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Class XII Curriculum

Oklahoma Ag Leadership Program

Seminar XII

Broadening Our International Understanding

Wednesday, December 7, 2005
Scribe: Lee Horton

The opening session for Seminar 12 was held at the Oklahoma Restaurant Group Self Insurance Association office in Oklahoma City. Dr. Joe Williams gave an overview of activities and speakers for the seminar. The seminar theme was “Leadership at It’s Best and Broadening Our International Understanding.” Drs. Sue Williams and Renee Daugherty, both OCES faculty, chaired two sessions. The initial sessions was titled “Citizen Engagement Through Public Deliberation.” The class learned strategies for building a consensus in groups where differing views opinions, and/or objectives exist. The class engaged in a discussion or public deliberation concerning biotechnology of food issues. The class had a very thorough and lively discussion on several aspects of the issue and discussed a compromise and consolidation of ideas on biotechnology of food issues.

Lunch was provided by the Oklahoma Agricultural Leadership Program.

Following lunch, Dr. Sue Williams delivered a two and one half hour session on Understanding Leadership. Dr. Williams discussed and illustrated different styles of leadership. The class engaged in a real in-dept discussion on characteristics of good and creative leaders what characteristics we cherish and admire in ourselves and other leaders.

It was suggested that Dr. Williams’ presentation be moved to an earlier seminar to provide the class with a better understanding of leadership. The Public Deliberation Forum discussion was scheduled at an appropriate period during the OALP experience.

The agenda called for a visit to the Producers Cooperative Oil Mill and an evening session at the Oklahoma Children’s Center. The class was scheduled to assist and participate in OCC’s Christmas program. Both visits were canceled due to inclement weather.


Thursday, December 8, 2005
Scribe: Mark Holder

On December 8th the OALP met at the Education Building at the Logan County Extension Office in Guthrie, Oklahoma. The seminar topic for the day was “Healthy Communities 101.”

Our moderator for the day was Joyce Martin. She was very knowledgeable of the topics for the seminar.

Our first speaker was Dr James Trapp. He is the Department Head of the Ag Econ Department at OSU. His topics were “What are Healthy Communities?” and “Why/How can We Improve.” He spoke of the challenges we are seeing in rural Oklahoma. For example, the declining population and how difficult it is and will be to turn this trend around. It takes jobs to keep our young people in the state. He noted that there is a declining need for labor in Agriculture. He said there are no clear cut answers to this problem. It will take the people in rural communities to stop this trend. Education, training and economic development are all tools to make this happen.

Our next speaker was Suzette Barta. Her topic was “Economic Trends and Issues in Rural Oklahoma”. She works with data collection at OSU. She was able to show us some very interesting trends in the state of Oklahoma. It seems for the most part that Western Oklahoma has experienced decreases in population. The urban areas and most of Eastern Oklahoma have enjoyed increases. I think most of us see this trends developing daily, but seeing the actual numbers confirms your suspicions.

Doug Enns was the next speaker. He is the Director of the OSU Applications Engineering Program and New Products Development Center. He works with rural manufacturing business. He sees the biggest challenge for these businesses being the developing economy in China. The average manufacturing labor rate in China is 87 cents / hour. In the U.S., the average manufacturing job pays $19.86/ hour. China is currently producing 600,000 engineering graduates/year and the US is producing 70,000/year.

Our next speaker was Corey Stone. Corey is the Business Planning and Marketing Specialist. He works with start up businesses. He spends a lot of time with people who have a product that they want to develop into a small business enterprise. One of his biggest challenges is to educate the new business person on the business issues that they have never had to consider. Production and distribution are just two examples.

The next group of speakers were Glenn Muske, Jack Frye, Stan Ralstin and Francee Tolle. Their topics were assisting entrepreneurship through OSU extension. They each offered information on what programs are available through extension and some of their experiences. Francee talked specifically about Agri-tourism in the State of Oklahoma. She offered several interesting ideas on developing profitable businesses in the rural areas. This included everything from star watching to hunting. She mentioned one rancher in Kansas who was charging people to come out and watch him burn his pastures in the wet spring time. With what we are experiencing in Oklahoma now, timing is everything on this one.

Our next two speakers were Dr. Reneé Dougherty and Dr. Sue Williams. They work through OSU Extension with communities to help develop leadership. They introduced us to Mr. Ron Vick. He is the OSU Extension Agent in Okfuskee. He told us about developing a leadership program in his community with the assistance of Dr. Dougherty and Dr. Williams. This program recruited and trained several people in Okfuskee to step up into leadership positions within the community. This is a very good approach to take control of the direction in which your community is headed. Strong leadership seems to be where it all starts.

