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Marketing Information in Agricultural

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Market Information In Agricultural

Agriculture has a huge impact in this world. Many may think it’s just as simple of producing animals for us to consume or farming of fruits and vegetables. But many may fail to realize agriculture is much more than what you think it is. In agricultural market information plays a huge role dealing in agricultural. Market Information is a form of information relevant to a market decision. Market information is important to the food market system because essentially everyone who produces, buy and sells agricultural products are constantly searching, comparing and using market information on supply, demand and prices within the food market system. A current status of market information has surfaces the United States with a governmental shutdown. Tim Peterson a market savvy farmer had to make a critical marketing decision. With the market information he protects his investment in seed and fertilizer. He states that by “locking in” the price his wheat crops next July with a contract that shield farmers from market fluctuations by guaranteeing a price while the crops is still intact in the ground. Farmers and livestock producers bargain on reports from the National Agriculture Statistics Service to make their agriculture decisions. Such decision may be how to price crops, which commodities to grow and when to sell them, and tracking cattle auction prices (Hegman,2013).
The National Agriculture Statistics Service has also stopped access on new reports about demand and supply, exports and prices. All websites with past information have been taken down. For instance the reports can alert them to shortfalls in overseas markets or if there's a wide swing in acres planted, both of which would prompt U.S. growers to plant extra crops to meet those demands or hang on to a harvest longer to get a better price (Hegman,2013). Not only did livestock producers suffer from this crisis, but Dairy Farmers also suffered from a loss of market information due to the federal government shutdown. Without the flow of information market analysis was left up to anyone in the industry who had any information to give forth. Without the USDA reports the dairy farmers took any information that someone may have spoken about, so that they could use it for decision making (Schmanl, 2013).
Along with the governmental shutdown famers were left in the dark because the U.S Department of Agriculture was no longer producing reports for farmers to see. The USDA report plays a pivotal role in ensuring that the food market is operating correct, and competing fairly. The USDA information programs contribute to market efficiency and better balance of information between farmers and buyers of farm products. In order for this information to be useful it must be continually adjusted to market trends and consumer needs. Without the USDA the farming world will not be able to function. For instance, pig farmers use the USDA market information data to be able to negotiate with big packing houses. Without the USDA Daniel O’Brien says they’re most likely to make a costly mistake, which adds a big risk of being surprised down the road (Morris, 2013).
Also, cotton prices suffered to the governmental shutdown. Cotton prices broke below the 82 cent support and it has been going downhill since October 23. The December cotton prices are now at 76.58 cents per pound. Cotton growers and every farmer of course became worried due to the lack of news so instead of waiting around many cotton growers decided to bail out to reduce the uncertainty. With bailing out this slowly decrease the prices of cotton (Shurley, 2013).
In conclusion market information plays one of the pivotal roles in agricultural. If market information did exist many farmers would be at a loss on how much crops should produce, how well would they crops do, and how much to sell the product for. With the government shutdown the farming world was at a shocked due to not knowing what to do next especially with newly planted crops. Market information is a foundation for agricultural

References

Hegman, Roxana. "Shutdown Spawns Vacuum in Farm Market Information." - The Denver Post. Associated Press, 07 Oct. 2013. Web. 30 Oct. 2013. Kohls, R., & Uhl, J. Marketing of agricultural products. (9 ed.). Upper Saddle River, NJ: Prentice Hall.
Schmanl, Robin. "Milk Prices Continue to Remain Strong." AgWeb. Diary Tody, 28 Oct. 2013. Web. 30 Oct. 2013.
Shurley, D. (2013, 11 4). Cotton prices crash. Southeast Farm Press
Morris, F. (2013, 11 4). government shutdown stops usda data, leaves farmers guessing. The Gazette

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