Unraveling the Mystery of Commodity Marketing for Farm Women was designed to provide Indiana farm women with the knowledge and confidence to participate in and make successful marketing decisions for their farm operations.

1. Unraveling the Mystery of Commodity Marketing for Farm Women
Easterday,* K.L.1; Day, M.2; Ferree, M.3; Herr, S. L.4; Overstreet, B.5; Reetz, M. J.6, Zoglmann, M.7
1Purdue Extension Educator - Agriculture and Natural Resources, Purdue Extension - Kosciusko County, Warsaw, IN, 46580
2Purdue Extension Educator - Agriculture and Natural Resources, Purdue Extension - Tipton County, Tipton, IN, 46072
3Purdue Extension Educator - Agriculture and Natural Resources, Purdue Extension - Bartholomew County, Columbus, IN, 47201
4Purdue Extension Educator - Agriculture and Natural Resources, Purdue Extension - Wayne County, Richmond, IN, 47374
5Purdue Extension Educator - Agriculture and Natural Resources, Purdue Extension - Jasper County, Rensselaer, IN, 47978
6Purdue Extension Educator - Agriculture and Natural Resources, Purdue Extension - Pulaski & Starke Counties, Winamac, IN, 46996
7Purdue Extension Educator - Agriculture and Natural Resources, Purdue Extension – Perry County, Cannelton, IN, 47520
Abstract Program Participation Participant Impact
Unraveling the Mystery of Commodity Marketing for Farm
Two way video Skills & Knowledge Attained Immediately Following
Women was designed to provide Indiana farm women with the
Host sites Program
knowledge and confidence to participate in and make
(73 participants) Change the way grain is
successful marketing decisions for their farm operations. In
marketed as a result of program
past programming, women have desired to learn more about
Skill or Knowledge
Self Study – Web based Feel more comfortable using
marketing in a comfortable and non-threatening environment marketing tools to price grain
option (21 participants)
with other women. A 5 week series was created to provide
farm women regardless of farm size the skills to determine Can calculate breakeven costs
Other States with
their breakeven prices, marketing goals, marketing plans, Increased knowledge of
requests for on-line web
utilize available marketing techniques, and how to evaluate commodity marketing terms
based program:
marketing contracts with the biofuels industry. The Purdue
0% 20% 40% 60% 80% 100%
Women in Agriculture team offered the series to 12 sites
OH IL NM u= Two-way video host sites Percent of Survey Respondents
around Indiana and as a web-based on-line program to 94
u = On-line web based participants Participants shared the following one new idea or tool that they took
participants. Six months after the series 75% reported
home and immediately put to use in their farm operations 2weeks
increased confidence in making marketing decisions, 9 women Program Agenda after completion of the program:
shared that they either started, completed or updated a Session 1
Where’s Our Farm Headed? Why Should I Care About Marketing?
That by planting time we should have 75% of old crop priced 30%
marketing plan, and 8 used at least one new marketing tool.
1. To reach your destiny, know where you’re going! or new crop priced.
2. The farm’s goals and mission statement! Using options to protect a sale from possible upwards price moves, as
Program Goals and Objectives 3. Decision making made easy! in this years’ markets.
1) Provide a learning environment for women to gain 4. There are answers in your records! Tracking local basis, spreading pricing over different windows: Feb-Apr
5. Marketing goals must fit the farm’s goals and Aug
knowledge and skills in marketing commodity Renew mission and prepare marketing plan
grains. Session 2 The breakeven worksheets so I could compare own farm’s breakeven
2) For women to more effectively participate in Understanding Futures Markets with Purdue’s worksheets
1. Introduction to the mechanics of futures markets How to execute a hedge (buy/sell)
marketing decisions in their farm operation’s 2. Using Futures Markets
commodity grain products. A. Reading the tea leaves: Futures as price forecasts? Skills & Knowledge Attained 6 Months After Program
B. Establishing forward prices: Risk management
3) Create a network with other women interested in
Percent of Survey
techniques
Respondents
commodity marketing. C. ―Locking-in‖ returns to storage 80%
4) Long term—increase sales and profitability of the 60%
Session 3 40%
business enterprise. Options Terms and Strategies
20%
1. Mechanics of options
2. Valuing options in the Biofuels era 0%
Program Delivery Methods 3. Options strategies: Increase in confidence in Increase in participation in
The program was offered making marketing farm operation marketing
A. Establishing minimum prices with puts
decisions for farm decisions
statewide by IP two-way B. Establishing maximum prices with calls
C. Establishing upper and lower price boundaries-Fences Skill or Knowledge
video conferencing. Each
4. Comparing futures and options strategies Participant comments from the program:
session was recorded
along with power point "My farms are in Illinois and farmed by my nephew and my 2 brothers. So
Session 4
presentations and now I can ask smarter questions and will know what they are talking
Local Cash Market Alternatives
homework. A password 1. The importance of basis about. This program was exactly what I needed.―
protected website was 2. Seasonality of futures, cash, and basis: impacts of biofuels
created to store the 3. Basic pricing alternatives at the elevator ―I just started farming on my own after 30 years as an employee—800
4. New generation contracts acres of crops and 4000 hear of hogs to finish. Thanks to this class I have
information. This
a better understanding of marketing that I needed.‖
allowed for additional Session 5
participants to complete Market Decision Making: Putting it all Together "Personally, I am not involved with a farm operation. I am a Farm Loan
the program as a web-based on-line self study program after the 1. Pricing strategies Officer who took the class to have a refresher course on Grain and
program was initially offered. A. Margin—we come back to records Livestock Marketing. My objective for taking the refresher course was to
B. Timing, Timing, Timing become a more effective loan officer to the farmers I work with by
C. Risk minimizing
Financial Support D. Outlook: Fundamentals, Technicals, and Market Analysts
updating my marketing knowledge.―
Grant ($10,000) 2. How do crop insurance and marketing work together?
2007-08 North Central Risk Management Education Center 3. Components of a written marketing plan! "My husband and I now discuss how to market our grain. We use budget
Registration Fees 4. Where to go from here! and cash flows more to help make
•1st Person - $40; marketing decisions.―
Corresponding Author
•2nd Person - $15, Kelly L. Heckaman
―The commodity class was one of the best I have ever taken. It changed
•On-line web based self-study option- $20 Purdue Extension Educator
Phone: 574-372-2340 my own life.‖
Email: kheckaman@purdue.edu