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The Impact of Marketing Strategy Information on the Producer's Selling Decision

Author

Listed:
  • Klumpp, Joni M.
  • Brorsen, B. Wade
  • Anderson, Kim B.

Abstract

There is no shortage of studies regarding price forecasting and marketing strategies of producers. However, the majority of these studies take a normative approach, focusing on deriving an optimal strategy for producers to follow based on information received from producer surveys. Due to such things as psychological biases, producers may not actually use the marketing information that they say they do. This study uses actual producer transaction data to determine how producers marketing decisions correspond with those recommended by market advisory services and with those that use futures spreads to calculate expected returns. The results show that producers do respond to using futures spreads to represent expected returns to storage. Also, it appears that Oklahoma producers make marketing decisions opposite of those recommended by market advisory services.

Suggested Citation

  • Klumpp, Joni M. & Brorsen, B. Wade & Anderson, Kim B., 2005. "The Impact of Marketing Strategy Information on the Producer's Selling Decision," 2005 Conference, April 18-19, 2005, St. Louis, Missouri 19036, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    • Handle: RePEc:ags:ncrfiv:19036
    DOI: 10.22004/ag.econ.19036
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    References listed on IDEAS

    as
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    5. Brorsen, B. Wade & Anderson, Kim B., 2001. "Implications of Behavioral Finance for Farmer Marketing Strategy Recommendation," 2001 Conference, April 23-24, 2001, St. Louis, Missouri 18952, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    6. 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.
    7. Brorsen, B. Wade & Irwin, Scott H., 1996. "Improving The Relevance Of Research On Price Forecasting And Marketing Strategies," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(1), pages 1-8, April.
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    9. Cunningham, Lewis T., III & Brorsen, B. Wade & Anderson, Kim B., 2004. "Cash Marketing Styles And Performance Persistence Of Wheat Producers," 2004 Conference, April 19-20, 2004, St. Louis, Missouri 19031, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    10. Schroeder, Ted C. & Parcell, Joseph L. & Kastens, Terry L. & Dhuyvetter, Kevin C., 1998. "Perceptions Of Marketing Strategies: Producers Versus Extension Economists," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-15, July.
    11. Pennings, Joost M.E. & Irwin, Scott H. & Good, Darrel L., 2001. "Modeling Farmers' Use of Market Advisory Services," 2001 Conference, April 23-24, 2001, St. Louis, Missouri 18950, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
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    21. Irwin, Scott H. & Good, Darrel L. & Martines-Filho, Joao Gomes & Hagedorn, Lewis A., 2005. "The Pricing Performance of Market Advisory Services in Corn and Soybeans Over 1995-2003: A Non-Technical Summary," AgMAS Project Research Reports 37486, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
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    Cited by:

    1. Zhang, Tong & Brorsen, B. Wade, 2006. "Heterogeneity in Producer's Marketing Strategy," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35299, Southern Agricultural Economics Association.

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