MIKE ROBERTSCOMMODITY MARKETING EXTENSION AGENT,

VIRGINIAFARM BUSINESS MANAGEMENT EXTENSION

AGENT, SOUTHEAST VIRGINIA

3rd Virginia Regional Market Analysis and Outlook utilizing the Internet as an Interactive

Delivery System

Prince George County Extension OfficeP.O. Box 68, 6450 Administration Drive

Prince George, VA 23875804-733-2686; 804-733-2676 fax; 804-720-1993

cellmrob@vt.edu

Change is inevitable … Except from a vending machine … Ron Plain

Whether it is good or bad depends upon your perspective

Funding

Project funding sponsor:

This material is based upon work supported by USDA/CSREES under Award Number 2007-49200-03891

Why?

Decreasing land grant budgets

Decreasing number of specialists & field faculty

Changing extension audiences and delivery tools/methods

Expanded role of field extension faculty

Changing teaching/research & extension requirements

Risk Management more important now than ever before

Project Time Frame

Pilot project 2006 - $1,000.00

Outlook 2007/08 - $40,000.00

Outlook 2008/09 - $50,000.00Outlook and County Meetings

2009/10 $44,000.00

Project Summary

Partnered with: Community Colleges of Virginia and VDOT 14 U.S. Land Grants & Universidad Catolica,

BA, SA 37 Specialists US State Department - US Consulate,

Buenos Aires, SA CME Group, CBOT, eHedger, LLC, DTN Farm Credit / Farm Bureau Other Ag. influencers – Elevator operators,

input dealers, etc.

Project Summary

Presented Risk Management Information and measured impacts via: The Internet PolyCom and Tannberg Telephone lines for slower hookups Presentations – fully interactive On-site presentations Impact measurement – Focus groups, pre-

post test, internet survey (survey monkey), personal follow up

Project Summary

The program was developed from pilot project.Presenters were recruited and trained – A MUST! IT training – A MUST!Seminar sites were identified’07/’08 projects - web site developed to market the

seminars, allow web based registration, post presenter bios, and meeting proceedings

’08/’09 Project marketing – personal contact, mailings, brochures, news media, word of mouth

Utilized community college network and marketing channels

Ag. Influencer support promoted projectLocal Extension Agent buy in – POSITIVELY a MUST!

Project Summary

Participant Targets: Extension Agents, Producers, Processors, Lenders, Vendors,

Decision Makers, and any other Ag. Influencer that could be identified.

500 producers, 200 extension educators, 100 community influencers, 50 Small or limited resource farmers

Sequential learners ~750.Project Goals:

Present information that helps participants make better decisions Target different geographic regions Small farmers and lifestyle farmers Enlist new collaborators Make best and highest use of Extension educational resources

Project Summary

Producer Learning Objectives: Understand futures and risk management tools Understand economic outlook sectors affecting participants Understand where to find more marketing resources Be able to anticipate market movement and make profitable

decisions Learn about the futures market and other risk management tools

and how to use them to increase farm-gate profits. Extension Agent Learning Objectives:

Acquire a broader, up-to-date knowledge of commodity market outlook

Enable them to pass along information to Extension clients Gain a broader knowledge of:

Risk management tools Current market and Economic conditions

Project Summary

Ag. Influencer Objectives: Learn most up-to-date economic and market outlook Use that information to maximize customer service to clients Be better equipped to help clients maximize profits Familiarize them with Outlook project mission, vision, and potential

for future projects Enlist them as collaborators in order to reach more participants in

future project years

Project development Objectives: Show that this type of project would leverage already limited human

and fiscal Extension program delivery resources Demonstrate the need for this type of program to the delineated

program participants, collaborators, potential funders, and extension administration

Show that this type of educational program could be developed and expanded in future years with success

Project Results

Pilot meeting showed a clear need for a good “on-site/remote” speaker mix.

Dr. David Anderson – TAMU – Cattle

Interacting with Matias Nardi of Buenos Aires, SA and Dr. Delton Gerloff, UT

Different room Set upsDr. Ron Plain - Cattle Dr. Don Shurley - Cotton

Dr. Emmit Rawles - Cattle Dr. Gregg Ibendahl - Inputs

Congressman Bob Goodlatte On-site Farm Bill Outlook presentation.

Professor James Pease On-site Farm Bill Outlook presentation.

