Tools of the Trade

Tabloids—A Tool for Public Issues Education

Peter Bloome
Associate Director
Internet Address: peter.bloome@orst.edu

Andrew Duncan
Professor and News/Periodical Editor/Specialist
Internet Address: andrew.duncan@orst.edu

Robert Rost
Assistant Professor and Accountability Specialist
Internet Address: robert.rost@orst.edu

Theresa Novak
Communications Specialist
Internet Address: theresa.novak@orst.edu
Oregon State University Extension Service
Corvallis, Oregon

Introduction

Suppose you delivered a comprehensive educational package to a large cross-section of citizens in your state, hundreds of thousands, at an out-of-pocket cost of 20¢ per household? Suppose a random number dialing survey, conducted the week following that delivery, revealed that one of every four people who answered the telephone (25%) recalled receiving that information? Would you consider the effort a cost-effective method of delivering public issues education?

This has been our experience at the Oregon State University Extension Service. The delivery vehicle is an old-fashioned one—the tabloid-format publication. It appears to be efficient and effective in the rapidly changing modern world. We distributed our first tabloid-format publication in 1998. It focused on a single high-profile public issue. We called it A Snapshot of Salmon in Oregon. Since then, there have been two others, A Portrait of Poverty in Oregon and Looking for Oregon's Future: What Is Sustainability? Primary distribution of each has been by insertion in the daily newspapers of the state. Additional distribution has been through Extension and agency offices, and via the Web.

Of course, the impact of each of the tabloids was influenced only partly by the distribution methods. Other key factors were the level of public interest in the issues and how well the publications carried off their educational objectives, including appropriateness for the audience and attractiveness of presentation. Such publications must adhere to the principles of effective public issues education. In broadest terms, this means promoting informed dialogue and decision-making while avoiding advocacy.

Multiple Purposes, Multiple Payoffs

Each tabloid stated the desired outcome in its introductory article. For example, the desired outcome of Looking for Oregon's Future: What Is Sustainability? was identified as "dialogue among Oregonians concerning the future of our communities, industries, resources, and economy, and concerning the quality of life we want to make possible for our grandchildren." These publications serve other purposes, too. They:

• Demonstrate the full engagement of the university through its research and Extension programs.
• Bring an important public issue to the attention of the larger university community.
• Build positive working relationships with state and federal agencies and other organizations.
• Provide educational resources for use in formal classroom settings at the K-12, college, and university levels.
• "Turn the heads" of important stakeholders and resource providers.

"If we focus on issues that affect people, then the public, media, and politicians will sit up and take notice" (Boyle & Mulcahy, 1993). The Oregon State University Extension Service demonstrated its capability to produce objective and comprehensive educational publications on important and controversial public issues (salmon, poverty, and sustainability). Because of this, the organization's image changed—on the campus, in the state legislature, in the governor's office, and across the state. Here is how we approach the production of public issues education tabloids at Oregon State University.

Choosing the Issue

A successful tabloid issue must be of broad general interest to the citizens of the state. Because production of a tabloid, from concept to distribution, can require from 6 to 10 months, the public issue must be forward-looking and have staying power. While it is wise to avoid issues where factions are heavily entrenched, our experience with A Snapshot of Salmon in Oregon suggests that such factions can be successfully engaged through a carefully managed review process.

The issue should also be one about which the university has much to offer, preferably through all three missions of several university colleges. Finally, it's a big commitment. Production team members should be excited about the prospect of delving into the issue, and they must be afforded the freedom to practice their respective crafts.

Necessary Resources

A public issues education tabloid project is a major undertaking. Judging by our experience, participation by Extension and other university educators from various disciplines, and by citizens from around the state representing a wide range of interests, are essential to success. The skills of a production team of professional communicators also are essential. This team includes a group of writers who, through part of the process, work like investigative reporters. They are supported by photographers, editors, and graphic artists. In addition, an administrative champion is needed to:

• Support the roles of the production team.
• Assemble an advisory team and a larger review team.
• Manage/facilitate the review process.

Members of the advisory team should include faculty with both broad and detailed knowledge of, and experience with, the issue. Prior experience with complex public issues is helpful. Leaders from public and private agencies linked to the issue should be included. With each of the three Oregon State tabloid projects, the Governor appointed one or more members of his staff to our advisory teams. An advisory team of more than eight members would probably become unwieldy.

