Panhandle Model Farms - 2018 Case Studies of Texas High Plains Agriculture

Texas High Plains producers often need realistic examples of crop and livestock operations to facilitate communication between local officials, commodity associations and agricultural lenders.  To encourage interaction between these different interest groups and simplify decision making, Texas A&M AgriLife Extension risk management specialists developed region-specific model farms. These operations attempt to illustrate typical production agriculture in six distinct areas of the Northern Texas Panhandle.

Model farms were created by organizing focus groups and collecting industry data. Texas A&M AgriLife Extension District 1 consists of 22 counties in the High Plains region. For study purposes, these counties were grouped into six clusters, each representing similar cropping and livestock systems. Risk management specialists then conducted focus groups within each cluster that consisted of county agents, agricultural producers, Farm Service Agency employees and agribusiness representatives. During these meetings, participants described the structure and characteristics of a realistic operation in their respective areas. Farm price data was gathered through Texas Cattle Feeders Association market summary reports and Chicago Board of Trade futures settlement sheets and adjusted for local basis.  Crop yields and cattle stocking rates came primarily from focus group estimates.

Once model farms were developed, a study analysis was performed using the Texas A&M AgriLife Extension Service’s Financial and Risk Management (FARM) Assistance Program. FARM Assistance is technically a long-term pro forma financial analysis that incorporates the research methods of stochastic simulation. It is aimed at helping farmers and ranchers with strategic planning and risk management. Study results show the five-year projected outlook for each model farm and represent a general economic outlook for area producers.