Posts Tagged: economics
A farm-edge hedgerow can be more than a boundary or barrier. When it comprises blue elderberry, it can be a way to integrate biodiversity in an often-simplified agricultural landscape – and connect with a legacy of stewardship and use by California's Native peoples.
A new guide, published by UC Agriculture and Natural Resources, provides detailed instructions and advice for California farmers on growing, harvesting and marketing blue elderberry. It is available as a free download in the UC ANR catalog at https://anrcatalog.ucanr.edu/Details.aspx?itemNo=8709.
“It's the only publication of its kind, that we know of, that focuses on commercial production of a native species from within a hedgerow, which people normally think of as a conservation feature,” said Sonja Brodt, one of the publication's authors and associate director of UC ANR's Sustainable Agriculture Research and Education Program.
In addition to illustrating the plant's many ecological benefits, “Producing Blue Elderberry as a Hedgerow-Based Crop in California” highlights the economic viability of the products made from its flowers, berries and other components.
“Consumer interest in elderberry products is booming,” said Brodt, “and blue elderberry has the potential to meet local needs with a locally adapted species that is climate-resilient, and can be produced in a relatively low-input way that supports – rather than displaces – our native ecosystems.”
The guide incorporates the findings of a UC SAREP project exploring the farm management practices, nutritional content and market potential of elderberry products. And Brodt emphasized that this resource also draws upon the deep knowledge of Indigenous people, as well as best practices of growers such as Katie Fyhrie, formerly of The Cloverleaf Farm in Dixon and another author of the guide.
“We originally got inspiration to do this work from local farmers who are pioneering the use of blue elderberry harvested on their farms, and from Native Americans in California who have long stewarded and utilized blue elderberry for food and other cultural uses,” Brodt explained.
The other publication authors are Gwenael Engelskirchen, sustainable supply chain analyst for UC SAREP; and Katie Uhl, graduate student researcher; and Alyson Mitchell, professor in UC Davis' Department of Food Science and Technology.
The COVID-19 pandemic hit farmers hard. Supply chains were disrupted and even non-traditional agritourism revenue streams such as hay mazes and on-farm events had to be canceled due to shelter-in-place mandates.
On the other hand, demand for local farm products skyrocketed, and thus many farmers and ranchers needed a quick pivot strategy and a set of new skills.
UC Sustainable Agriculture Research and Education Program (SAREP) was well-positioned to support this shift toward direct sales, pulling in trusted community partners and experienced farmers and ranchers to put together a comprehensive webinar series, “Agritourism and Direct Sales: Best Practices in COVID Times and Beyond”.
Funded by a USDA Farmers Market Promotion Program (FMPP) grant, the webinar series is part of a three-year project, Strengthening California Local Food Networks with Agritourism and Direct Sales, which provides trainings and technical assistance to farmers and ranchers on how to diversify their revenue streams.
The strength of the series, which includes eight webinars that were recorded earlier this year and are available online, lies in the collaborations among the UC SAREP Agritourism Program, UCCE, community groups, and farmers and ranchers.
The series features a range of speakers, including representatives from community organizations, technical experts, academic researchers, and farmers – all coming together to build resilience and adaptability for small-farming operations and the agritourism industry across California during the pandemic and after.
“It's great to collaborate with other organizations and regions, to learn from each other and to broaden our networks, as we are all working to create more resilient and sustainable food systems,” said Carmen Snyder, executive director of Sonoma County Farm Trails, one of the nonprofit partners on this project.
And because of those strong partnerships, the webinar topics reflected the on-the-ground needs facing agricultural producers.
“COVID initially dramatically affected farmers' restaurant contracts, with many losing more than 80% of their accounts overnight,” Snyder said. “CSAs [Community Supported Agriculture], on the other hand, couldn't keep up with the demand, and all of our CSA members were full and had wait lists for the first time ever. Producers pivoted by creating more online stores, including pick-up and delivery options. It was a challenge for them to navigate the new technology and platforms.”
The “Online Sales Options and Methods” webinar, a partnership with the Community Alliance with Family Farmers (CAFF), provided an overview of several e-commerce marketing and online sales strategies that farmers can implement to diversify their revenue pathways and reach new customers. CAFF stressed the importance of farmers enhancing their resiliency through e-commerce.
