A Survey of Local Perceptions of The Impact of A Dairy Grazing System on Southwest Missouri

Economy and Community Life

Spring 2012

Conducted by the Graduate Survey Research Class

Division of Applied Social Sciences College of Agriculture, Food and Natural

ResourcesUniversity of Missouri

Survey Team: Mustapha Alhassan, Annie Cafer, Erica Campbell, Jasper Grashuis, Kristina Haug, Christal Huber, Kristin Kovar, Curtis Langley, Adam Marx, Sarah Massengale, Elliot Meador, James Rossi, Ye Su, Wenxu, XuInstructor: Professor David O’BrienContact: obriendj@missouri.edu

Two Basic Questions to be Answered by the Survey:

• How do local dairy farmers and non-dairy farmer business owners/managers perceive the impact of intensive grazing systems on the dairy industry and other sectors of the local economy?

• How do local dairy farmers and non-dairy business owners/managers view the New Zealanders who have been involved in this type of dairy management system?

Some Background Data On The Impact of Intensive Grazing Systems on Southwest Missouri

• University of Missouri Extension Involvement in Supporting Intensive Grazing Systems

• Data Showing the Economic Impact of Intensive Grazing on the Southwest Missouri Economy

Source for the Next Four Slides: Joe Horner Extension EconomistCommercial Agriculture Program University of Missouri 223 B Mumford Hall Columbia, MO 65211-6200 Phone: 573-882-9339 Fax: 573-884-6572 www.agebb.missouri.edu/dairy

Population Characteristics of the Southwest Missouri Dairy Region

includes Barry, Barton, Lawrence, Jasper, Newton and Vernon Counties

6 County Region Statewide

% Population Change 2000-2010

Source: U.S. Census Bureau, American FactFinder, 2010 Redistricting Data Summary File (PL 94-171), Release Date: February 2011

9.2% 7%

2010 Poverty RateSource: U.S. Census Bureau, Small Area Income and Poverty Estimates (SAIPE), 2010.

17.3% 15.3%

Unemployment Rate (Dec. 2011)

Source: U.S. Department of Labor, Bureau of Labor Statistics, Local Area Unemployment Statistics, February 4, 2011.

7.3 7.7

% High School Degree or higher

Source: U.S. Census Bureau, American Community Survey, 2009 5-Year Data Release, September 2010.

82 86.8

The population in the region in the study is growing more than other areas of Missouri but has more poverty and a less educated population.

The Sample Frame for the Survey Consisted of

• All Class A dairies in the Southwest Region Counties Selected for the survey, and

• A non-random stratified sample of non-dairy businesses in the selected counties in the Southwest Region

The Non-Random Stratified Sample Frame for the Non-Dairy Farm Business Owners Survey Sample

• Questionnaires Were Sent to the Following types of Businesses :– Retail (non-agricultural):8– Utilities: 32– Construction and Building Supply: 71– Veterinarian Services: 18– Food and Restaurants: 25– Financial, Legal, Insurance: 34– Agricultural Supply: 30

The sample frame included legal, insurance and banking service businesses only in Barry, Lawrence and Vernon counties and restaurants only in Nevada and Monett

Response Rate for Southwest Missouri Survey

– DAIRY FARMERS • 39/154 = 25.3% • 161 questionnaires were mailed, seven returned as not

deliverable

– NON-DAIRY BUSINESSES • 44/209 = 20.6% • 218 questionnaires mailed, nine were returned as not

deliverable

TOTAL SAMPLE N = 83

A return rate of 20% is typical for a mailed survey

County of Residence of Respondents in the Sample (in %)

County Dairy Farmers(N = 26)

Nondairy Business(N = 43)

Barry 31.8 24.4

Barton 4.5 0

Jasper 9.1 19.5

Lawrence 40.9 24.4

Newton 13.6 4.9

Vernon 0 14.6

Other 0 12.2

Total 100 100

Selected Characteristics of the Sample

Dairy Farmer Non-Farm Business

• Median Age 46-55 46-55• % Male 97.3 72.1• % Married 86.8 85.7• Med. Education HS Grad 2 Year College

The age of the farmers in the sample is substantially lower than the farm operator population as a whole. The higher educational level and larger number of women in the non-farmer business owners sub-sample, however, is more likely to reflect real differences between farm operators and other business owners in the population.

