Acclaimed Risk Management Program
Helps Producers In New Marketing Climate

Writer: Tim W. McAlavy, (806) 746-6101, email: t-mcalavy@tamu.edu
Contact: Dr. Jackie Smith, (806) 746-6101, email: j-smith34@tamu.edu

LUBBOCK – Some ag producers believe the new farm bill will simplify their marketing options, choices,
and decisions. That may not be the case, according to a Texas A&M economist.

“The new farm bill does provide an enhanced income safety net. But that doesn’t mean your marketing
decisions will be any easier...in fact, marketing may become more complicated,” said Jackie Smith, Texas
Cooperative Extension economist based in Lubbock. “The methods we use to attain the best cash price
haven’t changed, but a portion of our income safety net is now market dependent.”

The new farm bill includes a counter cyclical producer payment that is directly tied to market prices.
That payment will be highest when market prices are lowest, but may not be there at all when market
prices improve.

“That’s what makes marketing plans and methods so important to producers operating under the new farm
bill. Learning how to manage farm bill provisions/options such as the counter cyclical payment should be
an integral part of your marketing plan,” Smith added. “Educating producers on these options and helping
them develop strategies to reduce price risk is a key goal of the instructors in our next series of Master
Marketer classes.”

The first of four 2003 Master Marketer Program sessions begins on January 22, 2003. The registration
deadline for this in-depth, intensive marketing and risk management education program is Jan. 7, 2003.
Participants will learn how to identify and evaluate marketing opportunities, and then design and follow
through with sound marketing plans.

Master Marketer training pays direct dividends to the bottom line. A recent survey suggests past
participants were able to increase their average annual gross revenues from three to 10 percent, or about
$30,000 each, simply by applying their new-found marketing skills and knowledge, Smith said.

Master Marketers learn from top industry and university professionals, who apply case study examples and
simulation exercises in the classroom. The 64-hour curriculum is offered in four, two-day sessions held
every two weeks.

“Our instructors this year include several Texas A&M and Kansas State University economists, and
industry experts/consultants who specialize in technical analysis, charting, weather, and marketing
management,” Smith added. “Master Marketer graduates will take their new-found expertise and
knowledge home and work as volunteers with county marketing clubs.

“This master volunteer approach has proven an effective way for Extension and our program sponsors to
spread the training across a large group of participants. Statewide demand for this type of training
continues to grow, which is why we are bringing the program back to Lubbock for the third time. We have
more than 120 Master Marketer graduates in the Lubbock area alone.”

Registration costs $250 per person, plus a commitment to work with your county agent back home to try to
start a marketing club. Anyone interested should register as soon as possible. The first two times the class
was offered in Lubbock it filled up before the deadline, Smith said.

Checks or money orders for registration should be payable to the Texas Extension Education Foundation.
Enrollment for the 2003 Master Marketer Program in Lubbock may be limited, so prompt registration is
recommended, Smith said.

Registration fees pay only a small portion of the program’s cost. Grants from Extension partners such as
the Texas Corn Producers Board, Texas Wheat Producers Association, Texas Farm Bureau, the Cotton
State Support Committee, and agribusiness also helps fund the training.

Texans can get registration forms or more information on the 2003 Master Marketers Program in Lubbock
by calling Smith at (806) 746-6101, or their local county Extension office. More information on the Master
Marketer Program is also available on the Internet ( http://mastermarketer.tamu.edu ).