Everyone who owns a business eventually has to become involved in finance, marketing and production. These activities are a must to effectively manage your business.
Looking back in history most farmers would describe themselves as producers and didn't worry as much about marketing and protection.
Farmers and producers need to learn how to be good marketers as well, they need to build a marketing plan. When building your plan you must know some of the variables, cost of materials and other miscellaneous costs. We must be prepared for change, problems and things that can happen.
When you understand that your plan is as important as producing you will be one step ahead of the competition and will be better prepared to figure costs and put together a good defensive plan with the proper hedge techniques. You must make sure to cover those costs that are absolute which will in turn give you better leverage later.
Farming is a business and a business plan is a must. You the farmer and producer must figure out how to squeeze every possible dollar out of your crops and livestock. Think about your crops as money trees, after all you spend thousands of hours to turn that hard work into money.
A good marketing plan with a good hedge strategy can lock in profits before you start. You can position yourself in the best possible mathematical spot, giving you the upper hand when it's time to sell, it will also allow you to wait until you are ready to get out, and you will never be forced out.
Take control of your business by making a solid marketing plan, be prepared for everything.
The views, opinions and positions expressed by the author are theirs alone and do not necessarily reflect the views, opinions or positions of Pro Farmer.