Dairy Farmer Sub-Sample Farm Characteristics

 Number of

Respondents Minimum Maximum MeanNumber of cows milked daily 36 15.00 390.00 86.9Farm Acres Owned 37 .00 850.00 288.1

Farm Acres Leased 30 .00 1000.00 140.8

Land Used for Grazing (ac) 38 .00 500.00 158.3

Land available for grazing (ac) 35 .00 250.00 50.0

• The vast majority of farms are owned by a single family (94.9%, n=39).

• Fourteen of these farm operators responded that they employed non-family labor with a mean of 2.0 employees.

• Most farms used grazing as a considerable portion of their rations with 61.1% falling in the 26-75% of ratio used for grazing.

• 25.3% of farm operator respondents considered themselves having a mixed practice and 15.7% considered themselves pasture based.

Business Classification for Non-Dairy Business Respondents in the Southwest Missouri Survey Sample

Ag-supply/agriculture

Financial, legal, insurance,

Food, restaurants

Vet services

Construction and building supply

Utilities

Retail

Other

0% 20% 40%

29.30%

2.40%

2.40%

12.20%

22.00%

14.60%

7.30%

9.80%

Farmer Operator Views on the Future of Their Farms

Yes (%) No (%) Unsure (%)

Someone in my family will take over the farm (n=32) 6(18.8) 11(34.4) 15(46.9)

I will no longer be farming (n=32) 6(18.8) 6(18.8) 20(62.5)

My farm will become more profitable (n=37) 10(27.0) 3(8.1) 24(64.9)

The dairy business will improve (n=37) 3(8.1) 9(24.3) 25(67.6)

• Overall, the farmers in the sample see the dairy business as unpredictable.

• They see a great deal of uncertainty regarding successors, profits, and retirement.

Not Important

SomewhatImportant

VeryImportant

Grazing makes my dairy more profitable (n= 17) 2 (11.8) 3 (17.6) 12 (70.6)

Grazing better for environment (n=18) 3 (16.7) 7 (38.9) 8 (44.4)

MU Extension Programs (n=18) 7 (38.9) 9 (50.5) 2 (11.1)

Dairy discussion groups (n=18) 5 (27.8) 9 (50.5) 4 (22.2)

New Zealand dairy producers (n=17) 9 (52.9) 6 (35.3) 2 (11.8)

Local MO dairy grazers (n=18) 5 (27.8) 8 (44.4) 5 (27.8)

Better herd health (n=19) 1 (5.3) 2 (10.5) 16 (84.2)

Lower feed costs (n=18) 1 (5.6) 1 (5.6) 16 (88.9)

Better family quality of life (n=18) 1 (5.6) 3 (16.7) 14 (77.8)

Among Respondents Who Have Increased Pasture-Based Grazing What Were the Most Important

Factors in Their Decision?

Besides Purely Economic factors – greater profit, herd health and lower feed costs – better family quality of life was very important in their decision making. Two-thirds cited MU Extension, three-fourths cited dairy discussion groups as either somewhat or very important, and slightly less than half cited NZ diary producers as influencing their decision making.

Respondents’ Views on The Impact of Pasture Based Dairy and New Zealanders on the Local

Community

Responses to: How harmful or helpful do you think the introduction of pasture based dairy has been to your local

community? 1=very harmful, 2= a little harmful, 3=no effect, 4=a little helpful, 5=very helpful

N Mean SDjobs for local residents Dairy Farmer 39 3.0256 1.08790

Nondairy business 32 3.4375 1.13415

Total 71 3.2113 1.12015

local non dairy business Dairy Farmer 38 3.1053 .92384

Nondairy business 29 3.4138 1.23974

Total 67 3.2388 1.07435

local community development Dairy Farmer 39 3.0256 .84253

Nondairy business 30 3.0000 1.14470

Total 69 3.0145 .97758

maintaining our traditional

values

Dairy Farmer 38 2.6579 1.07241

Nondairy business 31 3.0323 1.19677

Total 69 2.8261 1.13703

land prices Dairy Farmer 37 2.6216 1.27696

Nondairy business 29 2.8621 1.76724

Total 66 2.7273 1.50431

sense of community Dairy Farmer 38 2.8158 .92577

Nondairy business 30 3.1000 1.21343

Total 68 2.9412 1.06340

Responses to three questions – “maintaining traditional values”, “land prices,” and “sense of community” indicate a negative view of the impact of pasture based dairy on the local community. The mean responses to the remainder of the questions are neutral. There are no statistically significant differences between the farmer and non-farm business respondents on any of these questions..

