Larry D. Makus

Factors influencing farm level use of futures and options in commodity marketing

A probit model is used to quantify factors influencing the probability that a selected group of agricultural decision makers (producers and landowners receiving crops from a share lease) used futures or options for commodity marketing during the 1986, 1987, or 1988 marketing years. Respondents were selected from participants in orientation sessions associated with the nationwide Futures and Option Marketing Pilot Program. Results suggest previous use of cash forward contracts, location, size and farming operation (measured by gross farm sales), having a college degree(s), and membership in a marketing club have the greatest impact on the probability of using futures and options.

An Analysis of Organic Potato Demand in the U.S.

Organic food sales have been increasing rapidly. Changing consumer tastes and preferences provide market opportunities for organically-grown food products, including potatoes. We developed a model to determine the factors that influence U.S. demand for fresh organic potatoes. The model’s explanatory variables include organic potato price, consumer income, rice price, organic carrot price, red and Yukon Gold potato price, chicken price, the number of Whole Food stores, average Body Mass Index, the organic penetration rate and regional dummy variables. We found organic potato demand to be more sensitive than conventional potato demand to changes in price and consumer income. The New England region had the highest preferences for organic potatoes. We forecasted a 19% annual growth rate in U.S. per capita organic potato consumption to 2013.ResumenLas ventas de comida orgánica han estado aumentando rápidamente. Los cambios en gustos y preferencias de los consumidores proveen de oportunidades de mercado para productos alimenticios cultivados orgánicamente, incluyendo a las papas. Nosotros desarrollamos un modelo para determinar los factores que influencian la demanda en los E.U. para papas orgánicas frescas. Las variables explicativas del modelo incluyen el precio de la papa orgánica, el ingreso del consumidor, precios del arroz, de zanahoria orgánica, de papa roja y Yukon Gold, de pollo, el número de tiendas de mayoreo de alimentos, el promedio del índice de masa corporal, el nivel de penetración de lo orgánico, y las variables regionales del modelo. Encontramos que la demanda de papa orgánica es más sensible que la demanda de papa convencional a los cambios en precio y al ingreso del consumidor. La región de Nueva Inglaterra tuvo las preferencias más altas para papas orgánicas. Pronosticamos un nivel de crecimiento anual de 19% de consumo de papa orgánica per cápita para el 2013 en E.U.

A factor analysis of the product and service attributes offered by western nursery stock suppliers

Survey data from 311 garden centers, landscapers, and combined garden center|landscaping firms in selected western US trade centers were factor analyzed. Six first-order factors of product and service attributes were identified: plant selection, product information, supplier services and knowledge, advertising and promotion, plant quality, and ordering services. These six first-order factors were collapsed into three second-order factors: buyer-oriented services, buyer perception of supplier reputation, and sales support. These classifications of plant supplier attributes can be incorporated by the astute supplier into a successful business strategy.

Producer Attitudes Regarding Timothy Hay Production in Northern Idaho and the Surrounding Region

ABSTRACT Perennial hay crops on a large scale and as a major source of income are new to northern Idaho farmers. These crops can make an important contribution to erosion control and sustainability in this region that has soil erosion rates amongst the highest in the country. This study evaluated the current situation and future perceptions about hay production and marketing using a farm survey. Results indicated that growers in northern Idaho were optimistic about hay production, particularly timothy, by committing to a possible future increase in production. The current level of hay production, presence of a hay compressor nearby, priority of hay production, and contract availability are important factors influencing future hay production. More commitment needs to be made by producers who are willing to grow good-quality hay. Growers need to consider production timelines, targeting markets, and quality specifications before making such a commitment.

The impact of the mandatory seed law on Maine potato acreage, yield and price

A statistical analysis of the economic impact of Maine’s mandatory seed potato law was conducted. Results suggest that since the law was implemented, Maine potato yields increased, total Maine potato acreage decreased, Maine seed potato acreage increased, seed potato rejections from certification were reduced, seed potato prices increased, and commercial potato prices decreased. Attempts to estimate the impact on commercial potato quality were unsuccessful. The estimated impact of the Maine mandatory seed law on a typical 200-acre commercial potato grower was an average increase in profits of

The market for consultants in the Idaho potato industry

14,700 per year since the law was implemented in 1981.

The market for information and consultants in Idaho agriculture

Idaho potato growers and consultants were surveyed to analyze the market for consulting services. Potato growers use three types of technical consultants to improve the profitability of their operations: public consultants, industry consultants, and independent consultants. Growers rated independent consultants most reliable and were most satisfied with industry consultants. Growers rated their own records as the most valuable sources of information for making production, marketing and financial decisions. Consultants were most widely used in production decisions. Pest identification and control was the most commonly offered service by Idaho consultants. Growers who were satisfied with previous use of independent consultants were more likely to continue to use consulting services. Consultants are generally providing the types of services demanded by growers. The largest unmet needs are for consulting services in marketing, business planning and storage management.