Measuring the impact of an intensive commodity price risk management education program on agricultural producers

The purposes of the study were to measure change in knowledge, adoption of practices, and economic impact, and to investigate relationships between selected personal and business parameters, and satisfaction, knowledge, adoption of practices, and economic impact of the Master Marketer program and marketing clubs. A census was attempted to collect data from the 520 Master Marketer graduates and 1,058 marketing club members. Using recommendations from Dillman (2000), data from participants were collected using two mail questionnaires. This process yielded 326 usable responses from Master Marketer graduates for a return rate of 62.7%, and 407 usable responses from marketing club members for a response rate of 38.4%. Master Marketer respondents had a statistically significant increase in selfperceived knowledge with a change in mean score of 2.06 (pre-knowledge mean = 3.33, post-knowledge mean = 5.40, where 1 = low, and 7 = excellent). Using a paired samples t-test, the 2-tail level of significance was beyond the .05 level of significance. Marketing club respondents also showed a statistically significant increase in self-perceived knowledge. Adoption of price risk management practices was measured with an adjusted response scale ranging from 0 to 12. Master Marketer respondents showed a pre-mean score of 3.15, a post-mean score of 6.61, and a change of 3.46. The 2-tailed level of significance for the overall adoption scale was less than 0.01. Marketing club respondents also showed a statistically significant increase in adoption of these practices. Economic impact in terms of change in net income was derived using respondents?? self-reported changes in commodity price received for each commodity produced, and each respondent??s typical level of production. The total farm impact had a mean of $32,288. The 2-tailed level of significance for the total farm impact was less than 0.01. The mean impact per farm of$12,361 for marketing club respondents was also statistically significant. For Master Marketer respondents, notable findings with respect to the correlation of independent variable with dependent variables was total gross revenue was negatively correlated with knowledge change. Participants who reported a large change in knowledge tended to also report a large change (increase) in time spent on marketing

Post-Harvest Marketing Alternatives

4 pp.The marketing time frame for crops can be divided into three parts--pre-harvest, harvest and post-harvest. This publication focuses on the more common post-harvest marketing strategies using forward contracts, storage, futures contracts, options and various combinations of these tools

Cow-Calf Enterprise Standardized Performance Analysis

4 pp.SPA is a tool for determining the production and financial performance of an individual cow-calf enterprise. It allows producers to compare production systems, identify areas that need to be changed and measure progress toward meeting business objectives. This publication details the information requirements of SPA and explains how producers can gather that information

Considerations When Using Grain Contracts

4 pp., 2 tables, 1 chartGrain contracts can help farmers manage the increasing risks of production and the price volatility of the market. This publication explains grain contracts and how to use them wisely as a risk management tool

Business Plans for Agricultural Producers

4 pp., 1 diagramA business plan is a road map for success. It describes a firm's organizational structure, products and services, objectives, financial and marketing plans, strengths and weaknesses. This publication guides business owners in developing plans that can help them make decisions and sell the feasibility of their businesses to bankers and other investors

OPTIMAL STRUCTURE OF AN AGRIBUSINESS FIRM CONSIDERING THE ECONOMICS OF MAJOR, LINKED COMPONENTS

An optimization model is used to evaluate the economics of various components of a large agribusiness. The benefits of using interger programming are contrasted to traditional linear programming analysis in conjunction with outside-the-model budgeting analysis.Agribusiness, Research Methods/ Statistical Methods,

THE ECONOMICS OF THE BASE AND YIELD UPDATE DECISION

The 2002 Farm Bill provided the one time opportunity to update base acres and counter-cyclical payment yields to more closely reflect their current crops, rotations and yield levels. This paper discusses the available options and provides case study examples to illustrate the complexity of this decision.Agricultural and Food Policy,

Definitions of Marketing Terms

4 pp.This publication defines many of the marketing terms producers may encounter

Leasing vs. Buying Farm Machinery

4 pp., 3 tablesEquipment leasing has gained favor with farmers and ranchers in recent years. This publication discusses how to determine lease cost and analyzes lease vs. purchase options. An example of such an analysis is included

Financial and Economic Terms

4 pp.This publication lists and defines many financial and economic terms with which producers should be familiar