Responses to: How Harmful or Helpful, Continued…..

our churches and religious life Dairy Farmer 39 2.8462 .70854

Nondairy business 30 3.1333 1.27937

Total 69 2.9710 .99957

the economic impact of NZ on the local community* Dairy Farmer 38 2.5789 1.08133

Nondairy business 30 3.3333 1.26854

Total 68 2.9118 1.21846

new ideas to improve my DAIRY operation Dairy Farmer 38 3.0526 1.06409

---

new ideas about business in general - "K" on the business

survey

Dairy Farmer 39 2.8462 .90433

Nondairy business 28 3.1429 .97046

Total 67 2.9701 .93695

dairy farming in general - from line "J" on the business survey Dairy Farmer 39 2.7179 1.09901

Nondairy business 32 3.1250 1.18458

Total 71 2.9014 1.14835

N Mean SD

Responses to these questions fall either within or slightly above the the middle value “no effect.” The responses of farmers on all questions are more negative than those of the nondairy business respondents but there is only one statistically significant difference between these two groups, on the question about the economic impact of New Zealanders on the local community (p<.01)

N Mean SD

The lifestyle of New Zealanders is similar to mine Dairy Farmer 37 2.4324 1.14359

Nondairy business 37 2.7568 .89460

Total 74 2.5946 1.03260

New Zealanders respect the way we do things in

my community* – (Note "do not respect" on

business survey - need reverse code in analysis)

Dairy Farmer 37 2.2703 1.07105

Nondairy business 37 3.0270 1.04047

Total 74 2.6486 1.11567

New Zealanders are Trustworthy – ((Note

"cannot trust"in business survey - need reverse

coding in analysis)

Dairy Farmer 37 2.5405 .96017

Nondairy business 37 3.0000 1.13039

Total 74 2.7703 1.06690

i would like to learn more about the New Zealand

culture and customs* (- note slight difference in

language on bus survey)

Dairy Farmer 39 2.4359 .99459

Nondairy business 38 3.0000 1.03975

Total 77 2.7143 1.04953

The New Zealand way of dairy farming is helpful

in our area* – (Note “not helpful” in business

survey" - need reverse coding in analysis)

Dairy Farmer 38 2.1579 1.12769

Nondairy business 38 2.7632 1.12548

Overall, responses to these items fall in the negative direction. On three of the items, the dairy farmers are more negative than the nondairy business respondents in their attitudes toward the New Zealanders. *Difference between Dairy Farmers and Nondairy business owners p<.05**Difference between Dairy Farmers and Nondairy business owners p<.01

Degree of Agreement with the Following Statements About New Zealanders Impact on the Local Community (1=Strongly Disagree, 2=Slightly Disagree, 3=Neither Agree or Disagree, 4=Slightly Agree,

5=Strongly Agree):

New Zealanders are good dairy producers**

(Note this is question K on the Business Survey)

Dairy Farmer 38 2.2895 1.01096Nondairy business 38 2.8947 .89411

Total 76 2.5921 .99569

When the New Zealanders first Arrived in Missouri they were

arrogant**(Note For the Business Survey

this is question L)

Dairy Farmer 39 3.8718 .97817Nondairy business 37 3.1892 1.04981

Total 76 3.5395 1.06384

The New Zealanders have become less arrogant over time (Note For the Business Survey

this is question M)

Dairy Farmer 39 3.0256 1.01274Nondairy business 35 2.8286 .89066

Total 74 2.9324 .95560

The New Zealand Dairy Farmers have received financial breaks

from the government** (Note for the Business Survey

this is question N)

Dairy Farmer 38 4.3421 1.04691Nondairy business 36 3.6111 1.20185

Total 74 3.9865 1.17617

.

Perceived Impact of New Zealanders on the Local Community, continued ….N Mean SD

Overall, respondents did not see New Zealanders as good dairy producers and experienced them as arrogant when they first arrived in Missouri. The strongest negative reaction by both farmers and non-farm business owners toward the New Zealanders is a perception that they received financial breaks from the government.**Difference between Dairy Farmers and Nondairy business owners p<.01

Frequencies of Different Types of Interactions Respondents Have Had with New Zealand Dairy Operators and/or Their Employees

Busi

snes

s Tr

ansa

ction

Child

ren'

s Sc

hool

Dai

ry D

isc.

