1 Agricultural Economics Market Journal Toolbox A marketing and risk management program for agricultural producers Becky Small & Darrell Mark Department of Agricultural Economics University of Nebraska- Lincoln

2 Agricultural Economics The Program  Program to teach marketing and risk management tools from beginning level to more advanced topics  Unique because topics are integrated together  Topics: Seasonality of price and basis movements Government farm programs Crop and livestock insurance products Hedging with cash, futures, and options markets New generation cash contracts

3 Agricultural Economics Program Involvement  Need expressed by extension audience UNL class in extension setting  North Central Risk Management Education Center  UNL Extension led by Dr. Darrell Mark Department of Agricultural Economics Department of Communication and Information Technology

4 Agricultural Economics Market Journal Toolbox  Self- directed, self-paced marketing course  16 classes on five DVDs  One resource CD containing Lecture slides Cost of production spreadsheet Glossary of terms Checklist Tool Selector  Unique focus of building a marketing plan using a combination of tools

5 Agricultural Economics Section Topics 1.Cash Markets, Futures Markets, Basis 2.Cost of Production 3.Multi-Peril Crop Insurance 4.Group Crop Insurance 5.Livestock Insurance 6.Direct and Counter-Cyclical Payments 7.Marketing Assistance Loans 8.Cash Market Contracts

6 Agricultural Economics Section Topics 9.Futures Market 10.Hedging with Futures 11.Options on Futures 12.Hedging with Options 13.Futures Only & Min/Max Cash Contracts 14.Accumulator Contracts 15.Cash Forward & Insurance Combination 16.Evaluating the Alternatives

7 Agricultural Economics Progression  Organizing the Risk Management Toolbox: A Guide to Marketing, Insurance, and Government Programs  Evolved to Market Journal Toolbox  Program in tandem with Market Journal to capture a familiar audience

8 Agricultural Economics Target Audience  Agricultural Producers  Agricultural Lenders and Bankers  Extension Educators in Nebraska  New Target High School Agricultural Education Teachers

9 Agricultural Economics The Beta Version  Tested the program pre-release in April 2006  42 evaluators participated nation wide (includes one international reviewer)  83% of evaluators were agricultural producers who were the main target market  Surveyed understanding before and after viewing each section

10 Agricultural Economics Results of the Beta Version  35-50% increased knowledge of tools discussed  88% of evaluators indicated they could build a marketing plan with the tools provided  Self-paced video was excellent  Changes were made in final version to delivery but not content

11 Agricultural Economics Producing the Final Product  Taped in July 2006  Released in September 2006

12 Agricultural Economics Promotion  Direct mailings to: 7,000 Agricultural lenders and bankers 75 Table top posters to extensions educators All mailing include Toolbox brochures  Over ten ads in magazines and newspapers  Promoted and distributed at extension meetings

13 Agricultural Economics Promotion  Market Journal Toolbox website  Weekly “Toolbox Tips” on Market Journal

14 Agricultural Economics Unplanned Results  Distribution not as large as expected Unusually high commodity prices following time of release Counter-seasonal price trends this winter

15 Agricultural Economics In Hindsight  Release individual sections or several sections together rather than all 16 sections at once Allows producers to pick and choose the most valuable sections to them Difficult with such an integrated program

16 Agricultural Economics Keys to Success of Users  Self-disciplined enough to watch and understand sections  Willingness to go back and review sections that they did not understand fully  Utilized resource materials on CD  Willingness to apply what they learned

17 Agricultural Economics The Future of Market Journal Toolbox  Updating time sensitive sections (e.g. farm programs, crop insurance)  Add a section on technical analysis  Provided college credit for completing the program

18 Agricultural Economics Evaluator Comments “Get this out to as many people as possible. No one has explained this complicated subject matter as well as Market Journal Toolbox.”