Interesting and informative blog posts on farmers and ranchers from US Farm Data.

Three Ways to Strengthen Customer Relationships When You’re Pressed for Time

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If there is one thing farmers value above all else, it is the knowledge that the people they do business with are trustworthy and understand the challenges they face. If a farmer believes that he or she is not valued and appreciated by a business, chances are great that they will find another business that will.

Savvy Ag business owners understand the importance of connecting with their clients and do all they can to keep lines of communication open. Unfortunately, this can be difficult with so many demands on their time, including marketing their business so they can secure new customers.

So what’s a business to do? If you want to sustain and grow your client relationships but feel as if there is never enough time to do it all, we have some suggestions that may help to make things a little easier on you. In other words, some steps you can take to strengthen your client relationships while acknowledging the ever-increasing demands on your time.

  1. Know thy customers. While it may take a little more time at the beginning of a relationship, getting to know your customers well will allow you to interact with them in a more meaningful way down the road. It also will ensure that you aren’t wasting your time guessing what they need all of the time. You will already know.
  2. Spend more time connecting. While this may seem like the wrong way to save time, the opposite is true. When you check in on a regular basis—even if only for a few minutes—you will be aware of any issues that may come up. This prevents a minor issue from ballooning into a major one that takes a great deal of time to manage.
  3. Focus on trust. Good customer service always involves doing what you say you will do. This also builds trust. Customers that don’t trust you will inevitably call you more often to make sure you are on top of their order, for example. When they trust you, however, they won’t feel the need to micromanage and you won’t have to spend time reassuring them that everything is on track.

All customers, especially farmers, need to know that they are a priority. Making sure they do will allow you to do the best job possible without wasting time.

Why Nurture Campaigns Work Well When Marketing to Farmers

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If you have never heard of the term “nurture campaign,” it might be something you want to add to your marketing vocabulary. This is especially true if you are an Ag business marketing to farmers.

The business of farming goes through periods of frenzied activity followed by relative calm. To keep in touch with Ag leads through these times, it is important to provide consistent and quality content that allows you to connect, educate and inspire-no matter what is going on with a farming operation.

It also is important that you precisely segment your farming leads so you know what type of content will be most useful and valuable to a particular farmer. Further, you need to know when it will be most valuable. It is this type of contact that will help you to build relationships that allow you to be seen as a trusted resource.

If you are still unsure whether or not you need to invest in a nurture campaign, or don’t know what such a campaign involves, here is a brief overview of what one entails: First, you make contact with a new lead. Next, you establish consistent contact moving forward being mindful not to overwhelm your lead. Finally, you use the data you have gained over time to pinpoint the more specific needs of a lead so that you can better tailor your message as time progresses.

To further illustrate the basics of a nurture campaign, here is a step-by-step guide:

Step #1: Decide on the customer segment you are going to target. Remember, for it to be effective a nurture campaign must speak specifically to one type of customer. This is no time for blanket statements or generalized messages.

Step #2: Offer something of value such as quality content or a free webinar. It is critical at this point that you don’t try to sell.

Step #3: Set up a schedule and stick to that schedule. It is important to space out your touches so they are consistent but not annoying.

Step #4: Evaluate the success of each touch to figure out what strategies work best and which calls-to-action yield the best results. This will allow your nurture campaigns to get better and better over time.

Farmers respond well to nurture campaigns because of the cyclic nature of their business. Make sure to capitalize on this fact by always putting the necessary effort into such campaigns.

How to Successfully Sell to Farmers

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Think of the people you do business with and chances are all of these people have a lot in common. When farmers choose who they will do business with, these people also are likely to have many of the same traits in common.

Understanding what traits farmers are looking for in a salesperson will allow you to better connect with your target market of farmers. If you aren’t sure what farmers are looking for in a salesperson, here are some ideas:

1. Likeability. This may seem vague but what it really means is that you let a farmer get to know you before you try to sell him or her something. By the same token, farmers also want the people they work with to like them, as well. Therefore, it is important that you take the time to really get to know them.

2. Attentiveness. Farmers have a lot of irons in the fire so it is important for them to know that the person trying to sell them something understand exactly what they need. What they really don’t want is someone who only thinks they know what they need. The lesson here is to pay attention when a farmer speaks and don’t pretend to know what they need before they tell you.

3. Straightforwardness. If you tell a farmer you can deliver something by the end of the week, it better be there by the end of the week. In the event there is a problem, don’t try to pass the buck or make excuses. Further, never overpromise just to land a sale.

4. Dependability. Don’t be so accommodating that it appears as if you have nothing else to do and no other customers. As far as possible, however, be there for the farmers you work with so they know they can depend on you.

5. An expert in their field. If you are in Ag sales you better know what you are talking about. If there is something you don’t know, however, don’t try to fake it. Farmers would rather have you admit you are unsure about something and that you plan to do your research and get back to them. Farmers don’t expect you to know everything but they do want to know you are working toward that goal!

Finally, never try to be someone you aren’t. If a particular farmer really doesn’t want to work with you, you are probably better off without that farmer.

Email Marketing and Brand Loyalty

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Many businesses see email as a way to connect with prospects and gain new customers. In other words, increase sales. This is true for those in the Ag industry, as well.

