Learning by doing is the best way to learn! Learn and practice crop marketing with a simulation for Iowa farmers!
The 2020 New Crop Iowa Commodity Challenge provides the opportunity to learn crop marketing using a simulation to experiment with futures and ag options with real markets. The simulation farm has 600 acres of corn and 600 acres of soybeans. The farm has an Actual Production History (APH) of 180 bushels per acre (bpa) for corn and 50 bpa for soybeans. The farm is covered by 75% Revenue Protection crop insurance for corn and soybeans.
The plan is to market the insurance guaranteed bushels before harvest.
Each participant is given 81,000 bu. of corn and 22,500 bu. of soybeans to pre-harvest market until an end date of October 21,2020.
Following are the steps to participate:
1. Click the “Join Commodity Challenge” button.
2. Fill out the registration information (you may use a fictitious name for anonymity; first name & last initial appear on the leaderboard). You create your personal password at this step.
3. Once registered, you will complete the registration by checking your email for a Registration Confirmation message and click on the link in the e-mail.
4. On the Commodity Challenge website, click the “FIND A GAME” button.
5. Find the 2020 New Crop Iowa Commodity Challenge simulation and Click the “JOIN” button.
6. Enter the Game Password: IA2020NC You only use this once to get the simulation set up.
7. You are now ready to play 2020 New Crop Iowa Commodity Challenge. The simulation will always be listed on the front page under Active Games.
1. The simulation farm has 600 acres of corn and 600 acres of soybeans. The farm has an Actual Production History (APH) of 180 bushels per acre (bpa) for corn and 50 bpa for soybeans. The farm is covered by 75% Revenue Protection crop insurance for corn and soybeans.
2. The plan is to market the insurance guaranteed bushels before harvest:
• Corn APH of 180 bpa X 600 acres = 108,000 bu.; 75% is 81,000 bu. available to market.
• Soybean APH of 50 bpa X 600 acres = 30,000 bu.; 75% is 22,500 bu. available to market.
3. Participants are asked to focus their marketing tool selection to new crop delivery forward contracts and December corn and November soybean futures and options. Cash transactions are based on the market in Bondurant, Iowa (just north of Des Moines).
4. The simulation starts January 8, 2020 and these 2020 crops must be marketed by October 21, 2020.
5. The marketing choices you make in the game are up to you. The game allows you to experiment with marketing tools with real, current futures and cash prices.
6. If at any time, you need assistance with the game, please see your workbook, the “Help” section of the Commodity Challenge website, or contact your game leader.
Reentering the Commodity Challenge game
Ed Kordick, Farmer Education Program Manager