Category: Specialty Topics

Carbon markets are increasingly viewed as a way to combat climate change and supplement farm and forest landowner income. However, carbon markets differ from most other product markets in meaningful ways. First, buyers in carbon markets will generally be unable to determine product quality, as measured in terms of actual reductions in carbon emissions or increases in sequestration. When buyers in other markets cannot readily observe product quality, they often rely on third parties to provide that information. Governments sometimes play the role of information providers when the quality under consideration has wider social benefits. Examples include automobile fuel efficiency and household appliance energy efficiency.

Carbon markets also differ from other markets in that both buyers and sellers in carbon markets have an incentive to overstate quality, i.e., the amount of reduction or sequestration that occurs. In voluntary markets, buyers participate to generate goodwill amongst consumers, investors, and policymakers. In regulatory markets, buyers participate to satisfy a regulatory requirement. Thus, buyers are motivated – not by actual emissions reduction or sequestration – but by the “credit” they receive from governmental regulators or the public. 

Because of these differences, regulators and the public will be unlikely to extend this credit without third-party monitoring and verification. However, thorough but burdensome monitoring and verification will increase transaction costs and discourage market participation. On the other hand, lax monitoring and verification will erode trust in the market. Balancing these two will be critical for market success. Similarly, successful participation by landowners will require balancing potential revenue gains against the implementation, opportunity, and transaction costs of participation.

Clark, Christopher D. . “Carbon Markets Are Not Like Other Markets“. Southern Ag Today 2(6.5). February 4, 2022. Permalink

Southern oysters are an important food source with a rich cultural and culinary history. Because of this, it is not surprising that southern consumers tend to eat more oysters than those in other parts of the US. And, with wild oyster harvests diminishing, the south is experiencing a dramatic rise in oyster aquaculture farms. However, unlike most seafood products, farmed oysters cost more than wild harvested oysters. This places the marketing burden on oyster producers to differentiate their farm-raised products to justify higher prices. 

To help oyster marketing efforts, several southern land grant universities have researched oyster consumers to determine key marketable oyster traits. Clemson University researchers have also completed an oyster consumer preference study, with results forthcoming. In addition to oyster consumer preferences, Clemson research also discovered two key findings about consumer perception of oyster farming: more than half of consumers (58%) did not know that most oysters are farm-raised (worldwide), and almost half (45.6%) were unsure whether farmed oysters are good or bad for the environment.

This finding represents a golden marketing opportunity for oyster farmers to educate the public on the importance of supplementing wild harvests and the environmental benefits of oyster farming. Rather than try and manage public perception after the fact, oyster producers can get in front of the news and manage a positive narrative about oyster farming. Because of the appeal to the general public, this message may be easily amplified through public-service-announcements (free) sources such as the local media, land grant universities and cooperative extension, Sea Grant, and Farm Bureau. Local and state restaurant associations and chambers of commerce may also be prime audiences, as they can communicate this message to their members.

It is also important to collaborate with other southern oyster producers to strengthen communication and marketing efforts. An excellent example of this sort of collaboration is Oyster South, whose annual symposium will be held February 3-5, 2022, in Biloxi, Mississippi. For more information on the symposium, please visit www.oystersouth.com. For more information on the findings of Clemson’s oyster consumer preference survey, please contact the author directly.

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Richards, Steve. “Promoting the Importance of Southern Farm Raised Oysters.” Southern Ag Today 2(5.5). January 28, 2022. Permalink

According to the U.S. Census Bureau’s American Community Survey (2019), military veterans are disproportionately likely to live in rural areas, where they comprise 8.8% of the population compared to only 6.4% in urban areas. These veterans are disproportionately likely to be entrepreneurs. While 6.9% of the general population identifies as a military veteran, over 10% of entrepreneurs identify as military veterans. According to the Annual Business Survey (2019), veteran-owned firms make up about 5.9% of all businesses with 3.9 million employees and $177.7 billion in annual payroll. Of these 331,151 veteran-owned firms, 8.96% (29,671) are in retail trade.

How does shopping at small, veteran-owned retail trade firms benefit the local economy?  First, in the last Community Development article, Dr. Rebekka Dudensing highlighted the value of shopping local, with every $1 spent at a small business generating $1.17 in the local economy. Second, research shows that locally oriented (rural) retail establishments are associated with other pieces of a vibrant local economy, such as small manufacturing establishments, civic associations, places to gather (“third places”), social capital, and civic engagement.

Nationally, we find from the 2020 Annual Business Survey that 81% of veteran-owned retail trade firms employ between 1 and 19 employees. These veteran-owned firms also have a higher per-employee income, putting your dollars back into local households.

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Carpenter, Craig, and Michael Lotspeich-Yadao. “Local Vetrepreneurs Contribute to Rural Communities.” Southern Ag Today 2(4.5). January 21, 2022. Permalink

 

The COVID-19 pandemic drastically changed the retail environment. Due to safety concerns, lockdowns, social distancing protocols, and other actions to minimize disease spread, consumers shifted from buying plants through traditional brick and mortar stores to online and curbside pickup options. Online plant purchases increased the most for mass merchandisers and box stores. Conversely, curbside pick-up increased the most for independent garden centers, followed by box stores. Customers who increased their online plant purchases were less likely to revert to their pre-pandemic buying behaviors after the pandemic while curbside pick-up customers were more likely to revert to their pre-pandemic buying behaviors. Several factors likely contributed to these results. First, online plant sales provide several benefits including increased convenience and accessibility, especially for consumers who do not live near the retail outlet. Additionally, as customers gained experience with online plant shopping, their confidence in receiving a high-quality product likely increased. As a result, e-commerce may be an attractive sales option for some firms, especially if they saw a strong increase during the pandemic. Secondly, curbside pick-up shoppers likely live near the retail store, so accessibility is not an issue. These individuals may also value the plant shopping experience meaning they perceive the retail environment positively and want to be physically present to shop for plants. 

Rihn, Alicia. “The COVID Effect and Southeast Consumers’ Plant Purchasing Behavior“. Southern Ag Today 2(2.5). January 7, 2022. Permalink