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3. 2007 National Extension Risk Management Education Conference

Executive Marketing: Developing a Risk Management Plan

Scott Mickey

Summary

Over 200 marketing plans have been implemented by grain producers in CO, GA, MS, NC, SC, and TN via the Executive Marketing seminars, an annual 2.5 day marketing workshop. The workshop helps farm managers develop written marketing plans based on their financial situation-- operating costs, cash flow and planting intentions. Key components of the seminar include:

• Target Price Analysis-- Assessing the financial condition of the business and developing commodity pricing signals to achieve
oGrowth Goals
oBreakeven Goals
oCash Flow Goals
• Fundamental Analysis using USDA Supply & Demand estimates
• Putting on the Trade understanding the mechanics of forward contracts, options, and futures and the importance of basis
• Using GRIP, CRC & MPCI insurance as a marketing tool
• Marketing Simulation Game to practice or try new marketing techniques
• 4 Triggers for Marketing Decisions
oWhat I need
oFundamental Price Direction
oCrop Insurance support
oTechnical Signals
• Putting the Plan on Paper—developing a plan of action for the next 3 months
• Quarterly Updates to monitor the plan and adjust for new information

Most seminar participants return every year because they develop the trigger points for marketing opportunities in the coming year. Comments from participants:
“Good Program. Helps me plan my whole year!”
“Wish I had attended in past years!”
“.. excellent job explaining the mechanics of the market and how to use the tools available.”
“Keep doing it!”

“The best risk management educational program!”

Details

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