Steven D. Johnson, Farm & Ag Business Management Field Specialist, Central
Declining prices for corn and soybeans in 2004 and 2005 illustrate the importance of an ongoing ag marketing club to assist participants with crop marketing and risk management strategies.
Farmers and business leaders have joined forces to create the Lynnville Ag Marketing Club, organized by Iowa State University Extension. Producers, landowners and agribusiness leaders say improved crop marketing skills have resulted in increased revenue and economic impact for club participants in Poweshiek and surrounding counties. Producers were able to offset the impact of low prices with pre-harvest sales strategies in order to capture better futures and basis prices.
Club participants reported their improved marketing skills from club participation resulted in an average value of $11,000 per farm. With 110 club participants, the economic benefit to Poweshiek and other counties totaled $1,320,000 annually.
104 - Agricultural Risk and Financial Management
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July 8, 2006
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