A good leader is key

Steve Amosson, a TAMU Extension economist in Amarillo, says a marketing club leader ideally is a producer with good leadership skills who understands most of the standard risk-management tools that would be discussed in marketing club meetings.

“One way to gauge interest in a marketing club and build a group rooted in the basics is to conduct a futures and options marketing workshop,” says Amosson, who helps coordinate Texas Master Marketer programs. “The workshop may point to the need for additional education and provide materials for use in later meetings. The county agent and leader can contact an Extension economist to set up a time for groups wanting a workshop.”

Some clubs simply discuss market trends and events that may impact markets. Others make futures or options trades.

“If group members decide to pool their money and trade as a group, the use of those funds should be carefully documented by the club secretary, and all proposals should be voted on,” Amosson says.

Clubs are encouraged to use a broad range of speakers. The club also should be able to function on its own and not need the county agent or economist at each meeting.

“I believe our club has been successful because our members want to learn,” Pshigoda says. “Our county agent has been very active from the beginning, and we have good speakers who provide us with good information we can sometimes use in our individual operations.

Larry Stalcup is a freelance writer based in Amarillo, TX.

Marketing club tips

Texas A&M University offers these guidelines to establish and maintain a productive marketing club:

• A leader is needed who keeps the meeting moving and involves as many members as possible. Assigning members to specific commodity subcommittees helps encourage participation. Participation is further enhanced if each subcommittee member has a specific responsibility: supply/demand outlook, technical analysis — including an updated chart and local cash-market developments.

• A facilitator who handles the details to free the leader to concentrate on the meeting.

• Buy/sell an option or futures contract together. Try to stay with “mini” futures and options contracts if available. If minis aren't available, consider trading the commodity by purchasing an option so the group's potential loss is limited to the premium paid for the option.

• Set meetings for the same time and place and with a standard agenda. Keep meetings under an hour.

• Get the “right” person to cover whatever topic addresses your needs. Telephone conferences are workable.

For more on marketing clubs, visit: http://mastermarketer.tamu.edu/MClubRes/clubs.htm.