Is Alternative Agriculture a Viable Rural Development Strategy?

Abstract

Alternative agriculture is promoted as a means of enhancing rural area jobs and income. This nontraditional agricultural activity is defined as: new crops or products to an area, industrial uses of agricultural products, value‐enhancement activities, and urban agricultural activities. The potential for new agriculturally‐related activities is summarized. The long‐term rural economic and development potential, through new income and jobs, is assessed. Next, five case studies are provided to illustrate alternative agriculture successes, limited successes, and failures (Guayule, Jojoba, Muscadine grapes, market windows for fresh fruit and vegetables, and aquaculture). We conclude that alternative agriculture may be viable in select rural areas. However, total employment generation potential is too small and diffused to provide significant rural development impacts.

Can Health Care Services Attract Retirees And Contribute to the Economic Sustainability of Rural Places?

“…1 Robinson, Lyson, and Christy (2002) argue that globalization increases the difficulty of creating an economically viable rural community based on traditional agriculture and markets. Barkley and Wilson (1992) examine alternative agriculture (including value added) as an engine of rural economic growth, but find that the possibilities for income and employment generation are limited. Kim, Marcouiller, and Deller (2005) emphasize that many of the resources that provide the basis for extractive industries also serve as rural ameniJames Oehmke and Satoshi Tsukamoto are Professor and Ph.D. Student in the Department of Agricultural Economics at Michigan State University in East Lansing, Michigan.…”

Business Orientation among Poor Dry Zone Farmers in Sri Lanka

“…(a)adapting a new technology (innovation) to gain cost advantage (b)become more efficient by decreasing the input use to increase profit and thus to gain competitive advantage over others (c)relatively efficient use of resources in production to gain comparative advantage over others and become competitive by providing products to the market at a lower cost (a) Barkley and Wilson (1992) (b) White (1989) (c) Ikerd (1989) How much to produce? (it has been argued that increased capacity of earning and accumulation of capital are dependant on steady (a)to reduce the cost of production in order to gain a higher margin (this determine where to sell the products) (b)farm more units or expand the enterprise to gain more and complete use of existing unused resources/ spread fixed cost over more (a) Ferris (1988) (c) White (1989) Strategic Action (Decision Criteria)…”

“…(a)target niche markets to increase net margin (b)to differentiate the product to gain price advantage (c)to gain a price advantage (this determine where to sell too) (d)to gain competitive advantage by exploiting quality differences (i.e. to obtain price premium for quality) (e) to exploit the quality differences to gain a higher margin (a) Dagher and Christy (1991) (b) Barkley and Wilson (1992) (c) Ferris (1988) (d) White (1989) (e) Giles (1990) When to sell? (a)store and sell grains to reduce market risk (b)to take the advantage of variability in market prices caused by changing environmental factors (c)perishable nature of agricultural produce (d)to gain the price advantage by focusing specific market windows 3 (e)to maximize the average returns by timing the sales (this is aimed at minimizing the risk created due to the volatility of the market) (f)store and sell at a higher price to gain a higher profit (g)examine the price changes to determine when early marketing or delay is the more profitable alternative (h)to exploit price variations in order to get a higher price (a) Nelson (1989) (b) Smidts (1990) (c) Dagher and Christy (1991) (d) Barkley and Wilson (1992) (e) Ferris (1988) (f) White (1989) (g) Gutierrez and Dalsted, 1989) (h) Giles (1990) Who/where to sell?…”

“…direct marketing 4 ). (c)focusing a unique niche market (by its location, income class, age, race or buying habits) to gain price advantage (d)cash sales, forward contracting to reduce risk (e)how much marketing functions should farmer perform in order to gain a higher price (f)how much to sell in each selling option (a) Dagher and Christy (1991) (b) White (1989) (c) Barkley and Wilson (1992) (d) Nelson (1989) (e) Ferris (1988) (f) Smidts (1990) Source: Kodithuwakku, 1997 …”

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