Using vimeo Videos to Enhance
Crop Price Risk Management
Education
April 28, 2016
Ed Kordick
Commodity Services Manager
Iowa Farm Bureau Federation
Steve Johnson
Farm Management Specialist
Iowa State University Extension
Why Use Videos?
• Compliment existing face-to-face meetings, marketing
clubs, workshops, seminars and conferences
• Seasonality of row production creates lots of fall/winter
meeting training requests
• Year-round crop market decision-making becoming more
common
• Provide more blended learning methods being used in
university/college/high school ag classes
• Ease of Use: Videos are free can be accessed via
computers, tablets and smart phones
• Reach beyond county, regional and state borders
• Add value to the Iowa Commodity Challenge.
What is the Iowa Commodity
Challenge?
www.extension.iastate.edu/agdm/info/icc.html
Online Trading Games offered
Semi-annually
2015-16 Iowa Commodity
Challenge:
• 75,000 bu. of corn
• 25,000 bu. of soybeans
To get started, instructions are at
www.iowafarmbureau.com
under Trending Topics.
Ed Kordick
Commodity Services Manager
Iowa Farm Bureau
ekordick@ifbf.org
515.225.5433
60-page Marketing Tools Workbook
Table of Contents
Chapter #1: Why is Marketing Important? ........................................ 1
Chapter #2: Futures Price Movements ............................................. 2
Chapter #3: Basis Movements ......................................................... 8
Chapter #4: Carrying Charge/Cost of Ownership ........................... 11
Chapter #5: Forward Cash Contracts ............................................. 14
Chapter #6: Futures Accounts and Margins ................................... 16
Chapter #7: Why Consider Options? .............................................. 19
Chapter #8: Store Cash and Buy Put ............................................. 23
Chapter #9: Sell Cash and Buy Call ............................................... 25
Chapter #10: Option Values (Intrinsic and Time) ............................ 28
Chapter #11: Marketing New Crop ................................................. 31
Chapter #12: Conquer Marketing Concerns ................................... 38
Chapter #13: Wrap-Up ................................................................... 42
Appendix ......................................................................................... 44
Glossary .............................................................................................................44
Web Site Resources ..........................................................................................47
Setup: Iowa Commodity Challenge ....................................................................48
Market Planning and Transaction Log: Old Crop ..............................................49
Cost of Ownership Worksheet ...........................................................................51
Weekly Tracking Table (Old Crop) .....................................................................53
Market Planning and Transaction Log: New Crop .............................................55
Weekly Tracking Table (New Crop) ...................................................................57
Estimated Costs of Crop Production ..................................................................59
Activity Table
Activity #1: How do you define success? ............................................................. 1
Activity #2A: Sold Hedge, Market Lower............................................................. 6
Activity #2B: Sold Hedge, Market Higher ............................................................ 7
Activity #3A: Sold Hedge, Market Higher ............................................................ 9
Activity #3B: Sold Hedge, Market Lower........................................................... 10
Activity #4A Current Market Structure.............................................................. 12
Activity #4B: Projecting Cost of Ownership....................................................... 13
Activity #5: Forward Cash Contract vs. Futures Hedge .................................... 15
Activity #6: Tracking Margin Requirements ...................................................... 18
Activity #7: Comparing Futures and Options Costs .......................................... 21
Activity #8: Put Options: Calculating Floor Price ............................................... 24
Activity #9: Call Options: Calculating Floor Price .............................................. 27
Activity #10A: Intrinsic and Time Value............................................................. 29
Activity #10B: Price Insurance Levels ............................................................... 30
Activity #11A: Where are current new crop futures prices? .............................. 31
Activity #11B: Where are current new crop margins? ....................................... 34
Activity #12A: Calculating a Crop Insurance Guarantee .................................... 40
Activity #12B: Managing Negative Emotions of Marketing................................. 41
Activity #13: Review: Goals and Weekly Tracking Table ................................... 43
12 Videos Recorded featuring
3 Different Instructors
Recorded in an ISU
Extension Studio
Each Video is Typically 5 to 7
minutes in Length
Video Content Emphasizes
the Instructor’s Expertise
VIMEO - Advantages
•
•
•
•
•
Cleaner video encoding
Total control over embedding, privacy, downloading
Used by most video professionals throughout the U.S.
Complete data analytics
Can replace a video file at the same URL without losing
stats
• Can control what appears next, once video playback
finishes
• No advertising
• Password protected options, plus more security
options.
YouTube - Advantages
• World’s most popular video sharing platform (1
billion unique views a month)
• YouTube is owned by Google so often gets ranked in
searched results
• Can schedule release times, unlisted and private
options
• Huge community of users can take your video to
new heights (going viral?)
• You can grow a following with the Follow buttons
• Annotations can be added within videos to lead people
to act (Call to Action).
YouTube - Disadvantages
• Ads are everywhere on free accounts; $10/month for ad
free version
• Difficult to control what appears once video playback
finishes
• YouTube comments are rarely well moderated or can
detract from your content
• Analytics are not as detailed
• Cannot replace a video file at same URL, must delete
old version and upload new video
• Network is designed to keep people on YouTube, so people
are less likely to visit your site
• Lack of customer services or support
• Many businesses block YouTube videos internally.
What’s Next?
• Update annually the Iowa Commodity Challenge Web
Site and add complimentary videos
– Seasonality of Basis
– Grain Merchandising Techniques
• Expand the use of videos for a variety of Farm
Management Topics
– Farmland Leasing Overview (recorded July 2015)
– Grain Storage & Grain Drying Economics (recorded June
2015)
– Farmland Leasing topics for 2016
•
•
•
•
Farmland Leasing Overview
Legal Issues of Farmland Leasing
ISU Cash Rental Rates & Land Value Surveys
Determining a Fair Cash Rental Rate.