Bringing all perspectives of the issue to the table is the most important requirement of the review team. Members of the advisory team also act as reviewers. As the writers identify and interview sources, they also suggest individuals who could serve as reviewers. To cover all perspectives of an issue adequately, 20 or more reviewers may be necessary.

A public issues education tabloid requires significant financial as well as human resources. In addition to the salaries and expenses of the production team are the costs of printing and distribution. While unit costs are low, the volume is large. With large quantities, printing and insert costs for a 24-page tabloid will each run in the 7-10¢ per copy range. The costs for producing, printing, and inserting 800,000 copies of a tabloid have been about $160,000, not counting the salaries of the production team.

Production and Review Process

• The process begins with the selection of the issue and assembling of production and advisory teams.
• The production and advisory teams meet to identify story lines and develop a list of source contacts.
• The production team develops an outline and makes writing assignments.
• The writers interview sources and prepare first drafts of articles, checking back with sources, as appropriate, to insure accuracy.
• The review team meets in a 1-day review session to review, mark-up, and discuss draft articles. (Members of the writing team attend so they can answer questions and listen to the discussion.)
• The writers use the review input to revise.
• The production team follows through with final edits, gathering of photographs and illustrations, and publication layout.
• Daily newspapers are contacted to negotiate insert fees, quantities, and delivery locations.
• The printing contract is let, including direct delivery to the newspapers.
• Additional quantities are distributed through Extension and agency offices.

Impact

What were the outcomes for the people who recalled receiving these publications in their newspapers? Random number dialing telephone surveys following distribution of the salmon and poverty tabloids revealed that 45% (salmon) and 37% (poverty) found the information useful. In addition, 26% (salmon) and 19% (poverty) had discussed the information with others.

What's Next?

Addition research is planned on the impact of our most recent tabloid, Looking for Oregon's Future: What Is Sustainability? One goal is to compare public perceptions of the effectiveness of printed and Web versions of the publication.

References

Boyle, P. G., & Mulcahy, S. H.. (1993). Public policy education: A path to political support. Journal of Extension [On-line] 31 4 Available at: http://joe.org/joe/1993winter/tp1.html

Oregon State University Extension Service. (1998). A Snapshot of Salmon in Oregon. [On-line] Available at: http://eesc.orst.edu/salmon/

Oregon State University Extension Service. (2000). A Portrait of Poverty in Oregon. [On-line] Available at: http://eesc.orst.edu/poverty/

Oregon State University Extension Service. (2001). Looking for Oregon's Future: What Is Sustainability? [On-line] Available at: http://oregonfuture.orst.edu/

Using the Focus Group Process to Assess the Needs of a Growing Latino Population

Faye Malek
Assistant Professor
University of Wisconsin - Extension
Manitowoc County
Internet Address: faye.malek@ces.uwex.edu

Introduction

The Manitowoc County Latino population grew due to an acute labor shortage in local industries and on farms. Census data revealed a 131% growth in the population from1990 through 2000 (UW-Extension & Applied Population Laboratory, 2000). The increased numbers prompted the Manitowoc County UW-Extension Family Living Educator to initiate a needs assessment. The information would identify and prioritize educational programs to assist Latino families in successfully assimilating into their new communities. No formalized assessment data concerning the needs of the Manitowoc County Latino population existed prior to the study.

The focus group interview was determined to be the most effective process for obtaining the needed data. In November and December of 2000, 50 Latino men and women came together to voice their opinion in five separate focus groups.

Methodology and Content Themes

The focus group process was selected as the preferred assessment tool because it involved a comfortable approach to obtaining information directly from Latinos. The process is a non-directive means by which participants share information without feeling compelled or driven to answer specific questions (Krueger, 1994). After the process was determined, participants were selected for the focus groups.

Company human resource directors and dairy farmers recommended 50 participants for five separate, hour-long focus group sessions. They were able to identify 38 men and 12 women who were single, married, with or without children, of varied ages (ranged from 18 - 60 years of age), which provided a good cross-representation of Latino employees on worksites.

Four focus groups were held at companies in Manitowoc County, Wisconsin, where the employees worked. A fifth focus group was held at Silver Lake College, located in the county and centrally located for the dairy group participants. Employers were supportive of the project as demonstrated by their offering of on-site facilities for the sessions and/or their support of no salary interruptions when employees participated during business hours.

