Applied Economics Teaching Resources

an AAEA Journal

Agricultural and Applied Economics Association

Special Issue

Red Stick Farm: Planning for the Future

Maria Bampasidou(a) and Whitney R. McKinzie(a)
(a)Louisiana State University

JEL Codes: Q10, Y9
Keywords: Mission statement, new and beginning, risk analysis, strategic planning, SWOT, young

Publish Date: February 4, 2019
Volume 2, Issue 1

View Full Article (PDF) | Request Teaching Notes/Supplemental Materials

Abstract

This case explores the relation between decision making, strategic management, and risk management in a newly established farm operation. Red Stick Farm is a family-operated, small-scale, urban farm that uses intensive growing techniques to produce vegetables, microgreens, and edible flowers in the greater Baton Rouge area. The operation has been in production for three years, and the two operators are examining two mutually exclusive strategies to grow their farm. The first strategy allows them to expand their customer base by offering a community-supported agriculture (CSA) program; the second strategy allows them to increase production capacity by acquiring more land. The case challenges students to assess the current situation of the farm and future direction following strategic business planning practices. The study highlights the importance of defining and developing an operation’s mission statement, exploring growth strategies, assessing the internal strengths of the operation and external threats to the operation, and identifying respective risks. In addition, the examples illustrated through this case study will assist new and beginning farmers who are interested in urban farming practices as they monitor, identify, and manage risk on their farms.

About the Author(s): Maria Bampasidou is an Assistant Professor in the Department of Agricultural Economics and Agribusiness at Louisiana State University (Corresponding Author: mbampasidou@agcenter.lsu.edu). Whitney R. McKinzie is a Graduate Student in the Department of Agricultural Economics and Agribusiness at Louisiana State University. Acknowledgement: We would like to acknowledge Carl Motsenbocker, Allison Guidroz, and Jerrod Penn for providing comments on an earlier draft of the case study. Also, we thank the students of the AGEC 4403 Agricultural Finance class in Fall 2019 for their feedback while testing the case study

Copyright is governed under Creative Commons CC BY-NC-SA

References

Bailkey, M., and J. Nasr. 1999. “From Brownfields to Greenfields: Producing Food in North American Cities.” Community Food Security News Fall/Winter, p. 6.

Bond, J.K., D. Thilmany, and C. Bond. 2009. “What Influences Consumer Choice of Fresh Produce Purchase Location.” Journal of Agricultural and Applied Economics 41(1):61–74.

Cochran, D.S. F.R. David, and C. Kendrick Gibson. 2008. “A Framework for Developing an Effective Mission Statement.” Journal of Business Strategies 25(2): 27-39

Coit, M. 2008. “Jumping on the Next Bandwagon: An Overview of the Policy and Legal Aspects of the Local Food Movement.” Journal of Food Law & Policy 4:45.

Curtis, K. 2014. “Characterizing the Face Value of the ‘Buy Local’ Movement.” Utah State University Extension. https://digitalcommons.usu.edu/extension_curall/627

Detre, J.D., T.B. Mark, and B.M. Clark. 2010. “Understanding Why College-Educated Millennials Shop at Farmers Markets: An Analysis of Students at Louisiana State University.” Journal of Food Distribution Research 41.856-2016-58093:14–24.

Ernst, M., and T. Woods. 2009. “Community Supported Agriculture (CSA).” New Crop Opportunity Center Marketing Bulletin, University of Kentucky, August. http://www.uky.edu/Ag/NewCrops/csareport.pdf

Gelski, J. 2019. “U.S. Annual Organic Food Sales Near $48 Billion.” Food Business News. https://www.foodbusinessnews.net/articles/13805-us-organic-food-sales-near-48-billion

Goldstein, M., J. Bellis, S. Morse, A. Myers, and E. Ura. 2011. “Urban Agriculture: A Sixteen City Survey of Urban Agriculture Practices Across the Country.” https://www.planning.org/knowledgebase/resource/9136133/

Goodman, W., and J. Minner. 2019. “Will the Urban Agricultural Revolution Be Vertical and Soilless? A Case Study of Controlled Environment Agriculture in New York City.” Land Use Policy 83:160–173. https://doi.org/10.1016/j.landusepol.2018.12.038

Greene, C., G. Ferreira, A. Carlson, B. Cooke, and C. Hitaj. 2017. “Growing Organic Produce Provides High-Value Opportunities for Many Types of Producers.” U.S. Department of Agriculture, Economic Research Service. https://www.ers.usda.gov/amber-waves/2017/januaryfebruary/growing-organic-demand-provides-high-valueopportunities-for-many-types-of-producers/

Gumirakiza, J.D., K. Curtis, and R. Bosworth. 2014. “Who Attends Farmer’s Markets and Why? Understanding Consumers and Their Motivations.” International Food and Agribusiness Management Review 17(2):65–82.

Hahlberg, N., H.F. Alroe, M.T. Knudsen, and E.S. Kristensen, eds. 2006. Global Development of Organic Agriculture: Challenges and Prospects. Oxfordshire: CABI Publishing.

Hendrickson, M.K., and M. Porth. 2012. “Urban Agriculture—Best Practices and Possibilities.” University of Missouri Extension. http://extension.missouri.edu/foodsystems/documents/urbanagreport_072012.pdf

Hill, H. 2008. “Food Miles: Background and Marketing.” ATTRA, 1–12.

