1999 Pricing Performance of Market Advisory Services for Corn and Soybeans

AgMas Report No. 2000-04

58 Pages Posted: 4 Feb 2001

See all articles by Scott H. Irwin

Scott H. Irwin

University of Illinois at Urbana-Champaign

Darrel L. Good

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

João Martines-Filho

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Date Written: December 11, 2000

Abstract

The purpose of this research report is to present an evaluation of advisory service pricing performance in the 1999 crop year for corn and soybeans. Specifically, the average price received by a subscriber to an advisory service is calculated for corn and soybean crops harvested in 1999. The average net advisory price across all 26 corn programs in 1999 is $2.02 per bushel, three cents below the market benchmark price. The range of net advisory prices for corn is substantial, with a minimum of $1.66 per bushel and a maximum of $2.49 per bushel. The average net advisory price across all 25 soybean programs in 1999 is $5.67 per bushel, seventeen cents above the market benchmark. As with corn, the range of net advisory prices for soybeans is substantial, with a minimum of $4.68 per bushel and a maximum of $7.10 per bushel. The average revenue achieved by following both the corn and soybean programs offered by an advisory service is $299 per acre, $2.00 more than market benchmark revenue for 1999. The spread in advisory revenue also is noteworthy, with the difference between the bottom- and top-performing advisory programs reaching more than $100 per acre.

JEL Classification: D41, D46, D80, G11, G14, G18, L10, Q12, Q13, Q14

Suggested Citation

Irwin, Scott and Good, Darrel L. and Martines-Filho, João, 1999 Pricing Performance of Market Advisory Services for Corn and Soybeans (December 11, 2000). AgMas Report No. 2000-04, Available at SSRN: https://ssrn.com/abstract=254348 or http://dx.doi.org/10.2139/ssrn.254348

Scott Irwin (Contact Author)

University of Illinois at Urbana-Champaign ( email )

344 Mumford Hall
1301 W. Gregory Dr.
Urbana, IL 61801
United States
217-333-6087 (Phone)

HOME PAGE: http://https://scotthirwin.com/

Darrel L. Good

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
326 Mumford Hall, MC-710
Urbana, IL 61801
United States

João Martines-Filho

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
Urbana, IL 61801
United States

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