timber and beef sales generate cash. -Increased farm value and future farm viability for son involved in the business -One son left the business, not enough cash flow -Created jobs..15 at first, now 12 (due to cash flow) -Environmental protection-air and water quality due to improved manure handling -Family members are active in the community -Produce compost for local use-sales to organic farmers and landscapers.
  • Transcript

    • 1. Nelson Bills, Applied Economics and Management Krys Cail, CCE-Broome County Monika Roth, CCE-Tompkins Southern Tier Agriculture: A Regional Economic Resource and a Landscape In Transition
    • 2. Nelson Bills, Applied Economics and Management Krys Cail, CCE-Broome County Monika Roth, CCE-Tompkins Southern Tier Agriculture: A Regional Economic Resource and a Landscape In Transition
    • 3. Introduction Bills, Cail and Roth 2005
    • 4. Agriculture: An Economic Sector and a Land Use That Defines Our Rural Places
      • As an economic sector, agriculture faces:
        • A stagnant state and regional economy
        • The downward price pressures of globalization
        • Possible unexploited opportunities to boost performance in agricultural sub-sectors and related industries
          • In forward linkage sectors, such as food processing and retail and wholesale sales sectors
          • In backward linkage sectors, such as financial, insurance and real estate as well as automotive sales, petroleum products and agricultural chemicals
          • In agricultural services
          • In consumer-oriented or “backyard” agriculture
      Bills, Cail and Roth 2005
    • 5. Agriculture: An Economic Sector and a Land Use That Defines Our Rural Places
      • As a land use , agriculture faces:
        • "Environmental" considerations
          • Community character, rural atmosphere are established by the working farms in the rural landscape
          • Working landscapes in residential rural areas are prized for their aesthetic appeal, but may not be maintained or paid for by those who may want to preserve them
          • More exacting environmental regulations which can generate different management of crop and livestock production
        • Development pressure that raises land values, assessments, and farm property taxes
      Bills, Cail and Roth 2005
    • 6.
      • Many agricultural development questions have a strong regional dimension, because entire rural regions are characterized (both in land use and in economic activity) by the types of farming that have been practiced there
        • Development issues for farm and food rarely follow county lines
        • Scale considerations often dictate regional economic development strategies
          • Community and economic development programs operate at both a county and regional level for rural areas
          • Pursuing transitional agricultural enterprises may be most successful where a critical mass of farm entrepreneurs work together to make changes
      Agriculture: An Economic Sector and a Land Use That Defines Our Rural Places Bills, Cail and Roth 2005
    • 7. Our Definition of “Southern Tier” is Empire State Development’s 9-County Region
      • Counties:
      • Broome
      • Chemung
      • Chenango
      • Delaware
      • Otsego
      • Schuyler
      • Steuben
      • Tioga
      • Tompkins
      Bills, Cail and Roth 2005
    • 8. Socioeconomic Trends Bills, Cail and Roth 2005
    • 9. Bills, Cail and Roth 2005
    • 10. Bills, Cail and Roth 2005
    • 11. Bills, Cail and Roth 2005
    • 12. Bills, Cail and Roth 2005
    • 13. Southern Tier Demographics
      • Fueled by out-migration, Upstate New York has grown much more slowly than Downstate over the last twenty years--3.5%, as compared to 10.9% for Downstate… the US population increased by more than 24% between the 1980 and 2000.
      • The Southern Tier is geographically located in the center of a multi-state “Northeastern slow growth zone,” as defined by R. Pendall in “Upstate New York’s Population Plateau: The Third-Slowest Growing ‘State’” recently published by the Brookings Institution.
      Bills, Cail and Roth 2005
    • 14. The Regional Farm and Food Economy Bills, Cail and Roth 2005
    • 15. The Role of Farm and Food Production in the Region
      • Farm and food production is a mainstay in the Southern Tier economy and a dominant feature of the rural landscape
      • We seek to measure and document the economic contributions of those industries, and to highlight important trends, such as:
        • Number of farm businesses
        • Economic activity down the value chain, in agricultural services, food processing, wood manufacturing, wholesaling and retailing
      Bills, Cail and Roth 2005
    • 16.
