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Savings for Farmers – Challenge 3Problem Statement + Target UsersAfter the recession of 2008, corn and soybean futures declined significantly, with farm profits falling by 38% in 2009, which has led farm debt to increase to its current value of $372 billion [1]. Although some farmers saw increases in profits, such as sugar farmers, farmers with cash crops like corn and soybeans who reside in what’s known as America’s farm belt did not. Demand for crops such as corn and soybeans increased significantly in the years leading up to the recession largely in part due to pressures placed by the ethanol industry [1]. In 2009, U.S. corn farmers produced a record of well over 13 billion bushels of corn in anticipation of this increase in demand [1]. In the aftermath of the recession, corn and soybean prices dropped drastically and the market was flooded. Consequently, farmland values also dropped [1].Farmers were left with no profits and often deficits, decreases in land value, and an increased need to provide for their families. The number of US farmers dropped by 4.3% from 2007 to 2012 [2]. Although this percentage seems small, it represents a significant statistical change [2]. Although farmers make up merely 2% of the American population [2], agriculture and agricultural related industries comprise nearly 6% of the GDP [3]. In order to continue operating, farmers are opting to borrow from banks in order to buy essentials like seeds and fertilizer [4]. However, if markets do not improve, increased borrowing can send farmers into more debt, creating a vicious cycle. Research by Robinson, Barry, and Burghardt has shown that farmers will continue taking on more debt in a “go for broke” manner in order to avoid liquidating fixed assets, like equipment [5]. Thus, it is imperative that farmers are given tools to encourage them to save, in order to ensure they have a safety net that will keep them from engaging in high-risk borrowing behaviors. Despite increased pressure placed on American farmers due to debt, few institutions are in place to protect farmers from sinking deeper into debt. Agriculture is a difficult industry: crop yields can be determined due to weather catastrophes and prices are largely impacted by global markets [4]. Although we can’t protect farmers from external factors such as the market or environmental factors such as droughts, we can establish institutions to help farmers save their profits during good years for a cushion for bad years that might come. We’re targeting farmers who suffered losses after the Great Recession or natural disasters in income and farmland value – particularly corn and soybean farmers. In particular, we are targeting farmers 35 and younger, since their debt levels have increased more than those of older farmers [6]. This group is an ideal target due to their comfort with technology and their receipt of income in lump sums. As younger people, they are more likely to be comfortable with technology, particularly mobile banking using computers or phones [7], presenting an opportunity to use mobile tools to help them save. Like most farmers, they receive income in lump sum payments after each harvest instead of in hourly wages, meaning that an intervention that targets them when they receive significant sums of money could have real impact on their savings. SolutionSince there are no specific savings programs that target young, Midwestern corn and soybean farmers in their thirties, we aim to create such a program. This program will be offered by local and national banks that offer loans and financial services in farming communities in the Midwest. Banks will recruit farmers within the target age range through online advertising and targeted outreach to farmers within the target demographic. The target behavior for our users is to save. In order to create a target behavior, an individual must have the motivation to perform an action, the ability to do so, and a trigger [8]. When a farmer enrolls in the program, they will be prompted to set a savings goal and a date they would like to save that amount by. To increase a farmer’s ability to to save, our program operates via direct deposit. Whenever a farmer receives a deposit, a percentage of that amount will be placed into the savings account. If a farmer receives a particularly large sum of money, the farmer will be prompted via push notification, email, or letter to save an additional percentage of it at the click of a button (or via mailing back a letter in an stamped envelope) that serves as a trigger. The motivation portion of the algorithm will be included in two ways. First, when the farmer is prompted to save, the farmer will see a graph of his or her current savings and goal amount, giving the individual a visual representation of their progress. The motivation will include spotlights or testimonials from local farmers who saved a certain percentage of their income and were able to get out or debt or make an improvement to their business. Thus, the plan motivates farmers through extrinsic motivation (reaching a goal) and also reinforces behavior by using peer influence. Our program also profits banks – the savings program increases bank funds thereby allowing the bank to make more money off of loans.Citations[1]http://search.proquest.com.ezp-prod1.hul.harvard.edu/docview/399137013?rfr_id=info%3Axri%2Fsid%3Aprimo [2]https://www.agcensus.usda.gov/Publications/2012/Online_Resources/Highlights/Farm_Demographics/ [3]https://www.ers.usda.gov/data-products/ag-and-food-statistics-charting-the-essentials/ag-and-food-sectors-and-the-economy.aspx[4] http://www.npr.org/sections/thesalt/2016/03/03/468887506/with-economy-stuck-in-the-mud-farmers-sink-deeper-into-debt[5] http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdf/1242712.pdf [6] https://www.kansascityfed.org/publicat/mse/mse_0610.pdf[7] https://www.federalreserve.gov/econresdata/consumers-and-mobile-financial-services-report-201603.pdf[8]https://www.dropbox.com/s/q9we1r3xu4sm5ti/behavioral%20change%20model%20Fogg.pdf?dl=0 [9]http://ageconomists.com/2015/07/07/digging-into-farm-debt/

