Grain Production Trends in Southeastern Michigan Initial Findings from FSEP Grain Survey: 2006

The FSEP Survey Purpose of Survey:  Gather information on demographics, marketing, and production practices  Investigate relationship between producers current practices and what practices they may desire to employ  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 50 surveys distributed in Wayne 75 surveys distributed in Lenawee, Monroe, Jackson, and Washtenaw

Summary Stats Mailed to 361 farmers 70 responses 67 conventional farmers, 3 organic Zip codes used to categorize respondents by geographic region

Survey Questions Current crops grown-generally corn, soy, & wheat Size of farm-measured in acres Productivity of crops-measured in bushels/acre

Percentage of Acres in Corn, Soy, & Wheat

Calculated Average Yields

Survey Questions con’t… In general Grain production was profitable over the last four years (~65% or more). Roughly, 15-20% of corn and soy farmers broke even on their crops. Wheat farmers reported that 25% broke even. Not Profitable: 6% of soy, 7% of wheat, 12% of corn.

How are producers selling grain today?

What crops do farmers want to produce? What is the preferred method of sales?

What are the factors that limit the production of other grains? Farmers given 15 limiting factors from which to choose Top three answers across the counties were:  Cost of production inputs  Lack of near-by facilities for delivering harvested grain  Lack of on-farm handling facilities for harvested grain

Expected changes in grain production Strongly believe that federal subsidies are going to be reduced for grain farmers 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

Organics Farmers do acknowledge that there is a consumer demand for organics Top three reasons given for factors that limit their personal involvement in organic grain production are management of weeds, insects, and disease. This may exhibit an opportunity for education on organic management

Interest in expanded regional processing of grain for the following products

Summary Selling directly to processors and consumers. Near-by facilities for delivering grain. On-farm handling facilities. Businesses that will increase conversion of grains to consumer goods. On-farm grain processing for goods more marketable directly to consumers. Expand education concerning organic management. Wide variety of products that farmers are interested in producing.

Next Steps Run regression analysis between variables and statistical tests for significance on specific questions Conduct follow up interviews or focus groups with producers

Questions?