The selection of appropriate facilitators was critical to the success of the focus group process. Two Spanish-speaking Latino facilitators were hired, one male and one female, a Franciscan Sister. Involving a male facilitator was important because Hispanics regard the male as a dominant figure in their culture. Aside from being qualified to facilitate the groups, the nun represented the Catholic religion. Many Latinos belong to the Catholic faith. Because the participants felt the facilitators were credible and trustworthy, there was a comfort level when sharing their ideas. The facilitators used five questions as their base for discussion in each focus group (Table 1). Responses to the questions were taped, hand recorded, and later transcribed into English.

Table 1.
Questions Used in the Focus Group Process

Results

The data analysis process was led by the researcher and included both facilitators in an effort to accurately interpret the findings. A data analysis consultant reviewed the transcripts and provided a reporting structure for the data. After the information was translated into English, the material was divided into nine common trends and patterns. The trends reflecting the most frequently discussed topics throughout the five focus groups are found in a report titled, "The Latino Focus" (Malek, 2001) and include:

• Learning the English language
• Language issues related to the worksite
• Securing proper identification
• Securing a driver's license
• The need for translator assistance at hospitals and clinics
• The perception of racism
• Public transportation difficulties
• Housing issues
• Tax issues

The qualitative research revealed that Maslow's Hierarchy of Human Needs (Goble, 1970) is where UW-Extension and other county agencies need to begin their outreach efforts. Without having basic needs met, including the ability to communicate in an English-speaking community, it is difficult to address other concerns. The Manitowoc County UW-Extension office will need to engage new community partners into its educational programs, including the Department of Motor Vehicles, Police Department, Social Security office, hospitals and clinics, and public transportation, to address the designated needs.

Of interest in the study were the responses from participants in the dairy focus group. There was a consensus of support, appreciation, and trust that participants experienced with their dairy farm employers. Participants commented on the employer's willingness to learn Spanish and to share meals together. They were complimentary of the opportunity to be allowed to learn more than just the milking operation.

In a January 2001 newspaper interview, Amparo Baudhuin, an immigration counselor with the Diocese of Green Bay, reinforced this sentiment when she stated, "Dairymen are true pioneers in cultural relations. They have a small employee base. They work alongside their employees. The employers and the workers need each other" (A. Baudhuin, 2001). Discussions with dairy farm employers and their employees could provide a model for others interested in helping Latinos assimilate into the workplace and the community.

Conclusion

"The Latino Focus" research will be a foundation from which Manitowoc County UW-Extension and community partners develop action plans to address the needs of the growing Latino population. The work of the 50 Latino participants who shared their concerns will have an impact on hundreds of other Latinos in the community as well as Latinos who will settle in Manitowoc County in the future.

"It is important to actively engage newcomers in community planning meetings and other key decision-making bodies. Together, old-timers and newcomers must forge a common vision and engineer the future of their communities" (Gouveia, 2000). Manitowoc County UW-Extension did just that. Not only did the focus groups help UW-Extension hear the voice of local Latinos, but also the focus groups provided an opportunity to unite local Latinos, companies, community agencies, and other educational institutions for a common purpose.

This model can be replicated for other cultures. Pre-planning to assure the process is culturally appropriate is key to the success of the assessment. Whether the focus groups are geared toward Hmong, Native American, or another culture, inviting people of that culture to participate in the planning and facilitation process will assist the researcher in obtaining useful data for that community.

References

Baudhuin, A. (2001). Future farm labor force to include more foreign workers. Wisconsin State Farmer 26 January: 13A

Goble, F. (1970). The third force: The psychology of Abraham Maslow. New York: Grossman Publications.

Gouveia, L. (2000). From aliens to neighbors. Catholic Rural Life, 27-34.

Krueger, R. A. (1994). Focus groups: A practical guide for applied research. 2^nd ed. London: Sage Publications.

Malek, F. (2001). The Latino focus. Manitowoc County, University of Wisconsin- Extension.

University of Wisconsin Extension & Applied Population Laboratory. (2000). Wisconsin's Hispanic or Latino population, pp. 3-25.

