DO AGRICULTURAL MARKET ADVISORY SERVICES BEAT THE MARKET? EVIDENCE FROM THE CORN AND SOYBEAN MARKETS OVER 1995-1998

The purpose of this paper is to address two basic performance questions for market advisory services: 1) Do market advisory services, on average, outperform an appropriate market benchmark? and 2) Do market advisory services exhibit persistence in their performance from year-to-year? Data on corn and soybean net price received for advisory services, as reported by the AgMAS Project, are available for the 1995, 1996, 1997 and 1998 crop years. Performance test results suggest that, on average, market advisory services exhibit a small ability to "beat the market" for the 1995 through 1998 corn and soybean crops. It is debatable whether the performance of advisory services also is economically significant. The predictability results provide little evidence that future advisory service pricing performance can be predicted from past performance.Marketing,

Crop Farmers’ Use of Market Advisory Services

This study sought to examine the nature of farmers’ use of market advisory services based on the results of a survey of US crop producers. The survey revealed that market advisory service users tend to be significantly more risk seeking than non-users. Survey results indicated a large range in patterns of use of advisory services. Most farmers use advisory services to the greatest extent for marketing information, market analysis, and to keep up with markets. General guidelines (market strategies and price information) are utilized more than specific advice (e.g., specific pricing decisions, price forecasts). Only 11% of farmers reported that they closely follow the marketing recommendations provided by advisory services. Nonetheless, farmers report that the information provided by advisory services has a substantial impact on their marketing decisions. The implications of these results for advisory services, farmers, extension programs and research are discussed.Agricultural Finance,

Integrated Advisory Services

Teaching/Communication/Extension/Profession,

From "best practice" to "best fit": a framework for designing and analyzing pluralistic agricultural advisory services

"Agricultural advisory services play an important role in supporting the use of the agricultural sector as an engine of pro-poor growth and enabling small farmers to meet new challenges, such as accessing export markets, adopting environmentally sustainable production techniques, and coping with HIV/AIDS and other health challenges that affect agriculture...There is now renewed interest in agricultural advisory services in many countries.... The questions under debate include: What should be the roles of the public sector, private sector, and civil society? How can we ensure that agricultural advisory services are demand-driven and meet the diverse information needs of farmers? How can advisory services be made efficient and financially sustainable? How can we ensure that female farmers, the poor, and other marginalized groups have access to agricultural advisory services?" from Authors' SummaryAgricultural extension work, Pro-poor growth, Capacity strengthening,

DO AGRICULTURAL MARKET ADVISORY SERVICES BEAT THE MARKET? EVIDENCE FROM THE CORN AND SOYBEAN MARKETS OVER 1995-1997

The purpose of this paper is to address two basic performance questions for market advisory services: 1) Do market advisory services, on average, outperform an appropriate market benchmark? and 2) Do market advisory services exhibit persistence in their performance from year-to-year? Data on corn and soybean net price received for advisory services, as reported by the AgMAS Project, are available for the 1995, 1996 and 1997 marketing years. Performance test results suggest that, on average, market advisory services exhibit a small ability to "beat the market" for the 1995 through 1997 corn and soybean crops. This conclusion is somewhat sensitive to the type of performance test and market benchmark considered. The predictability results provide little evidence that future advisory service pricing performance can be predicted from past performance. When services are grouped by performance quantile, some evidence of predictability is found for the poorest performing services, but not for top performing services.Marketing,

THE PRIVATE SECTOR APPROACH TO GRAIN MARKETING: THE CASE OF AGRICULTURAL MARKET ADVISORY SERVICES

The purpose of this paper is to investigate the pricing performance and behavior of market advisory services in corn and soybeans. Data on corn and soybean net price received for advisory services, as reported by the AgMAS Project, are available for the 1995, 1996 and 1997 marketing years. Performance test results suggest that, on average, market advisory services exhibit a small ability to "beat the market". This conclusion is somewhat sensitive to the type of performance test and market benchmark considered. The predictability results provide little evidence that future advisory service pricing performance can be predicted from past performance. Marketing profiles identify three marketing "styles": i) "scale-up" sales, ii) selective hedging and iii) "speculative" hedging. Advisory services tend to follow the same approach across crop years.Agribusiness,

DO AGRICULTURAL MARKET ADVISORY SERVICES BEAT THE MARKET? EVIDENCE FROM THE WHEAT MARKET OVER 1995-1998

The purpose of this report is to address two basic performance questions for market advisory services in wheat: 1) Do market advisory services, on average, outperform an appropriate market benchmark? and 2) Do market advisory services exhibit persistence in their performance from year-to-year? Data on wheat net price received for advisory services, as reported by the AgMAS Project, are available for the 1995, 1996, 1997 and 1998 crop years. Not only do market advisory programs in wheat consistently fail to "beat the market," their performance is significantly worse than the market. On average, market advisory service performance is about $14 per acre below benchmark revenue, an economically non-trivial amount by any reasonable standard. The predictability results provide little evidence that future advisory service pricing performance can be predicted from past performance.Marketing,

The influence of local governance on agricultural advisory services in Tajikistan

The present article investigates the influence of local governance on agricultural advisory services in Tajikistan. The Central Asian Republic of Tajikistan is an agricultural country that has been described as a hybrid state, where local governance tends to be dominated by a few powerful actors. Local governance processes do have a strong influence on the agriculture practise and on the exchange of the knowledge. Agricultural advisory services claim various effects in the country. Especially in regions that are dominated by monocultures, advisory services have limited success. Therefore the present article assumes that the nexus of knowledge and innovation in Tajik agriculture is largely dependent on the decision-making of local governance processes. The article outlines the important role of local governance for distribution and use of knowledge in rural areas and emphasizes the context of agricultural advisory services in Tajikistan. --Tajikistan,Agriculture,Advisory service,Local governance,Elites

From "best practice" to "best fit": a framework for designing and analyzing pluralistic agricultural advisory services worldwide

"The paper develops a framework for the design and analysis of pluralistic agricultural advisory services and reviews research methods from different disciplines that can be used when applying the framework. Agricultural advisory services are defined in the paper as the entire set of organizations that support and facilitate people engaged in agricultural production to solve problems and to obtain information, skills and technologies to improve their livelihoods and well-being... To classify pluralistic agricultural advisory services, the paper distinguishes between organizations from the public, the private and the third sector that can be involved in (a) providing and (b) financing of agricultural advisory services. The framework for analyzing pluralistic agricultural advisory services presented in the paper addresses the need for analytical approaches that help policy-makers to identify those reform options that best fit country-specific frame conditions. Thus, the paper supports a shift from a “one-size-fits-all” to a “best fit” approach in the reform of public services... Based on a review of the literature, the paper presents a variety of quantitative and qualitative methodological approaches derived from different disciplines that can be applied when using the framework in empirical research projects. The disciplines include agricultural and institutional economics, communication theory, adult education, and public administration and management. The paper intends to inform researchers as well as practitioners, policy-makers and development partners who are interested in supporting evidence-based reform of agricultural advisory services. from Authors' AbstractAgricultural extension work, Pro-poor growth, Capacity strengthening,