      • There is no single unit of measure for farm and food economic output; four are commonly used by academics and practitioners alike:
        • Number of establishments-employers and non-employers
        • Gross output
        • Value added
        • Employment
      • The is no single working definition of the farm and food system; our list includes:
        • Farms
        • Agricultural and Forestry Services
        • Food Manufacturing
        • Wood Manufacturing
        • Allied Farm and Food Manufacturing
        • Food wholesaling and retailing
        • Eating and drinking establishments
      Sizing the Southern Tier Farm and Food Sector(s) Bills, Cail and Roth 2005
    • 17. Bills, Cail and Roth 2005
    • 18. Bills, Cail and Roth 2005
    • 19. Bills, Cail and Roth 2005
    • 20. Bills, Cail and Roth 2005
    • 21. Bills, Cail and Roth 2005
    • 22. Bills, Cail and Roth 2005
    • 23. Bills, Cail and Roth 2005
    • 24.
      • Our output estimates, based on an IMPLAN region model, showcase several agricultural sub-sectors. These include landscape and horticultural products and services along with commodities for food products
      • Unsurprisingly, Dairy Farm Products and Forage Crops (including corn harvested for silage) show the highest output, at more than $243 mil. for dairy and more than $138 mil. for forages, the Southern Tier’s largest crop sector.
      • Other sectors with significant output include Cattle, Misc. Livestock, Feed Grains, Vegetables, Greenhouse and Nursery Products, and Forest Products
      • Agricultural, Forestry and Fishery Services, and Landscape and Horticultural Services add yet another dimension to the overall farm and food picture.
      Bills, Cail and Roth 2005
    • 25. Bills, Cail and Roth 2005
    • 26.
      • Food processing and wood manufacturing dominate the Southern Tier farm and food scene in dollar output or value added terms
      • Some food processing sectors are located in the Southern Tier to capitalize on local markets and access to larger regional outlets; but others are connected by backward linkages to Southern Tier farm commodity production.
      • The Natural and Processed Cheese sector stands out at with over $361 mil. In gross output, as well as the Fluid Milk sector at over $124 mil., and Prepared Feeds more than $92 mil. Specialty food items, such Pickles, Sauces and Salsas , as well as Condensed and Evaporated Milk and Meat Packing Plants also have some significant output, according to IMPLAN model estimates.
      Bills, Cail and Roth 2005
    • 27. Bills, Cail and Roth 2005
    • 28. Some sub-sectors of food processing can reasonably be assumed to not include inputs from local agriculture. Most important in this category in the Southern Tier is Potato Chips and Similar Snacks . This large output can be accounted for primarily by the Frito-Lay plant in Binghamton. Coffee and Ice Manufacturing , although small in total output, are also almost assuredly not sourcing local agricultural produce as inputs. Bills, Cail and Roth 2005
    • 29. Farm businesses in the Southern Tier Bills, Cail and Roth 2005
    • 30. Bills, Cail and Roth 2005
    • 31. Bills, Cail and Roth 2005
    • 32. Land Resources Are Being Used Differently Than They Were Just Five Years Ago
      • To what extent does this shift in farm ownership/operation reflect the loss of “agriculture of the middle”?
      • To what extent does the availability of surplus agricultural “plant and equipment” allow larger operators to farm land owned by others?
      • What changes are we seeing in land use, as viewed from other sources of information?
      Bills, Cail and Roth 2005
    • 33. Bills, Cail and Roth 2005
    • 34. Bills, Cail and Roth 2005
    • 35. Bills, Cail and Roth 2005
    • 36. Bills, Cail and Roth 2005
    • 37. Bills, Cail and Roth 2005
    • 38. Bills, Cail and Roth 2005
    • 39. Bills, Cail and Roth 2005
    • 40. Bills, Cail and Roth 2005
    • 41. Bills, Cail and Roth 2005
    • 42. Bills, Cail and Roth 2005
    • 43. Bills, Cail and Roth 2005
    • 44. Bills, Cail and Roth 2005
    • 45. Bills, Cail and Roth 2005
    • 46. Changes in land use, with emphasis on movements of land between developed and open space uses Bills, Cail and Roth 2005
    • 47.
