1. Montana MarketManager ® Program A Commodity Group’s Approach to Risk Management Education Richard Owen Montana Grain Growers Association www.montanamarketmanager.org Montana MarketManager ® Program A Commodity Group’s Approach to Risk Management Education Richard Owen Montana Grain Growers Association www.montanamarketmanager.org

2. 2 Montana MarketManager ® Program Developed in late 1998 to improve producers grain marketing skills. MISSION: To provide Montana grain and livestock producers with the tools and information necessary to maximize profits from the marketplace. Integrates Workshops/Seminars, Marketing Clubs and an online Market Information System (website) Through partnership with Montana Stockgrowers Association, now includes livestock information in all three program components

3. 3 Montana MarketManager ® Program We are in the education and information business – not the advisory business 3

4. 4 Why Montana MarketManager? Because our members told us this was what they wanted MGGA to do! Because it makes $ense! – On the grain side, every one cent increase that Montana producers receive for their grain equals $1.6 million to the states economy. 4

5. 5 MarketManager Goal How will we know when we are successful? When Montana producers consistently market their product in the upper ½ of the market 5

6. 6 Program Evaluation and Assessment Benchmark and measure educational progress of participants Benchmark and measure increased income from participation in the program Surveys to evaluate producers preference for different distance learning modes 6

7. Advisory Committee Provides overall guidance and direction for the program Includes producers, grain and livestock industry reps, ag lenders, extension, adult and distance education, agribusiness Meets on a regular basis in Great Falls and by conference call, e-mail

8. 8 Major Partners Public/Private Partners: MT Dept. of Ag. – (Growth Through Ag) Texas Ag Extension Service (MasterMarketer) Montana Stockgrowers Association Burlington Northern Santa Fe Cenex Harvest States Montana State University General Mills – Northwest Grain Division USDA – Risk Management Agency USDA - Rural Development Agency Burns Telecommunications Center, MSU Northwest Farm Credit Services Bonneville Power Administration Qwest Communications 8

9. 9 Program Elements Two full-time staff members dedicated to Montana MarketManager – Program Coordinator – Website Manager 9

10. 10 Additional Partner – Livestock Similar customer base to the Montana Stockgrowers Association (MSGA). Joint convention in 2000. Discussions started summer of 1999. Finalized spring of 2000. Livestock information now incorporated into all three components of the program. Contract pays for half of MarketManager Coordinator position. Portions of other staff and administrative expenses. Most importantly – shows both membership bases that we can work together.

11. 11 Program Elements Marketing Clubs Marketing Workshops MarketManager Online (Website) 11

12. 12 Marketing Clubs Clubs provide a peer support group for learning about and practicing marketing decisions. Over 40 clubs in place around MT – and growing MarketManager provides a network among clubs and leaders. Offers material, speakers, hands-on support. Communicate with staff and each other through e-mail listserv, discussion board, interactive TV and conference calls Many clubs cover both livestock and grain markets 12

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14. 14 Marketing Workshops Started out just grain – now includes livestock Available to multiple Montana locations through interactive video delivery Fall and winter 1999/2000- nine grain workshops – 1039 attendees. Total of 114 workshops in 22 locations Speakers host an online discussion forum Five grain and livestock workshops held in the fall of 2000 14

15. 15 Marketing Workshops MasterMarketer Program developed by Texas A&M – Montana and Minnesota added in 2001 Over 60 hours of top notch instruction on all aspects of marketing Rotated around different Montana locations 2003 Dates: – Part 1: January 27-29 – Part 2: Feb. 11-12 – Part 3: Feb. 25-26 Advanced Topic Series (ATS) added in 2002 15

16. 16 Montana MarketManager Online ® (www.montanamarketmanager.org) Hub of the overall program Debuted in March 1999. Expanded to included livestock market information in June 2000 Provides Montana-specific market news, pricing information, market commentary, weather, educational information Full time Website Manager Website free to all members – started out subscription based 16

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21. 21 Commodity Challenge 21 Online Marketing Simulation Game www.commoditychallenge.com Realistic way to practice your marketing skills – and not lose money Open to all producer Most fun when played as a marketing club Concurrent session on CC yesterday afternoon ®

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24. Why So Much Emphasis on The Internet? Over 45% of MT producers on the Internet – and growing rapidly Reduced costs to the association Much quicker and more timely information delivery Time and $ savings for members (less travel) Improved interaction between members (discussion boards, listservs)

25. Embracing New Technology in Other Areas Interactive video delivery of workshops Video streaming workshops and meetings to producers home computer Telephone conferencing of speakers to marketing club meetings Audio and video taping of workshops Extensive Internet training at conventions

26. 26 Lessons Learned Producers are more accepting of new distance technology then we realize. Producers are often more flexible than the technology Anything to lessen mileage is appreciated by users Rural Internet connection speed is relatively fast, but still in desperate need of more bandwidth Traditional education providers, such as extension and associations, are at risk from for-profit startups targeting the same audiences Constantly scan for non-traditional partners 26

27. 27 Richard Owen Executive Vice President Montana Grain Growers Association rtowen@mgga.org Phone: (406) 761-4596 www.montanamarketmanager.org 27