Ask Farmlink: Where do I Start With a Marketing Plan?

[shaney]

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[bucket]

His words

"... selling into the harvest glut..."

For two years running would have been the most effective and profitable plan out there.

[bucket]

And no, I didn't follow it either because everyone always says the lowest price is at harvest.

For 60 plus years we have been told the grain companies will take advantage of us stupid backward farmers by selling at harvest.

Had I just sold everything right off the combine for cash, it would have made more sense than ......

[westsider]

Best Marketing Plan -
1) know your total and overall costs - (it takes a day with an accountant at most, its not hard work and every successful business man know them, they don't pay someone else to know them)
2) build relationships with 4 or 5 buyers, brokers, traders and talk to them on a regular basis. That may take 3 hours a week tops
3) subscribe to a newsletter or two
4) sell when you get a consensus that coincides with your gut feeling.
5) DO NOT, DO NOT put all your eggs in one basket with one company making the decisions for you. (ITS YOUR BUSINESS - TREAT IT LIKE IT)

[Hopperbin]

OK we should be able to know our storage our farm true every farmer is different in storage and cash flow. The bottom line is not about jumping up and down and saying everyone has different needs cause we don't. If one can make 10 percent for instance holding for 4 months, 8 months. Isn't that the bottom line. 10 percent on 2 years in the case of canola would pay for a bin withing two years. On the other hand say you got the bin. Would the marketting plan be any diff? I like the idea of paying someone to watch the markets, watch the charts, watch the weather all over the world, check supply and demand for me, keep me up to date on whats happenning in the markets basically. But if I have to sit down and discuss my personal bin space, my cash flow, I suppose risk acceptance figures in there some how. I think I can do that. Is there farmers out there that don't understand risk? Actually need to be told to sell now while someone else is told by the same marketting company to sell later?
OR maybe I just missed the point.

[hobbyfrmr]

I agree with westsider. Know your cost of production. Remember that number, memorize it for each crop.
Then,working on crop insurance average yeild, or your own personal average yeild, you can do a little math, figure out break even price. Add your profit in there, now you know the price you can sell at.
It took me about 3 years to stick to this method, but it has worked. I sold everything by Christmas this year and feeling pretty good about it. I did miss some very high spot prices in December but I am satisfied with sales.
I think I am an optomist, but I am always thinking " this price is black ink, what if the market goes down? How long will it take before price gets back here again?" Somehow,I always think prices are going to drop. I think that is just 20 years of conditioned behavior.

[BTO_farmall]

FarmDinkAll Solutions,

Hahahahahaha, No Thanks, My Money is Better Spent in Vegas Baby!!!!!!!!!!!!!!!!!!!!!!!!!!!!!