FARM Assistance Update

Howdy from FARM Assistance

Summertime is typically a busy traveling time for the FARM Assistance team as we attend conferences and annual planning sessions throughout the state and the nation. Our team members met with the entire Agricultural Economic extension group in San Antonio in June and then spent a few days in Bandera with just the FARM Assistance team. These meetings are great opportunities to brainstorm, discuss problems and issues, and learn about new subject matter. In late July, Steven presented FARM Assistance research at the annual American Agricultural Economics Association/Western Agricultural Economics Association meeting held in Portland, Oregon. Topics included farm level preferences for reduced farm bill spending and income driven land values. Highlights of the FARM Assistance program were also shared at the National Farm Management Conference in Rochester, MN. These professional association meetings provide our team a chance to showcase our program utilizing the valuable farm and ranch data we collect from working with each of you. There have been a few additions to FARM Assistance team since our last newsletter. Patrick Warminski joined our team in March and is now located in our Amarillo office.Patrick graduated from West Texas A&M University with his masters inAgricultural Business and Economics and received his bachelor’s degree from Texas Tech University in Agricultural Economics. He is originally from White Deer, TX where he grew up working on the family farm. We would also like to congratulate both Greg and Amy Kaase and Wade and Tamara Polk for the birth of their new girls – Layni Kate Kaase and Presley Reagan Polk. We hope you have a great fall and winter season, and we always look forward to the next opportunity to work with you.

Publications

Four publications were added to the Focus Series collection this spring. The first two publications deal with drought recovery and management strategies on South Texas Ranches while the second two issues study the financial implications of different irrigation techniques for cotton in the Lower Rio Grande Valley. While the drought beginning in November 2005 is be over for most parts of Texas, it is always important to pro actively manage for future drought conditions. In the first study, Greg Kaase, et.al., studied two scenarios commonly utilized during drought situations; (1) purchasing feed to keep herd-size numbers the same and (2) selling cows to reduce herd size on a hypothetical commercial cow-calf ranching business in South Texas. In Long Term Financial Impacts of Drought Management Strategies (2007-1), the results do not indicate a “one-size-fits-all” solution to long-term drought situations. Current financial position and future needs are critical to each operations answer to drought management. In the second Focus publication, Drought Recovery in South Texas Ranches (2007-2), Mac Young and others estimate the impact of one more year of drought versus drought recovery in 2007 on a hypothetical cow-calf ranch in South Texas. The projected results clearly identify the potential damage to long-term profitabilityand financial condition of a ranch in South Texas. The third and fourth Focus series publications relate to the ongoing water demonstration project conducted in cooperation with the Harlingen Water District and the Texas Water Development Board. Both studies attempt to examine the impacts of different water method techniques on cotton. Surge Irrigation Illustration for Cotton in the Lower Rio Grande Valley (2007-3), examines three different demonstration sites with varying acres, yield and management techniques. The results indicate profitable use of surge valve technology in irrigated cotton production. Focus 2007-4 examines the financial impacts of different water methods one step further. In the paper, Impact of Volumetric Water Pricing for Cotton Comparing Furrow vs. Drip Irrigation in the Lower Rio Grande Valley, the results indicate no economic incentive to switch to new drip technology as the cost of the drip system more than offsets the potential water cost savings at both low and high water prices.

Events Around the State

4-H Farm and Ranch Management Contest
In addition to the normal FARM Assistance activities, we also sponsor the Farm And Ranch Management Contest during the 4-H State Roundup which is held in College Station every June. Thirteen teams presented topics that could impact (hopefully improve) a producer’s management and profits. A number of these young adults are already prepared for college freshman level agricultural economics classes with a firm grasp of concepts such as opportunity costs, sunk costs, and partial budgeting. Superintendent Steven Klose organized the event with quite a bit of help from Candice Foster and Judges Dean McCorkle, Greg Kaase, and Berry Summerour. Thanks also to the Stiles Farm Foundation for providing $500 in prize money for the top 3 teams. Third place went to Karla Glass and Eric Schwertner from Runnels County with a presentation on genetically modified cotton. In second place from Donely County was Paul Goetze discussing competitive advantage and global demand in the hard white wheat market. And the winners were Jarrett Howard and Clay Stanford from Nolan County with a presentation on the potential benefits of harvesting wind energy.

