LUBBOCK Cotton producers can learn how pricing strategies affect profitability and develop pricing strategies tailored to their own operation at five cotton marketing workshops in March, said an agricultural economist with the Texas Agricultural Extension Service.
“Producers can’t control prices, but they can control how all or part of their crop is priced and when to take a price,” said Dr. Jackie Smith, Extension ag economist-marketing specialist based in Lubbock. “Producers who know how to evaluate pricing alternatives can formulate pricing strategies that help maximize profit.
“Evaluating price alternatives and developing effective pricing strategies is the focal point of these workshops. All pricing alternatives are directly or indirectly linked to the futures market. Those who attend will be introduced to the basics of futures and options.”
The workshops are slated for March 23 in Levelland; March 24 in Plainview; March 25 in Lamesa; March 26 in Abilene; and March 29 in Littlefield.
“Each workshop will run from 9 a.m. to 5 p.m. Registration costs $30 per person, payable at the door. This includes a noon meal and an extensive set of materials,” Smith said. “If possible, spouses should attend, too. The $30 fee can apply to a couple, if they share a set of course materials.”
Workshop speakers include Smith and Dr. Carl Anderson, Texas A&M Extension economist and cotton marketing specialist. Their presentations will cover:
Overview of Price Risk Management
Introduction to the Futures Market
Localizing the Futures Market with Basis
Introduction to Options
Estimating Production Costs and Break-Even Prices
Marketing Alternatives
Developing a Marketing Plan
Current Pricing Strategies
“We will also discuss the benefits of participating in marketing clubs, and Dr. Anderson will provide an update on the current cotton market situation and outlook,” Smith said.
Producers can get more information on these workshops, or register for the one in their area by calling: Jackie Smith, (806) 746-6101; Gregg Jones, Levelland, (806) 894-3159; Bob Benson, Plainview, (806) 291-5267; John Farris, Lamesa, (806) 872-7539; Gary Bomar, Abilene, (915) 672-6048; or Dirk Aaron, Littlefield, (806) 385-4222.
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