Following are highlights from progress reports on projects selected to meet the C-FAR research focus: Promote the economic development and management of agricultural and food systems in rural and urban communities in Illinois.
Tourism Enterprise Development
Researchers evaluating rural tourism as a vehicle for economic development in Illinois worked with community and business leaders in six communities. Using 12 focus groups, the researchers found the following factors are key to successful tourism development: coordination and cooperation between business persons and local leaders; planning and integration of tourism with community economic strategy; information about tourism development; a complete community tourism package; quality tourism products; and widespread community support.
Surveys from 297 rural tourism-related enterprises revealed that the majority are relatively new firms that employ fewer than five employees. Almost half the respondents reported that some employees depend on sources of income other than salaries generated from their tourism employment. The majority of employers reported salaries above the minimum wage, but less than $7 per hour. A substantial number of firms, however, offered salaries greater than $1,600 per month. On questions related to attitudes about the industry, the majority had a positive outlook. Analysis of tourism Standard Industrial Classification data revealed that jobs and salaries in tourism-related firms are increasing, often at a faster rate compared to other industrial sectors in Illinois. Technical materials about entrepreneurial development and tourism for Illinois Cooperative Extension Service and a conference on tourism home-based businesses in southern Illinois may be outcomes of this project.
John van Es, Julie Fesenmaier,
Human and Community Development
Daniel Fesenmaier, Leisure Studies
College of Agricultural, Consumer and Environmental Sciences
University of Illinois at Urbana-Champaign
Agricultural Economic Modeling Projects The purpose of this project is to develop a 'quick response' capability to measure the financial consequences of changes in public policies and programs, natural disasters and changes in business practices. A farm-level simulation model was updated and modified to include the appropriate trend-adjusted yield distributions for the major agricultural commodities produced in Illinois. In addition, a set of representative grain farms has been developed and incorporated into the model. Researchers are estimating the impacts on these representative farms due to changes in property and income taxes in Illinois. The model will help identify the probability distribution of taxes paid under various tax proposals for each of the representative farms developed. Publication of the results is expected in August 1996 and additional applications of the model will follow.
Researchers also collected data from Illinois Farm Development Authority loan records for the beginning farmer model application. These data were used to develop initial financial and business structures of the representative loan cases for the beginning farmer program evaluation. In addition, results from a survey of Illinois lenders for information on alternative financing arrangements across different types of borrowers will be used to construct representative case farms for the financial alternatives application.
Peter Barry, David Lins, Bruce Sherrick, Paul Ellinger, Lynn Miller, Cheryl DeVuyst,
Center for Farm and Rural Business Finance
Agricultural and Consumer Economics
College of Agricultural, Consumer and Environmental Sciences
University of Illinois at Urbana-Champaign
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Researchers at the University of Illinois College of Agricultural, Consumer and Environmental Sciences use electronic data to track, evaluate and anticipate changes in the food and agricultural sector to ensure Illinois industries stay productive and competitive. C-FAR funds support several modeling projects, including research to measure the financial consequences of change in public policies and business practices and research to assess and predict economic benefits and costs realized by Illinois agriculture under different political, economic and environmental conditions. |
The IRAM project is focused on developing the capability to assess and predict the economic benefits and costs realized by Illinois agriculture under different political, economic, and environmental conditions. For this phase of the project, researchers carried out two activities. First, a modeling effort involved the development of a preliminary "in house" demand model that can be used within the existing IRAM structure. The preliminary demand model now provides converging results, but further work is needed to include other crops and other demand sub-sectors for corn, soybeans and wheat. Researchers also looked at application of IRAM models. One application involved the revision and use of IRAM's data and input/output model to investigate and measure the role of agriculture in Illinois' economy. A preliminary report has been circulated to peers and to others for review. Another application represented an extension of previous work on farm bill proposals. The farm bill debate continued into 1996 with final resolution in March. In February, two senate proposals, representing two distinct approaches for supporting the farm sector, were being seriously considered. The results of IRAM analyses of these proposals were used by Senators Carol Mosley-Braun and Paul Simon and by the Illinois Corn Growers Association in developing their positions on the merits and drawbacks of the proposals. Likewise, legislative language for pilot programs introduced by Congressman Thomas Ewing was based in large part on information provided by IRAM analyses. Finally, historical grain price data were used recently to investigate a concern by producers and merchandisers that the proposed merger between the Union Pacific Railroad and the Southern Pacific Railroad was causing a grain basis distortion. Initial evidence indicates that this was not the case.
