We’re at a time of the year when having a sound grain marketing strategy is vital for confidence going into the season. Having a sound understanding of the considerations influencing the decision to market grain is the key to any good grain marketing strategy. This involves having a clear understanding of your profit margin, defining current market deciles, considering production outlook, just to name a few.
Unfortunately too many growers see these considerations as confusing and stress inducing leaving themselves stuck in a state of analysis paralysis and leave their marketing for another day. The problem is, this remains stuck in the back of your mind when you need to be getting the crop in the ground and on top of growing the crop.
By objectifying the considerations influencing the decision to sell grain and accurately weighting them, you’re giving yourself the best chance at having a low-stress yet profitable marketing strategy to navigate the season. This is important because it allows you to concentrate on production and not worry about how you’re going to sell your output.
Just like cash flow. Imagine if you worried about cash flow and how you’re going to fund the production of your crop. This would create stress and distract you from doing what you do best. Having a sound marketing strategic plan is just as important as having a sound financial plan of how you are going to fund the production of your crop.
It is critical to understand that this outline for a marketing strategy in decision making is different to the judgement call of good brokerage at the time of executing a sale likewise it is also different to managing harvest sales. That’s why we segment the ‘strategy’ component of our service. Once the market/season/outlook has met the strategic criteria set, that’s when brokerage and the other services kick in.
Understanding how price influences your net income is a good start in crafting this strategy.