Next we had two OALP members speak. Lee Horton of Lone Wolf and Mark Holder of Altus gave overviews of what was happening in their communities.

The session ended with evaluations and wrap-up by Joyce Martin.


Friday, December 9, 2005
Scribe: Harlan Hentges

Breakfast was sponsored by the Oklahoma Beef Council, Lopez Foods, and Dairy Max.

Heather Buckmaster of the Oklahoma Beef Council welcomed the class on behalf of the breakfast sponsors and told about current projects of the Oklahoma Beef Council, such as its work with the American Dietetic Association to publish a cookbook of healthy beef recipes.

David Henneberry, Agricultural Economics professor at Oklahoma State University, spoke to the class about Brazilian agriculture. Following is a brief summary of the information Dr. Henneberry provided.


Recent History of Agricultural Development and Trade.

From the 1950s to 1980s, Brazil followed a path of agricultural development similar to that of the United States – developing infrastructure, developing technologies, research and development, moving from family owned farms to multinational corporations, government policies of guaranteed prices and subsidies. In the 1990s, the rise of the World Trade Organization and its efforts to “level the playing” in international trade forced Brazil to liberalize trade and decrease its use of price guarantees and subsidies. During the 1990s Brazil joined Argentina and Chile to form a free trade area, Merco Ser.


Comparison of US and Brazilian Agriculture.

The US agriculture production ($180 b) is about twice the size of Brazilian agriculture ($97 b). US agribusiness ($1 t.) is about four times the size of agribusiness in Brazil ($264 b.)


Brazilian production and exports.

Brazil is the third largest agricultural exporter in the world behind the United States and the European Union. Brazil, along with Argentina, Chile and Mexico, are the world’s four fastest growing agricultural exporters.

Brazil accounts for significant portions of world production and exports of many agricultural products.

Coffee:31% of production
29% of exports
Orange Juice:47% of production
82% of exports

Brazilian OJ production is from very large land owners. The largest Brazilian producers of orange juice produce more than all of Florida. The Brazilians dominated the world export market through advancement in refrigeration technology.

Sugar:16% of production
Soybeans:30% of production
38% of exports
Instant coffee:44% of production
Poultry:14% of production
29% of exports
Beef:16% of production
20% of exports
Tobacco:23% of production
Cotton:5% of production
Corn:4% of production


Trade Relations between the US and Brazil

There have been 12 recent trade disputes between the US and Brazil related to issues such as reformulated and conventional gasolines, carbon steel countervailing duties, US Patent Code, steel, cotton, etc. Sales of agricultural products to Brazil by the US are approximately $324 million - not a significant portion of US exports.


Brazil’s Future.

A large portion of Brazil’s agriculturally productive land is not served by sufficient transportation or storage facilities. Brazil’s production potential could experience large growth if there were investment in transportation and storage infrastructure.

Randy Kellogg, Vice President, Bank of Oklahoma, spoke to the class about the BOK experience in serving businesses engaged in international trade.


Sources of Information

Sources of information regarding international trade include the United States Embassy and Department of Commerce. These sources of information can be a source of referrals to trading partners. In addition to governmental sources, private consultants with contacts in a country may be helpful in establishing relationships.

Important issues in establishing an international trade relationship include international cash management, sending and receiving international wires, foreign exchange rates, documentary collections, etc. Banks experienced in international banking have large number of banks worldwide with whom they have a communicating relationship. BOK has communicating relationships with 3,000 banks worldwide.


Financing and Payment Methods

The payment relationships between importers and exporters include: open account documentary collections, unconfirmed letters of credit, confirmed letters of credit and cash in advance. Open account has the least risk to the importer, and cash in advance has the least risk for the exporter. Documentary collections enable a bank to handle the exchange of documents of possession of the imported goods for the payments of the amount owed. The bank, however, has no obligation to pay if the buyer doesn’t pay. A letter of credit imposes an obligation on the bank to pay the seller. With an unconfirmed letter of credit the exporter is relying upon the strength of the foreign bank. With a confirmed letter of credit, a U.S. bank becomes obligated to pay should the foreign bank fail.

Conducting international trade is assisted by the Export Import Bank of the United States (EXIM). EXIM assessed the risk involved in trading with various countries and this influences the terms available for financing international trade.

Our last presenter, Susan Allen, OALP Class XI, gave a thorough and helpful presentation about packing for the trip to Brazil.


International Trip Details

Dr. Williams discussed administrative aspects of the February 4 – 16, 2006 international trip to Brazil.


Friday Afternoon and Evening Activities

Class XII participants joined OALP Alumni (ALO) for Visitation/Dinner/Auction in the Hotel Atrium. Class members provided primary leadership in soliciting auction items. Auction items brought in excess of $5,800.