Robert Hauser, Agricultural and Consumer Economics
College of Agricultural, Consumer and Environmental Sciences
University of Illinois at Urbana-Champaign
Competitiveness of Food Industries Data from Census of Manufacturers 1972-1992 were collected for the red meat processing industries (SIC 201) for Illinois and seven other Midwest states. Initial calculations of competitiveness indices relative to market share and value added were computed for the eight states. Data from Census of Agriculture on nursery products production were gathered from 1972-1987 and augmented with inter-census year data. A survey of 310 nursery products firms was completed in May 1996, with a 38 percent response rate. Initial data analysis shows that intangible firm resources, such as company reputation, client relationships, and control processes are more important to strategies of individual companies than tangible assets such as land and facilities.
Randy Westgren,
Agricultural and Consumer Economics
College of Agricultural, Consumer and Environmental Sciences
University of Illinois at Urbana-Champaign
Financial and Economic Implications of C-FAR Research and Programs
The goals of this activity were to assist the Office of Research staff at the University of Illinois with the development of an evaluation system for research projects initiated and completed with C-FAR support, and to provide guidance, upon request, to project leaders about assessing the economic impacts of their work. Various types of rate of return measures have been widely used in assessing research outcomes. However, these measures are confined to economic effects over long periods of time, including the time and costs required to conduct the research, disseminate the results, achieve adoption of new practices or institutions, and measure the time span and benefits of these effects. A comprehensive research evaluation system should consider both quantitative and qualitative effects, timing, nature of output, risks, and various other factors. Key questions to which project leaders are asked to respond include: Who will benefit? How? How can you measure the benefit? Numerically? When? How does this project affect Illinois? What are the economic, social and environmental impacts? What is the next step for this research? How will the results of the project be implemented? Why is the university doing this research? How will research in progress be reported to potential users or others who might benefit? Answers to these questions will allow a complete assessment of research in progress and completed.
David Lins, Bruce Sherrick, Peter Barry, Paul Ellinger, Lynn Miller, Cheryl DeVuyst,
Center for Farm and Rural Business Finance, Agricultural and Consumer Economics
College of Agricultural, Consumer and Environmental Sciences
University of Illinois at Urbana-Champaign
Integrated Aquaculture-Hydroponic Production
Construction of a hydroponic research production system which uses effluent from a nearby aquaculture facility will allow researchers to evaluate use of aquaculture effluent for producing hydroponic tomatoes. Data are collected on plant growth characteristics, effluent flow rates and water quality of the effluent as it enters and exits the hydroponic system. Researchers will evaluate the differences between tomatoes grown exclusively in the aquaculture effluent and those grown in effluent that has been amended with a complete nutrient solution.
Ann Marie VanDerZanden,
Department of Agriculture
Illinois State University
Profitability of Precision Agriculture
Preliminary results from a survey of fertilizer dealers indicate approximately 60 percent provided grid-based soil testing for customers in 1995. The dealers estimated an increase in acreage by more than 90 percent by 1997. Further evaluation and analysis of the dealership survey responses will be completed this year. Also, a selected sample of farmer-users of precision farming services will be surveyed. The goal of this research is to ascertain the potential profitability of adoption of precision farming services for farmers and dealers. Researchers are surveying these groups to find investment and operating costs, capacities, prices charged and paid, and the kind of data and information generated.
Patrick D. O'Rourke,
Department of Agriculture
Illinois State University
Determination of Optimal Ethanol Plant Site Characteristics
Researchers are working to identify criteria to serve as a basis for locating ethanol plants. The first approach was to geographically locate one or more plants based on the cost of the major input (corn) and the distance to output or ethanol markets. This approach uses a integer programming algorithm to select plant locations and sizes from a series of potential plant locations. A basic computer model of the decision process has been completed and data are being collected. A second important issue in plant location is the proximity of the new plant to other production processes which can supply inputs or use coproducts from ethanol manufacture. This research is tied to a soft drink manufacturing plant that would use carbon dioxide from the ethanol production; soft drink waste sugar would be used by the ethanol plant. The location of an ethanol plant with a cattle feeding facility is another co-location issue being studied.
