Wednesday, November 11, 2009I wish there was a way to eliminate uncertainties from harvest, because I know it would make these days a bit easier right now for every farmer. When it comes to marketing, remember that uncertainty is what creates opportunities. In the face of uncertainty, you can take control by planning for contingencies.
Thursday, October 29, 2009Liebig's Law states that growth is controlled not by the total of resources available, but by the scarcest resource – the limiting factor. This concept was originally applied to study plant growth. It can also be applied to your whole business operation. Ask yourself, “What is my primary constraint?” Is it marketing? Maybe it's time for a methodical assessment of this important aspect of your business.
Tuesday, October 20, 2009Do you ever feel you could accomplish more if it weren’t for just one or two things getting in the way? In business, we call these things constraints. There may be only one or two constraints that limit what you want to accomplish in your marketing. Take stock now, so that you can take steps to improve in this important area of your farm business.
Wednesday, October 07, 2009A 12-row chopper isn’t the right tool for everyone. That principle holds true for any task. In farm marketing, some producers are like skilled carpenters, well-equipped to use the “hand tool” and do much of the work themselves. Others need different tools or a different approach. While you’re out there harvesting your crop with the tools of your choice, think about the marketing tools you’re using, whether they are a good fit, and whether you enjoy using them.
Monday, September 28, 2009What has changed since Top Producer's "Marketing Sins" survey in December 2008? Markets change, but the need for discipline in marketing remains constant. My advice: Lay out your marketing strategies in advance, when the market is closed. Then when your buy or sell signal is triggered, get it done. Don’t allow emotion to guide your marketing decisions.
Wednesday, September 16, 2009When you talk to your lender about your marketing (or your spouse or whoever else may be judging you), think about this: The better prepared you are, and the more comprehensive your approach, the greater your chances of success will be. Here are some suggestions to help you earn the confidence of your lender.
Tuesday, September 01, 2009Marketing should be viewed the same way you view other inputs on your farm operation. You can’t do without fertilizer or chemicals, and cutting back on these important inputs usually leads to lower yields and reduced revenues. The same is true for marketing. Farmers who actually have a budget for marketing free themselves to make better decisions, and they harvest the rewards from this more professional approach.
Friday, August 21, 2009In my previous post I outlined a good, basic marketing strategy to follow. I talked about how buying put and call options offers peace of mind against market volatility and received a few comments from readers about the cost of options. Allow me to expand a bit on the effective use of options, and why I believe using them wisely serves the producer’s best interest. Being covered and insured when you need it is key.
Thursday, August 06, 2009I’ve consistently written about taking a strategic approach and why it’s better than an outlook-based approach. Some readers probably want a more concrete example of what I mean by this. I’d like to give you an example of a good, basic strategy for corn and beans, based on my years of coaching experience.
Thursday, July 23, 2009As prices began dropping in early '09, producers didn’t want to sell on the way down, so they didn’t sell. Then prices fell some more, and many didn’t sell because prices might go back up. Now they don’t want to sell because prices are even lower and they feel like they missed the boat. What about you? Do you have the discipline to get sales made?
Wednesday, July 15, 2009I talked to a producer just this week who quipped, “Marketing isn’t fun because you are never right. Unless you hit the top every time, there are always regrets.” All this emotion leads producers to believe that marketing simply cannot be done well. It’s a no-win situation… You are beat up by everyone and everything… You have no control. Let's dispel these myths and start believing that marketing can be done well.
Thursday, July 02, 2009Did you guess right? Or were you one of the surprised? Remember, in the big picture, it matters more what you do than what you think. While reports sometimes change a trend temporarily, this report only accelerated a trend that was already in place. With such a downtrend, being heavily priced before the report, through the report and in the weeks that follow is the wise strategy.
Friday, June 26, 2009Well-meaning market advisors and producers get too wrapped up in these reports. We like being “right” about the market, knowing where prices are going and feeling smart about our fundamental or technical analysis. This is all great if it works. Unfortunately, being right doesn’t matter much. All that really matters is what prices do.
Sunday, June 14, 2009 A reader commenting on my last posting (Greedy or Opportunistic) asked the question, “How are we supposed to know what a good price is when inputs and crops are no longer based on true supply and demand?” Fair question. We certainly are in “new times” when it comes to marketing crops. Marketing today is more difficult than it has ever been. I have some suggestions for this reader, and encouragement. I believe so strongly in the importance of doing marketing well, because it has the potential to help American producers remain independent and successful.
Friday, May 29, 2009Ultimately, in this economy, only the most prosperous will survive. You need to be the producer in a position to afford a new piece of equipment more easily than the average producer. You need to be able to weather a bad yield year more easily than the average producer. Only those who consistently produce margins above and beyond the average will prosper and grow in the long run. So what have you done recently to capture the most from corn price rallies?