      • Overview
        • What relation does changing agricultural practice have to rural land use?
        • What opportunities, and what threats, does the continuing increase in agricultural productivity per acre represent?
      • Land conversions
        • Movements of land out of crop and pasture use
        • Commodity agriculture and “backyard”or consumer-based agriculture, and service-based agriculture, such as many equine farms and agritourism enterprises
        • Urban, suburban, and exurban land development
      Land use in the Southern Tier Bills, Cail and Roth 2005
    • 48. Graphic from “Sprawl Without Growth: The Upstate Paradox” by Rolf Pendall (Brookings Institution, October 2003) Data are from USDA Natural Resources Inventory Bills, Cail and Roth 2005
    • 49. Bills, Cail and Roth 2005
    • 50. Bills, Cail and Roth 2005
    • 51. We aggregated a a very detailed land classification system local assessors use for farmland, as prescribed by the NYS Office of Property Services (ORPS) Bills, Cail and Roth 2005
    • 52. Local assessor's judgments on farmland, when mapped, shed more light on the land use mosaic Agricultural land uses in Tioga County Bills, Cail and Roth 2005 Map created by Lisa Snopkoski
    • 53. Local assessor's judgments on farmland, when mapped, shed more light on the land use mosaic Agricultural land uses in Tioga County Bills, Cail and Roth 2005
    • 54. Bills, Cail and Roth 2005 Map created by Lisa Snopkoski
    • 55.
      • Forward linkages-who buys what we sell?
        • Sales in the Southern Tier
        • Shipments to buyers elsewhere in New York State or to national, and international markets
      • Backward linkages-when production expands (or contracts), what difference does it make?
        • Structural interdependence
        • Economic multipliers
          • Farm commodities
          • Ag Services
          • Food manufacturing
      Linkages Bills, Cail and Roth 2005
    • 56. Bills, Cail and Roth 2005
    • 57. Bills, Cail and Roth 2005
    • 58. Bills, Cail and Roth 2005
    • 59. Case Studies: Purpose
      • How do regional trends impact farms?
      • How farmers respond to the stagnant economy?
      • What strategies do farmers use to grow their businesses?
      Bills, Cail and Roth 2005
    • 60. Case Studies: Purpose
      • How do regional trends impact farms?
      • How farmers respond to the stagnant economy?
      • What strategies do farmers use to grow their businesses?
      Bills, Cail and Roth 2005
    • 61. Case studies: information gathered
      • Business Background
      • Business Evolution
      • Changes/Investments (10-15 yrs)
      • Resulting Impact of Investments
      • -on the farm’s future
      • -in the local economy/community
      • -on the environment/landscape
      • -for consumers
      Bills, Cail and Roth 2005
    • 62. Case studies: information gathered
      • Business Background
      • Business Evolution
      • Changes/Investments (10-15 yrs)
      • Resulting Impact of Investments
      • -on the farm’s future
      • -in the local economy/community
      • -on the environment/landscape
      • -for consumers
      Bills, Cail and Roth 2005
    • 63. AA DAIRY Business Evolution
      • Father started farming in 1941
      • Son Bob bought out father in 1971: 450 acres-160 cows, expanded herd to 200 cows
      • Bob formed partnership with 2 sons in 1993 - built new dairy facility 550 cows, purchased additional land – own 2,000 acres total (1,300 tillable)
      • New enterprises – methane digester for generating electricity and composting
      • Other Enterprises – beef, timber
      Bills, Cail and Roth 2005
    • 64. AA DAIRY Business Evolution
      • Father started farming in 1941
      • Son Bob bought out father in 1971: 450 acres-160 cows, expanded herd to 200 cows
      • Bob formed partnership with 2 sons in 1993 - built new dairy facility 550 cows, purchased additional land – own 2,000 acres total (1,300 tillable)
      • New enterprises – methane digester for generating electricity and composting
      • Other Enterprises – beef, timber
      Bills, Cail and Roth 2005
    • 65. KINGBIRD FARM Business Evolution
      • Purchased farm outright - 1996