M. Rendleman, R. Beck,
Agribusiness Economics
Southern Illinois University at Carbondale
External Competitive Grant Program
Comparison of Forage-based Cow-calf and Calving-heifer Systems
Yearling heifers were bred at the Orr Animal Research Center, Perry, Ill., last spring and randomly assigned to alfalfa or fescue-red clover mix pastures. Heifer performance, condition score and fertility will be evaluated across the different forage systems. After October, animals will receive cornstalks or harvested hay through calving in January. Some pairs will be transported to the Illinois State University Beef Research facility in Normal, Ill., for individual feeding studies. Researchers will collect data on feed consumption, gain and feed efficiency, carcass quality and taste factors. A second rotation of heifers will be bred in April 1997.
L. Berger, D. Faulkner,
Animal Sciences, College of Agricultural, Consumer and Environmental Sciences
University of Illinois at Urbana-Champaign
Paul Walker,
Illinois State University
Improving the Competitiveness of the Illinois Beef Industry
Beef quality and consistency is one of the major problems facing the beef industry, according to the National Cattle and Beef Association and the Illinois Beef Association. Researchers are evaluating the effect of weaning management systems on calf performance and the quality of beef produced; cow performance and subsequent reproductive performance; and the economics of the systems given varying prices of forage and corn. They will evaluate use of current ultrasound technology to determine marbling and develop prediction equations for marbling using ultrasound, external fat thickness, longissimus muscle area, age of calf, breed, days fed a high concentrate diet and other factors for each management system. Overall economics of each of the systems will be assessed using varying forage and corn prices. This will allow producers to evaluate the utility of these beef production systems.
D. Faulkner, D. Parrett,
Animal Sciences
R. Knipe, E. Ballard, D. Seibert, T. Saxe, Cooperative Extension Service
College of Agricultural, Consumer and Environmental Sciences
University of Illinois at Urbana-Champaign
Illinois Beef Association
At SIU, we view our mission to include teaching, research and service to the state of Illinois and the region, to the nation and even international. We have a primary responsibility to carry out research that is oriented toward Illinois, particularly southern Illinois. The research mission is tied to the collegešs teaching mission, and we make it a high priority to integrate the two. That is, we strive to involve students more directly with researchers and to bring research into the classroom.Improving Site-specific Information and Management Systems
Tony Young, Associate Dean for Research, College of Agriculture Southern Illinois University
Researchers are assembling detailed soil, fertility and elevation data for two representative farms in central Illinois. Geo-referenced corn and soybean yield data will be collected during fall 1996. The intensity of the collection of soil data make one of the sites, a 225-acre farm, one of the most intensely studied farms of its size in Illinois, the U.S. and perhaps the world. Data from this farm have been used to further evaluate the economic benefit of varying nitrogen, potassium and phosphorus rates; incorporating variable yield information; and assessing the impact of soil sampling intensity and field mapping precision.
A second activity focuses on incorporating further refinements to a computer simulation model for evaluating the impacts of variable rate application technologies. An economic computer model was developed to estimate the expected yields and returns from whole field management and site-specific management of crop production. The model has been enhanced to allow researchers to evaluate the impact of varying fertilizer rates and to incorporate geo-referenced yield information into the variable rate application benefit analysis. In addition, researchers completed preliminary analysis of whole field management and site specific management for the 225-acre farm using current and improved application criteria. Preliminary data indicate current sampling methods and application criteria will not provide maximum economic returns from site-specific management technologies. Alternative sampling methods, more precise maps and precise variable rate application criteria can further increase the returns from site-specific management.
R. Hornbaker, E. DeVuyst, D. White,
Agricultural and Consumer Economics
D. Bullock, Crop Sciences
T. Peck, Natural Resources and Environmental Sciences
J. Norvell, University of Illinois at Urbana-Champaign Trust Farms
College of Agricultural, Consumer and Environmental Sciences
University of Illinois at Urbana-Champaign
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