Style and performance of agricultural market advisory services

Silvina M. Cabrini, Scott H. Irwin, Darrel L. Good

Research output: Contribution to journalArticle

Abstract

This article develops measures of marketing style for advisory programs in corn and soybeans and estimates the relationship between style characteristics and pricing performance. Style is measured by the intensity of futures and options use, degree of activeness in marketing, and seasonality of sales. The data set consists of advisory programs tracked by the AgMAS project at the University of Illinois between 1995 and 2004. Results indicate that active programs making large bets on price movements obtain a higher average price than more conservative programs. This is consistent with active advisors possessing superior information and/or analytical skills rather than being overconfident. However, estimates of the relationship between pricing performance and activeness are sensitive to the inclusion of a single high-performing program.

Original languageEnglish (US)
Pages (from-to)607-623
Number of pages17
JournalAmerican Journal of Agricultural Economics
Volume89
Issue number3
DOIs
StatePublished - Aug 1 2007

Keywords

  • Agricultural market advisory services
  • Corn
  • Efficiency
  • Marketing style
  • Pricing performance
  • Soybeans

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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