Happy New Year everyone! As I sit here and write this article, I do so with a bit of a smirk on my face.  Every year at this time, people make promises to themselves that “This year is gonna be the year…”  Finish that sentence with “I start exercising more” or “I take more time for myself” or really any self-improvement cliché, and there you have it, a New Year’s Resolution.

The problem is most of these resolutions are either too vague or don’t come with any kind of real plan, which is why 80% of New Year’s resolutions fail. 

As they say, failing to plan is planning to fail. If I had to guess, many of you do not have nearly as much of last year’s crop sold as you would like to at this point. Ask yourself why. Was it because you were afraid to contract anything because we were in a drought? Was it because you had too many bushels sold too early in 2022 and didn’t want to make that mistake again? Or was it simply that you didn’t start with a true marketing plan?

As a general statement, marketing was easy the last few years because the market gave producers several opportunities to sell their crop at profitable and often lucrative levels. Markets like this can be dangerous because they tend to cause complacency. The mindset often becomes, “Well, I’ll get it the next time around.” Last year was an unpleasant reminder that the market can break and break for good, never providing a second opportunity.

That is why it is important to make a plan during this time of year. A written and executable marketing plan that not only sets defined goals, but also allows you to be flexible when those goals are reached.

Frankly, there is no wrong way to do this. Some people prefer to set marketing goals based on certain prices while others may prefer to set goals based on the calendar. Regardless of which method you choose, try to focus on what’s in front of you and not what is behind you. The rearview mirror is always smaller than the windshield for good reason.

What was applicable and good for last year has nothing to do with this year. Drought monitors change, interest rates change, government policies change, weather patterns change, input prices change, geopolitical issues change. What shouldn’t change is your focus on the most important factor of your business, and that is staying in business.

The best way to stay in business is by being profitable. And the best way to be profitable is having a plan on what you will do when profitable opportunities arrive.

The economic landscape of agriculture is changing. Ask any banker or risk manager and they will tell you they are more concerned with the economic uncertainty of agriculture this year than they have been in the last 5 years. If nothing else, a written and executable marketing plan can help mitigate some of the concerns they may have with your farming operation.

Run the numbers and do your homework; you might be surprised with what you find.

Wishing you a prosperous New Year and best of luck on those resolutions.

Contact Advance Trading at (800) 747-9021 or go to www.advance-trading.com.

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