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The Marketing Performance of Illinois and Kansas Wheat Farmers

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  • Dietz, Sarah N.
  • Aulerich, Nicole M.
  • Irwin, Scott H.
  • Good, Darrel L.

Abstract

The purpose of this paper is to analyze the marketing performance of wheat farmers in Illinois and Kansas over 1982-2004. The results show that farmer benchmark prices for wheat in Illinois and Kansas fall in the middle third of the price range about half to three-quarters of the time. Consistent with previous studies, this refutes the contention that Illinois and Kansas wheat farmers routinely market the bulk of their wheat crop in the bottom portion of the price range. Tests of the average difference between farmer and market benchmark prices are sensitive to the market benchmark considered. The marketing performance of wheat farmers in Illinois and Kansas is about equal to the market if a 24- or 20-month market benchmark is used, slightly above the market if a 12-month price benchmark is used, and significantly less than the market if the harvest benchmark is used. The sensitivity of marketing performance to the market benchmark considered is explained by the seasonal pattern of prices. While Illinois producers performed slightly better than their counterparts in Kansas, notable differences in performance across these two geographic areas is not observed.

Suggested Citation

  • Dietz, Sarah N. & Aulerich, Nicole M. & Irwin, Scott H. & Good, Darrel L., 2009. "The Marketing Performance of Illinois and Kansas Wheat Farmers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(1), pages 177-191, April.
    • Handle: RePEc:cup:jagaec:v:41:y:2009:i:01:p:177-191_00
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    References listed on IDEAS

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    1. Good, Darrel L. & Irwin, Scott H. & Jackson, Thomas E. & Jirik, Mark A. & Martines-Filho, Joao Gomes, 2000. "1998 Pricing Performance Of Market Advisory Services For Corn And Soybeans," AgMAS Project Research Reports 14793, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
    2. Klumpp, Joni M. & Brorsen, B. Wade & Anderson, Kim B., 2007. "Determining Returns to Storage: Does Data Aggregation Matter," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(3), pages 1-9, December.
    3. Joao Martines-Filho, 2006. "The Performance of Agricultural Market Advisory Services in Corn and Soybeans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 162-181.
    4. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    5. Martines-Filho, Joao Gomes & Good, Darrel L. & Irwin, Scott H., 2001. "1999 Pricing Performance Of Market Advisory Servives For Wheat," AgMAS Project Research Reports 14788, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
    6. Kim B. Anderson & B. Wade Brorsen, 2005. "Marketing Performance of Oklahoma Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1265-1270.
    7. Lewis A. Hagedorn & Scott H. Irwin & Darrel L. Good & Evelyn V. Colino, 2005. "Does the Performance of Illinois Corn and Soybean Farmers Lag the Market?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1271-1279.
    8. Martin Benirschka & James K. Binkley, 1995. "Optimal Storage and Marketing Over Space and Time," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 512-524.
    9. Jirik, Mark A. & Irwin, Scott H. & Good, Darrel L. & Jackson, Thomas E. & Martines-Filho, Joao Gomes, 2000. "The 1995 Through 1998 Pricing Performance Of Market Advisory Services For Wheat," AgMAS Project Research Reports 14777, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
    10. Allen, P. Geoffrey, 1994. "Economic forecasting in agriculture," International Journal of Forecasting, Elsevier, vol. 10(1), pages 81-135, June.
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    Cited by:

    1. Juan Sesmero & Richard Perrin & Lilyan Fulginiti, 2018. "A nonparametric frontier measure of marketing efficiency: An illustration with corn ethanol plants," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 579-596, June.
    2. Mattos, Fabio & Fryza, Stefanie A., 2012. "Marketing Contracts, Overconfidence, and Timing in the Canadian Wheat Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(3), pages 1-16.

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    More about this item

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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