Transcript No Slide Title - Iowa State University

Syllabus:
Econ. 338C: Introduction to
Marketing--Grain
Spring 2004
Dr. Robert Wisner,
University Professor
Iowa State University
http://www.econ.iastate.edu/faculty/wisner/
Instructor: Robert N. Wisner
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Office: 468G Heady Hall
Phone: 294-6310
e-mail: [email protected]
Web site:
http://www.econ.iastate.edu/faculty/
• Office hours: one hour before class
• Secretary: Cindy Pease, 460 Heady Hall
• Phone 294-7318
Course Description
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This course is designed to help understand
grain marketing from a producer
standpoint, as well as from the viewpoint of
lenders, grain elevators, advisory services,
and commodity brokers who work closely
with farmers.
• It focuses on the importance of tailoring
the marketing plan to specific needs of the
individual farm business. Practical aspects
of risk assessment and management are
examined.
Course Description, Cont. I
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Marketing is the part of the farm business
where cash in-flows match up with cash
out-flows and determine net returns for
production and storage enterprises. The
course links marketing decisions to
financial aspects of the business & risk.
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It examines the role of various pricing
tools & revenue insurance in marketing
grain.
Course Description, Cont. II
• Historical seasonality in Iowa cash corn and
soybean prices, as well as new-crop futures
and options premiums are examined.
• The course will include team projects and
the use of software for evaluating
marketing and risk-management
alternatives, as well as for developing
marketing plans.
Course Objectives
• To help you be better equipped to assist
farmers in your future profession, and to
improve your marketing skills if you farm
• To bridge the gap between understanding
how marketing tools work, and the process
of making marketing decisions
• To better understand the importance of
marketing-management to the individual
farm business
Course Objectives
• To help you understand the
complementarity of revenue insurance &
pre-harvest pricing tools. They are not
substitutes for each other.
• To provide hands-on experience and
understanding of some software that is
available for managing producer marketing
decisions
Econ. 338C Course Objectives
• To increase understanding about commonly
used types of grain contracts and areas of
risk exposure in these contracts.
• To increase understanding of potential
roles, advantages & disadvantages of
contracts in marketing grain, & create
awareness of risk of loss of govt. payments
Econ. 338C Course Reference
Materials
• Text: Managing Risks & Profits, Grains
Coping with volatile world markets, by Robert
N. Wisner, E. Dean Baldwin, and Neal E.
Blue.
• Available from Midwest Plan Service, 122
Davidson Hall, for $15.00
• Other selected articles and handout
materials
Econ. 338C Course
Reference Materials
• Lecture outlines and notes will be
made available as handouts
Econ. 338C
Teaching Methods
• Teaching methods include assigned
readings, class exercises, lectures, exams,
and papers
• Lectures will be to expand, interpret,
clarify, & explain reading materials
• Exercises will be used to develop
application skills
Econ. 338C
Teaching Methods
• Class discussion is encouraged to help
extend and clarify lectures & reading
material
• Exercises will be based on actual price and
yield data & ISU estimated costs
• Internet sources of information will be
made available for your use
Econ. 338C Exams &
Quizzes
• Two quizzes
• Mid-Semester Exam
• Final exam
• Optional Paper
• Exams & quizzes will be
short answer, multiple choice,
true or false, short essay
Econ. 338C Example Paper Topics
Optional paper should be related to your
interests and expected future work.
• If you plan to farm, it might include an overview of
your grain enterprises, and important considerations
you intend to include in your grain marketing plan.
• If you expect to work in agricultural lending, it
might focus on methods you would use to evaluate
farmers’ marketing plans and how you might use
that information in making loan decisions.
• If you expect to enter the crop insurance industry, it
might focus on explaining to clients what types of
insurance do and do not serve as companion pieces
for pre-harvest pricing tools.
Econ. 338C Example Paper Topics, II
Optional paper should be related to your
interests and expected future work.
• If you plan to work as a commodity broker or
market advisor, it might include a discussion of how
you would address the marketing and riskmanagement needs of your clients, what information
you would need from them, and how you might
tailor marketing advice to individual farm situations.
• If you expect to work in a grain elevator or
processing plant, it might include a discussion of
how to help farmers understand that one size does
not fit all when it comes to marketing plans.
Econ. 338C
Grading
Percent of Total Grade
20%, or 10% with Paper
Each Quiz
30%
Mid-Semester Exam
30%
Final Exam
20% or 0
Optional Paper
100%
Total
Attendance
Opportunity for extra credit
Econ. 338C
Potential Benefits for farmers
• An average gain of $0.12 per
bushel on a 1,400 acre Central
Iowa cash grain farm during a
45-year farming career adds
$750,000 of investment funds.*
* excludes future gains in crop yields & earnings on
the funds generated by improved marketing