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:
- 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.
- 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.
- 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.
- 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.
- 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!