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Building Market Resiliency in Iowa Through Advanced Grain Marketing Courses for Women

Agricultural Economics & Community Development

Madeline Schultz
Women in Ag Program Manager
Iowa State University Extension and Outreach
Ames

Abstract

As farmers work to manage price risk in uncertain times, more Iowa women are taking on the challenge of improving grain and oil seed prices. In Iowa, 356 women participated in one of 22 Women Marketing Grain courses. Surveys and a focus group indicated women have an interest in learning more advanced grain marketing concepts. In response, the Iowa State Univeristy Extension and Outreach Farm Management Team developed the new Advanced Grain Marketing for Women course. Our goals for the 6-hour course are to offer insights into options trading, share how options marketing tools may fit into an overall marketing strategy, and demonstrate how options trading may impact farm profitability. During the course, we discuss the roles of farmer-owned cooperatives, grain merchandisers, and brokers and the services they offer related to options. By comparing cash markets, forward contracts, hedging and options trading, participants learn the pros and cons of different marketing strategies. The course is designed with several activities to encourage peer to peer learning and deepen understanding. Women engage in conversation as they identify several grains and oil seeds. As they draw charts, they gain an understanding of the trigger points for marketing decisions. Through marketing year scenarios women work in teams to develop a marketing plan and implement an options strategy throughout the year. They discuss each team’s decisions and determine how well various strategies allowed them to market crops above the cost of production. Women attending courses increased their knowledge of how and why options are traded for commodity grain marketing. They learned how options trading relates to cooperative or grain merchandiser contracts, crop insurance, and feeder/processer demand for grain. Women took important actions to access new resources, create networks, and shared information with family or other business partners. When extension provides research-based and hands-on crop marketing education for women, they can create value for their farm business and improve overall economic conditions in Iowa.

Authors: Ryan Drollette , Kelvin Leibold , Tim Christensen, Charles Brown , Madeline Schultz
  1. Ryan Drollette Farm Management Specialist , Iowa State University, Iowa, 52246-5812
  2. Kelvin Leibold Farm Management Specialist , Iowa State University , Iowa, 50126
  3. Tim Christensen Farm Management Specialist , Iowa State University, Iowa, 50156
  4. Charles Brown Farm Management Specialist , Iowa State University, Iowa, 52577
  5. Madeline Schultz Women in Ag Program Manager, Iowa State University, Iowa, 50011-3611