The Pricing Performance of Market Advisory Services in Corn and Soybeans Over 1995-2004: A Non-Technical Summary
The purpose of this research report is to summarize the pricing performance of professional market advisory services for the 1995-2004 corn and soybean crops. On average, the results show that the frequency of advisory programs pricing in the top-third of the corn price range over 1995-2004 is modest, between 17 and 25%. By far the largest average frequency occurs in the middle third of the corn price range, ranging from 58 to 63%. Price range results for soybeans are similar to the results for corn. Average differences between 50/50 advisory revenue and benchmarks range from 5 to $7 per acre for market benchmarks and 8 to $12 per acre for farmer benchmarks. The average advisory return relative to the farmer benchmarks is about three percent of average farmer benchmark revenue. Even though this return is small and mainly from corn, it nonetheless represents a non-trivial increase in net farm income per acre for grain farms in central Illinois. The AgMAS research report by Irwin et al. (2006) contains complete pricing performance results. In particular, additional results show that consideration of risk weakens performance results in some cases and that it is difficult to predict the pricing performance of advisory programs based on past performance.
|Date of creation:||Apr 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (217) 333-1810
Fax: (217) 333-5538
Web page: http://www.ace.uiuc.edu/Email:
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Pennings, Joost M.E. & Isengildina, Olga & Irwin, Scott H. & Good, Darrel L., 2004. "The Impact of Market Advisory Service Recommendations on Producers' Marketing Decisions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(02), August.
- Irwin, Scott H. & Good, Darrel L. & Martines-Filho, Joao & Batts, Ryan M., 2006. "The Pricing Performance of Market Advisory Services in Corn and Soybeans Over 1995-2004," AgMAS Project Research Reports 37513, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:uiucrr:37456. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.