      • Transitioned from a full-time off farm to part time off farm income - 2001
      • Diversified: pastured poultry, eggs, hogs, greenhouse herbs-fresh & dried
      • Direct to consumer sales strategy
      • Feed sales
      Bills, Cail and Roth 2005
    • 66. KINGBIRD FARM Business Evolution
      • Purchased farm outright - 1996
      • Transitioned from a full-time off farm to part time off farm income - 2001
      • Diversified: pastured poultry, eggs, hogs, greenhouse herbs-fresh & dried
      • Direct to consumer sales strategy
      • Feed sales
      Bills, Cail and Roth 2005
    • 67. Impact of Investments made by farmers
      • On the farm business
      • In the local economy
      • On the Environment
      • On open space – the working landscape
      • In the community
      • On consumers
      Bills, Cail and Roth 2005
    • 68. Impact of Investments made by farmers
      • On the farm business
      • In the local economy
      • On the Environment
      • On open space – the working landscape
      • In the community
      • On consumers
      Bills, Cail and Roth 2005
    • 69. Impact of investments back to the farm business
      • Increased farm income
      • Reduced risk from diverse income sources
      • Greater efficiency (savings)
      • Reduction in operating costs
      • Increased production output
      • Payback on investment
      • Increased net worth
      Bills, Cail and Roth 2005
    • 70. Impact of investments back to the farm business
      • Increased farm income
      • Reduced risk from diverse income sources
      • Greater efficiency (savings)
      • Reduction in operating costs
      • Increased production output
      • Payback on investment
      • Increased net worth
      Bills, Cail and Roth 2005
    • 71. Impact of investments on the local economy
      • More farm jobs (new jobs, jobs retained)
      • Off farm jobs resulting from investment
      • (new farm construction, equipment, services, etc.)
      • Dollars circulating in the economy
      • Inflow of outside cash - new money brought into the local economy
      • Increase in assessed value of property
      • Contribution to tax base
      Bills, Cail and Roth 2005
    • 72. Impact of investments on the local economy
      • More farm jobs (new jobs, jobs retained)
      • Off farm jobs resulting from investment
      • (new farm construction, equipment, services, etc.)
      • Dollars circulating in the economy
      • Inflow of outside cash - new money brought into the local economy
      • Increase in assessed value of property
      • Contribution to tax base
      Bills, Cail and Roth 2005
    • 73. Impact of investments on the environment
      • Investment in practices that protect water, air and soil quality
      • Natural resource buffers and wildlife habitat
      Bills, Cail and Roth 2005
    • 74. Impact of investments on the environment
      • Investment in practices that protect water, air and soil quality
      • Natural resource buffers and wildlife habitat
      Bills, Cail and Roth 2005
    • 75. Impact of investments on open space: the working landscape
      • Underutilized land resources are returned to the working landscape
      • Land stays in active farming
      • Land purchased by a farmer reduces rural development/sprawl
      • Protects open space
      Bills, Cail and Roth 2005
    • 76. Impact of investments on open space: the working landscape
      • Underutilized land resources are returned to the working landscape
      • Land stays in active farming
      • Land purchased by a farmer reduces rural development/sprawl
      • Protects open space
      Bills, Cail and Roth 2005
    • 77. Impact of investments in the community
      • Farmer involvement on community boards, committees, etc.
      • Good will – neighborliness, farmers lend a helping hand
      • Quality of life – maintain rural character
      • Contribute to a renewed interest in farming among rural landowners
      • Leadership role in the farm community
      • Mentor for beginning farmers
      • Innovators in business
      Bills, Cail and Roth 2005
    • 78. Impact of investments in the community
      • Farmer involvement on community boards, committees, etc.
