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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
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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

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