Unfortunately, that is as far as many businesses will take their email marketing efforts. While no one would argue that email marketing should not be used to generate leads and drive sales, many businesses fail to understand what an important role email marketing can take in increasing brand loyalty.

Farmers are extremely loyal. Once they find a business they know and trust, it takes a lot for them to leave that business. However, that doesn’t mean you should not always continue to work to earn the continued loyalty of the farmers who make up your customer base.
So what are some ways that you can use email marketing to make sure your customers aren’t lured away by a competitor? What follows are five relatively simple ways to do this:

  1. Create outstanding content. There is no end to the struggle farmers face when it comes to maintaining a profitable operation. By delivering content that helps them tackle these issues, they will come to understand that you care about them at all times—not just when you are trying to sell them something.
  2. Offer discounts. The key here is to offer promotions or coupons on things they already buy from you. This way you are thanking them for the business they have already given you.
  3. Provide the inside scoop. If you have a big sale coming up, consider inviting email subscribers to shop a day early or receive an extra percentage off sale prices.
  4. Give stuff away. No one can resist free stuff. Offering a free gift for initial email subscribers may result in some people unsubscribing after they have received their gift, but this will not happen in all cases. Those who do stick around should be rewarded periodically with other freebies and incentives.
  5. Provide some Q & A. When you allow email subscribers to ask you questions via email and provide the answers they are looking for, you will earn their respect and appreciation. You also will be able to use these exchanges to produce relevant content for future blogs.

Email marketing provides Ag businesses a terrific way to build brand loyalty. Combined with its many other benefits, it is easy to see why it must be an important element of your overall marketing strategy.

Marketing to Farmers Requires Straightforward Approach

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Let’s face it, some of us look at the glass half full, others look at it half empty. Farmers do a little of both. In truth, farmers are probably neither optimists nor pessimists but rather realists. This means they are hopeful about the future but understand that things don’t always go as planned.

When deciding on how to frame your marketing message to farmers, then, it is important to ask yourself a few important questions.

1. What problem—or potential problem—will my product solve? Controlling diseases or killing weeds, for example, are huge issues for farmers. Make sure farmers know that your product will help make their life easier because it will take care of a specific problem. By letting farmers know that you understand the type and scope of a particular problem they face they will be more likely to believe you have the solution to that problem, as well.

2. How will my product make a farmer’s operation better? Farmers rightly believe that their operation has the potential to thrive and be exceptionally successful. Share this enthusiasm with them by touting your product or service as a means to ensuring the success of their operation. For example, if you sell a product that promotes weight gain in cattle, make sure you touch on the many advantages of healthy and well-fed cattle.

3. Does my product promote long-term success? Farmers are well aware that the road to success has its share of bumps. Before they decide to purchase a product you offer, they will want to know how that product will help them in the long term. Farmers are leery of marketers who promote easy and instant solutions. Instead, offer farmers a realistic timeline for how long your product will take to work. Patience is one of farmers’ many virtues and they have no problem being patient with a product if they feel it will be worth the wait.

4. Is it worth the investment? Farmers understand that they have to spend money to make money. Keep in mind, however, that if you are selling something that involves a significant investment—land, equipment or buildings—quality and durability are something farmers will never compromise on.

It’s no secret that farmers aren’t impulse shoppers. Therefore, if you want to successfully market to farmers then what you are selling had better solve a problem, make his or her operation better or promote long-term success.

How the Tax Code Works to Protect Farmers

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Farmers, like most people, want to protect their income as the deadline for filing taxes approaches. One of the most important ways for farmers to do this is to understand the best ways to decrease their tax liability.

Knowing that you need to decrease your tax liability and actually doing it are two drastically different things, however. In order to decrease your tax liability you must understand just what are considered allowable expenses and how to report those expenses.

In most cases, farmers are considered by the IRS to be self-employed. Therefore, they will report income on Form 1040 and then file the schedules that go along with that form. Self-employed farmers, or single-entity limited liability corporations, report income on Schedule F. By reporting income on Form 1040, farmers are able to use the cash method of accounting as opposed to the accrual method. The cash method means that expenses and income are claimed in real time.

The tax code for farmers is different than other businesses in that it incentivizes farmers for investing back into their farms. While most farmers are aware of how the tax code works, many times it remains in their best interest to work with an accountant who is familiar with the specific issues that surround farming operations. Such a tax professional also will be able to check and double check that farmers do not overpay in taxes.
One of the most surprising issues farmers face when filing taxes is proving that they are, in fact, operating a farm. There are various provisions in the federal tax code that define what is considered a qualified farm. To make matters even more complicated, state and local definitions of what exactly a farm is may vary, as well.

What follows are some general guidelines that ensure a farm is considered as such:

  • It shows a profit every three to five years.
  • It is operated in a business-like manner and the farmer who owns it is knowledgeable of farming practices.
  • Farmers list personal money and farm money separately.
  • Farm work and activities are well-documented.
  • Proof is provided that any losses are due to legitimate reasons.

These guidelines, while specific, are not meant to penalize farmers. Rather, they are in place to protect legitimate farmers. In fact, if anything, the tax code is written to benefit farmers and decrease their tax burden.