Economics in Cooperative Extension

A key to successful outreach programs is addressing relevant issues in a timely fashion.  Chapter 8 outlines the differences between traditional needs assessment and market research. 

Comments and Questions:  We are looking for additional examples of market research along the lines outlined in Chapter 8.  Please share your experience if you have done this type of market research for your Extension program?  Tell us a little bit about the nature of your program team?  How many people are on it?  Is the program available state-wide?  What specific aspects of market research did you do? 

"No Money, No Mission."  This is a lesson that many Extension programs are learning the hard way.  While public funding has provided the majority of the support for Extension programs, this is becoming scarce.  Programs which want to survive over the long run need to find sustainable sources of funding.  However, as outlined in Chapter 7, funding was not the primary benefit of doing program business plans in the new Minnesota model.  You will be surprised at the primary benefits.

Comments and Questions:  What do you see as the primary benefits and costs of this approach to program planning?  How does it differ from the approach used in your state.

Counties continue to be an important part of the Minnesota regional/county model, even though the relationship between Extension and counties has changed in fundamental ways.  Chapter 6 outlines the benefits and costs to counties of the new model.  Further, it provides data that shows employment in the field is probably higher than it would have been under the old system.

Comments or Questions:  What questions about the benefits and costs to counties in the Minnesota model are not answered in this chapter?  How do the number of local positions in counties in your state compare to the numbers in Minnesota counties as shown in Tables 6.3 and 6.4? 

Chapter 2 explores the theory of specialization and comparative advantage.  Economic theory suggests that specialization increases productivity.  Does this apply to education or Extension Educators?  A review of the literature shows that many economists and extension leaders think it does.  A review of the initial steps by Extension Services to encourage specialization suggests that few, if any, states have found the institutional arrangements needed to encourage specialization.

Comments:   Has your state taken steps to encourage regionalization and/or specialization?  If so, what are they?  Are there any journal articles about the effectiveness of these new arrangements? 

Chapter 5 defines specialization for field extension educators as:  "A specialized Extension Educator concentrates on an area of expertise, provides leadership on a statewide program team that develops and delivers outreach programs for a community of interest, and contributes to the scholarship related to outreach education." (The Minnesota Response, 2009, p. 99).

Empricial results are presented on six features of Minnesota Regional Extension Educators (REEs), with comparisons before and after the implementation of the regional/county system.  For example, 47 percent of all REEs now have statewide program responsibilities compared to only 9 percent before the changes in 2004. 

Comments:  If your state has a regional delivery system of some sort, what are the system features that encourage specialization by field educators?   What features discourage specialization? 

Chapter 3 describes the major features of the 2004 move from a county-based delivery model, or actually a county cluster model, to a regional/county model.  Regionalization, however, is the tip of the iceberg. This chapter gives an overview of the eight other policies which define and compliment the regionalization. 

Comments and Suggestions?

1) If you state has a "regional" model, what would table 3.1 look like for your state?

Chapter 2 sets the stage for dealing with these questions:  "As Extension resources decline, does true specialization of Extension educators result in greater access for the public, in closer campus faculty collaboration, in higher program quality, in greater public value and public support?  Alternatively, does greater specialization and regionalization of Extension educators diminish some or all of these?  In short, will specialization of Extension educators allow Extension to do more with less or will it weaken Extension?" (The Minnesota Response, 2009, p. 15)  

Comments and Suggestions? 

Your comments and suggestions are welcome.  In particular, share with us articles or books which are related but not included in our book.

1) A number of trends are outlined as affecting the need for greater specialization. Did I miss any or claim some that don't really fit?

2)  A series of advantages and disadvantages of field Extension Educator specialization are suggested as possibilities?  Any omissions or errors?  Recall that these are just possibilities or hypotheses at this stage, not claims that they actually exist. The vericity of these will be checked later in the book.

3) The history of field specialization is likely to be incomplete.  Already, Iowa State University Extension has made major changes which are not fully captured in this book.  What about your state? 

Even though Cooperative Extension has been one of the most successful outreach institutions in the USA for nearly 100 years and has been widely copied by other nations, it has a mission and money crisis now.  This is documented in Chapter 1.

What is happening in your state?  Is your state facing a mission and money crisis in Extension? Are there articles which document the increasing demands and fewer resources?  If so, please share these in the comments section. 

I am a Professor Emeritus in the Department of Applied Economics, University of Minnesota, moving to the coast of Maine in August 2007. 

For 33 years I was a professor of applied economics working on community development issues while at South Dakota State University, Ohio State University, and the University of Minnesota.  During most of this time, I had a joint extension and research appointment.  I also taught graudate level courses on regional economic analysis, regional input-output analysis, and regional general equilibrium analysis. 

All of my extension work was on regional and rural economic development.  Most of it was focused business retention and expansion and regional economic impact analysis. 

Throughout my career, I worked closed with county Extension Educators.  They played a critical role in the business retention program since there was a need for close contacts with local leaders. However, I was never able to find a role for them in regional economic impact analysis since they simply did not have the economics background necessary.  

In 2001, I applied for the position of Extension Associate Dean and Director. Only five months after I started as associate dean for Extension, the state announced a major fiscal crisis. This crisis, however, created both the necessity and the opportunity for much greater specialization by the field staff. 

Since Minnesota made these changes in 2004, we have had many questions from other states.  To answer these, I've written the book, The Minnesota Response, to document the changes and the initial impacts of these changes.  Five of my colleagues helped me with this book and are described in "Book Authors" under The Minnesota Response category.

The Economics in Cooperative Extension Blog is aimed at sharing economic concepts and ideas on the organization and delivery of outreach programs through the Cooperative Extension System. 

This blog isn't just for economists, however.  I will translate any jargon when my colleagues get too enthusiastic with some jargon.  If I miss something that needs translation, let me know.   

There have been several journal articles suggesting economic concepts which might help Extension become more efficient and more effective such as:

• comparative advantage
• specialization
• economies of scale and scope
• consumer soveregnty
• free riders
• club theory
• program business plans
• public value and private value
• benefit-cost analysis

Blog readers are encouraged to offer comments on research or on the good, bad, and the ulgy of the practical application of these economic concepts to outreach education in the Cooperative Extension Service. 

The blog is maintained by George Morse, professor emeritus, Department of Applied Economics, University of Minnesota.   He can be reached at morse001@umn.edu.