Marketing Grain and Livestock Products
AGEC 442 – Spring 2015
School of Agriculture - Western Illinois University
INSTRUCTOR
Professor William C Bailey
Office Phone: 309/298-1522
Office: 321 Knoblauch
Office Hours: Monday 1:00-2:00; Tuesday 9:30 – 11:00;
Thursday 9:30 – 11:00
Office Fax: 309/298-2280
E-mail: WC-Bailey@WIU.EDU
CLASS TIMES AND LOCATIONS
AGEC442 will meet on Tuesday and Thursday in KH308 from 8:00 – 9:15 a.m.
COURSE DESCRIPTION AND PREREQUISITES
Economic principles of marketing grain and livestock, with an emphasis on the marketing activities of producers
and distributors of grain, livestock and their products. Risk and quality management are included. Prerequisite:
AGEC333.
COURSE OBJECTIVES:
Through the successful completion of AGEC 442, students will be able to:
1. Recognize and analyze the fundamentals of grain and livestock demand, production, manufacturing,
storage and transportation,
2. Apply economic principles and theories of the price discovery process for grain and livestock
products,
3. Describe the operation of commodity futures markets and the use of these markets by participants in
the grain and livestock industry,
4. Employ problem solving methods to the containment of price risk that confronts producers,
marketers and users of grain and livestock,
5. Describe and analyze the important policy issues that affect the grain and livestock marketing
systems, both at home and abroad.
EXPECTATIONS OF STUDENTS
Participation: Students are expected to regularly attend class and to actively participate in discussions.
Academic Integrity: The rules and regulations outlined in the University's policy on academic integrity are
applied to this course.
Student Rights and Responsibilities: Detailed information regarding student rights and responsibilities can be
found at http://www.wiu.edu/provost/student/. It is your responsibility to be familiar with the posted
information.
Special Accommodations: If you need special accommodations, please feel free to stop by and discuss your
needs or contact Disability Support Services at 298-2512.
USE OF CELLULAR PHONES AND PAGERS
As a courtesy to other students and to the instructor, all cell phones and pagers should be turned off prior to
class. Continued disregard of this policy may result in ejection from the course. If, due to medical or public
safety concerns, a student needs an exception to this policy he/she should inform the instructor prior to class.
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Cell phones are not to be used under any circumstances on exams. Texting is not allowed during class and
repeated violations will lead to dismissal from the course with an assigned grade of F.
IMPORTANT DATES
Feb 12 – Abraham Lincoln Birthday
Mar 16 – 20 – Spring Break
May 12, 8AM – Final Exam
GRADING POLICY
The course grade will be based on the following factors, with weightings as indicated:
Exam I
30 %
Comprehensive Final Exam
40 %
Quizzes
15%
Homework
15%
Total
100%
Attention Education Majors: The changes within the state certification requirements, which go into effect
immediately for all of those students who graduate in the spring 2012 and after, you are required to receive a
grade of a "C" or better in this course in order to meet these new requirements. With the new university +/grading system, receiving a "C-" or below will require you to retake this course or find a substitute course to
meet School of Agriculture graduation requirements.
QUIZZES
The instructor reserves the right to use both announced and unannounced quizzes. Only excused absences will
be allowed to make up quizzes. Unless there is an emergency, only absences, approved in advance, will be
excused. It is at the discretion of the instructor as to whether an absence is excused or unexcused.
HOMEWORK
Homework will focus on understanding key concepts with heavy reliance on problem solving. Students are
strongly encouraged to work on their own before checking their answers with other students. Assignments are
due at the beginning of class. Late assignments will be docked 10% per day. Assignments will not be accepted
after the problem set has been discussed in class.
EXAMS
There will be one exam during the semester and one final exam. Exams will consist mostly of short answers
and problem solving. The final will be comprehensive. Makeup exams will be given only in extreme
situations.
COURSE OUTLINE
Part I – Grain Marketing Channels: Country Elevators, sub-terminals and export terminals
Part II – Grain Balance Sheets, Grain Fundamentals and Seasonal Price Patterns
Part III – Cash Pricing Alternatives, including futures contracts and hedge-to-arrive
Part IV – Livestock Balance Sheets, production variation over time, consumer preference
Part V – Livestock, Meat Packing and Product marketing channels
Part VI – Cash Pricing Alternatives
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Weekly Schedule:
Jan 20 – Week 1 – Grain Marketing Channels (Storage): elevators, sub-terminals and export terminals.
Jan 26 – Week 2 – Grain Marketing Channels (Transportation): containers, trucking, rail, inland
waterways, and ocean carriers.
Feb 2 – Week 3 – Grain Balance Sheets and Seasonal Price Patterns
Feb 9 – Week 4 – Grain Balance Sheets and Seasonal Price Patterns: Continued
Feb 16 – Week 5 – Storage Economics, grain quality, grades and discounts –Field trip, Feb. 19
Feb 23 – Week 6 – Cash Pricing Alternatives
Mar 2 – Week 7 – Cash Pricing Alternatives: Continued
Mar 9 – Week 8 – Review and Exam
Mar 16 – Spring Break
Mar 23 – Week 9 – Livestock Balance sheets, production variation over time, consumer preferences
Mar 30 – Week 10 – Livestock Marketing Channels
April 6 – Week 11 – Meat Packing and Processing Channels
April 13 – Week 12 – Meat Packing and Processing Channels: Continued – Field trip, April 16
April 20 – Week 13 – Marketing Livestock Products
April 27 – Week 14 – Cash Pricing Alternatives
May 5 – Week 15 – Review
May 12 – Finals Week
Please be advised that this syllabus is tentative. All classes are different and we may or may not be able to
address all of the content areas or stick with the anticipated number of exams. Any deviations from the syllabus
will be announced as soon as possible.
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