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Separating the good from the great

Agriculture.com Staff 01/29/2007 @ 7:02am

As grain prices have maintained a continued move upward, we have a sense that farmers are becoming complacent with marketing decisions. In part, this is due to the fact that, as of this writing, any sales prior to this date look like a mistake. It can be distracting when you make a sale and prices move higher. You, however, need to recognize that your net worth is likely still continuing to move upward. Nonetheless, it is a psychological issue.

What likely separates good farmers from great farmers is not production or the purchase of inputs, but marketing. Marketing will be the key in the year ahead to capture high volatility by managing opportunities and risks. It should be the goal of every farmer to be a professional marketer and to be highly effective in implementing the tools that are available at your disposal. Our encouragement is for you to spend some time with your nose in the books this winter, understanding your marketing tools so you can strategically approach a highly volatile market. If you don't want to spend the time and energy on your own, hire someone who can do it for you.

In the long run, strategy will outperform outlook. A strategy will give you more confidence and a higher comfort zone with marketing decisions you can take to implementing a strategy rather than making wild guesses on how this year's crop may or may not turn out.

If you have any questions, comments, or want information on a strategic approach for 2007, contact Top Farmer at 1-800-TOP-FARM, ext. 129.

As grain prices have maintained a continued move upward, we have a sense that farmers are becoming complacent with marketing decisions. In part, this is due to the fact that, as of this writing, any sales prior to this date look like a mistake. It can be distracting when you make a sale and prices move higher. You, however, need to recognize that your net worth is likely still continuing to move upward. Nonetheless, it is a psychological issue.

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