Transforming Extension as the Agricultural Sector Changes

Cole Gustafson
Professor
Department of Agribusiness and Applied Economics
North Dakota State University
Internet Address: cgustafs@ndsuext.nodak.edu

The agricultural sector continues to undergo a rapid transformation away from traditional family farms. What appears to be evolving are two distinct groups of farms (USDA, 2001). The first are small farms that generate less than $250,000 of sales. These units are often referred to as "lifestyle farms" because the operators often have another occupation or are nearing retirement and continue to farm because of the enjoyment they derive from the activity. Extension is well positioned to service this clientele because production techniques and managerial strategies employed by firms of this scale are very similar to those of traditional family farmers.

However, at the other end of the spectrum, farms with sales over $250,000 are quickly evolving into industrial, vertically integrated producers of differentiated branded products. As this transformation occurs, the production methods, financial structure, sources of credit, and managerial strategies employed by these firms also evolve. While many of the new production technologies being adopted in agriculture are scale-neutral (i.e., they can be easily adopted by both large and small farmers and don't lead to increased polarization), several managerial strategies are not. One of the most striking is the financing of these operations (Gustafson, 2002)

If Extension is going to continue to serve this segment of agriculture, it is incumbent upon us to vigorously investigate, research, and test the applicability of our previous financial education models in this new institutional setting. Many of our traditional paradigms, based on competitive and efficient family farms, do not apply to this new form of agriculture.

As Extension tries to increase our relevance to these large-scale firms, an often overused term for financial is "agribusiness finance." In most cases, though, the materials we have are just extensions of traditional "farm financial" theories of the past. They do not adequately address the rapidly changing industry structure, methods of credit underwriting, loan products, or channels of fund delivery being applied to large-scale farming operations more accurately described as "agribusinesses" (Heuer, 2001 ). Several examples below compare and contrast these concepts.

Farm Financial Management

Farm financial management theory is still very relevant in the proper application and has a rich heritage. Since the turn of the century when professional work in agricultural finance was initiated, research on financial management practices of farms has emphasized financial analysis, planning, and control; capital structure, leverage, and risk; as well as capital budgeting, investment, and asset replacement issues (Brake, 1977).

Models of farm financial management have typically reflected sole-proprietor, firm-households. The asset structure of these firms is dominated by land and other real estate assets. In the aggregate, real estate represents nearly 80% of the assets comprising low-sales farms and falls to near 60% for very large family farms. (USDA, 2001). The low current returns and cashflow associated with real estate creates liquidity problems for many firms, especially beginning farmers and those with high debt levels.

Financing Agribusinesses

A significant void in this literature is the financing of large-scale farming and agribusiness operations. Unlike the farm sector where thousands of commercial banks, Farm Credit System, life insurance, Farm Service Agency, and trade credit lenders exist to serve the needs of farmers and ranchers, agribusiness lending is highly concentrated and dominated by five major firms. Recent market share data of the five largest agribusiness lenders indicates that this segment exceeds $10 billion.

The criteria farm real estate lenders appraise when evaluating the creditworthiness of a new or existing borrower is reflected in the inclusion and weighting of variables in their credit scoring systems—a form of revealed preference. Most recent credit scoring models (Betubiza & Leatham, 1990) continue to emphasize asset-based lending criteria. A survey by Gustafson, Beyer, and Saxowsky (1991) also indicates that real estate lenders are most concerned about collaterializing their loans. Very few use cashflow as the primary emphasis is asset based criteria. Consequently, agricultural lenders who originate loans to family farmers focus primarily on the quality and composition of collateral securing their loans.

The financial structure and credit needs of agribusiness firms differs markedly from that of family farms. First, real estate represents only a small proportion of the capital structure of most agribusinesses. Dun and Bradstreet report that long-term assets including land, buildings and fixed equipment account for less than 25% of total assets. Current assets and inventory represent the largest class of assets, 50% according to Dun and Bradstreet (2001). In most cases, these firms are in the business of purchasing inventory, processing, and marketing finished products. Some large-scale farms, with grain elevator and/or input supply activities, engage in minimal processing and function primarily as merchandisers. To assess financial performance, primary emphasis is placed on liquidity, receivables, and inventory performance measures, especially working capital and turnover ratios.

