Brian Voth, President of intelliFARM Inc. has been busy over the past few weeks sharing advice about marketing.
Voth notes there are seven big mistakes they see farms make in their marketing decisions, adding greed is the most common.
"The biggest issue we see is lamenting about a price that we had, or could've had, and then wanting that price, especially if now prices are lower, even though we don't necessarily take into a fact that our yields are that much higher. So even at lower price, we're actually still making more money than what we had budgeted off a higher price and a lower yield."
He says, essentially it comes down to taking the emotion out of grain marketing, which is easier said than done.
Other tips Voth offered producers during his presentation, were to approach every crop year independently of what happened in the previous year, and to know what your target return on investment is, so you can sell to reduce risk and lock in profits once prices hit your project R.O.I.
Producers need to price when the opportunities are there, because you never know how long those opportunities might last, Voth says.
"There's been opportunities this year already where the pricing lasted for an hour and 29 minutes, and then we've never seen those prices again. So, once you get to a price that you like, or that makes money, don't sit back and think about it. Just get something done. And again, whether it's five bushels an acre, or if it's 20 percent, or 30 percent, the rule is just do something."
Moving forward, Voth says to know your cost of production, set your target R.O.I., and price at profitable levels.
Here are seven pieces of advice given by Voth:
1. Every crop year needs to be approached independently of what happened in the previous year.
2. What is your target R.O.I.? Once you hit your projected R.O.I., you should be selling to reduce risk and lock in profits.
3. Greed is the biggest problem in farm marketing plans.
4. In the long run, having a proactive plan is better than being reactive.
5. Once you make a market decision, you need to carry on and focus on what you have left to sell. Don't berate yourself if prices go higher.
6. Don't measure your success by what your neighbor tells you they've done. Every farm is different, and no two situations are the same.
7. Run your farm like a business. Outsource things you can't, or don't like doing, and focus on what you're good at.