James A. Sterns

Direct-to-Consumer Sales of Farm Products: Producers and Supply Chains in the Southeast

Given the geography and agroclimatic conditions of the Southeast, coupled with continued population expansion from in-migration, local foods markets may be a promising niche market for some farms in the region. The Southeast has more small farms than any other U.S. region. Using farm-level data, we address the question of how successful southeastern farms engaged in direct sales to consumers differ from other farms. We also include a case study of a marketing association in the panhandle of Florida. In both analyses, we focus on the role of the supply chain for direct sales in explaining farm returns.

The Evolution of Institutions in the Malian Cotton Sector: An Application of John R. Commons's Ideas

Applying John R. Commonss institutional economic framework, this paper analyzes the evolution of key institutions in the Malian cotton sector, starting with Malis independence in 1960 to the ongoing market-oriented reforms in the 2000s. In accordance with Commonss economic theory, institutional changes in the Malian cotton sector have led to both intended and unintended consequences, impacting economic performance at the farm, gin, and state levels. This has, in turn, contributed to the emergence of new limiting factors. At present, lack of adequate technical advising, indebtedness, issues related to input access, discordance between farmers and their union leader representatives, unreasonable seed cotton prices, delays in payment, and low cotton yields are the current limiting factors to desired economic performance. Based on these findings, we draw policy recommendations for revitalizing the Malian cotton sector.

SHOULD IMPORTS FREE-RIDE OR HELP PAY-- DECISIONS ABOUT GENERIC PROMOTION PROGRAMS FOR AGRICULTURAL COMMODITIES

Many U.S. agricultural commodity industries are currently considering if and how they might implement a mandatory national generic promotion program. As U.S. industries consider how to finance these programs, one of the key decisions they face is the choice to include or exempt imported products from promotional assessment fees. Free-riders, unwilling riders, exclusion costs, economies of scale, market share, seasonality of production, storage constraints, and the role of government are reviewed within the context of this choice. The paper concludes that perceptions of fairness and ownership of decision processes, commonly held objectives, and effective communication links are key factors affecting decisions about the structures of generic commodity promotion programs.

A Functional Evaluation of Business Models in Fresh Produce in the United States

Marketing in the food system has at least three broad categories: physical functions, exchange functions, and facilitating functions. Physical functions include those activities that alter the form or place utility of produce. Form utility refers to the appearance the produce will have. Manufacturing, processing, and packaging create additional value for the consumer that prefers the product in an altered state. Place utility refers to the time and location at which the produce is consumed. Some degree of physical transportation and storage is used in selling fresh produce. Exchange functions are activities related to the possession utility of a product. Individuals or firms with knowledge of buyers and sellers can facilitate exchange between these two groups. Buyers and sellers must agree on setting a price for the product and ownership transfer. Fluctuation risks are borne by the owner. In the case of fresh produce, facilitating functions can be thought of as the actions that allow the system to function at peak efficiency. Such types of actions provide conduits for information and capital flows in the produce supply chain. Private firms, government, and industry groups have all historically served in facilitating roles for fresh produce. Standards and grades can ensure the flow of uniform products; financing provides the capital needed to operate the system; market intelligence can drive competition and communication efforts serve to inform the final consumer.