Unlike farms where debt is mainly used to finance real estate, agribusiness credit is available mainly for financing inventory and receivables (e.g., feed in a large cattle feedlot). Inventory and receivables credit is available through a variety of financial products including floor plans, trading of warehouse receipts, and revolving credit. Agribusiness real estate and equipment is financed primarily by equity capital, primarily because of the low collateral value stemming from the illiquidity and specialized use of the equipment.

A review of a typical loan appraisal worksheet utilized by one of the major agribusiness lenders reveals insight into the decision process and financial variables that determine creditworthiness and amount of credit financing available to an agribusiness. The primary focus is on working capital—in particular, outstanding receivables, inventory and accounts payable.

Accounts Receivable lowpoint (<30 days)
+ Inventory
- Accounts Payable
           -----------------------
           Working Capital
            x 60-85%
           -----------------------
                    Operating Credit Available

This determination of working capital represents the minimum operating capital necessary to operate the agribusiness in the coming year. The amount of credit that is available to finance this need is determined objectively by most lenders as a simple percentage of total need and ranges from 60-85%. Consequently, the amount of operating credit available to the firm is determined by multiplying the lender's rate by the firm's working capital. It is a fairly straightforward, objective process.

Agribusiness finance is also distinct from corporate finance or small business finance. Credit sources, loan types, and underwriting standards vary considerably among the three. Corporations have unique access to many additional forms of equity capital, while small businesses often have to rely heavily on personal sources of financing.

Commercial farms are moving closer to agribusiness methods of financing. In North Dakota, four major agribusiness lenders now offer specialized operating credit to value-added farming operations under terms similar to those of agribusiness firms. As production agriculture becomes increasingly dependent on input supply firms, distributors, and processors for the goods and services, this shift will intensify.

Implications for Extension Education

As agricultural production technology evolved during the past century, Extension quickly developed educational programs that assured rapid adoption among producers. As agricultural firms continue to evolve in size and scope, agricultural producers and their lenders will acquire informational and business relationships more closely aligned with large-scale farm firms and agribusinesses. Future Extension programs targeting these firms will have to understand and embody these relationships in their educational materials.

References

Betubiza, E., & Leatham, D. J. (1990). A review of credit assessment reesearch and an annotated bibliography. Dept. of Agr. Econ. Texas A&M University, College Station.

Brake, J. R., & Melichar, E.(1997). Agricultural finance and capital markets. In L. Martin (Ed.), A survey of agricultural economics literature. Univ. of Minn. Press, Minneapolis.

Dun & Bradstreet Information Services (2001). Dun InSight. Murray Hill, NJ.

Gustafson, C. R, Beyer, R. J., & Saxowsky, D. M. (1991). Credit evaluation: Investigating the decision processes of agricultural loan officers. Agricultural Finance Review, 51:55-63.

Gustafson, C. R.(2002) Is your bank's credit information too soft? Journal of Agricultural Lending (in press).

Heuer, R. (2001). FCS and rural banks partner through loan participations. Ag Lender, 5:1-7.

U. S. Department of Agriculture, Economic Research Service (2001). AgriculturaliIncome and finance: Situation and outlook. Washington DC, AIS-76.

Maximizing Agents' Effectiveness: Virginia Cooperative Extension's Answer to Training New Extension Agents

Jerry D. Gibson
Extension Specialist, Program and Staff Development
Department of Agricultural and Extension Education #0452
Internet Address: gibsonj@vt.edu

Almeshia S. Brown
Graduate Associate, Program and Staff Development
Department of Agricultural and Extension Education #0452
Internet Address: albrown3@vt.edu

Virginia Polytechnic Institute and State University
Blacksburg, Virginia

Why a Training Program?

Virginia Cooperative Extension (VCE) employs Extension agents who hold faculty rank and academic degrees from a wide variety of disciplines. The agents' academic preparation enables them to acquire Extension positions in youth development, agriculture and natural resources, and family and consumer sciences. Although degree programs provide excellent subject matter training, they often lack opportunities for agents to obtain skills or strengths in some of the subjects that are needed to be effective Extension professionals (Bennett, 1979).

Because technical degree programs seldom provide adequate programming skill development courses, VCE involves all new Extension agents in a program through which fieldwork expertise and educational programming competence may be developed. The purpose of the New Agent Training Program is to provide opportunities for newly employed agent faculty to receive unit-based, hands-on orientation and training in preparation for assuming assigned roles in their field units. All new field faculty are expected to participate in the Virginia Cooperative Extension New Agent Training Program.

