Marketing program lowers producers’ risks

LUBBOCK – Some ag producers believe the new farm bill will simplify their marketing options, choices, and decisions.  That may not be the case, according to a Texas A&M economist.

“The new farm bill does provide an enhanced income safety net.  But that doesn’t mean your marketing decisions will be any easier… in fact, marketing may become more complicated,” said Jackie Smith, Texas Cooperative Extension economist based in Lubbock.  “The methods we use to attain the best cash price haven’t changed, but a portion of our income safety net is now market dependent.”

The new farm bill includes a counter cyclical producer payment that is directly tied to market prices.  That payment will be highest when market prices are lowest, but it may not be there at all when market prices improve.

“That’s what makes marketing plans and methods so important to producers operating under the new farm bill.  Learning how to manage farm bill provisions/options such as the counter cyclical payment should be an integral part of your marketing plan,” Smith added. “Educating producers on these options and helping them develop strategies to reduce price risk is a key goal of the instructors in our next series of Master Marketing classes.”

The first of four 2003 Master Marketer Program sessions begins on January 22, 2003.  The registration deadline for this in-depth intensive marketing and risk management education program is January 7, 2003.

Participants will learn how to identify and evaluate marketing opportunities and then design and follow through with sound marketing plans.

Master Marketer training pays direct dividends to the bottom line.  A recent survey suggests past participants were able to increase their average annual gross revenues from three to ten percent, or about $30,000 each, simply by applying their new-found marketing skills and knowledge, Smith said.

Master Marketers learn from top industry and university professionals, who apply case study examples and simulation exercises in the classroom.  The 64-hour curriculum is offered in four, two-day sessions held every two weeks.

Registration costs $250 per person, plus a commitment to work with your county agent back home to try to start a marketing club.  Anyone interested should register as soon as possible.  The first two times the class was offered in Lubbock, it filled up before the deadline, Smith said.

Checks or money orders for registration should be payable to the Texas Extension Education Foundation.  Enrollment for the 2003 Master Marketer Program in Lubbock may be limited, so prompt registration is recommended, Smith said.

Registration fees pay only a small portion of the program’s cost.  Grants from Extension partners such as the Texas Corn Producers Board, Texas Wheat Producers Association, Texas Farm Bureau, the Cotton State Support Committee, and agribusiness also help fund the training.

Texans can get registration forms or information on the Master Marketers Program by calling Smith at 806-746-6101, or the local county Extension office.