How to Get Referrals from Ag Customers

Farmers and ranchers talk to one another. In fact, many times it is the referral of a fellow farmer or rancher that encourages a farmer or rancher to purchase a piece of equipment or invest in new Ag technology.

Since referrals can make a huge impact on your bottom line, it is important that you try to get as many as possible. So how can you encourage your customers to recommend your Ag business to their friends and family?

  1. Referral Bonuses. Referral bonuses are a great way to generate leads because who doesn’t want to earn extra money just for spreading the good word about a product or service they already use? Consider making referral bonus offers good for only a certain amount of time so that customers are less likely to forget to make a referral.
  2. Discounts for Social Media Shares. A small discount on products or services is a great incentive to encourage customers to share the good news about your business on social media. It takes almost no effort at all for a customer to like or share your Facebook page but it can pay off big for your business in the form of sales leads.
  3. Request that your current customers take a few of your business cards and refer others who may be interested in your business. And although it may seem obvious, it always helps to ask customers for referrals when they are particularly satisfied with your product or service!
  4. Give Samples. If you sell a particular Ag product, consider giving samples for your customers to pass out to friends and family.
  5. Practice Gratitude. When you do receive a referral, make sure to recognize and thank the customer who made that referral with a handwritten note or small token of your appreciation. Knowing that their efforts are appreciated will encourage customers to continue to make referrals.
  6. Do Unto Others. When possible, always refer your customers to other customers. When people know that you are referring customers to them they will be much more likely to do the same for you.

Finally, always offer outstanding customer service. Let’s face it, when customers are thrilled to work with you, they are going to want to share the good news. Providing your customers superior products and services coupled with great customer service is the best way to make sure they sing your praises—whether or not they have been asked!

 

Popularity of Agritourism Continues to Rise

Spring is in the air and that means people are beginning to plan for their summer getaways. This year, many Americans will once again choose a visit to the countryside as opposed to a trip to the beach, a waterpark or other more traditional summer destinations.

Recently, a growing number of city-dwellers have opted to connect with nature and experience life in the country for their summer vacation. This is understandable. After all, who can resist waking up to the sounds of a working farm, feeding baby lambs, or gazing at the clear night sky filled with stars.

In most cases, such trips involve staying on an operating farm or ranch. These farms and ranches allow individuals, couples or families to experience country living up close and personal. From cheese-making on a dairy farm in Wisconsin to caring for livestock on a cattle ranch in Montana, these agritourism vacations are all the rage.

Children and adults of all ages will love feeding baby animals, picking blueberries, baking pies, churning butter, eating huge farm-style meals, and sleeping in an old-fashioned farmhouse. The best part? You can travel to far off locations or remain close to home and still get away from it all.

Considering spending some time in the country or on the farm for your next trip but can’t decide if it is right for you? Farmers list the following reasons why agritourism is an outstanding choice:

  1. Incredible food. City folks may have never experienced the satisfaction of the farm-to-table experience. There is nothing better than breakfast made from eggs you collected yourself that same morning or picking apples for your very own homemade apple pie.
  2. History comes alive. When you visit working farms that have been handed down from generation to generation, you feel a connection with the land that you would never expect. And depending on where you choose to vacation, you could be on one of the oldest farms in the nation.
  3. Life slows down. Going off the beaten path saves you from the stress that comes with so many vacations. Instead of rushing to see the next landmark or roller coaster, you can slow down and actually relax and unwind.

Of course, visitors to farms and ranches aren’t the only ones who benefit from agritourism. Such vacations help to support small and family-owned farms. They also may entice young people who have never experienced country living to consider a career in agriculture.

 

 

 

Many Farmers Underestimate the Value of their Operation

Tax season is in full swing. And farmers who have updated the way they manage their farming operation’s accounting systems may be in for a wake-up call.

In her article, Management Accounting Helps Farmers Make Informed Decisions, Andrea Johnson writes about the shock many farmers experience when they realize their modest farm has blossomed into a multi-million dollar operation. Often without them even realizing it.

Quoted in the article is Norman Brown. For 32 years, Brown has provided farmers with computer financial systems. Brown says there are many farmers out there who need to make the switch to management accounting so that they can make their farming operations as efficient as possible.

Management accounting may look at the cost of feeding and raising livestock vs. selling crops. It can evaluate the cost of running a combine compared with hiring a custom harvester. Informed decisions can be made regarding hiring employees vs. the owner completing all tasks independently on the farm.

