SOUTHERN EXTENSION MARKETING COMMITTEE (SEMC)

PURPOSE OF GROUP:

The dynamics of economic growth and forces of change continue to bring about many problems in marketing that are regional or interregional in nature rather than being limited to any one state. The Southern Extension Marketing Committee (SEMC) strives to improve the effectiveness of Extension marketing work across the Southern region. To accomplish its purpose and address new challenges, the committee takes on several roles including; to jointly recognize and identify marketing problems in the Southern region; coordinate efforts on problems that are multi-state in scope; produce and share joint materials and publications; share experiences regarding effective educational methodologies; increase awareness of Extension colleagues in each representative's home state about what is being done across the region; and provide assistance to Extension administration in addressing marketing problems.

SUMMARY OF ACCOMPLISHMENTS:

Annual meetings are held to conduct business and address priority work identified by the Southern Extension Marketing Committee. Annual meeting is held in conjunction with the Southern Extension Public Affairs (SEPAC) and Farm Management (SEFMC) committees.

The committee co-sponsors the Southern Regional Extension Outlook Conference with SEPAC and SEFMC. The SEMC provides principal leadership for the market risk management content of the conference and situation and outlook for selected commodities.

Risk Management Education efforts continue in several Southern states. Arkansas, Mississippi, North Carolina, Oklahoma, Tennessee, Texas and Virginia have conducted risk management education conferences and seminars the past year targeted to risk management providers and producers. Alabama, Georgia, Florida and South Carolina continue to combine resources to conduct Southeastern Risk Management Education programs. Kentucky and Louisiana have efforts in progress and other states efforts are on-going. Marketing is a major focus of these conferences and seminars. Additional collaborative work in the area of risk management is being pursued through the recent USDA-RME regional Education Center.

The Marketing Club Network (which began in the summer of 1998) has expanded across the Southern region. The MCN is a monthly situation and outlook telephone conference. The concept was developed by Mississippi State with Arkansas and Louisiana involved in the test pilot. Success of the program has led to expansion to over 70 locations across the states of Alabama, Arkansas, Georgia, Louisiana, Mississippi, South Carolina, Tennessee, and Texas. The format features industry and Extension marketing experts sharing their comments on the cotton, grain, soybean and rice markets. Several state Extension specialists serve as state coordinators.

A number of joint programs in peanut, horticultural, cattle, goats, forages, and cotton marketing were implemented (or expanded upon) between committee members during the past year. Web sites have been developed to share market information (MS, FL) and risk management tools for soybeans, hogs (NC), and management for dairy (TX) and beef cattle (TN).

SEMC participates in joint task force activities with colleagues from SEPAC and SEFMC.

CURRENT/RECENT MAJOR PROJECTS:

The 2003 Southern Extension Outlook Conference will be in Atlanta in September 2003. A paper and web format publication of the Outlook conference papers has been proposed. Situation and market outlook will be provided by many of the SEMC committee members. Nathan Smith (GA), Tim Woods (KY) and Charlie Forrest (MS) are serving on the outlook planning committee. Numerous state and regional activities are underway.

Futures marketing education continues to be a part of the SEMC activities, including a trading simulation involving extension colleagues in the Policy and Farm Management groups. This is directed through a web site developed and maintained by John Van Sickle (FL). Van Sickle reported that the program has been updated to (hopefully) eliminate asymmetric information and moral hazard issues from occurring. This activity is being conducted as (and serves as a model for) a multi-state in-service professional development educational activity generating extramural funding. The new name of the trading simulation is FACTSIM. Parameters of this year's game include: $10 entrance fee for each individual; $35 trading fee; an exercise fee on options; $20,000 in startup funds; $50,000 maximum on loans; loan origination fee of 3.05%; interest of loans of 6.24%; beginning date is shortly after July 4, ending date is Friday before this year's Outlook Conference; modules will include commodities, energy, and weather.

A risk management Joint Task force is now in its second year of existence with Phil Kenkel (OK), Nathan Smith (GA), Charles Curtis (SC), Nick Piggott (NC), Gene Johnson (LA) and Mark Waller (TX) participating. Mark Waller (TX), Nathan Smith (GA), Gene Johnson (LA) and Charles Curtis (SC) served on the marketing and crop insurance subcommittee last year, which was dissolved in favor of the Joint Task Force.

Tim Woods and David Anderson reported on activity of the SEMC Awards Committee. Three awards were discussed including: (1) Excellence in Regional Programming - individual or team nominations, (2) Excellence in Communications - including publications and other media, and (3) Excellence in Addressing Emerging Issues - also referred to as the "early-response" or "fire-fighters" award. To date, some progress has been made in developing guidelines for the awards. The first award(s) will be presented at the 2004 Southern Region Outlook Conference. Tim Cross agreed to serve as a third member of the Awards Committee. Once the guidelines have been finalized, a call for nominations will be sent to all SEMC members.

A three-person publications subcommittee (consisting of Phil Kenkel, Nathan Smith, and Nick Piggot) is still in the process of establishing parameters for publishing documents in a SEMC publications series. SEMC publications must be of relevance to the Southern Region, will be peer reviewed and numbered (e.g. 2002-01). The Administrative Advisor may appoint a site for the publication to be hosted.

Last year, an idea was presented to develop a joint peanut-related publication including such topics as new farm bill information; descriptive industry information regarding structure, conduct, and performance; and marketing strategies. Peanut task force members include David Anderson, Nathan Smith, Phil Kenkel, Kim Anderson, Charlie Curtis, Marshall Lamb, and Todd Davis. The publication will probably be completed this coming year.

Professional Development Workshops were discussed at some length as programs that could be added on to the Southern Outlook meetings. Regional in-service training for a variety of marketing skills are being explored that could be accessed by both regional specialists and selected agricultural agents.

PRIMARY DISCIPLINE:

Extension Agricultural Economists

OTHER DISCIPLINES WHICH PARTICIPATE:

Animal Scientists, Agronomists, Agricultural Engineers, Plant Scientists, Horticuluralists, Food Scientists.

STATES REPRESENTED:

Arkansas, Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia.

INDUSTRY REPRESENTATIVES:

None

LEADERSHIP:

Report Prepared By:

Charlie Hall, University of University of Tennessee Agricultural Extension Service
Minutes of the 2003 annual meeting are available upon request from officers of the SEMC.

Date: September 18, 2003