Gp

Info

rmal

Con

v D

iary

Fish

ing,

Hun

ting,

Gol

f Chur

ch

Oth

er

`

0

5

10

15

20

25

30

35

40

34.1

4.5

11.4

22.7

2.3

4.5

13.6

Types of Contact with New Zealanders (in percent)Dairy Farmer n=39; Non-Dairy Business Owners n=39

Dairy FarmersBusiness Owners

Type of Contact with New Zealanders

Percent

The majority of the respondents do not report any type of contract with New Zealanders. One-third of the nondairy business respondents have business transactions and one-fifth of them have engaged in informal discussions about farming with the NZs. Close to one-quarter of the dairy farmers have been in dairy discussion groups with NZs and a slightly higher percentage have had informal conversations with them about farming. Very little social contact – children’s school, fishing etc., church - between locals and NZs outside of business.

• Regression Analysis allows us to examine the effect of an independent variable on a dependent variable, controlling for the effects of other independent variables.

• In this case we are looking at the effect of contact with New Zealanders on whether respondents view the dairy grazing system and New Zealand farmers as helping the local economy, while controlling for the effects of education, age, gender, and whether the respondent is a dairy farmer or a nondairy business owner.

The Effect of Contact with New Zealanders on Views of the Impact of Dairy Grazing Systems

and New Zealanders on the Local Community

Controlling for age, gender and occupation (dairy farmer vs. non-dairy business owner), respondents with more education are slightly more likely to think that pasture based dairying has been helpful in creating jobs for local residents(p<.09). Contact with New Zealanders has a stronger positive effect (p<.001) on the view that the introduction of pasture based dairying has had a positive impact on creating jobs for local residents.

Respondents with higher educational levels (p<.09) and women (p<.05) have a slightly more positive view of the impact of New Zealand farmers on the local community, but having contact with New Zealanders (p<.01), has the strongest effect in producing positive attitudes toward them.

Conclusion• About half (48%) of the dairy farmers report increasing pasture-based grazing on their farms.

• Although economic reasons are very important – profit (71%), herd health (84%) and lower feed costs (89%) – 78% of adopters cite “better family of life” as a very important reason for increasing pasture-based grazing. 61% of the adopters cite MU Extension and 73% cite the Dairy Discussion Groups as either somewhat important or very important in their decision. 47% cite New Zealand Dairy Producers as somewhat or very important in their decision.

• There is, however, a disconnect between the economic impact of pasture based dairy systems on southwest Missouri and the subjective perceptions of local dairy farmers and non-dairy business owners.

• Most of the responses about the impact of pasture based dairy were neutral to slightly negative.

• Views of the New Zealanders tend to be more negative than views toward the pasture based system itself.

• Overall, dairy farmers are more negative than nondairy business owners toward New Zealanders.

• The majority of respondents do not report contact with New Zealanders and among those who have had contact, it is mostly business related, either transactions or informational.

• There is much less contact between locals and New Zealanders in non-commercial social spheres.

• The best predictor of attitudes toward New Zealanders, controlling for age, education, gender and occupation, is whether or not respondents have had contact with them. More contact is associated with more positive attitudes.

Conclusion - Continued• These findings suggest that one way to reduce the transition of inaccurate information and to reduce

generalized negative attitudes towards pasture based dairy and New Zealand farmers would be to identify ways to strengthen existing networks that facilitate contacts and identify and facilitate the building of new types of networks.

• Research on rural communities finds that it is the small size of the networks of rural residents, rather than simply a generalized culture that is most responsible for resistance to change and negative judgments that are not based on facts. Paranoia grows best in social isolation.

• A key point to keep in mind: A large amount of social science research shows that prejudicial attitudes between members of two groups are reduced when members of these groups interact on an equal status basis but prejudice increases when one group is in a dominant position in relation to the other group. Research on the origins of agricultural cooperatives in the US, for example, finds that the social bonds and network ties between farmers in churches, schools, local voluntary associations, and other local community activities. played a key role in developing the trust that enabled them to work together for a collective effort.

• This was a small pilot study, with all of the limitations associated with little time and little resources. Nonetheless, it could be used in a proposal to NRI at USDA for a more in-depth study, especially focusing on measuring the structural properties of networks in the local area and how they either facilitate or hinder the transmission of accurate information and trust among dairy producers and other local businesses that depend upon dairy production for a significant part of their livelihood.