Transcript Market Journal Toolbox

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Market Journal Toolbox
A marketing and risk
management program
for agricultural
producers
Becky Small & Darrell Mark
Department of Agricultural Economics
University of Nebraska- Lincoln
Agricultural Economics
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The 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 movements
Government farm programs
Crop and livestock insurance products
Hedging with cash, futures, and options markets
New generation cash contracts
Agricultural Economics
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Program Involvement
Need expressed by extension audience
UNL class in extension setting
North Central Risk Management Education
Center
UNL Extension led by Dr. Darrell Mark
Department of Agricultural Economics
Department of Communication and Information
Technology
Agricultural Economics
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Market Journal Toolbox
 Self- directed, self-paced marketing course
 16 classes on five DVDs
 One resource CD containing
 Lecture slides
 Cost of production spreadsheet
 Glossary of terms
 Checklist
 Tool Selector
 Unique focus of building a marketing plan using a
combination of tools
Agricultural Economics
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Section Topics
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Cash Markets, Futures Markets, Basis
Cost of Production
Multi-Peril Crop Insurance
Group Crop Insurance
Livestock Insurance
Direct and Counter-Cyclical Payments
Marketing Assistance Loans
Cash Market Contracts
Agricultural Economics
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Section Topics
9. Futures Market
10. Hedging with Futures
11. Options on Futures
12. Hedging with Options
13. Futures Only & Min/Max Cash Contracts
14. Accumulator Contracts
15. Cash Forward & Insurance Combination
16. Evaluating the Alternatives
Agricultural Economics
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Progression
 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
Agricultural Economics
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Target Audience
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Agricultural Producers
Agricultural Lenders and Bankers
Extension Educators in Nebraska
New Target
 High School Agricultural
Education Teachers
Agricultural Economics
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The Beta Version
Tested the program pre-release in April 2006
42 evaluators participated nation wide
(includes one international reviewer)
83% of evaluators were agricultural
producers who were the main target market
Surveyed understanding before and after
viewing each section
Agricultural Economics
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Results 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 excellent
Changes were made in final version to
delivery but not content
Agricultural Economics
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Producing the Final Product
 Taped in July 2006
 Released in September 2006
Agricultural Economics
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Promotion
Direct mailings to:
7,000 Agricultural lenders and bankers
75 Table top posters to extensions educators
All mailing include Toolbox brochures
Over ten ads in magazines
and newspapers
Promoted and distributed
at extension meetings
Agricultural Economics
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Promotion
 Market Journal Toolbox website
 Weekly “Toolbox Tips” on Market Journal
Agricultural Economics
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Unplanned Results
Distribution not as large as expected
Unusually high commodity prices following time
of release
Counter-seasonal price trends this winter
Agricultural Economics
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In Hindsight
Release individual sections or several
sections together rather than all 16 sections
at once
Allows producers to pick and choose the most
valuable sections to them
Difficult with such an integrated program
Agricultural Economics
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Keys 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 CD
Willingness to apply what they learned
Agricultural Economics
The Future of Market Journal
Toolbox
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Updating time sensitive sections (e.g. farm
programs, crop insurance)
Add a section on technical analysis
Provided college credit for completing the
program
Agricultural Economics
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Evaluator Comments
“Get this out to as many people as possible. No
one has explained this complicated subject
matter as well as Market Journal Toolbox.”
Agricultural Economics