Montana MarketManager ® Program

1. Montana MarketManager®ProgramA Commodity Group’s Approach to Risk Management EducationRichard OwenMontana Grain Growers Associationwww.montanamarketmanager.org

2. Montana MarketManager® Program • Developed in late 1998 to improve producers grain marketing skills. • MISSION: To provide Montana grain and livestock producers with the tools and information necessary to maximize profits from the marketplace. • Integrates Workshops/Seminars, Marketing Clubs and an online Market Information System (website) • Through partnership with Montana Stockgrowers Association, now includes livestock information in all three program components

3. Montana MarketManager® Program We are in the education and information business – not the advisory business 3

4. Why Montana MarketManager? • Because our members told us this was what they wanted MGGA to do! • Because it makes $ense! • On the grain side, every one cent increase that Montana producers receive for their grain equals $1.6 million to the states economy. 4

5. MarketManager Goal • How will we know when we are successful? • When Montana producers consistently market their product in the upper ½ of the market 5

6. Program Evaluation and Assessment • Benchmark and measure educational progress of participants • Benchmark and measure increased income from participation in the program • Surveys to evaluate producers preference for different distance learning modes 6

7. Advisory Committee • Provides overall guidance and direction for the program • Includes producers, grain and livestock industry reps, ag lenders, extension, adult and distance education, agribusiness • Meets on a regular basis in Great Falls and by conference call, e-mail

8. Major Partners Public/Private Partners: • MT Dept. of Ag. – (Growth Through Ag) • Texas Ag Extension Service (MasterMarketer) • Montana Stockgrowers Association • Burlington Northern Santa Fe • Cenex Harvest States • Montana State University • General Mills – Northwest Grain Division • USDA – Risk Management Agency • USDA - Rural Development Agency • Burns Telecommunications Center, MSU • Northwest Farm Credit Services • Bonneville Power Administration • Qwest Communications 8

9. Program Elements Two full-time staff members dedicated to Montana MarketManager • Program Coordinator • Website Manager 9

10. Additional Partner – Livestock • Similar customer base to the Montana Stockgrowers Association (MSGA). Joint convention in 2000. • Discussions started summer of 1999. Finalized spring of 2000. • Livestock information now incorporated into all three components of the program. • Contract pays for half of MarketManager Coordinator position. Portions of other staff and administrative expenses. • Most importantly – shows both membership bases that we can work together.

11. Program Elements • Marketing Clubs • Marketing Workshops • MarketManager Online (Website) 11

12. Marketing Clubs • Clubs provide a peer support group for learning about and practicing marketing decisions. • Over 40 clubs in place around MT – and growing • MarketManager provides a network among clubs and leaders. • Offers material, speakers, hands-on support. Communicate with staff and each other through e-mail listserv, discussion board, interactive TV and conference calls • Many clubs cover both livestock and grain markets 12

14. Marketing Workshops • Started out just grain – now includes livestock • Available to multiple Montana locations through interactive video delivery • Fall and winter 1999/2000- nine grain workshops – 1039 attendees. Total of 114 workshops in 22 locations • Speakers host an online discussion forum • Five grain and livestock workshops held in the fall of 2000 14

15. Marketing Workshops • MasterMarketer Program developed by Texas A&M – Montana and Minnesota added in 2001 • Over 60 hours of top notch instruction on all aspects of marketing • Rotated around different Montana locations • 2003 Dates: • Part 1: January 27-29 • Part 2: Feb. 11-12 • Part 3: Feb. 25-26 • Advanced Topic Series (ATS) added in 2002 15

16. Montana MarketManager Online® (www.montanamarketmanager.org) • Hub of the overall program • Debuted in March 1999. Expanded to included livestock market information in June 2000 • Provides Montana-specific market news, pricing information, market commentary, weather, educational information • Full time Website Manager • Website free to all members – started out subscription based 16

21. Commodity Challenge • Online Marketing Simulation Game • www.commoditychallenge.com • Realistic way to practice your marketing skills – and not lose money • Open to all producer • Most fun when played as a marketing club • Concurrent session on CC yesterday afternoon ® 21

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24. Why So Much Emphasis on The Internet? • Over 45% of MT producers on the Internet – and growing rapidly • Reduced costs to the association • Much quicker and more timely information delivery • Time and $ savings for members (less travel) • Improved interaction between members (discussion boards, listservs)

25. Embracing New Technology in Other Areas • Interactive video delivery of workshops • Video streaming workshops and meetings to producers home computer • Telephone conferencing of speakers to marketing club meetings • Audio and video taping of workshops • Extensive Internet training at conventions

26. Lessons Learned • Producers are more accepting of new distance technology then we realize. Producers are often more flexible than the technology • Anything to lessen mileage is appreciated by users • Rural Internet connection speed is relatively fast, but still in desperate need of more bandwidth • Traditional education providers, such as extension and associations, are at risk from for-profit startups targeting the same audiences • Constantly scan for non-traditional partners 26

27. Richard Owen Executive Vice President Montana Grain Growers Association rtowen@mgga.org Phone: (406) 761-4596 www.montanamarketmanager.org 27