Published on February 22, 2017August 21, 2022 by post_author

photo2017ch3distinction, Challenge3, kpathak, ktelgen, section2

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What I’ve Got – Glow in the Dark StarsI had glow in the dark start on my walls as a kid, and recently put some up in my room, and I’m really enjoying them. They add just a little bit of flair to my walls, and are pretty unobtrusive in the daytime. They can essentially be adhered to any surface, and don’t leave residue on the walls, making them pretty functional. Glow in the dark stars glow because they contain phosphors, or photoluminescent compounds, which slowly release electromagnetic energy absorbed at a previous time. Photoluminescence has been observed in natural contexts (like the glow of fireflies) for thousands of years, but phosphorus was isolated in 1669 by Hennig Brand. Since then, many other phosphorescent compounds have been discovered, and the stars on my walls likely contain zinc sulfide or strontium aluminate. These compounds can absorb visible light and then release it slowly over a long time span, which means that these stars are slowly losing their glow, and eventually will cease to do so. Source:http://inventors.about.com/od/gstartinventions/a/glow_stick.htm

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Selected News…

Fifteen Professors of the Year, Harvard Crimson, 2016

Top 50 Thinkers: On the Radar 2018
Emerging thinkers with the potential to make lasting contributions
, 2018

Laura Dern & DL Director Say Creators Need to ‘Catch Up’ With Audience’s Desire for Diverse Stories, AdWeek, 2018

Designing digital workspaces for creativity and collaboration in online project-based courses, MIT Media Lab, 2020

A living (room) lab: With students off campus, faculty and staff innovated to redesign hands-on courses, Harvard SEAS, 2020

Chef League (mobile game) challenges you to improvise recipes like the pros, VentureBeat, 2019.

When it comes to innovation, it’s personal: The secret to successful innovation isn’t a great idea; it’s great people, The Business Post, 2019

Smart kitchens need smarter ideas to solve real problems, Fortune, 2019

Design for Desirability: Game design challenge requires students to think outside the box, Harvard SEAS, 2019

Apply the science of desirability to game design at GDC, Gamasutra: The art and business of making games, 2019

Applying human-centered design processes to build successful teams. Into Practice, Harvard Vice Provost Office for Advances in Learning, 2019

Tech that helps us understand ourselves, Future Assembly, 2019

Women changing the way we think about innovation. Stern Speakers, 2019

Loneliness, the fear of digital nomads, Le Temps. (in French), 2019

LA Design Festival spotlights city’s ‘creative diversity and talent’, Dezeen, 2018

Rolling toward a user-friendly commute
Harvard faculty-led startup pioneers human-centric urban travel
, 2017; Vespa’s New Robot Will Carry Your Groceries, CNN Money, 2017

Five Cutting Edge Ideas and Attractions, Boston.com, 2017; Technology That Helps Us Understand Ourselves, HUBWeek, 2017

Food for Thought: Flavor & Algorithms, MIT Museum, 2017

Harvard Aims to Reinvent Business-Engineering Education, Harvard Magazine, 2017

Globetrotting Digital Nomads: The future of work or too good to be true?, Forbes, 2015; Why is a Harvard professor studying digital nomads, Nomadlist, 2015

The nature of desirability, The Design Issue, Kinfolk Magazine (paywall), 2015-2016

Harvard Class Teaches the Design of Desirability, Boston Magazine, 2015

A new model for innovation in big companies, Harvard Business Review, 2013

Present at the Creation (Putting research-based creativity tips to the test), Boston Magazine, 2013

Contact & Acknowledgements

RESEARCH LAB OFFICE:
Desirability Lab
Brown University & RISD
Barus & Holley, No. 220
Email: ba[at]desirabilitylab.com

 

THANKS TO EARLY SUPPORTERS:

Harvard School of Engineering & Applied Sciences

Harvard Initiative for Learning and Teaching

Harvard Innovation Lab

Harvard Global Health Institute

Berkman Center for Internet and Society

SUTD-MIT International Design Center

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