Full Report:

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Full Report http//www.farmdoc.uiuc.edu/agmas/re
ports/05_02/AgMAS05_02.html All Tables
http//www.farmdoc.uiuc.edu/agmas/reports/05_02/Ta
bles.htm AGMASS Excel Summary table see class
web site

• Univ. of Illinois does an annual evaluation of Ag
  Market Advisory
• Services. You can get the report at the above
  web address. See
• Especially the Excel summary table on our class
  web site.
• Assignment Working individually or in teams of 2
  to 4 people,
• answer these questions
• How much better have advisory service
  recommendations as a
• group been over the study period, in average
  cents per bushel, than the average price received
• by farmers? __________corn _____________
  soybeans
• For the services as a group, how did their
  average price
• compare with the 20-month market benchmark?
• Corn, _______________ Soybeans _________.
• 3. For the services as a group, how did their
  average price
• compare with the 20-month market benchmark?
• Corn, _______________ Soybeans _________.

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• Evaluat. of Market Advisory Services, continued.
  
• 4. Has any one advisory service been able to
  beat the 24 month market benchmark every year
  over the study period? _____
• 5. How much does the relative ranking of
  advisory services vary from year to year?
  _________
• 6. Brock is an advisory service used by Cargill
  in some of its new generation contracts. On
  average, how has Brock ranked among advisory
  Services?
• Pro Farmer is headquartered in Cedar Falls, Iowa.
  How has it ranked among advisory services, on
  average? ____
• Doane is a long-time farm management and advisory
  service. How has it ranked among advisory
  services? _____________

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Check out these web sites
http//aede.osu.edu/Programs/AgRisk/ http//www.f
armdoc.uiuc.edu//cropins/insurance/premium_index.a
sp
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Risk premium in early new-crop forward corn
contracts?
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Dec. 2003 Corn
Dec. 05 high 2.888 4/04/04 Low 2.268 1/18/05
2/09/05
Note strong incentive to monitor New crop
pricing opportunities as much as 12-15 months
ahead of harvest, especially for high-cost
producer.
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Dec. 2002 Corn
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Dec. 2001 Corn
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Dec. 2000 Corn
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Dec. 1999 Corn
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Dec. 1998 Corn
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Dec. 1997 Corn
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Nov. Soybeans 2003
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Nov. Soybeans 2002
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Nov. Soybeans 2001
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Nov. Soybeans 2000
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Nov. Soybeans 1999
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Nov. Soybeans 1998
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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Nov. Soybeans 1997
Price data from Don Rose, U.S. Commodities, Des
Moines, IA
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NEWER TOOLS WHY INSURANCE
IS IMPORTANT WITH
PRE-HARVEST PRICING

Worst-case

over-sold, with high
prices

Few bushels means high cost/
bu
.

High price means loss from buying
back elevator contract

Insurance that fits with forward sales
CRC or RA with harvest-price Option
--maintains long cash position
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