2004 USDA AGMAS STUDY RESULTS

Fargo, ND—April 28, 2006— The University of Illinois has released their results of the 2004 AgMas USDA sponsored study, which indicated Progressive Ag is once more the Top Marketing Firm for corn in the nation.

The AgMas study rates the performance of US market advisory services on their recommendations to get the best price in corn and soybeans generated back to producers. This is Progressive Ag’s fourth consecutive year ranking in the top two for corn and soybeans, and they have the highest net income on a four-year average in comparison to all other marketing firms in the study. A corn and soybean farm located in Illinois represents the base for analysis, adding LDP’s, hedges, cash sales, and subtracting storage cost to come out with a net price.

Ray Grabanski, President of Progressive Ag credits their accomplishment to their innovative marketing system, which has proved to be a successful program for many producers.

According to Grabanski, “We have placed a strong emphasis on improving our performance using sophisticated price, export and yield models.” He also credits his staff made of “ND and MN farm kids,” for the firm’s success. “They (staff) understand risks and financial decisions producers address year after year,” said Grabanski.

Randy Martinson, Marketing Manager of Progressive Ag added, “The results are a testament to how important statistical analysis tools are. The numbers don’t lie.”

In comparison to the other firms Progressive Ag had, on average, 50% fewer transactions than other firms participating in the study, including some of the most popular and most published marketing firms in the US.

“The fact that we make less transactions and end up with higher prices shows discipline in marketing and managing risk. Sometimes the last few cents isn’t worth getting if you have to risk the farm,” said Grabanski.

Roger Torgerson, Manager of Progressive Ag’s affiliated crop insurance agency—Progressive Ag Systems, acknowledges the success in the insurance program as a direct result of the success of the marketing program, making Progressive Ag Systems one of the largest independent insurance agencies in the Upper Midwest.

“We use crop insurance to form the basis of our marketing plan, and then use the revenue insurance to market aggressively when the timing is right, bringing our customers extra protection on their crop through good pricing,” said Torgerson. 

“We take pride in being associated with Progressive Ag Marketing—you can’t get much better than number one!” added Torgerson.

Founded in 1992, Progressive Ag is based out of Fargo, ND, and specializes in risk management from commodity marketing to crop insurance.

For more information on the AgMas study, visit the website: http://www.farmdoc.uiuc.edu/agmas/