AGRIBUSINESS AND EXTENSION: CHARACTERISTICS OF SUCCESSFUL PROGRAMS TO SERVE A RAPIDLY CHANGING CLIENTELE

The market for agribusiness extension activities and programming is diverse, intensely competitive, and national or international in scope. It is a market that agricultural economists cannot serve alone. Despite these complexities, a strong agribusiness extension effort is critical to the success of agribusiness research and teaching programs. Agribusiness extension opportunities include extending traditional agricultural economics research, small business management programs, economic/technical education programs, and management education. Keys for conducting successful agribusiness extension programs include understanding client needs, locating and employing the best instructional talent available, and flawless execution of the activity. Stimulating faculty interest in agribusiness extension is a major challenge. Most schools will have the opportunity to focus their traditional extension education efforts on the non-traditional agribusiness audience. A few schools will be successful in developing a new extension program emphasis in agribusiness management education. Both types of contradictions are important for the long-run viability of the profession.Agribusiness, Teaching/Communication/Extension/Profession,

2006 Precision Agricultural Services Dealership Survey Results

Precision technologies are now well-integrated into the agricultural industry – both at the farm level and at the crop input dealer level. No longer are crop input dealers only using the technologies to bring new services to their customers, they are also utilizing the technology in their own businesses to improve the efficiency and effectiveness of their business operations. In early 2006, Crop Life magazine and Purdue University’s Center for Food and Agricultural Business conducted a survey for the 11th consecutive year to assess the adoption of precision agriculture practices in the U.S. from the perspective of the retail crop input dealer. The questionnaire was sent to 2500 retail crop input dealerships across the U.S. A total of 368 questionnaires were returned, with 343 being usable providing an effective response rate of 14 percent. Consistent with previous surveys, dealers were asked questions about the types of precision services they offer and/or use in their businesses, the fees they are charging for precision services, how fast their customers are adopting precision agriculture practices, how profitable they are finding precision services to be in their businesses and how their precision customers compare with their ‘traditional’ customers.Precision agriculture, Crop input dealers, Variable rate application, Site-specific agriculture, Technology adoption

Editorial

Editorial by Jay T. Akridge, Provost and Executive Vice President for Academic Affairs and Diversity

SEGMENTING THE COMMERCIAL PRODUCER MARKET FOR AGRICULTURAL INPUTS

A cluster analysis procedure was used to develop a market segmentation of U.S. crop and livestock farms with annual sales in excess of $100,000. The results indicate that four distinct segments exist: convenience buyers, balance buyers, price buyers, and performance buyers. Differences in preferences across these segments have important implications for the marketing strategies of agricultural input suppliers.Institutional and Behavioral Economics, Marketing,

Editorial

Editorial by Jay T. Akridge, Provost and Executive Vice President for Academic Affairs and Diversity

2008 PRECISION AGRICULTURAL SERVICES DEALERSHIP SURVEY RESULTS

Precision technologies are now well-integrated into the agricultural industry – both at the farm level and at the crop input dealer level. No longer are crop input dealers only using the technologies to bring new services to their customers, they are also utilizing the technology in their own businesses to improve the efficiency and effectiveness of their operations. In early 2008, Crop Life magazine and Purdue University’s Center for Food and Agricultural Business conducted a survey for the 13th consecutive year to assess the adoption of precision agriculture practices in the U.S. from the perspective of the retail crop input dealer. The questionnaire was mailed to 2500 retail crop input dealerships across the U.S. A total of 298 questionnaires were returned, with 275 being usable providing an effective response rate of 11 percent. Consistent with previous surveys, dealers were asked questions about the types of precision services they offer and/or use in their businesses, the fees they are charging for precision services, how their customers are adopting precision agriculture practices, and how profitable they are finding precision services to be in their businesses. Key findings include: 1) 61% of the dealers surveyed offered some type of precision service, down from 67% in 2006; 2) locations owned by cooperatives and regional/national organizations were much more likely to offer precision services relative to independent locations; 3) 43% of the respondents believe they make a profit on their precision service offerings, while some 30% believe they breakeven, covering only the fixed and variable costs of offering the services; and 4) dealers continue to expect growth in precision services, and this growth is more substantial in the Midwest relative to other states.precision agriculture, geographic information systems (GIS), crop input dealer, variable rate application, site-specific agriculture, technology adoption.

ECONOMIC EVALUATION OF ALTERNATIVE SUPPLY CHAINS FOR SOYBEAN PEROXIDASE

Soybean peroxidase is an enzyme derived from soybean hulls. Peroxidase has much commercial potential as an ingredient in the manufacturer of polymers and specialty chemicals, as a dough conditioner, and as a component in medical test kits. Commodity soybean cultivars contain various amounts of active peroxidase enzyme. This study evaluates alternative supply chain arrangements for moving soybean hulls containing peroxidase from producer to processor. Results suggest at current peroxidase levels in soybeans, supply chain arrangements involving soybean segregation offer cost advantages over the standard commodity supply chain. In addition, a supply chain involving high peroxidase cultivars may offer enough cost savings over the commodity supply chain to justify full identity preservation of the high peroxidase soybeans from producer to processor.Agribusiness,

MARKET SEGMENTATION PRACTICES OF RETAIL CROP INPUT FIRMS

While market segmentation and the associated idea of target marketing are not new, there are questions about how the strategy of market segmentation and target marketing is being used in retail agribusiness firms. Previous research has demonstrated that distinct groups of farmers/customers exist (Alexander). However, retail crop input firms tend to be of modest size and are geographically bound. Both lack of resources and confinement to a specific geographic market present challenges for successful implementation of a market segmentation/target marketing strategy (Stolp). In this study, market segmentation/target marketing practices were explored in two types of crop input retailers: independently owned and operated firms (9 firms) and agricultural cooperatives (11 firms). A number of questions related to market segmentation/target marketing strategy were assessed via a web-based survey and telephone interviews. Referencing Best's seven-step framework, market segmentation is compared and contrasted by firm type; gaps in market segmentation strategy execution are identified; and challenges to implementing a market segmentation strategy are considered. Results show that market segmentation/target marketing was employed by 85% of the crop input retailers in the sample. Key gaps identified in market segmentation strategy execution include measuring market segment attractiveness; evaluating market segment profitability; developing a product-price positioning strategy for a tailored offering; expanding the positioning strategy to include promotional and sales elements of the marketing-mix; and evaluating the progress/success with each target market segment. Addressing these key gaps will aid industry professionals as they work to serve the needs of a continuously evolving farmer/customer base.market segmentation, target marketing, crop inputs, distribution channel, retailer

PREPARING FOR SUCCESS IN THE AGRIBUSINESS MARKET PLACE

With the dramatic changes occurring in the agricultural industries, it is critical to develop and maintain competencies that will enhance one's competitive position in this rapidly evolving market. The skills or capacities required to be successful are dynamic capabilities which embrace new ideas, change, innovation, analysis, integration, and teamwork-capabilities which may not be part of the experience base in the more traditional agriculture of the past.adding value, capabilities, change, innovation, intellectual capital, organizational transformation, Agribusiness,

Market Segmentation Practices of Retail Crop Input Firms

The farmers targeted by crop input retailers may be divided into distinct groups or segments, but retail crop input firms vary in their ability to implement strategies to serve individual segments. In this study, segmentation practices among cooperatives and independently owned crop input retailers were explored. Addressing gaps between Best’s seven-step market segmentation framework and retailer practices will help practitioners serve evolving farmer-customers.market segmentation, target marketing, crop inputs, distribution channel, retailer, Marketing, Q10, Q13,