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Challenges Facing Young Farmers

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If you are marketing to young farmers, it is important that you understand their struggles and concerns. After all, you can’t provide the solutions young farmers are looking for if you don’t know what solutions they need.

So what do young farmers view as their biggest challenges? Read on to learn what these farmers list as obstacles to their success.

  1. Land availability: If a young farmer is not inheriting land, it can be difficult to secure land to rent. This is especially true when they can’t pay the amount of rent others are offering. It is important for young farms to understand that landowners care about more than just money. Young farmers, therefore, need to accentuate their strengths, including things like trustworthiness, desire to improve the land and a commitment to keeping fields and soil healthy.
  2. No access to capital: Many young farmers lament the fact that they do not have the access to the capital that they need. The solution? Young farmers need to develop the type of business plan that will allow them to merit financing.
  3. Difficulty speaking with landowners: Dealing with landowners and being able to hold their own in negotiations is a learned skill that takes time to develop. Young farmers need to practice their communication tactics so that they are able to get a fair deal when they sit at the bargaining table.
  4. Lack of resources: There was a time when young farmers would get significant assistance from government agencies such as the USDA. Budget cuts and other factors mean this type of assistance is no longer available. Today, young farmers need to reach out to other farmers or join agricultural networks that may provide a mentor. Social media also is a good way to reach out to those who can help them.
  5. Lack of financial know-how: There is nothing wrong with outsourcing some of the business and marketing tasks related to a farm. Many young farmers will need time to figure out how to take care of the business end of their operation. There is no shame in hiring help until you get some experience under your belt.
  6. Burn out: In an effort to make a go of it in farming, many young farmers work day and night. While being a hard worker is admirable, a balance must be struck. If not, burnout will occur and a farmer’s health and personal relationships may suffer.
  7. Tension within the family: Many young farmers are taking over the family farm. And while his or her parents are all for passing the farm down, many times it can get sticky when they have a hard time letting go.

Three Hot Farming Trends

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Farming is a business and like all good business owners, farmers understand the importance of keeping their eye on industry trends. By doing so, farmers are able to predict what consumers are looking for in the short term and provide those products and services.

Today, farmers list the following trends that are hot right now:

Trend #1: Consumers are ready (and more than willing) to pay for the high quality foodstuffs.

Last year, the average retail price for things like beef, cheese, eggs, fruit and milk fell but many consumers were still willing to pay higher prices by skipping the grocery store and doing business directly with farmers. Even farmers who have contracts with supermarkets understand the lucrative nature of direct sales opportunities and take advantage of things like farmers’ markets and roadside stands.

Trend #2: An increase in farm-to table-opportunities.

Today’s families are busier than ever and need fast food options to accommodate their hectic lifestyles. And while fast food is unlikely to go away, consumers are seeking out healthier fast options. That means they are looking for fresh salads and sandwiches that they can grab on the go but that still contain healthy ingredients. When farmers partner with restaurants that provide this type of food they make a healthy profit.
Savvy farmers also are working with food delivery services that allow consumers to cook from-scratch meals while avoiding the hassle of shopping, chopping, washing and measuring fresh ingredients. These types of food delivery services allow families to cook and enjoy healthy, fresh meals without ever having to worry about menu planning.

Trend #3: A rise in the demand for organic options.

Consumers want food that does more than just meet their nutritional needs. They want to purchase food that is good for them and the environment and the community and the world at-large. When food is labeled as helping the environment and small producers, for example, consumers take note. Coffee made from sustainably produced beans and locally grown produce are examples of what consumers are looking for. And these consumers are willing to pay for those labels. Certified organic farms are the fastest growing segment of food industry. Currently, there are more than 21,000 certified organic farms in the United States and that number is expected to continue to rise.

Farmers know that catering to their customers is the key to staying viable at a time when falling food prices seem to be the norm. By doing so these farmers are able to thrive in tight economic times.

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.

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.