Applied Economics Teaching Resources

an AAEA Journal

Agricultural and Applied Economics Association

Special Issue

Red Stick Farm: Planning for the Future

Maria Bampasidou(a) and Whitney R. McKinzie(a)
(a)Louisiana State University

JEL Codes: Q10, Y9
Keywords: Mission statement, new and beginning, risk analysis, strategic planning, SWOT, young

Publish Date: February 4, 2020
Volume 2, Issue 1

View Full Article (PDF) | Request Teaching Notes/Supplemental Materials

Abstract

This case explores the relation between decision making, strategic management, and risk management in a newly established farm operation. Red Stick Farm is a family-operated, small-scale, urban farm that uses intensive growing techniques to produce vegetables, microgreens, and edible flowers in the greater Baton Rouge area. The operation has been in production for three years, and the two operators are examining two mutually exclusive strategies to grow their farm. The first strategy allows them to expand their customer base by offering a community-supported agriculture (CSA) program; the second strategy allows them to increase production capacity by acquiring more land. The case challenges students to assess the current situation of the farm and future direction following strategic business planning practices. The study highlights the importance of defining and developing an operation’s mission statement, exploring growth strategies, assessing the internal strengths of the operation and external threats to the operation, and identifying respective risks. In addition, the examples illustrated through this case study will assist new and beginning farmers who are interested in urban farming practices as they monitor, identify, and manage risk on their farms.

About the Author(s): Maria Bampasidou is an Assistant Professor in the Department of Agricultural Economics and Agribusiness at Louisiana State University (Corresponding Author: mbampasidou@agcenter.lsu.edu). Whitney R. McKinzie is a Graduate Student in the Department of Agricultural Economics and Agribusiness at Louisiana State University. Acknowledgement: We would like to acknowledge Carl Motsenbocker, Allison Guidroz, and Jerrod Penn for providing comments on an earlier draft of the case study. Also, we thank the students of the AGEC 4403 Agricultural Finance class in Fall 2019 for their feedback while testing the case study

Copyright is governed under Creative Commons CC BY-NC-SA

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