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

The Farmers Grain Marketing Guide 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  Visibility – 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.

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