Author Archives: Rose Jeter

Virginia Market Maker, Part I: Introduction

Dr. Kim Morgan, Assistant Professor and Kohl Junior Faculty Fellow

Market Maker, an web-based portal that serves as a virtual marketplace for producers, distributors, and sellers, and buyers of agricultural products, seeks to provide farm-to-fork access to participants in the food va-MarketMakerLogo-rgbsupply chain.

It is with great excitement that Virginia Cooperative Extension announces the official launch of Virginia Market Maker on June 9, 2015! Continue reading

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Exploring Consumer Interest in Agritourism Venues Located in the New River Valley

Gustavo Ferreira, Assistant Professor, Agricultural and Applied Economics, Virginia Tech
French Price, Undergraduate Student, Virginia Tech
Amanda Mitcheltree, Undergraduate Student, Virginia Tech
Chelsea Abbott, Undergraduate Student, Virginia Tech
Christine Stephan, Undergraduate Student, Virginia Tech
Kim Morgan, Assistant Professor, Agricultural and Applied Economics, Virginia Tech

1. Introduction

Agritourism is a value-added activity that generates additional net farm income and creates a loyal consumer base for branded farm products. Agritourism also allows for diversification of income sources, thus decreasing market risk exposure. Agritourism is a good strategy to cope with bad crop years, disasters, and drought. Other economic and non-economic benefits from agritourism include the preservation of agricultural heritage, maximization of productivity and resources, and improvements in the economic situation of a community. Continue reading

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An Overview of Agritourism in the United States, Virginia and Surrounding States: An Ag Census Analysis

Gustavo Ferreira, Assistant Professor, Agricultural and Applied Economics, Virginia Tech

In the last decade agritourism in theUnited States and Virginia has become a more viable option as a revenue stream for an existing farms or for new farmers looking to carve out a niche to support their families. This study of the last three Agricultural Census (2002, 2007, 2012) reveals some national and regional trends in the agritourism industry. Continue reading

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Down to the Wire: A Few More Considerations

Jim Pease, Professor, Agricultural & Applied Economics, Virginia Tech

April 7 is the final day for farm landowners to reallocate commodity program base acres and update payment yields, and for producers to choose between Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC). According to the March 27 USDA announcement of the new deadline, nearly 98 percent of owners had completed the base acre/payment yield process, and 90 percent of producers had elected either ARC-CO (county-coverage), ARC-IC (farm-coverage), or PLC. For the remaining landowners and producers, it’s time to act, because inaction will cause the following: 1) all program crops on all your FSA farms owned or operated will continue with existing base acre allocations and payment yields, 2) all program crops on all your FSA farms will be assigned to PLC during 2015-2018, and 3) no 2014 ARC or PLC payments will be received. The cost of inaction was described earlier in this blog in “Corn ARC-Co and PLC Forecast Payments: Look Carefully Before Choosing!”  Continue reading

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Farmland Owners – Bad, More Bad, and Worst

Jim Pease, Professor, Agricultural and Applied Economics, Virginia Tech

The deadline for farmland owners to register program base acre reallocation and payment yield update decisions with USDA/Farm Service Agency is March 31, 2015. Many landowners will not understand the choices or will not make the effort to work with the cash tenant. “So why should I care – the payments all go to the cash tenant, not me.” True, but shortsighted. The rental rate and market value of farmland are based partly on the farm’s potential to generate commodity payments. If base reallocation and payment yield choices are not made, the value of the farmland may well be reduced. Continue reading

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Possible Negative Consequences for Producers from Extending Base Reallocation and Payment Yield Update Deadlines

James Pease, Professor, Department of Agricultural and Applied Economics, Virginia Tech

Although FSA has extended the deadline for commodity program base acreage reallocation and payment yield updates to March 31 for farm landowners, the agency has held firm to the March 31 deadline for producers to choose among ARC-county, PLC, or ARC-farm programs. If the landowner simply does not act by March 31, then covered commodity base acres and payment yields on the FSA farm will remain at their current values throughout 2014-2018.

However, this inaction creates a problem for some producers. The base reallocation and/or yield update landowner choice must be completed prior to the producer choice of program. If the landowner doesn’t act by March 31, the producer has no time to choose a desired commodity program. Without base reallocation/yield update actions by the landowner (either to retain or reallocate/update), producers will not be able to make a program choice, and will find themselves assigned to the no-action program choice – Price Loss Coverage for 2015-2018, with no 2014 payments. The payment consequences for producers are most obvious for crops such as soybeans, for which virtually no one has forecast a marketing-year average price below the Reference Price of $8.40 throughout 2014-2018. Producers should do whatever they can to ensure landowner base acre and yield update choices are recorded with FSA as quickly as possible.

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Corn ARC-Co and PLC Forecast Payments: Look Carefully Before Choosing!

Jim Pease, Professor, Department of Agricultural and Applied Economics, Virginia Tech
*this post has been updated since its original posting on Friday, February 27

I received a question yesterday about choosing PLC vs ARC for the corn commodity program (for explanation of these programs, see http://www.fsa.usda.gov/FSA/webapp?area=home&subject=arpl&topic=landing). Farmers want a straight answer to the question, “Which program should I choose?’ It’s a good question, but doesn’t have an easy answer, since some critical data is as yet unknown. Recently available information may alter the decision for some producers. The message conveyed below is, “Don’t base your ARC/PLC choice only on expected 2014 payments.” I’ll show estimated corn ARC/PLC payments for King William, Northampton and City of Suffolk to demonstrate the message.

Continue reading

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USDA Provides One-Time Extension of Deadline to Update Base Acres or Yield History for ARC/PLC Programs

USDA Provides One-Time Extension of Deadline to Update Base Acres or Yield History for ARC/PLC Programs

Farmers Now Have Until March 31 to Update Yields and Reallocate Base Acres; Deadline for Choosing Between ARC and PLC also Remains March 31

WASHINGTON, Feb. 27, 2015 — Agriculture Secretary Tom Vilsack announced today that a one-time extension will be provided to producers for the new safety-net programs established by the 2014 Farm Bill, known as Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC). The final day to update yield history or reallocate base acres has been extended one additional month, from Feb. 27, 2015 until March 31, 2015. The final day for farm owners and producers to choose ARC or PLC coverage also remains March 31, 2015.

Visit http://www.usda.gov/wps/portal/usda/usdahome?contentid=2015/02/0051.xml&contentidonly=true to read the full press release from USDA.

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February Farm Bill Deadline for Landowners and Producers

Dr. Jim Pease, Professor and Extension Economist

February 27, 2015 is the last day that landowners or producers with landowner proxy can choose to re-allocate 2014-2018 farm program acres or update program payment yields. The deadline is fixed and will not be extended, and the choices made are irrevocable until after 2018. It is very important for both parties to evaluate options and take action now on desired options. Continue reading

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Market Outlook of Virginia Apple Production

Gustavo Ferreira, Assistant Professor, Agricultural and Applied Economics, Virginia Tech

Introduction

Virginia apples are grown in over 100 commercial orchards and account for more than 16,000 acres of land. Furthermore, the estimated commercial apple yield per acre is 700 bushels. Even though the Virginia apple industry has experienced a long lasting decline, it still contributes an estimated $235 million annually to the state’s economy. Furthermore, there have been increases in production and tree plantings in recent years (Virginia Apple Growers Association 2014). This study analyzes important apple market information from the 2014 Market News , which is a publication of the U.S. Apple Association. While the focus of this of this article is Virginia, regional and global apple production trends are also analyzed. Continue reading

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