“A well-developed marketing plan can take some of the price risk off the table, which is especially important in today’s ag economy,” said Ed Elfmann, senior vice president, agricultural and rural policy at American Bankers Association. “It’s also a useful tool to help farmers and ranchers communicate with their banker,” reports the Northern Ag Network.
For producers who haven’t developed a marketing plan or need to take a fresh look at the one they have, ABA’s Agricultural and Rural Bankers Committee recommends 7 tips. Among them:
When there’s an opportunity to profit, act on it. Once you understand your production costs, you’ll have a better idea of when you can sell for a profit. You’re not always going to hit the high, but selling at a profit—even a small one—takes some of the risk off the table. One of the biggest mistakes can be inaction because you think prices are going to go up or you’re going to miss a rally.
Click here to read the full list of marketing tips.