Grain Production Trends in Southeastern Michigan Initial Findings from FSEP Grain Survey: 2006 Presenters: Karl Buck and Ann Vail.

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Presentation transcript:

Grain Production Trends in Southeastern Michigan Initial Findings from FSEP Grain Survey: 2006 Presenters: Karl Buck and Ann Vail

The FSEP Survey Purpose of Survey: Purpose of Survey: Gather information on demographics, marketing, and production practices Gather information on demographics, marketing, and production practices Examine relationship between producers actual and desired practices Examine relationship between producers actual and desired practices Investigate barriers to alternative grain production Investigate barriers to alternative grain production Determine where opportunities exist for the implementation of new businesses or products Determine where opportunities exist for the implementation of new businesses or products

Methods of Distribution: Distributed through Michigan Farm Bureau and Organic Growers of Michigan Distributed through Michigan Farm Bureau and Organic Growers of Michigan Approximately 75 surveys each distributed in Lenawee, Monroe, Jackson, and Washtenaw Counties Approximately 75 surveys each distributed in Lenawee, Monroe, Jackson, and Washtenaw Counties

Summary Stats: Mailed to 361 farmers Mailed to 361 farmers Zip codes used to categorize respondents by geographic region Zip codes used to categorize respondents by geographic region Grouped into counties Grouped into counties 72 responses (9 from Jackson, 14 from Monroe, 26 from Lenawee, 17 from Washtenaw, 6 no answer) 72 responses (9 from Jackson, 14 from Monroe, 26 from Lenawee, 17 from Washtenaw, 6 no answer)

Survey Questions Primary crops: corn, soybeans, wheat. Primary crops: corn, soybeans, wheat. Some oats Some oats Over 96% of respondents used conventional methods; 4% followed organic practices. Over 96% of respondents used conventional methods; 4% followed organic practices. About 68% of grain farmers reported profits in the last five years; 22% reported that they broke even; 10% ran a deficit. About 68% of grain farmers reported profits in the last five years; 22% reported that they broke even; 10% ran a deficit.

Farm Size: Average farm size for all counties: 645 acres Average farm size for all counties: 645 acres Range from 24 to 5,200 acres Range from 24 to 5,200 acres Jackson County average farm size: 332 acres Jackson County average farm size: 332 acres Monroe County average farm size: 822 acres Monroe County average farm size: 822 acres Lenawee County average farm size: 794 acres Lenawee County average farm size: 794 acres Washtenaw County average farm size: 472 acres Washtenaw County average farm size: 472 acres

Average Acres of Crops by County:

Percentage of Acres in Corn, Soybeans, & Wheat

Calculated Average Yields

What are current method of conducting grain sales?

How are producers selling grain today?

Actual Methods Currently over 74% sell market through a grain elevator Currently over 74% sell market through a grain elevator Less than 10% reported selling grain directly to a processor Less than 10% reported selling grain directly to a processor Less than 3% reported selling grain directly to a consumer Less than 3% reported selling grain directly to a consumer

What grains do farmers wish to grow in an “ideal market”? What are the preferred methods of movement?

Desired crops and preferred method of sales

Statistical Analysis: Potential for Direct to Processor (DtP) Over half of farmers using elevator method would prefer not to. A significant amount of farmers want to use DtP as their primary method of movement: 51% corn farmers want to use DtP 51% corn farmers want to use DtP 37% soybean farmers want to use DtP 37% soybean farmers want to use DtP 32% wheat farmers want to use DtP 32% wheat farmers want to use DtP

What are the primary factors limiting alternative grain production? Over 10% reported a desire to grow grains other than corn, soybeans, and wheat. Over 10% reported a desire to grow grains other than corn, soybeans, and wheat. Most noted alternatives were oats, spelt, barley, and canola. Most noted alternatives were oats, spelt, barley, and canola. Top three barriers to alternative grain production: Top three barriers to alternative grain production: Cost of production inputs Cost of production inputs Lack of near-by facilities for delivering harvested grain Lack of near-by facilities for delivering harvested grain Recent price trends for other grains Recent price trends for other grains

Primary factors limiting organic production Farmers do acknowledge that there is a consumer demand for organics Farmers do acknowledge that there is a consumer demand for organics Top three barriers: Top three barriers: Weed mitigation Weed mitigation Insect management Insect management Disease control Disease control This may exhibit an opportunity for education around organic management This may exhibit an opportunity for education around organic management

Expected changes in grain production Farmers very strongly believe that federal subsidies will be reduced Farmers very strongly believe that federal subsidies will be reduced Strongly believe that new businesses will develop in SE MI to increase conversion of grains to consumer goods Strongly believe that new businesses will develop in SE MI to increase conversion of grains to consumer goods Fairly strong anticipation for an increase of on- farm grain processing for goods more marketable directly to consumers Fairly strong anticipation for an increase of on- farm grain processing for goods more marketable directly to consumers

Opportunities for Grain Processing and Production When asked to rate interest in potential grain based products, farmers rated all 17 options highly When asked to rate interest in potential grain based products, farmers rated all 17 options highly 6 food based options, 11 non-food based options 6 food based options, 11 non-food based options Farmers favored the following: Farmers favored the following: Fuels for home heating, engines, and industrial processes Fuels for home heating, engines, and industrial processes Cooking oils and industrial lubricants Cooking oils and industrial lubricants Livestock feed Livestock feed Food based interests included bread products and flours Food based interests included bread products and flours

Interest in expanded regional processing of grain for the following products

Economic Opportunity in Grain Processing in Southeast Michigan Increase direct marketing for local grain. Increase direct marketing for local grain. Develop local facilities for delivering grain. Develop local facilities for delivering grain. Develop new on-farm handling facilities. Develop new on-farm handling facilities. Develop on-farm grain processing for goods markeed directly to consumers. Develop on-farm grain processing for goods markeed directly to consumers. Promote increase in organic production through education about organic management practices Promote increase in organic production through education about organic management practices Develop wide variety of products Develop wide variety of products

Next Steps: Complete grain processing report incorporating the results from other summer FSEP surveying data (from consumers, retailers, processors, distributors). Complete grain processing report incorporating the results from other summer FSEP surveying data (from consumers, retailers, processors, distributors).

Questions?