Chyi-lyi Liang, University of Vermont, cliang@uvm.edu
Jason P. Brown, USDA Economic Research Service, jbrown@ers.usda.gov
Mary Ahearn, USDA Economic Research Service, mahearn@ers.usda.gov
Stephan Goetz, Penn State Univ. and NERCRD, sgoetz@psu.edu
Small-and medium-sized farmers in the United States diversify their income portfolio by engaging in multifunctional operations such as agri-tourism, value-added production, direct sales, and off-farm jobs. Significant evidence exists to support the argument that multifunctional activities may improve long term farm profitability and economic opportunities for rural communities. However there is lack of systematic research that examines the distribution of multifunctional operationsin the U.S., and analyzesits impacts on farm families and rural communities. A research project was initiated in July 2011 to gather information from New England (Vermont, New Hampshire, Rhode Island, Maine, Connecticut, and Massachusetts) farmers regarding (1) categories of multifunctional farm operations, (2) famers’ profiles and financial data with respect to multifunctionality activities, (3) reasons for participation, challenges to implementation, and expectations associated with these activities, and (4) economic impacts of multifunctional farming on income, employment, and prosperity at the farm level and regional level.
Individual farm’s information is collected at two phases. A post card screening survey was designed and mailed to 33,112New England farmers (Ag Census data) in the winter of 2011. The response rate of the screening survey ranged between 10% and 19% in different states. Over 80% of the respondents reported earning off farm income, followed by direct sales, value added production, and agri-tourism. Agri-tourism appeared to have grownthe most when comparing the survey responses to the 2007 Agricultural Census information. A follow-up detailed farm survey is in progress. A consumer survey will be designed and implemented in 2012 and 2013 to gather information about purchasing patterns, preferences, decisions, and willingness to pay for local/regional farm products and services.
To conduct the impact analysis beyond the individual farm level, a regional econometric analysis will be used to better understand how county-level farm viability is impacted by the prevalence of multifunctional activity and county farm and agricultural structure, more broadly. Multifunctional activities are measured from information taken from the 2002 and 2007 Census of Agriculture. Beyond understanding profile and demographics of the multifunctional farms in New England, we examine the value and share of farmers’ direct sales to consumers, agri-tourism and recreation, participation in production contracts, custom harvesting, and off-farm labor participation of farm operators. Multifunctional activities are expected to positively impact farm viability and potentially regional economic development. Results will be compared across regions in the U.S. since impacts are expected to vary across regions (i.e., New England versus Midwest) due to differences in prevailing types of agricultural production and consumer preferences. As an example, local foods production is more abundant in the New England region relative to some parts of the country. The findings of the regional analysis will provide an indication of the importance of multifunctional activities in New England agricultural and compliment the producer and consumer surveys undertaken.