Digest

Farm Size, Commodity Mix and Operator Motivation
Impact Use of Conservation Practices

The results of a study conducted by the Economic Research Service on who participates in conservation-compatible practices and programs suggests that farm size, commodity mix and operator motivation are all associated with decisions to use various types of conservation practices, but in different ways. The study looked at conservation-compatible management practices, structural and vegetative conservation practices, working-land conservation programs, and land retirement programs.

Because working-land and land retirement programs appeal to different types of farmers, both approaches may be needed to address the conservation needs of a diverse agricultural sector. Also, program incentives that assume all farmers aim to maximize farm profits may not be as effective or efficient as flexible incentive structures that can accommodate other farm operator goals, such as timesaving and ease of use. Finally, policies other than direct subsidies can provide substantial environmental benefits. For example, conservation-compliance regulations, technical assistance, and research to improve standard farming practices (such as crop rotation) can all provide conservation payoffs.

Excerpted from the Conservation-Compatible Practices and Programs: Who Participates? report summary. Find the full report at http://www.ers.usda.gov/Publications/err14/.

E-Commerce: Reviving the Downtown Marketplace

Merchants in Manitowoc, Wisconsin, say that beyond the revenue from online sales, the biggest benefit of e-commerce is that it enables them to turn over their inventory much more quickly, so owners can add more products and variety to their sales floors. That, in turn, encourages more interest and customer traffic, diversifies the revenue stream, and contributes to downtown street life there and in other small cities. By expanding business onto the Internet, smaller businesses can retain profitability through increasing revenues beyond face-to-face sales and can play a role in reviving the downtown marketplace.

E-commerce requires a business to change its infrastructure in four ways:

1. Understanding the computer hardware and e-commerce software, and managing vendors, servers and consultants.
2. Applying the technology to sales and marketing by designing the Web site’s back-end ordering platforms for customers, while making the front-end digital showplace clear, attractive, informative and navigable.
3. Hiring a consultant or training staff members or doing both to manage the site.
4. Developing the capacity to quickly fill and ship orders, respond to returns and replace inventory, most of which can also be done on the Internet.

Excerpted from the March 2006 issue of Let’s Talk Business, published by University of Wisconsin-Extension. Find the full article at http://www.uwex.edu/ces/cced/publicat/letstalk.html.

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Last updated May 12, 2006 .