Panhandle Events

Quickbooks Training
August 23-24 in Amarillo
August 28-29 in Lubbock
Course fee is $75 per computer
Limited seating, contact either Jay or DeDe if you are interested in signing up for the class or for more information

Playa Lakes Symposium
October 23-24 in Amarillo
South Plains Cotton Update hosted by Jay Yates
Every Thursday at 1:45 on Ag Talk on FoxTalk AM950 & Fox Accuweather channel 32 in Lubbock or tceblogs.tamu.edu/mt/spcu/

Planning the Return to the Farm/Ranch

One of the most difficult strategic decisions a family operation will make is whether or not a son or daughter will return to work on the farm or ranch. If you are, or will be, facing this decision, consider this program early next year. The FARM Assistance group is helping plan and deliver the “Planning the Return to the Farm/Ranch” program. The objective of the “Planning the Return to the Farm/ Ranch Program” is to discuss the issues and alternatives that need to be considered and resolved before finalizing the commitment. It is essential for the son or daughter (along with their significant other) and their parents to attend this seminar. Planning for the future is key for a successful business and this program will benefit a family whose child is planning to return to the farm or ranch within one to two years. There are many challenges a business face including financial problems and failure. Families and their businesses have been torn apart or ended up in legal battles over issues that could have been avoided with the use of better planning and communication. The use of appropriate agreements and business arrangements will also help to overcome these challenges.

In addition to these topics, this seminar will also address:

Improving awareness of the issues that need to be addressed initially as well as problems that often arise later on. Most issues could be avoided if they are addressed in a proactive fashion.

The benefit of looking at your situation from multiple perspectives and learning about alternative approaches that have been used successfully by other family farms/ranches.

Improving communication and understanding among the parties involved.

The result should be fewer relationship and financial problems. Planning the Return to Farm/Ranch conference will be held January January 18- 19 and February 22-23, 2008 at Radisson Fossil Creek in Fort Worth, Texas. For more information visit rttf.tamu.edu or contact the College Station FARM Assistance office at 979-845-1138.

Web Interaction

Tired of cumbersome snail-mail? FARM Assistance has made it even easier to receive new reports and other publications. Let us know if you would like to be added to our listserv by emailing us at farmassistance@tamu.edu with your first name, last name, and email address. As we finish new reports and publications we will notify you via email of their availability on our website. Signing up for this listserv will eliminate any reports or newsletters being sent to you by snail-mail.

Of course you can always visit our website at any time. We can be found at farmassistance.tamu.edu

Staff

Steven Klose
Co-Coordinator of the FARM Assistance program
Year joined: 1997
Office: College Station
Education:Texas A&M University
B.S., M.S., & Ph.D. Agricultural Economics

Joe Outlaw
Co-Director of Agricultural and Food Policy Center
Co-Coordinator of the FARM Assistance program
Year joined: 1997
Office: College Station
Education: Texas A&M University
B.S., M.S., & Ph.D. Agricultural Economics

DeDe Jones
Year joined: 2000
Office: Amarillo
Education: Texas Tech University
B.S. Agricultural Economics, M.B.A.

Jay Yates
Year joined: 2002
Office: Lubbock
Education: Tarleton State University B.S.Agricultural Economics
Texas A&M University
M.S. Agricultural Economics

Jeff Pate
Year joined: 2005
Office: Lubbock
Education: Texas A&M University
B.S. & M.Ed. Agricultural Education

Wade Polk
Year joined: 2000
Office: San Angelo
Education: Texas Tech University
B.S. & M.S. Agricultural Economics

Mac Young
Year joined: 2005
Office: Corpus Christi
Education: Texas Tech University
B.S. & M.S. Agricultural Economics

Greg Kaase
Year joined: 1999
Office: College Station
Education: Texas A&M University
B.S. Animal Science
M.Ed. & Ph.D. Agricultural Education

Jason Morris
Year joined: 2005
Office: College Station
Education: Texas A&M University
B.S. Agricultural Economics
M.S. Land Economics & Real Estate

Melissa Jupe
Year joined: 2006
Office: College Station
Education: Texas A&M University
B.S. Agricultural Development
Master of Agribusiness

 

Natalie Outlaw
Year joined: 1999
Office: College Station
Education: Texas A&M University
B.S. Business Administration –
Management Information Systems