Econ. 338C: Introduction to Marketing--Grain Dr. Robert Wisner, University Professor Iowa State University Dr. Robert Wisner, University Professor Iowa State University Spring 2004Syllabus:

Instructor: Robert N. Wisner Office: 468G Heady Hall Phone: Web site: Office hours: one hour before class Secretary: Cindy Pease, 460 Heady Hall Phone

Course Description 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 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. 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 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. Optional paper should be related to your interests and expected future work.

Econ. 338C Example Paper Topics, II 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 risk- management 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. Optional paper should be related to your interests and expected future work.

Econ. 338C Grading Opportunity for extra credit Attendance

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