USING LAND EQUITY TO PROVIDE A RETIREMENT INCOME

Many retiring farmers will need to use their land equity to provide a retirement income. Based on a present value analysis, retiring farmers may either decide to sell or lease their land. The analysis is needed because taxes, liability issues, and goals of the farmer complicate the decision.retirement, land equity, Consumer/Household Economics, Land Economics/Use,

Assessment of Kansas Beef Producers’ Perception and Knowledge Level of Business-to-Consumer Marketing

Objective: The objective of this study was to assess the perception and knowledge level of Kansas beef producers regarding business-to-consumer marketing. Study Description: A digital survey was created to assess the perception and knowledge level of business-to-consumer (B2C) marketing of Kansas beef producers. The survey was disseminated to Kansas beef producers utilizing the Shop Kansas Farms online social networking group. Results: Results from this study showed that 25.5% of beef producer respondents (n = 41) raise another species in addition to beef. It was found that 50.0% of survey respondents sold 20 or fewer head of finished beef cattle in 2020, with 43.9% selling 100% of their beef to individual consumers. Furthermore, 61.0% of respondents reported an increase in sales to individual consumers in 2020 compared to previous years, with 75.0% indicating sales to large beef processors were about the same. An increase in individual consumer sales was classified as “very desirable” by 73.0% of respondents, and 87.1% believe sales to individual consumers are the most profitable marketing channel. There were 72.2% of respondents selling beef in a B2C market for 1–10 years, with 47.2% reporting that repeat customers make up 75% of their sales. Word of mouth was the most common method of product marketing, as indicated by 91.6% of producers. Concerns or complaints from consumers were noted by 38.9%. It was believed by 47.1% of respondents that an improvement in consumer knowledge would be “very effective” to prevent future complaints or concerns. Moreover, an increase in producer knowledge was believed by 31.03% to be “extremely effective” in preventing future complaints or concerns. Finally, it was believed that an increase in state extension resources would be “moderately” or “very” effective in improving consumer and producer knowledge by 46.9% and 33.3% of respondents, respectively. The Bottom Line: Producers self-reported B2C marketing to be the most profitable marketing channel within their operation. However, many are not utilizing this channel to its full potential, and many have experienced consumer concerns or complaints. This study confirms the need for more state extension resources to support B2C marketing for beef producers in Kansas and sets the foundation for future research priorities

Evaluation of Kansas Beef Consumers’ Awareness and Understanding of Business-to-Consumer Marketing

Objective: The objective of the study was to determine the understanding and knowledge level of consumers purchasing beef in a business-to-consumer (B2C) format within Kansas. Study Description: A digital survey was created to evaluate consumers’ familiarity and satisfaction of buying beef in a B2C format. The survey was made available for a two-week period to consumers utilizing the Shop Kansas Farms online social media group. Results: Results of the survey showed 93% of consumers (n = 174) reported having previously purchased beef products from a local producer or locker. Of these, 63.1% reported that their most recent purchase was their first time purchasing in a B2C format and the same percentage of consumers had been purchasing beef in a B2C format for less than five years. The most common methods of purchasing beef in a B2C format were “portion cuts” (24.5%), followed by “quarter beef” (17.0%) and “half beef” (15.1%), or a combination of at least two of these methods (20.7%). Only 5.7% of consumers experienced challenges while purchasing beef in a B2C format, yet 100% of those consumers still intended to continue purchasing beef in this format. When consumers were given options that would be useful to prevent future complaints, the most selected response was “improved consumer knowledge.” The consumers (n = 82) who rated this response as “very effective” or “extremely effective” indicated that “increased state extension resources” would be at least “moderately effective” (82.9%). This indicates that increased state extension resources would be an effective way to improve consumer knowledge. The Bottom Line: Consumers within the state of Kansas are interested in and have positive experiences with purchasing beef in the B2C format. Moreover, most consumers are new consumers to buying beef in the B2C format, indicating that there is increasing demand for beef available for purchase in this format. Results of this study support this but show room for growth within consumer understanding of purchasing beef in a B2C format. Results of this study shows the opportunity for improvement of extension and other resources for consumers

USING LAND EQUITY TO PROVIDE A RETIREMENT INCOME

Many retiring farmers will need to use their land equity to provide a retirement income. Based on a present value analysis, retiring farmers may either decide to sell or lease their land. The analysis is needed because taxes, liability issues, and goals of the farmer complicate the decision

DETERMINING FARMERS ABILITY TO PAY CASH RENTAL RATES

The recent drop in gross income from lower commodity prices has not lowered cash rental rates. Farmers may continue paying current cash rents because of machinery considerations and because of their expectations about future prices. Kentucky farm-level data is used to examine net income under various lease arrangements