The key to a successful training program is to state up front the roles and expectations of the training agent and new agent so that they know what is expected of them to achieve a successful outcome (Boyle, 1981). The development and implementation of a training plan that allows Extension agents to address their weaknesses and build upon their strengths best accomplishes this. Although the new Extension agent is ultimately responsible for the development of the plan, a collaborative effort among Extension Training Agents, Staff Development Specialists, and Administrative Specialists is necessary.

VCE implemented the program for all new Extension agents in January, 2000. The New Agent Training Program is an innovative way to respect the characteristics of the new employee, determine the situation in the assigned county, and develop a training program that will enhance their ability to maximize performance once they are in their permanent assignment.

What Are the Steps in the VCE Training Program?

The Agricultural and Extension Education (AEE) department with VCE conducts the New Agent Training program. The steps involved in the training of a new agent include the following.

Placement of New Agent: This is determined by the District Director with input from the appropriate Associate Director(s) from Agriculture and Natural Resources, Family and Consumer Sciences, and 4-H.

Completion of Programming Skills Inventory by New Agents: The District Director and AEE department liaison specialist review results of the inventory (Gardner 1983). This inventory is available upon request.

Trainer Agent Orientation: The District Director, AEE liaison, and training agent meet to discuss the programming skills inventory. Ideas for the New Agent Training Program are based on the programming skills inventory and Information and Action Items Checklist and Suggested Tasks are discussed (Gregorc, 1985).

New Agent Orientation: The District Director, AEE liaison, training agent, and new agent meet to discuss the New Agent Training Program, noting information from the programming skills inventory.

Development of New Agent Educational Plan: The training agent and new agent meet to discuss and finalize a plan for new agent training using the Information and Action Items Checklist and Suggested Tasks (Caffarella, 1994).

Agricultural and Extension Educational Unit Site Visit: The training agent and new agent work to accomplish the items identified in the training plan.

Submission of Summary of Training to District Director: Upon conclusion of the program, the training agent submits the results of the completed plan and Information and Action Items Checklist with appropriate comments to the District Director and EEP liaison.

Exit Interview: The interview is conducted with the training agent and new agent by the AEE liaison

Final Evaluation: The District Director, training agent, and EEP liaison meet to discuss the new agent's final evaluation to determine whether to advance the agent to his/her home unit or discontinue employment.

What Are the Benefits of the VCE Training Program?

Since January 1, 2000, over 40 Extension agents have completed the New Agent Training Program. Each agent developed and implemented a training plan that was tailor-made to fit their situation (Gagne, 1988). Each plan is diverse and unique to the agent. Training agents are providing valuable educational leadership and support, not only to the agents but also to the training process. The District Director and the Extension specialist for staff development are providing daily support and monitoring of the training. "Train the Trainer" programs (Ittner & Douds, 1997) are being constructed for new training agents as well as administrators that are new to the organization.

References

Bennett, C. (1979). Analyzing impacts of Extension programs. Washington, DC: U.S. Department of Agriculture, Science, & Education Administration (ES C-575).

Boyle, P. (1981). Planning better programs. New York: McGraw-Hill, Inc.

Caffarella, R. (1994). Planning programs for adult learners: A practical guide for educators, trainers, and staff developers. San Francisco, Jossey-Bass Publishers.

Gagne, R., Briggs, L., & Wager, W. (1988). Principles of instructional design. New York: Holt, Rinehart and Winston, Inc.

Gardner, H. (1983). Frames of mind: The theory of multiple intelligences. New York: Basic Books.

Gregorc, A. (1985). An adult's guide to style. (2nd ed.). Columbia CT: Gregorc Associates, Inc.

Ittner, P., & Douds, A. (1997). Train the trainer. Amherst, MA: HRD Press.

"Selling Timber Without a Timber Inventory": An Exercise for County Agents and Foresters

Bob Daniels
Extension Forestry Professor
Department of Forestry
Mississippi State University
Mississippi State, Mississippi
Internet Address: bobd@ext.msstate.edu

Background and Situation

Standing timber worth millions of dollars is sold by forest landowners every year. It is common for landowners to sell timber without having a timber inventory to guide them on the value they should expect to receive for the timber. Accordingly, many landowners do not receive full value for their timber when it is sold. Extension foresters and county agents often encourage landowners to use professional forestry assistance and to have an inventory of their timber when they make a timber sale, but most still do not.