Management accounting allows farmers to make decisions using financial measurements that will optimize production and performance. This will help farmers to know if they are, in the long run, going to be able to be competitive and sustainable.

Most anyone who is farming today is a good producer, but we are looking at people that are starting to take a risk management viewpoint for marketing, for expansion, and for financing.

Farmers who are interested in converting to management accounting should work with a specialized accounting firm. They also can contact the Farm Financial Standards Council and the American Society of Agricultural Consultants for guidance.

U.S. Farmers Do Their Part to Conserve Water

There are a lot of political issues up for discussion this election year. For farmers, one of the biggest has to do with water.

Of course, there are a number of issues regarding farmers’ use of water but one of the biggest—and without which others don’t really matter—is the availability of water. Consumable water in the United States, for the most part, comes from one of two sources. These sources are precipitation, which is stored in reservoirs and upper soil formations, and underground aquifers.

The U.S. Geological Survey conducted their annual analyses of water levels in 32,000 wells that have been sampled over the past 20 years. This analysis showed there to be a shrinking water supply in the West and High Plains. Further, according to this analysis, water levels have diminished in wells across the country. The majority of the wells in the U.S. Geological Survey’s database rely on underground aquifers. Irrigation accounts for the use of about 90 percent of the water in the lower 48 states.

While some have argued that too much runoff ends up in the Pacific Ocean, the U.S. government does not agree with this assessment. Government agencies also dispute the argument that fishery, wetland, and wildlife regulations require too much runoff.

It is obviously good news for both the U.S. economy and the Ag industry that agricultural exports have doubled since 2006. However, there is a downside to this booming export business. Higher exports mean that the amount and quality of the U.S. water supply declines along with these exports.

Of course, U.S. farmers are very aware of the need to conserve water and are doing their part to help save this valuable resource. What follows are just some of the many ways the Ag industry is doing its part to be a good steward of water resources:

  1. Drip irrigation: delivers water directly to a plant’s roots, reducing evaporation.
  2. Pond construction: allows farmers to decrease reliance on municipal water or wells by capturing and storing rainfall.
  3. Scheduled irrigation: keeps a close eye on the weather, as well as soil and plant moisture, to schedule irrigation so it is used in the most efficient manner possible.
  4. Drought-tolerant crops: appropriate for the climate of particular region and more drought-resistant.
  5. Drying farming: relies on soil moisture to produce more flavorful but lower-yield crops.
  6. Rotational grazing: moves livestock from field to field to promote pasture regrowth.
  7. Cover crops: protect unused soil and help prevent erosion and compaction, allowing water to more easily penetrate the soil and increase its water-holding capacity.
  8. Conservation tillage: makes use of things like specialized plows to partially till the soil but leave a percentage of vegetative crop residue on the surface to aid in water absorption and reduce things like evaporation, erosion, and compaction.

When it Comes to Your Ag-Business: Trust Trumps All

If you ask farmers what type of businesses they want to work with, one of the first qualities they will mention is trustworthiness. So how can you make sure that farmers view your business as trustworthy?

In his article, Is Your Brand Trustworthy? Here’s How People Decide, Timothy Carter talks about how customers and prospects decide that a particular brand is worthy of their trust. More importantly, he talks about how businesses that are viewed as trustworthy are more profitable.

Trustworthiness isn’t the only consideration for a brand, but it is the most important to your bottom line, so don’t neglect it.

Carter believes that brand trust comes down to the following six factors:

  1. Even if you are a new player in the Ag world, you can talk about what in the past brought you to the point of opening your business. If your business has been around for a long time, make sure and play up that history.
  2. Hard selling comes off as false. State the advantages of your product or service and what it can do for the customer but avoid the hard sell.
  3. Make sure your marketing efforts reflect the fact that you sympathize with the issues your customers and prospects face.
  4. Accreditations and affiliations go a long way.
  5. Think guarantees, free shipping, trial offers, and price matching.
  6. Social proof. Encourage people to write online reviews of your products or service. Ask them to like you on Facebook. It is important that farmers, for example, know that other farmers trust you.

Carter says that if your brand can exhibit all of these qualities you’ll be able to establish trust with new customers—even if they’ve never heard of you before. After that, it is all up to you.

Once a lead has been converted into a customer, your trustworthiness all depends on the quality of your service — if you can over-deliver on your promises and produce a memorable experience, there’s nothing that should stop that customer for coming back for more (and maybe spreading the word about your brand).