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A New Year’s resolution: Develop marketing discipline

Fokusiert/iStock/Getty Images Plus Hand turns a dice and changes the expression "new year" to "new start". New Year's Resolutions
Because that guy who “did nothing” is right only once in a decade.

Happy New Year! With the New Year comes resolutions for many. Losing weight, reducing stress, getting organized, saving more money (or spending less) and spending more time with family are traditionally among the top of the list.

If you look at the heart of most New Year’s resolutions, the resolution usually requires developing a whole lot of self-control and discipline in order to create a new habit and ultimately long-term success.

Discipline

I’ve already heard from some clients that in addition to the “traditional” New Year’s resolutions, they are adding discipline with grain marketing to the top of their list. Discipline is essential to any short-or long- term goal. Discipline is also an essential component to farm marketing, especially when it comes to pulling the trigger on those cash sales. When working with farmers and their marketing, we’ve found that no matter how much time and knowledge about markets a person has, everything falls apart if there is no discipline. Discipline is required in two main areas:

  • Prior Planning. Prior planning is very important, and is what I have referred to in the past as “market scenario planning.” First, imagine all the possibilities of what the market might do (why prices could go higher or lower). Then develop your strategy for each scenario. That way, you will be ready for whatever the market (global weather, trade deals, Presidential tweets) throws at you!
  • Implementation. When your market indicators signal that it is time to act, implement your strategies! How many of you have been close to a trigger point on a cash sale, set many months in advance, but when that signal is close to getting hit, you cancel your order?  Or change the order to sell a smaller quantity? Or you don’t follow through because there is some market news that just sounds too tempting. That’s where lack of discipline hurts. Call your grain elevator in advance and place those target orders for cash sales. Really think about what percentage of your crop you want to be pricing at each target. When it comes to your marketing, turn your attention inward and make a conscious decision about your strategies and your actions. Keep the end goal and your overall average price per bushel in perspective.

When you feel tempted to abandon your previously planned goals and strategies for whatever excuse or reason, stop and ask yourself if it's really worth it. Take out your written reminders of your long-term goals and revisit them again. If the goals are still vitally important to you and the strategies still make sense, you should have no trouble choosing the right action.

Reach Naomi Blohm: 800-334-9779 Twitter: @naomiblohm   and naomi@totalfarmmarketing.com
Disclaimer: The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Individuals acting on this information are responsible for their own actions. Commodity trading may not be suitable for all recipients of this report. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. No representation is being made that scenario planning, strategy or discipline will guarantee success or profits. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing. Total Farm Marketing and TFM refer to Stewart-Peterson Group Inc., Stewart-Peterson Inc., and SP Risk Services LLC. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services, LLC is an insurance agency and an equal opportunity provider. Stewart-Peterson Inc. is a publishing company. A customer may have relationships with all three companies. SP Risk Services LLC and Stewart-Peterson Inc. are wholly owned by Stewart-Peterson Group Inc. unless otherwise noted, services referenced are services of Stewart-Peterson Group Inc. Presented for solicitation
The opinions of the author are not necessarily those of Farm Futures or Farm Progress. 
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