Marketing Basics
This type of marketing focuses specifically on moving farm commodities from farmers to processors and consumers.
What is Ag Marketing?
This price represents the local elevator price for grain.
What is cash price?
This contract locks in the full price today for grain to be delivered later, typically within a set month.
What is a forward contract?
This is the standard test weight of corn.
What is 56 lbs/bu?
This tractor manufacturer produces the Quadtrac.
What is Case IH?
Advertising, pricing strategies, and branding are examples of this broader type of marketing used for many industries.
What is general marketing?
Basis is calculated using this formula.
What is Cash price - Futures price?
This contract locks in a futures price but leaves basis to be set later.
What is a hedge-to-arrive contract?
If corn becomes drier, this usually happens to test weight.
What is it increases?
This type of transmission automatically adjusts speed without shifting gears and is commonly found in modern tractors like the Fendt Vario.
What is a CVT (continuously variable transmission)?
Storing grain after harvest to sell later adds this type of utility.
What is time utility?
This price represents the world market price traded on a central exchange (CME).
What is the futures price?
A basis contract allows the farmer to lock in basis now, but leaves what open until delivery?
What is the futures price?
Corn above this moisture level typically receives shrink deductions at the elevator.
What is 15% moisture?
This tractor is the most powerful tractor John Deere ever made.
What is the 9RX 830?
Transporting soybeans via train from a farm in MN to a processing plant adds this type of utility.
What is place utility?
If futures are $4.90 and basis is 40 under, this is the local cash price.
What is $4.50?
A farmer locks in a futures price of $5.50 using a hedge-to-arrive contract in May. At harvest, the basis is -$0.40. This would be the cash price the farmer would receive upon delivery.
What is $5.10?
This is the standard test weight of soybeans.
What is 60 lbs/bu?
This bright tractor color became the signature look of Minneapolis-Moline equipment.
What is Prairie Gold?
This utility is created when wheat is turned into flour or corn into ethanol.
What is form utility?
If the futures price increase but the cash price stays the same, basis will do this.
What is weaken?
A farmer signs a basis contract of -$0.25 in June when December futures are $5.80. By harvest, futures fall to $5.10. The cash price the farmer receives when they deliver is this.
What is $4.85?
Broken kernels, dirt, and other debris mixed with grain is called this.
What is foreign material?
These were the last big, high-horsepower tractors developed by Ford before the company sold its agricultural division to Fiat in 1990.
What are the Genesis series tractors?