| PROJECT SUMMARY |
The objective of this project is to extend the basis handbook created by Piggott, Curtis and Shumaker. This project will educate producers about the importance of basis risk by developing further education materials (printed) on basis risk for soybeans, corn, and wheat markets. The target audience is grain producers in North Carolina, South Carolina, and Georgia and extension agents and ag lenders who serve them.
Growing deficits of grain in the Southeast region mean that the region’s livestock industry is becoming more reliant on grain shipped from either the Midwest or South America, highlighting the need for understanding basis risk. Basis, the difference between local cash prices and futures prices, is one important component of farm risk, and is critical for effective price risk management. In this project we will extend the information available to producers, agricultural lenders, and county agents on the historical volatility of basis in NC, SC, and GA. We will calculate statistical measures that characterize the distribution of basis for soybeans, corn, and wheat across the crop marketing year. This will further assist producers to better identify and implement better price risk management strategies.
An integral component of this project effort will be to develop educational materials and examples that producers, extension agents, and lenders can use in making managing the inherent price risk in marketing grain in the Southeast. As part of this project we will hold one advanced day long marketing seminar in each of the collaborating states (NC, SC, and GA) to teach and disseminate these materials inviting our target audience to attend namely producers, county agents, and agricultural lenders. We expect to improve producers´ ability to manage basis risk through increased knowledge of basis behavior. |
| NUMBER OF PARTICIPANTS: 500 |
| TOPICS COVERED |
| Market analysis and outlook |
| Cash and futures pricing tools |
| Marketing strategies, plans and clubs |