Small Farmer / Lender Collaboration Meeting, Virginia State University

Small Farmer / Lender Collaboration Meeting, Virginia State University

Dan Gramza – CME Group, Chicago

Explaining Candlestick Charts and trading

strategies.

“FARM” 101 Cattle Producer Marketing Class

Futures, Assumptions, Risk, and Marketing

Good view of room and what Ron Plain saw on his end.

Students had homework and old fashioned handouts to aid distance presenters

6 classes involved over 270 participants

“FARM” 101 Cattle Producer Marketing Class

Impacts

IMPACT STATEMENT to Date:859 producers, 271 Extension agents, 353 agriculture

community influencers, and 1,891 extended learners. By respective year:

2006 Pilot: 49 producers, 7 Extension agents, and 23 ag. influencers participated;

2007: 146 producers, 57 Extension agents, and 94 ag. influencers participated;

2008: 272 producers, 79 Extension agents, and 139 ag. influencers participated.

2009: 392 producers, 128 Extension agents, and 97 ag. influencers

ImpactsIncreased Aggregate net profits in the amount of

$2,063,761.50 to date 2006: $39,500.00 was made in additional profits 2007: $638,116.50 was added to the bottom line due

to $365,107.50 in additional revenue and $273,009.00 in input savings

2008: $899,085.00 / $456,055.00 in nitrogen savings & $443,030.00 additional revenues from forward commodity sales and hedging activities.

2009: $487,060.00 / $135,013.00 in input savings & $352,047.00 in risk management strategies.

Savings in speaker travel costs = $166,904.00 2006: $4,005.00 / 2007: $27,575.00 / 2008:

$36,825.00 / 2009: $98,500.00

Project Results

Producers: 99% (+2%) of participants said they had a better-to-

much-better understanding of the current local, regional, and world market outlook for their relative commodity group or business interest

100% said they where better able to find more marketing resources

86% (+5%) said they would be better able to anticipate market movement and make profitable decisions

95% (+4%) said they gained a better understanding of how to use the futures market and other risk management tools

Project Results

Extension Agents: 96% (+7%) acquired more up-to-date knowledge

of commodity market outlook 87% (+11%) said they were more comfortable

passing along marketing and outlook information learned in the seminars to clients.

93% (+2%) said they gained a broader knowledge of risk management tools and current market strategies

95% (+66%) said they would help support another project via a more active role in advertising and encouraging clientele to attend. (Only 21% said they would support future work after year 1).

Project ResultsAg. Influencers :

100% Learn most up-to-date economic and market outlook 100% said information presented in seminars would allow them

to better serve their clients and help them maximize profits 100% fully endorsed the current Outlook project and expressed

a willingness to participate more pro-actively in future projects

Unexpected: Producer collaboration on selling truckload lots Producer networking on input buying Producers and brokers collaborated on hedging Lenders and producers collaborating on retained

ownership and feedlot cattle One Extension audience consisted of 43 South American

cattle producers in Buenos Aires, SA I have been invited to collaborate in 3 countries this

summer to develop this technology for several firms

Lessons Learned in over 4+ years

Must have local Extension agent supportMust have help in promoting program (letters,

web, personal contact, etc.)Must give participants something worth their while

besides supper (ie. “Must realize their time is valuable!”)

If you do, they will even pay to attendOld Extension program model still viable – Give

them a “How To” segment combined with a Risk Management segment

People still want the Land Grant UNBIASED opinion and research

Lessons Learned in over 4+ years

Must have TWO-WAY speaker and participant interaction

Technology is simple, flexible, and can maximize limited fiscal and physical resources if “Program Producer” does homework and puts effort into it

This can be a new Extension paradigm and way to reach world-wide audiences in real time

The Extension “Hey-Day” of the 60’s and 70’s is over. Audiences are more “Techno-Savvy” and will use technology to get information – whether Extension provides it or not

If Extension and the Land Grants don’t come into the 21st Century they will be replaced with paid consultants who are already doing this by the bucket loads

Questions

MIKE ROBERTSCOMMODITY MARKETING EXTENSION AGENT,

VIRGINIAFARM BUSINESS MANAGEMENT EXTENSION

AGENT, SOUTHEAST VIRGINIA

Virginia Regional Market Analysis and Outlook utilizing the Internet as an Interactive

Delivery System

Prince George County Extension OfficeP.O. Box 68, 6450 Administration Drive

Prince George, VA 23875804-733-2686; 804-733-2676 fax; 804-720-1993

cellmrob@vt.edu