The webinar also featured Ciara Shapiro, the owner of AM Ranch in Penn Valley, who shared her experience with online marketing and how it helped her and her husband survive the pandemic when the restaurants and farmers markets they sold to shut down. This personal and informative webinar demonstrated the effectiveness of online sales and marketing, while highlighting available resources from groups like CAFF.
The “Safe, Healthy and Successful Farm Stands” webinar was aimed at farms of all sizes and organizations that operate or advise agricultural operations using farm stands as a form of revenue. The webinar provided an outline of the rules and regulations that farm stand operators needed to follow during COVID – as well as during business-as-usual times.
Both farmers saw an increase in farm stand business during the pandemic, which Yagi attributed to the “traffic storm of people” who attended their annual plant sale fundraiser and came to participate in new farm outdoor activities and volunteer opportunities. Yagi also noted the growing number of low-income individuals who were unable to access fresh produce during the pandemic.
The speakers' shared experiences running successful farm stands gave audience members tangible examples and real-time information on how to incorporate farm stands into their businesses.
Carmen Snyder of Sonoma County Farm Trails, which helped circulate the recorded webinars to their network of farmers and ranchers, remarked: “These webinars were extremely helpful for local producers, to get clarity on best pandemic practices during these challenging times and to learn how other producers are adapting and navigating the circumstances.”
In August, the Clayton Fire burned nearly 4,000 acres and 198 homes and businesses in Lake County. In 2015, the Valley, Rocky and Jerusalem fires together burned 170,623 acres and destroyed 2,078 structures. But the devastating Lake County wildfires haven't put a damper on fishing at Clear Lake, which reels in roughly $1 million to the community annually, according to a report from UC Cooperative Extension.
“The lake's economic attraction has not been negatively impacted by the fires,” said Greg Giusti, UC Cooperative Extension advisor in Lake County and author of the study. “The fish are fine and the anglers keep coming.”
Giusti's report outlines the economic value of fishing on Clear Lake, highlighting the importance of the outdoor pastime to the local economy.
Bass, crappie, catfish and bluegill thrive in Clear Lake's warm water, with its rich plant life and abundant food supply.
“People come from all over the country to fish Clear Lake,” said Giusti, who studies fisheries and freshwater ecology.
Teeming with fish, Clear Lake's reputation attracts serious anglers. Bass Master Magazine (July/August 2016) rated Clear Lake third out of the top 100 bass fishing lakes in the country and first among the nine western states.
More data need to estimate true economic value of fishing
Based on a conservative estimate of the number of anglers and multiplying by $58.16, (the U.S. Fish and Wildlife Service's estimate of an angler's average daily fishing-related expenditure), Giusti concluded Clear Lake fishing is a $1 million enterprise. He considers the true value of fishing on Clear Lake to be much higher because limited data was available to understand the full economic value.
To estimate the number of anglers, Giusti doubled the number of quagga mussel stickers sold and added the number of people registered for Clear Lake fishing tournaments. Before entering the lake, boats must pass the county's monthly quagga mussel inspection for the invasive species and receive the sticker. Giusti assumed an average of two anglers per boat, for a total of 10,156 spending $590,673 annually. Since 6,498 Lake County residents have fishing licenses, he estimated that they spend at least $377,923.68 on fishing annually.
He thinks local businesses can capitalize on fishing to bring even more revenue into the community by enticing anglers and their families to engage in other activities during their visit.
“Because access to the lake is open and free, we don't know how often anglers return to Clear Lake and for how long they stay,” Giusti said. “While they're here, folks are spending money on food, gas, tackle and maybe lodging. If they bring their families, Dad may be fishing while Mom and the kids might be at the movies.”
California Department of Fish and Wildlife collects about $57 million in fishing license sales each year. Giusti found that more than 150,000 licenses were sold in 2014 to anglers in Lake County and neighboring Mendocino, Sonoma, Colusa and Sacramento counties, which are close enough to make a day trip to Clear Lake.
Although local businesses typically gear up for summer tourists, Giusti sees marketing opportunities around fishing during the spring and fall, as the primary angling months occur before and after summer.