      • Good will – neighborliness, farmers lend a helping hand
      • Quality of life – maintain rural character
      • Contribute to a renewed interest in farming among rural landowners
      • Leadership role in the farm community
      • Mentor for beginning farmers
      • Innovators in business
      Bills, Cail and Roth 2005
    • 79. Impact of investments on local consumers
      • Access to unique local products
      • Value high quality, fresh products
      • Sense of food safety, security, and choice
      • Like supporting local farmers
      • Develop a personal relationship with producers
      • Increase agriculture awareness-literacy
      • Help keep land in farms
      Bills, Cail and Roth 2005
    • 80. Impact of investments on local consumers
      • Access to unique local products
      • Value high quality, fresh products
      • Sense of food safety, security, and choice
      • Like supporting local farmers
      • Develop a personal relationship with producers
      • Increase agriculture awareness-literacy
      • Help keep land in farms
      Bills, Cail and Roth 2005
    • 81. Strategies for Business Growth Bills, Cail and Roth 2005
    • 82. Strategies for Business Growth Bills, Cail and Roth 2005
    • 83. Start–up farm business growth strategies
      • INVESTMENT RESOURCES
        • Personal Savings
        • Family Sources
        • Mortgage/Loans
        • NRCS/SWCD programs
        • Reinvest Earnings
        • Off farm Income
      Bills, Cail and Roth 2005
    • 84. Start–up farm business growth strategies
      • INVESTMENT RESOURCES
        • Personal Savings
        • Family Sources
        • Mortgage/Loans
        • NRCS/SWCD programs
        • Reinvest Earnings
        • Off farm Income
      Bills, Cail and Roth 2005
    • 85. Start–up farm business growth strategies
      • IMPACT OF INVESTMENTS
        • Bring in outside capital-new money
        • Purchase services/supplies locally
        • Soil/water quality improvements
        • Farmland-facilities put back into use
        • Stimulate interest in farming enterprises
        • Local farm and food products
        • Jobs for family - lifestyle
      Bills, Cail and Roth 2005
    • 86. Start–up farm business growth strategies
      • IMPACT OF INVESTMENTS
        • Bring in outside capital-new money
        • Purchase services/supplies locally
        • Soil/water quality improvements
        • Farmland-facilities put back into use
        • Stimulate interest in farming enterprises
        • Local farm and food products
        • Jobs for family - lifestyle
      Bills, Cail and Roth 2005
    • 87. Growth Strategies for Established Farms
      • INVESTMENT RESOURCES
        • Refinance via farm lenders
        • Government grants/incentives
      • ONGOING SUPPORT
        • Reinvest
        • Govt. programs
        • Off-farm income
      Bills, Cail and Roth 2005
    • 88. Growth Strategies for Established Farms
      • INVESTMENT RESOURCES
        • Refinance via farm lenders
        • Government grants/incentives
      • ONGOING SUPPORT
        • Reinvest
        • Govt. programs
        • Off-farm income
      Bills, Cail and Roth 2005
    • 89. Growth Strategies for Established Farms
        • IMPACT OF INVESTMENTS
        • Short-run debt/long-run survival?
        • Asset building, Increase net worth
        • Some new jobs (on-farm, local labor)
        • Land stays in farming
        • Environmental stewardship
        • - Leadership roles in the community
        • Products/services for local residents
      Bills, Cail and Roth 2005
    • 90. Growth Strategies for Established Farms
        • IMPACT OF INVESTMENTS
        • Short-run debt/long-run survival?
