Completed Project Report


Labor Risk Management Study Circles

  • Award Amount: $31,570
  • Regional Center: Northeast Extension Risk Management Education Center
  • Grant Program: 2004 Unrestricted Risk Management Education
  • Project Director:
  • Email: smith@kdc.coop
  • Organization: Keystone Development Center

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Project Overview

Potato and milk producers in Pennsylvania met repeatedly in separate study circles over a sixteen-month period. The circles were lead by a facilitator and initially focused on labor risks being faced by the producers with a goal of finding strategies for group action that can capture economies of scale and scope, therefore making mitigation of risk less expensive.

Initially both groups were guided through a strategic evaluation process to self-identify their labor risks and other issues of concern on their farms. The analysis process was followed by prioritization, where the group identified the issues on which to focus the study circle activities. Strategies for collective action were the final step in the circle’s work.

Dairy farmers agreed that labor is an issue for them but at the end of the study circles had not agreed to approach labor acquisition collectively. The group became much more interested in crop management issues with the farmers agreeing that they would like to spend more time with their cows and less time on crop production. The group is going to continue to work together to form a crop management association in their area.

Potato growers talked extensively about labor issues. Their harvesting labor pool continues to shrink and has put enormous pressure on the family labor. The group contracted together with a local labor supplier for the harvest in 2004. They received a better hourly rate by approaching the supplier together. This still proved to be inadequate since the local labor that was sent by the supplier was unwilling to do the type of work required, which is sorting potatoes in the field and at storage. At the end of the study circle cycle, the farmers were no longer working together on labor acquisition.

Another issue may bring the potato group back together in the next year (2006). A local potato chip plant may be up for sale and there are already discussions about a farmer cooperative to buy the plant. The potato study circle group will be an important component of this effort as they have already been working together and have built a level of trust within the group.

Technical assistance and experts were provided to both groups as appropriate. The grantee (Keystone Development Center) is continuing to support both groups following the conclusion of the study circle process.

Number of Participants: 14

Outcomes

Project Steps

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