marketing, human resource, and financial risk: decision making in the retail farm market context...

Marketing, human resource,and financial risk:

Decision making in the retail farm market context

John Berry, Agricultural EducatorPenn State is committed to affirmative action, equal opportunity and the diversity of its workforce.

Government Payments as a Government Payments as a Percent of Net Farm IncomePercent of Net Farm Income

10.96.0

5.018.5

7.79.8

15.3

19.710.5

9.7

19.815.6

102.0

117.9

36.3

40.1

23.3

50.280.3

18.6

17.147.414.6

4.4

5.0

80.437.9

47.6

74.7

70.1

58.3

38.8

83.4

12.2

25.910.8

22.6

10.0

86.3

12.2

5.0

27.5 132.9

127.1118.6

18.4

41.8

Government Payments as a Percentage of Net Farm Income

2001

Less than 24.9%

25.0% - 49.9%

50.0% - 74.9%

75.0% - 99.99%

100% and Above

Who gets my food dollar?

39%

8%

4%4%

5% 4% 4%4%

3%2%

4%

19%

off-farm labor

packaging

transportation

energy

profits

advertising

depreciation

rent

interest

repairs

business taxes

farm gate

Market risk varies significantly from commodity to commodity.

Human resource risk refers to managing labor, succession of the business, disability, estate planning, labor supply, and human relationship issues.

Financial risk results when the farm business borrows money and creates an obligation to repay debt.

• Needs

• Planning

• Method

• Delivery

• Evaluation

• Leadership

• State

• Region

• Partners

• Sponsors

• Administration

“intensive”

The conference started off with “pre” workshops.

• full-day– Financials– Ag and Natural Resource education

• half-day– Create a buzz in your bakery– Communication– Bouquets, Wreaths, Swags

“highly anticipated”

• Day two was the “pre” retail farm market tour. Using 4 tour buses, participants visited premiere ag retail markets

– On-Farm market 4

– Farmers market 2

– Winery 3

“choice”

• The final piece of this conference consisted of concurrent educational sessions– 44 sessions

• two days

– industry specific trade show• 47 retail farm marketing supply vendors

– Five different state retail marketing association membership meetings

• Participants from 13 states

– Workshops 137– Tours 176– Concurrent sessions 214– Speakers 48– Vendor reps 53– Volunteers 39

• Quantitative

• Qualitative

• Follow-up survey

• NECRME $17,000

• Other $42,000

• In-kind $30,000

Marketing, human resource,and financial risk:

Decision making in the retail farm market context

John Berry, Agricultural EducatorPenn State is committed to affirmative action, equal opportunity and the diversity of its workforce.