Transcript Northeast Grain Producers Guide - National Ag Risk Education Library

The Farmers Grain
Marketing Guide
Carl L. German, Extension Marketing Specialist,
University of Delaware
– in cooperation with –
Dr. Art Barnaby, Extension Farm Management Specialist,
Kansas State University
Linda Smith, Managing Editor, Top Producer,
Farm Journal
Funded by The Northeast Center
for Risk Management Education
Project Background

Grain producers in the
northeast United States face
a unique set of everyday
business decisions involving
price and yield risk.
 As marketers, they are
constantly looking for ways
to improve marketing skills.
 Marketing decisions can
have a significant impact on
the bottom line.
The Farmers Grain Marketing Guide
Need for Project
 A recent
USDA study shows that only 10.4%
of U.S. corn production and an even smaller
percent of soybeans and wheat are sold
through marketing contracts.
 Those who did use contracts received a
better price than the national average.
 Education is needed to improve farmer use
of grain marketing alternatives.
The Farmers Grain Marketing Guide
Project Objectives
 To
develop a practical, self-help risk
management guidebook for Northeast grain
farmers, extension agents and specialists.
 To distribute the guidebook via the World
Wide Web and on CD.
 To develop an agenda for a risk
management workshop on grain marketing
and crop insurance that can be offered
throughout the Northeast.
The Farmers Grain Marketing Guide
Project Concept
 An
electronic, innovative course designed to
provide farmers with an understanding of
the tools needed to improve their marketing
skills.
 The emphasis is on price-risk-reducing
marketing alternatives.
 Other speculative alternatives are
mentioned where appropriate.
 Getting information to producers in a timely
and useful manner.
The Farmers Grain Marketing Guide
Project Format

Market Planning
 Cash Market Alternatives
 Basis: The Economics of
Where and When
 Options on Agricultural
Futures
 Hedging in the Futures Market
 Crop Insurance
 On-line Resources
Each Unit is designed to be Interactive!
The Farmers Grain Marketing Guide
The Units

Each unit is designed to be interactive, in terms of
being user-friendly and in presentation of the
material.
 Interactive learning has been shown to result in
better understanding and recall than
classroom/lecture teaching.
 Units consist of subject matter information,
examples, exercises, and a test your
understanding quiz presented at the end of each
unit.
The Farmers Grain Marketing Guide
Project Advantages
– agweb.com currently has 90,000
(+) registered viewers.
 Having the guide available on the Web
allows individuals to study at home at their
own pace.
 The guidebook information is based upon
first-hand experience of the authors.
 The authors will be available via the Internet
to address user questions.
 Visibility
The Farmers Grain Marketing Guide
Issues Along the Way
 Deciding
the best way to
present/package
material
 Prioritizing with a tight
budget
 Employing good web
course developer
The Farmers Grain Marketing Guide
Where To From Here?
 The
manuscript is completed.
 We’ve hired a web course developer.
 We are creating a site map and beginning
graphic design.
 The material is to be posted for testing on
the web by the summer of ‘03.
The Farmers Grain Marketing Guide
Where To From Here?
(continued)
 The
manuscript is not all inclusive.
 Much work remains to be done.
 This project calls for additional units as new
and advanced grain marketing alternatives
emerge.
 The authors will be addressing this need in
the next round of competitive grants.
The Farmers Grain Marketing Guide
Questions or Comments?
Carl L. German
Extension Marketing Specialist
University of Delaware
Newark, DE 19716-2130
302-831-1317
[email protected]
The Farmers Grain Marketing Guide