Hodgson, K. 2012. “Planning for Food Access and Community-Based Food Systems.” American Planning Association. https://planning-org-uploadedmedia.s3.amazonaws.com/legacy_resources/research/foodaccess/pdf/foodaccessreport.pdf.

Hughner, R.S., P. McDonagh, A. Prothero, C.J. Schultz II, and J. Stanton. 2007. “Who Are Organic Food Consumers? A Compilation and Review of Why People Purchase Organic Food.” Journal of Consumer Behaviour: An International Research Review 6.2–3:94–110. Jarosz, L. 2011. “Nourishing Women: Toward a Feminist Political Ecology of Community Supported Agriculture in the United States.” Gender, Place & Culture 18(3):307–326.

Koski, H. 2012. “Guide to Urban Farming in New York State.” Cornell Small Farms Programs. https://smallfarms.cornell.edu/wpcontent/uploads/2012/03/GuidetoUrbanFarminginNYS_160524-2-zninvt196uuxg.pdf

Li, J., L. Zepeda, and B.W. Gould. 2007. “The Demand for Organic Food in the US: An Empirical Assessment.” Journal of Food Distribution Research 38(3):54–69.

Lyon, P., V. Collie, E. Kvarnbrink, and A. Colquhoun. 2009. “Shopping at the Farmer’s Market: Consumers and Their Perspectives.” Journal of Food Service 20(1):21–30.

Martinez, S., M. Hand, M. Da Pra, S. Pollack, K. Ralston, T. Smith, S. Vogel, S. Clark, L. Lohr, S. Low, and C. Newman. 2010. Local Food Systems: Concepts, Impacts, and Issues. ERR 97, U.S. Department of Agriculture, Economic Research Service.

Maughan, T., D. Drost, B. Black, and S. Day. 2017. “Using Shade for Fruit and Vegetable Production.” Utah State University Extension. https://digitalcommons.usu.edu/cgi/viewcontent.cgi?article=2673&context=extension_curall

McLean, T. 2018. “The Urban Agriculture Trend Continues in 2017.” MSU Extension. www.canr.msu.edu/news/the_urban_agriculture_trend_continues_in_2017. Mougeot, L.J. 2000. Urban Agriculture: Definition, Presence, Potentials and Risks, and Policy Challenges. Ottawa: International Development Research Centre. Cities Feeding People Series: Report 31.

Office of the Law Revision Counsel—United Sates Code. 1990. “Title 7—Agriculture: Organic Certification.” https://uscode.house.gov/view.xhtml?path=/prelim@title7/chapter94&edition=prelim

Partnership for Sustainable Communities. 2011. “Urban Farm Business Handbook.” https://www.epa.gov/sites/production/files/2015-10/documents/1.urban_farm_business_plan_handbook_091511_508.pdf

Papaoikonomou, E., and M. Ginieis. 2017. “Putting the Farmer’s Face on Food: Governance and the Producer–Consumer Relationship in Local Food Systems.” Agriculture and Human Values 34(1):53–67.

Pritchard, F. and E. Polishuck. 2018. Start Your Farm: The Authoritative Guide to Becoming a Sustainable 21st Century Farmer. New York, NY: The Experiment.

Rogus, S., and C. Dimitri. 2014. “Agriculture in Urban and Peri-Urban Areas in the United States: Highlights from the Census of Agriculture.” Renewable Agriculture and Food Systems 30:64–78.

Samoggia, A., C. Perazzolo, P. Kocsis, and M. Del Prete. 2019. “Community Supported Agriculture Farmers’ Perceptions of Management Benefits and Drawbacks.” Sustainability 11(12):3262.

Schindler, S.B. 2014. “Unpermitted Urban Agriculture: Transgressive Actions, Changing Norms, and the Local Food Movement.” Wisconsin Law Review, 369.

Seufert, V., N. Ramankutty, and J.A. Foley. 2012. “Comparing the Yields of Organic and Conventional Agriculture.” Nature 485(7397):229.

Specht, K., R. Siebert, I. Hartmann, U.B. Freisinger, M. Sawicka, A. Werner, ... and A. Dierich. 2014. “Urban Agriculture of the Future: An Overview of Sustainability Aspects of Food Production in and on Buildings.” Agriculture and Human Values 31(1):33–51.

Starr, A. 2010. “Local Food: A Social Movement?” Cultural Studies? Critical Methodologies 10.6:479–490.

U.S. Department of Agriculture. “Urban Agriculture Toolkit.” Feb. 2016. https://www.usda.gov/sites/default/files/documents/urban-agriculture-toolkit.pdf

U.S. Department of Agriculture, National Agricultural Statistics Service (USDA-NASS). 2019. “2017 Census of Agriculture— United States.” April. www.nass.usda.gov/Publications/AgCensus/2017/Full_Report/Volume_1,_Chapter_1_US/usv1.pdf

Volz, P., P. Weckenbrock, N. Cressot, and J. Parot. 2016. Overview of Community Supported Agriculture in Europe. Aubagne, France: European CSA Research Group.

Woods, T., M. Ernst, and D. Tropp. 2017. Community Supported Agriculture—New Models for Changing Markets. Washington DC: U.S. Department of Agriculture, Agricultural Marketing Service.

Zepeda, L., and J. Li. 2006. “Who Buys Local Food?” Journal of Food Distribution Research 37(856-2016-56238):1–11.