“In seed time learn, in harvest teach, in winter enjoy.” – William Blake

If you are marketing to farmers, you may feel that approaching them in the winter gives you your best chance to reach them. This is true in large part because farmers traditionally have more free time in the winter months.

That is not to say that farmers do nothing in the winter, especially those who raise livestock. But even farmers who strictly grow crops keep busy with other farm-related tasks. And while the days are shorter and the fields wet or frozen, many farmers are working on their books, ordering supplies and making sure their tractors and other farm equipment is in working order.

Everyone knows that time is money, and even though their hectic schedules may have slowed a bit, you never want to waste your customer or prospects time. So how can you let farmers know you value their time? Here are some surefire ways:

  1. Be direct. If you have done your homework, you know what your customers and prospects need. When you speak to them get right to the point. Offer them the best products at the right time. Farmers will appreciate your straightforwardness and the fact that you know they have an operation to run.
  2. Pay attention. If your customers or prospects are not responding to you, figure out why and make the necessary adjustments. When you continue to approach farmers in ways that aren’t working, you are wasting their time and yours. If, after you have adjusted your approach, they still aren’t interested it is time to back off.
  3. Reach out in the right way. Do your customers or prospects prefer to connect with you in person? On the phone? Do they prefer email? Are they most comfortable on their mobile device? Are they comfortable being on mailing lists? These are the things you need to know before you spend too much time reaching out to them in the wrong way.

Farmers may have a little more time to spare in the winter months but chances are if they do, they don’t want to spend all their extra time talking with salespeople. Always remember that in spring, summer, fall or winter, farmers need to know that you value their time.

 

 

It is no secret that cash rents on farmland can be tough on tenants trying to turn a profit. If you are wondering how best to protect your profitability from cash rents, you are not alone.

Alison Rice is the markets and news editor for agweb.com. She recently published an article in TopProducer Magazine which helps to answer some of the most common questions regarding flexible farm leases.

In her article, 8 Common Questions on Flexible Farm Leases, Rice writes that with the prospect of low grain and soy pricing in the coming months, some producers are looking for options to protect their profitability. This may include the possibility of negotiating a flexible farm lease with their landlord.

Perhaps the most important question answered in the article is what is a reasonable base rent? After all, there is no point in trying to renegotiate if you are getting a good deal already. Rice says the definition of a reasonable base rent varies “from farm to farm, but generally, it should be lower than what the fixed-cash rent would be.”

According to extension economists at Iowa State, if your base rent is not lower than what the fixed-cash rent would be then the landowner does not share in any of the downside risk.

Some of the other questions Rice answers include:

  1. How many types of flexible farm leases are there?
  2. What is a reasonable revenue share?
  3. Could I end up paying more rent with a flexible lease vs. a fixed cash rent lease?

In the end, whether or not you should try to negotiate a flexible farm lease will depend on the answers to the questions in this article and your unique financial situation. While you may not get all the answers you are looking for in this article, it is certainly a good starting point.

Marketing to farmers is no easy task. More than most, the agriculture industry is subject to rapid change from year to year. Market conditions and other variables in the industry can also shift drastically from season to season, forcing a complete overhaul of your B2B strategy at a moment’s notice. While agricultural marketing can be […]

The increasing cost of cash rent is leading many farmers to ask themselves if it is time to give up the lease on their farmland. Of course, the answer to this question has almost everything to do with the financial health of the operation.

In her article, Cash Rent Increases: When is the Right Time to Give Up a Lease?, the executive director of Nebraska Farm Business Inc., Tina Barrett, stresses that reducing cash rent is not a one-sided story.

Landowners have seen their own rapidly increasing costs. The average personal property and real estate taxes paid per acre has also been increasing. In the same 10-year period, this cost has also increased from $29.22 to $55.71.

But no matter how many sides to the story, the reality is that cash rents have doubled in the last 10 years. In Nebraska, that number has risen from $127.71 to $258.11. With cash rent now accounting for more than 30 percent of the total cost of irrigated corn, producers have no choice but to consider how to reduce this expense.

While no one wants to lose money at the end of each year, giving up land is something most producers want to avoid at all costs. This is especially true since while giving up land may reduce expenses, it also means there is less opportunity to make money. Giving up land has other implications, as well.

The likelihood of ever having the opportunity to farm that ground again once you give it up is slim. It is also tough to find additional ground to farm when the markets turn around.

Some operators have more time than others to make these types of tough decisions. Highly-leveraged operations with significant amounts of high-rent land require quicker action than those with low debt and few acres. And operators who have been around longer and have more net worth built up have more wiggle room than farmers just starting out. In the end, each situation is unique and as difficult as it may be, tough decisions need to be made.