Narrative:

We were doing takeoffs and landings at ADF. We departed runway 4 and were going to stay in the traffic pattern. We extended upwind to provide adequate spacing between us and the downwind traffic to perform a power-off 180. We were on upwind still and a plane took off of runway 4 before we turned onto crosswind. Common practice at ADF is to wait until the upwind traffic turns onto crosswind before initiating their takeoff. He failed to follow this protocol. We turned onto crosswind and then shortly after turned on downwind. The student I was evaluating decided to climb to 1250 MSL; which is 250 feet above our traffic pattern altitude; to give him extra altitude to help perform his power-off 180. In this case it was probably a good thing because it increased our vertical separation. I am not sure how long we were on downwind; probably several seconds; and then I heard the student make a radio call that he was turning onto crosswind and immediately started scanning for the traffic since we had extended our upwind and we were in the position in the traffic pattern that it would be possible for a crosswind traffic to collide with us on downwind. My scan started from behind the wing because that is the actual position the student should have been and then proceeded to start scanning forward and I finally saw the aircraft right in front of the wing. I immediately called out to my student; 'there he is turn left'. My scan from start to finish probably took 5 seconds before I saw him. We turned left and avoided the aircraft and circled to the southeast of the airport and then re-entered the pattern on the 45 to the downwind and landed with no other issues.on further investigation the plane that almost collided with us was a student pilot on a solo flight; which no one in the local area knew that there was a solo student pilot. Also the student not using the correct altimeter setting which gave him in indication he was flying at 1000 feet but he was actually flying at 780 feet. This gave extra vertical separation which is why I noted the vertical separation was 470 feet.but this incorrect altimeter setting also made the student turn onto crosswind early; if he had the correct setting he would have turned later and probably would have turned behind us. This would have put him in the position where I initially started my scan.the student pilot will receive instruction to verify he knows proper scan technique and be shown when he should initiate turns in the pattern when other aircraft are present. Student will receive instruction to verify he has received proper instruction on checklist usage and how to properly set the altimeter.corrective actions that will be taking place:students who only hold a student pilot certificate will be required when making radio calls to announce they are a solo student.dispatch will be required to also advise the area traffic that there is a student pilot flying and the tail number the student is in.the student's instructor will also be responsible in advising the area that there is a student pilot flying and the tail number they are in.

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Original NASA ASRS Text

Title: GA pilots of two aircraft reported NMAC in the pattern at non-towered airport.

Narrative: We were doing takeoffs and landings at ADF. We departed RWY 4 and were going to stay in the traffic pattern. We extended upwind to provide adequate spacing between us and the downwind traffic to perform a power-off 180. We were on upwind still and a plane took off of RWY 4 before we turned onto crosswind. Common practice at ADF is to wait until the upwind traffic turns onto crosswind before initiating their takeoff. He failed to follow this protocol. We turned onto crosswind and then shortly after turned on downwind. The student I was evaluating decided to climb to 1250 MSL; which is 250 feet above our traffic pattern altitude; to give him extra altitude to help perform his power-off 180. In this case it was probably a good thing because it increased our vertical separation. I am not sure how long we were on downwind; probably several seconds; and then I heard the student make a radio call that he was turning onto crosswind and immediately started scanning for the traffic since we had extended our upwind and we were in the position in the traffic pattern that it would be possible for a crosswind traffic to collide with us on downwind. My scan started from behind the wing because that is the actual position the student should have been and then proceeded to start scanning forward and I finally saw the aircraft right in front of the wing. I immediately called out to my student; 'THERE HE IS TURN LEFT'. My scan from start to finish probably took 5 seconds before I saw him. We turned left and avoided the aircraft and circled to the southeast of the airport and then re-entered the pattern on the 45 to the downwind and landed with no other issues.On further investigation the plane that almost collided with us was a student pilot on a solo flight; which no one in the local area knew that there was a solo student pilot. Also the student not using the correct altimeter setting which gave him in indication he was flying at 1000 feet but he was actually flying at 780 feet. This gave extra vertical separation which is why I noted the vertical separation was 470 feet.But this incorrect altimeter setting also made the student turn onto crosswind early; if he had the correct setting he would have turned later and probably would have turned behind us. This would have put him in the position where I initially started my scan.The student pilot will receive instruction to verify he knows proper scan technique and be shown when he should initiate turns in the pattern when other aircraft are present. Student will receive instruction to verify he has received proper instruction on checklist usage and how to properly set the altimeter.Corrective actions that will be taking place:Students who only hold a student pilot certificate will be required when making radio calls to announce they are a solo student.Dispatch will be required to also advise the area traffic that there is a student pilot flying and the tail number the student is in.The student's instructor will also be responsible in advising the area that there is a student pilot flying and the tail number they are in.

Data retrieved from NASA's ASRS site and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.