With 2021 harvest complete, it’s time to focus on bin bushels and 2022 marketing strategies. Grains have traded a lot of volatility this fall. That is why it is important to have a marketing plan and offers in place to capture your target prices. A marketing plan will enable you to manage the unpredictability of grain prices and their associated risks.

A marketing plan can be broken down into 5 easy steps:

1. Break the total amount you must sell into smaller units
   • Post-Harvest: you can only sell the grain that is unpriced in the grain bin.
   • Pre-Harvest: Do not sell more than you have insured.
     
     
2. Set price targets
   • Be realistic with your target price. Setting prices too high or too low is detrimental to your plan.
   • When setting pre-harvest targets you want to price grain above the cost of production.
     
     
3. Set deadlines
   • If prices do not rise enough to meet your target, you need to set sales deadlines to ensure you are proactive about pricing.
   • Prices typically have a seasonal price pattern. Setting deadlines that correspond with periods when prices are traditionally highest will make marketing easier.
   • Cash flow needs also need to be considered when selecting deadlines. Plan ahead and have cash ready by setting sales deadlines ahead of payment dates.
     
     
4. Know your marketing tools
   • ALCIVIA offers several types of contracts you can use to sell grain.
   • You can work with your grain marketing specialist on what tools you should be using to achieve your targets and sales deadlines.
     
     
5. Share your plan
   • Sharing your plan will keep you accountable to your marketing goals.

The goal of a marketing plan is to keep you on track with the targets you set. A plan promotes the use of logical, orderly marketing techniques, and our ALCIVIA team is ready to help you put a plan in place.

Have a great day!
Judy