“Right now all the focus is on summer tourism and wine, while the most active visitor months are not recognized,” Giusti said. “Spring months are the most popular boating months. Businesses should be hanging banners downtown, putting posters in the windows welcoming anglers with specials for meals, promotional events highlighting fishing, and even sponsored fishing tournaments.”
Other California communities could also benefit by capitalizing on fishing, in Giusti's opinion.
“Freshwater fishing in California represents a $1.4 billion industry, generating 22,000 jobs and providing more than $920 million in salaries and wages,” said Giusti. “California ranks fifth in the nation based on the value of fishing economics.”
The American Sportfishing Association estimates that more than 33 million people enjoy fishing in America, and spend an average of $1,441 per year on fishing.
To download the full report, “Understanding the economic value of angling on Clear Lake – A profile of a famous lake,” visit http://ucanr.edu/sites/ClearLakeAquaticWebsite.
The vice president of UC Agriculture and Natural Resources, Glenda Humiston, was a speaker at the summit. She said UC has calculated that 1.2 million California jobs are tied to the state's natural resources - including agriculture, fishing, mining, recreation and renewable energy. Humiston predicted there will be 300,000 more jobs in this sector over the next five years.
However, the pool of workers for the jobs is diminishing because young people in Mexico and Central America, who often fill these positions, are increasingly able to find better paying, less taxing jobs elsewhere.
"There's going to be massive upheavals in the system," Humiston said.
The article noted that nearly every industry leader at the summit stressed the importance to California agriculture of the Trans-Pacific Partnership, a trade deal involving the U.S. and 11 other Pacific Rim nations.
“In the past, gift cards may not have seemed like a very thoughtful gesture,” said Patti Wooten Swanson, consumer sciences advisor with UC Cooperative Extension in San Diego County. “But today, it's what people want.”
Swanson has a Ph.D. in consumer science from Texas Women's University in Denton, Texas. She is the author of a seven-part series of financial caregiving publications and is co-chair of the UC Division of Agriculture and Natural Resources Money Talks workgroup, which created a Money Talks website that helps teenagers learn to manage their finances.
Swanson said gift cards are a particularly good deal for retailers. They get the money, and don't have to part with the merchandise until the card is redeemed, if ever. A survey by Consumer Reports found that 10 percent of gift card value typically goes unused. The magazine suggests cash or a check are great alternatives, but Swanson says she still often opts for gift cards.
“Cash can tend to be used for everyday things,” Swanson said. “If I want my dad to enjoy a meal at his favorite restaurant, I would still give a gift card.”
Swanson offers the following suggestions for ensuring successful gift card experiences:
- If you receive a gift card, use it as quickly as possible. If the retailer goes out of business, the card will have no value. Companies can charge a monthly inactivity fee if the card has not be used in 12 months. “Also, it's easy to misplace or forget about the card,” Swanson said.
- Consumers' first choice when selecting gift cards should be those offered by specific retail stores or restaurants, Swanson recommends. “Generally, there are no fees for purchasing them either at the retail outlet, online or at a gift card kiosk in the grocery store,” she said. “The card is valid for at least five years and, by law, no inactivity fees can be charged during the first 12 months.”
- Before buying the gift card, Swanson suggests looking carefully at the back to be sure that the hidden card number that is usually underneath scratch-off ink has not been exposed. “To steal the value on cards, thieves can copy down the hidden code number at the store. After the card is purchased and funded, the thief can use the code for online purchases, making the card worthless for the person who receives the gift,” she said.
- Always include the store receipt in the gift along with the card. If the gift card is lost or stolen, the recipient can call the company to see if it can be replaced.
- Only purchase gift cards from sources you know are reputable. Some websites allow consumers to buy gift cards at a discount and sell unwanted gift cards at an amount below the face value. “You want to be dealing with a known company to be sure you're getting the real thing,” Swanson said. She recommends consumers interested in discounted gift cards instead visit big box retailers like Costco or Sams Club, where packets of gift cards are available at a discount.
- Carefully read the conditions attached to bank or credit card company gift cards. They can be used almost anywhere the recipient would like to spend the funds, but most charge a fee to purchase the card and, after 12 months of inactivity, can charge a monthly fee by reducing the balance on the card.