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,

Editorial

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

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,

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,

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.

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,

Assessing Input Brand Loyalty among U.S. Agricultural Producers

This study explores the prevalence and determinants of brand loyalty for agricultural input products. Results suggest that loyalty for both expendable and capital inputs is high among commercial agricultural producers in the United States. Producer attitudes, beliefs, and some demographic characteristics are useful identifiers of brand loyalty among commercial producers.brand loyalty, dealer loyalty, capital inputs, expendable inputs, farmer purchase decisions, Agricultural Finance, Consumer/Household Economics, Marketing, Q10, Q13, Q14,

Assessing Agricultural Input Brand Loyalty Among U.S. Mid-Size and Commercial Producers

This study explores the prevalence and determinants of brand loyalty for agricultural input products. Results suggest that loyalty for both expendable and capital inputs is high among commercial farmers. Farmer attitudes, beliefs, and some demographic characteristics are useful identifiers of brand loyal farmers.brand loyalty, capital inputs, expendable inputs, farmer purchase decisions, Farm Management,