The following exercise is a short but enlightening activity for landowner meetings about marketing forest products. It introduces the topic and illustrates the necessity of timber inventory and other aspects of marketing timber.

The Setup

1. The Instructor places an item of value in a cardboard box or heavy brown paper bag labeled (large enough so an audience can read it) "For Sale."
2. A volunteer is selected from the audience as "The Seller." The Seller is asked to leave the room briefly. The Instructor shows the audience the item, tells them its retail value, and seals the bag/box. The Seller is then allowed to return.
3. Next, these rules are announced to all. The Seller's job is to sell the bag to someone in the audience for cash. The Seller may NOT look in the bag. The Seller is only told that the contents are worth "between $1 and $50" and that it has something to do with trees. (I recommend an item worth less than $20 because we are asking bidders to actually give money for the bag. Examples of items are tree id books, work gloves, chainsaw file, cap, shirt, etc. The item is not important, the behavior during the exercise and its application to timber marketing is important.)
4. The Seller gets to keep all the cash he/she gets for the bag. Once purchased, the Buyer shows the audience what they got.

What Happens?

To everyone the situation appears absurd. Who would sell something without knowing what they are selling? But that is the precise point we are illustrating. This often occurs when private, non-industrial forest owners market their timber.

As the bidding opens, the Seller feels very awkward and realizes his/her handicap trying to attract bidders without knowledge of the item. Usually, the Seller will try to feel through the bag or shake the bag to try to gain some knowledge of the contents to aid in the task. This will cause laughter from the crowd, but you should instruct the Seller that this is not allowed. (They will do it anyway. This is a source of humor in the exercise. You can minimize this aspect by using a sealed box, if desired.)

The Seller and the audience quickly realize that the buyers have the advantage because they know much more about the item than does the Seller. Also, the awkward feeling the Seller experiences is readily apparent. Discuss both of these points as they apply to timber marketing when the exercise is over.

The bidding proceeds. The Seller is allowed to do all he/she can do to drum up bids—other than looking in the bag. Bids will begin at low prices and move up, approaching the actual value of the item. But in this situation, the Seller will never get the full, actual value of the item because he/she doesn't know its true value. Once the bidding stops, the Seller must call "Going once, twice, three times. Sold for $____." Then the winning buyer gives the Seller the cash, takes the bag, and opens it in front of the audience. Next, it is revealed to the Seller what he has sold, and the instructor announces its actual value, thanks the Seller for his/her cooperation, and asks them to be seated.

Teaching Timber Marketing

The Instructor discusses the situation and how it applies when marketing timber. Ask the audience the following questions.

Q1. Was the result of the sale good or poor from the Seller's viewpoint? Why?

A1. It was poor. They didn't get the full value for the item because of little knowledge of what they were selling. This is often true when selling timber. Inventory is a must!

Q2. Who had the advantage in the situation and why?

A2. The buyers because they knew what was being sold and its retail value.

Q3. What could the Seller have done to get more for the item?

A1. Found out what it was and its value BEFORE it was sold.

Q4. Could the Seller have gotten a better price if he/she had a helper who knew what was in the bag and could advise the Seller if he/she should accept a bid?

A4. Yes, and the use of consultants is profitable.

Q5. How might the outcome of the sale results been different if:

• The buyers were not spending their own money? Timber buyers are often spending a company's money, not their own.
  
  
• Two buyers knew where they could resell the item for twice the price that was paid for it in the sale? They would likely bid higher than in our exercise. Forestry consultants have valuable knowledge of local markets.
  
  
• Three buyers urgently needed the item sold? The price would likely have been higher. Timber buyers can get under time or supply pressures that increase the price they will pay for timber.
  
  
• The audience was twice as large? If there were more potential buyers the price may go up because someone else may have had a great desire for the item. Advertising timber sales widely is a must.

This exercise is fun and very effective for showing landowners, through their own behavior, that a timber inventory is essential when marketing timber.

This article is online at http://joe.org/joe/2002february/ent-tt.html.

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