1,000 Farmers Share How They Market Grain

September 28, 2018 04:35 AM
 
1,000 Farmers Share How They Market Grain

Most farmers don’t think about marketing every day, but the task is one of the biggest challenges farmers face. That’s according to the 2018 State of Grain Marketing Report from FarmLogsThe crop marketing software company surveyed 1,000 farmers on their grain marketing habits and strategies.

Understanding cost structure is key to a profitable marketing plan, says Shalin Parmar, chief operating officer with FarmLogs. The survey shows 77% of surveyed farmers know their cost of production per acre.

“Farmers love growing crops and are often optimistic that the market will go up,” Parmar says. “So, they get anchored on market prices. Instead we want them to start with profitability.”

Marketing discipline starts with putting emotions aside and setting concrete goals. The survey shows 74% of farmers don’t plan what percentage of their crop they want to have sold by a certain date.

Parmar encourages farmers to develop a diversified marketing plan that uses several basic marketing tools. “What you want to do is put yourself in the best position to make a reasonable profit by having a diversified and disciplined approach,” he says.

Familiarize yourself with three or four marketing tools, Parmar suggests, and use them. “You don’t need to have all the bells and whistles,” he says. “Spread out your bushels and use some tools you are comfortable with to have good diversification.”

FarmLogs - market factors

FarmLogs - contracts

FarmLogs - confidence

Source: FarmLogs

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Comments

 
Spell Check

kerrlee
Scottsboro, AL
10/1/2018 12:06 PM
 

  I appreciate such data. The researcher needs to know what they are asking. For myself, I would say I understand cost of production, but I would not say I know the cost of production. I know what costs constitute production production costs, but I don't necessarily know the numbers. I don't know a priori what repair costs will be. I don't know what my rebates from the co-op will be. I don't know if pesticide will be required. I don't know the opportunity cost of money. So if 77% "know" their cost of production, I am bit surprised.

 
 

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