1 agricultural economics market journal toolbox a marketing and risk management program for...

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Agricultural Economics

Market Journal ToolboxMarket Journal Toolbox

A marketing and risk management program

for agricultural producers

Becky Small & Darrell Mark

Department of Agricultural Economics

University of Nebraska- Lincoln

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The ProgramThe Program Program to teach marketing and risk management

tools from beginning level to more advanced topics Unique because topics are integrated together Topics:

Seasonality of price and basis movementsGovernment farm programsCrop and livestock insurance productsHedging with cash, futures, and options marketsNew generation cash contracts

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Program InvolvementProgram Involvement

Need expressed by extension audienceUNL class in extension setting

North Central Risk Management Education Center

UNL Extension led by Dr. Darrell Mark Department of Agricultural EconomicsDepartment of Communication and Information

Technology

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Market Journal ToolboxMarket Journal Toolbox

Self- directed, self-paced marketing course 16 classes on five DVDs One resource CD containing

Lecture slidesCost of production spreadsheetGlossary of termsChecklist Tool Selector

Unique focus of building a marketing plan using a combination of tools

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Section TopicsSection Topics

1. Cash Markets, Futures Markets, Basis

2. Cost of Production

3. Multi-Peril Crop Insurance

4. Group Crop Insurance

5. Livestock Insurance

6. Direct and Counter-Cyclical Payments

7. Marketing Assistance Loans

8. Cash Market Contracts

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Section TopicsSection Topics

9. Futures Market10. Hedging with Futures11. Options on Futures12. Hedging with Options13. Futures Only & Min/Max Cash Contracts14. Accumulator Contracts15. Cash Forward & Insurance Combination16. Evaluating the Alternatives

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ProgressionProgression Organizing the Risk Management Toolbox: A

Guide to Marketing, Insurance, and Government Programs

Evolved to Market Journal Toolbox Program in tandem with Market Journal to

capture a familiar audience

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Target AudienceTarget Audience

Agricultural Producers Agricultural Lenders and Bankers Extension Educators in Nebraska New Target

High School Agricultural

Education Teachers

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The Beta VersionThe Beta Version

Tested the program pre-release in April 200642 evaluators participated nation wide

(includes one international reviewer)83% of evaluators were agricultural

producers who were the main target marketSurveyed understanding before and after

viewing each section

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Results of the Beta VersionResults of the Beta Version

35-50% increased knowledge of tools discussed

88% of evaluators indicated they could build a marketing plan with the tools provided

Self-paced video was excellentChanges were made in final version to

delivery but not content

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Producing the Final ProductProducing the Final Product

Taped in July 2006 Released in September 2006

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PromotionPromotion

Direct mailings to:7,000 Agricultural lenders and bankers75 Table top posters to extensions educatorsAll mailing include Toolbox brochures

Over ten ads in magazines

and newspapersPromoted and distributed

at extension meetings

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PromotionPromotion Market Journal Toolbox website Weekly “Toolbox Tips” on Market Journal

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Unplanned ResultsUnplanned Results

Distribution not as large as expectedUnusually high commodity prices following time

of release Counter-seasonal price trends this winter

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In Hindsight In Hindsight

Release individual sections or several sections together rather than all 16 sections at onceAllows producers to pick and choose the most

valuable sections to themDifficult with such an integrated program

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Keys to Success of UsersKeys to Success of Users

Self-disciplined enough to watch and understand sections

Willingness to go back and review sections that they did not understand fully

Utilized resource materials on CDWillingness to apply what they learned

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The Future of Market Journal The Future of Market Journal ToolboxToolbox

Updating time sensitive sections (e.g. farm programs, crop insurance)

Add a section on technical analysisProvided college credit for completing the

program

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Evaluator CommentsEvaluator Comments

“Get this out to as many people as possible. No one has explained this complicated subject

matter as well as Market Journal Toolbox.”

1 agricultural economics market journal toolbox a marketing and risk management program for...

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