The Farmers Grain Marketing Guide Carl L. German, Extension Marketing Specialist, University of Delaware – in cooperation with – – in cooperation with

The Farmers Grain The Farmers Grain Marketing GuideMarketing Guide

CarlCarl LL. . GermanGerman, , Extension Marketing Specialist,Extension Marketing Specialist,

University of DelawareUniversity of Delaware – – in cooperation with –in cooperation with –

Dr. Art Barnaby, Extension Farm Management Specialist,Dr. Art Barnaby, Extension Farm Management Specialist,Kansas State University Kansas State University

Linda Smith, Managing Editor, Top Producer,Linda Smith, Managing Editor, Top Producer,Farm JournalFarm Journal

Funded by The Northeast Center for Risk Management Education

The Farmers Grain Marketing Guide

Project BackgroundProject Background

Grain producers in the Grain producers in the northeast United States face northeast United States face a unique set of everyday a unique set of everyday business decisions involving business decisions involving price and yield risk.price and yield risk.

As marketers, they are As marketers, they are constantly looking for ways constantly looking for ways to improve marketing skills.to improve marketing skills.

Marketing decisions can Marketing decisions can have a significant impact on have a significant impact on the bottom line.the bottom line.


Need for ProjectNeed for Project

A recent USDA study shows that only A recent USDA study shows that only 10.4% of U.S. corn production and an even 10.4% of U.S. corn production and an even smaller percent of soybeans and wheat are smaller percent of soybeans and wheat are sold through marketing contracts.sold through marketing contracts.

Those who did use contracts received a Those who did use contracts received a better price than the national average.better price than the national average.

Education is needed to improve farmer use Education is needed to improve farmer use of grain marketing alternatives.of grain marketing alternatives.


Project ObjectivesProject Objectives

To develop a practical, self-help risk To develop a practical, self-help risk management guidebook for Northeast grain management guidebook for Northeast grain farmers, extension agents and specialists.farmers, extension agents and specialists.

To distribute the guidebook via the World To distribute the guidebook via the World Wide Web and on CD.Wide Web and on CD.

To develop an agenda for a risk To develop an agenda for a risk management workshop on grain marketing management workshop on grain marketing and crop insurance that can be offered and crop insurance that can be offered throughout the Northeast.throughout the Northeast.


Project ConceptProject Concept An electronic, innovative course designed to An electronic, innovative course designed to

provide farmers with an understanding of provide farmers with an understanding of the tools needed to improve their marketing the tools needed to improve their marketing skills.skills.

The emphasis is on price-risk-reducing The emphasis is on price-risk-reducing marketing alternatives.marketing alternatives.

Other speculative alternatives are Other speculative alternatives are mentioned where appropriate.mentioned where appropriate.

Getting information to producers in a timely Getting information to producers in a timely and useful manner.and useful manner.


Project FormatProject Format

Market PlanningMarket Planning Cash Market AlternativesCash Market Alternatives Basis: The Economics of Basis: The Economics of

Where and WhenWhere and When Options on Agricultural Options on Agricultural

FuturesFutures Hedging in the Futures MarketHedging in the Futures Market Crop InsuranceCrop Insurance On-line ResourcesOn-line Resources

Each Unit is designed to be Interactive!Each Unit is designed to be Interactive!


The UnitsThe Units

Each unit is designed to be Each unit is designed to be interactive, interactive, in terms of in terms of being user-friendly and in presentation of the being user-friendly and in presentation of the material.material.

Interactive learning has been shown to result in Interactive learning has been shown to result in better understanding and recall than better understanding and recall than classroom/lecture teaching.classroom/lecture teaching.

Units consist of subject matter information, Units consist of subject matter information, examples, exercises, and a examples, exercises, and a test your test your understanding understanding quiz presented at the end of each quiz presented at the end of each unit.unit.


Project AdvantagesProject Advantages

VisibilityVisibility – agweb.com currently has 90,000 – agweb.com currently has 90,000 (+) registered viewers.(+) registered viewers.

Having the guide available on the Web Having the guide available on the Web allows individuals to study at home at their allows individuals to study at home at their own pace.own pace.

The guidebook information is based upon The guidebook information is based upon first-hand experience of the authors.first-hand experience of the authors.

The authors will be available via the Internet The authors will be available via the Internet to address user questions.to address user questions.


Issues Along the WayIssues Along the Way

Deciding the best way to Deciding the best way to present/package present/package materialmaterial

Prioritizing with a tight Prioritizing with a tight budgetbudget

Employing good web Employing good web course developercourse developer


Where To From Here?Where To From Here?

The manuscript is completed.The manuscript is completed. We’ve hired a web course developer.We’ve hired a web course developer. We are creating a site map and beginning We are creating a site map and beginning

graphic design.graphic design. The material is to be posted for testing on The material is to be posted for testing on

the web by the summer of ‘03.the web by the summer of ‘03.


Where To From Here?Where To From Here?(continued)(continued)

The manuscript is not all inclusive.The manuscript is not all inclusive. Much work remains to be done.Much work remains to be done. This project calls for additional units as new This project calls for additional units as new

and advanced grain marketing alternatives and advanced grain marketing alternatives emerge.emerge.

The authors will be addressing this need in The authors will be addressing this need in the next round of competitive grants. the next round of competitive grants.


Questions or Comments?Questions or Comments?

Carl L. German

Extension Marketing Specialist

University of Delaware

Newark, DE 19716-2130

302-831-1317

[email protected]

Documents

The Farmers Grain Marketing Guide Carl L. German, Extension Marketing Specialist, University of Delaware – in cooperation with – – in cooperation with