        • Asset building, Increase net worth
        • Some new jobs (on-farm, local labor)
        • Land stays in farming
        • Environmental stewardship
        • - Leadership roles in the community
        • Products/services for local residents
      Bills, Cail and Roth 2005
    • 91. Bottom Line
      • Each farm is unique in how it contributes to the economy and region’s rural character
      • Investment by large farms is motivated by need to maintain income and lower costs
      • Investment by small farms is fueled by consumer interest – demographics and the regional economy may pose limitations
      Bills, Cail and Roth 2005
    • 92. Bottom Line
      • Each farm is unique in how it contributes to the economy and region’s rural character
      • Investment by large farms is motivated by need to maintain income and lower costs
      • Investment by small farms is fueled by consumer interest – demographics and the regional economy may pose limitations
      Bills, Cail and Roth 2005
    • 93. Strategies that Position Farms for Survival
      • Must fit with the overall business vision
      • Must respond to a need (business or consumer)
      • Must be outcome focused – clear goals
      • Must be built on sound information
      • Must be managed to perform over time
      • Added costs must add more revenue
      • Must include diverse income streams
      Bills, Cail and Roth 2005
    • 94. References and Resources Bills, Cail and Roth 2005 Bills, N. “Food, Agriculture, and the Emergent Service Economy: Implications for the Northeast Region”. Rural Development Paper No. 24, Northeast Center for Rural Development, September, 2004. Available at: http://www.cas.nercrd.psu.edu/Publications/rdppapers.htm Bureau of Economic Analysis. Local Area personal Income, earnings and farm income and expenses (REIS – Regional Economic Information System). United States Department of Commerce, Washington, DC. Available at http://www.bea.doc.gov/bea/regional/docs/Regional_LAPI.pdf Bureau of Economic Analysis. RIMS II – Regional Input-output Modeling System. United States Department of Commerce, Washington, DC. Available at http://www.bea.doc.gov/bea/regional/docs/Regional_RIMS.pdf Conklin H. and R. Linton “The Nature and Distribution of Farming in New York State”. Department of Agricultural Economics (For the New York State Office of Planning Coordination), Cornell University, December 1969.
    • 95. References and Resources, continued Bills, Cail and Roth 2005 Empire State Development Regions. Available at: http://www.empire.state.ny.us/Regions_and_Counties/default.asp Goetz, S. and B. Lego. “County Economic Development Index for the Rural Northeast US, 2000”. Northeast Center for Rural Development, November 2000 (revised February 2001). Available at: http://www.cas.nercrd.psu.edu/Publications/rdppapers.htm IMPLAN. Proprietary software distributed and supported by MIG, Inc. Available at: http://www.implan.com/ Jack, K, N. Bills, and R. Boisvert. “Economic Multipliers and the New York State Economy”. Policy Issues in Rural Land Use, Vo.9, No. 2, December 1996. Available at: http://www.aem.cornell.edu/outreach/piirlu/vol9n2.pdf Land use maps. File data created by Lisa Snopkoski, GIS cartographer. Contact for further information: Krys Cail, Cornell Cooperative Extension, Broome County, 840 Upper Front Street, Binghamton, NY 13905-1500.
    • 96. References and Resources, continued Bills, Cail and Roth 2005 Pendall, R. “Sprawl Without Growth”. Brookings Institution, October 2003 Available at: http://www.brookings.edu/es/urban/publications/200310_pendall.htm Pendall, R. “Upstate New York's Population Plateau: The Third-Slowest Growing 'State”. Brookings Institution, August 2003. Available at: http://www.brookings.edu/es/urban/publications/200308_pendall.htm Pendall, R. and S. Christopherson “Losing Ground: Income and Poverty in Upstate New York, 1980-2000”.Brookings Institution, Washington, DC, September 2004. Available at: http://www.brookings.edu/metro/pubs/20040914_pendall.htm Streeter, D. and N. Bills. “Value-Added Ag-Based Economic Development: A Panacea or False Promise? Part One of a Two-Part Companion Series: What is Value-Added and How Do We Study It?” Department of Applied Economics and Management, Cornell University, February 2003. Available at: http://www.aem.cornell.edu/research/researchpdf/wp0307.pdf
    • 97. References and Resources, continued Bills, Cail and Roth 2005 Streeter, D. and N. Bills. “Value-Added Ag-Based Economic Development: A Panacea or False Promise? Part Two of a Two-Part Companion Series: What Should We Expect of Value-Added Activities?. Department of Applied Economics and Management, Cornell University, February 2003. Available at: http://www.aem.cornell.edu/research/researchpdf/wp0308.pdf US Department of Agriculture. 2002 Census of Agriculture. National Agricultural Statistics Service, Washington, DC. Available at: http://www.nass.usda.gov/census/ Vesterby, M. and K. Krupa. Major Uses of Land in the United States, 1997. Statistical Bulletin No. SB973, Economic Research Service, US Department of Agriculture, Washington, DC, September 2001. Available at: http://www.ers.usda.gov/publications/sb973/

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