Hostname: page-component-cd9895bd7-gxg78 Total loading time: 0 Render date: 2024-12-23T08:31:53.998Z Has data issue: false hasContentIssue false
  • English
  • Français

The Marketing Performance of Illinois and Kansas Wheat Farmers

Published online by Cambridge University Press:  26 January 2015

Sarah N. Dietz ,
Nicole M. Aulerich ,
Scott H. Irwin  and
Darrel L. Good
Sarah N. Dietz
Affiliation:
Department of Agricultural and Consumer Economics, University of Illinois, Urbana-Champaign
Nicole M. Aulerich
Affiliation:
Department of Agricultural and Consumer Economics, University of Illinois, Urbana-Champaign
Scott H. Irwin
Affiliation:
Department of Agricultural and Consumer Economics, University of Illinois, Urbana-Champaign
Darrel L. Good
Affiliation:
Department of Agricultural and Consumer Economics, University of Illinois, Urbana-Champaign
Get access Rights & Permissions [Opens in a new window]

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.

Keywords

benchmarksIllinoisKansasmarketingperformancepricewheatQ11Q13
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 41 , Issue 1 , April 2009 , pp. 177 - 191
Copyright
Copyright © Southern Agricultural Economics Association 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Allen, P.G. “Economic Forecasting in Agriculture.” International Journal of Forecasting 10(1994):81–135.CrossRefGoogle Scholar
Anderson, K.B., and Brorsen, B.W. “Marketing Performance of Oklahoma Farmers.” American Journal of Agricultural Economics 87(2005):1265–70.CrossRefGoogle Scholar
Benirschka, M., and Binkley, J.K. “Optimal Storage and Marketing over Space and Time.” American Journal of Agricultural Economics 77(1995):512–24.CrossRefGoogle Scholar
Dietz, S.N. The Marketing Performance of Wheat Farmers in Illinois and Kansas. M.S. Thesis, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, 2004.Google Scholar
Fama, E. “Efficient Capital Markets: A Review of Theory and Empirical Work.” The Journal of Finance 25(1970):383-117.CrossRefGoogle Scholar
Hagedorn, L.A., Irwin, S.H., Good, D.L., and Colino, E.V. “Does the Performance of Illinois Corn and Soybean Farmers Lag the Market?” American Journal of Agricultural Economics 87(2005):1271–79.CrossRefGoogle Scholar
Irwin, S.H., Good, D.L., and Martines-Filho, J. “The Performance of Market Advisory Services in Corn and Soybeans.” American Journal of Agricultural Economics 88(2006):162–81.CrossRefGoogle Scholar
Jirik, M.A., Good, D.L., Irwin, S.H., Jackson, T.E., and Martines-Filho, J. “The 1995 Through 1998 Pricing Performance of Market Advisory Services for Wheat.” AgMAS Project Research Report 2000-02, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, 2000. Internet site: http://www.farmdoc.uiuc.edu/agmas/reports/2000-02/agmas_2000-02.pdf.CrossRefGoogle Scholar
Kansas Agricultural Statistics Service (KASS). “Kansas Wheat Quality 2004.” 2004. Internet site: http://www.nass.usda.gov/ks/wq/2004/wq04pdf.pdf.Google Scholar
Kansas Farm Management Association (KFMA). Profit Center Analysis:5-Year Average and 2004 Non-Irrigated Wheat. State Average, 2004. Internet site: http://www.agmanager.info/farmmgt/income/enterprise/2004/EnterpriseNonIrrigatedCrops/StateNonlrrigatedWheat.pdf.Google Scholar
Klumpp, J.M., Brorsen, B.W., and Anderson, K.B. “Determining the Returns to Storage: Does Data Aggregation Matter?” Journal of Agricultural and Applied Economics 39(2007):571–79.CrossRefGoogle Scholar
Kunze, J. “The Bureau of Agricultural Economics’ Outlook Program in the 1920s as Pedagogical Device.” Agricultural History 64(1990):252–61.Google Scholar
Martines-Filho, J., Good, D.L., and Irwin, S.H. “1999 Pricing Performance of Market Advisory Services for Wheat.” AgMAS Project Research Report 2001-03, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, 2001. Internet site: http://www.farmdoc.uiuc.edu/agmas/reports/2001-03/agmas_2001-03.pdf.Google Scholar
National Agricultural Statistics Service (NASS), U.S. Department of Agriculture. “2002 Prices Received Survey: Interviewer's Manual.” 2002.Google Scholar
National Agricultural Statistics Service (NASS), “Corn, Soybeans and Wheat Sold Through Marketing Contracts:2001 Summary.” 2003. Internet site: http://usda.mannlib.cornell.edu/reports/nassr/field/pgs-bb/special-reports/.Google Scholar
Working, H. “The Theory of Price of Storage.” The American Economic Review 39(1949):1254–62.Google Scholar
Wright, B.D., and Williams, J.C. “A Theory of Negative Prices for Storage.” Journal of Futures Markets 9(1989):1–13.CrossRefGoogle Scholar