Marketing Article - Farm Futures

I find marketing fascinating. It poses an impossible challenge. Hindsight is 20/20 yet the path directly in front of you is dark as night. In reading market commentaries, I begin to get the distinct impression that nobody has much more than the slightest clue what the future holds.

Marketing is the greatest challenge a producer must face.

I'm not a marketing expert, nor do I pretend to be. I recognize the importance of an effective marketing plan and understand the integral role that crop insurance plays in a marketing plan and risk management. In other words, don't be surprised if a lot of the content posted on this blog concerns marketing.)

The following commentary is on an article from the July/August 2009 issue of 'Farm Futures' written by Bryce Knorr entitled 'Selective Service' discussing the most profitable producers. Here is the overview.

• Have a written marketing plan
• Selective hedging - Willing to get in and out of trades as market warrants. (Oh by the way, this may be an impossible strategy and blurs the line between hedging and speculating.)
• Basic Strategy #1: Seasonal Rallies - Backbone of many marketing plans
• Basic Strategy #2: Be Trendy - Trend lines are simple, timing is difficult.
• Basic Strategy #3: Fundamentals - #3 can throw #1 and #2 out the window.

Conclusion: Active trading is for talented, committed producers with capital.

(By the way, these three strategies along with a talented, capitalized, committed producer do not ensure success. Good luck.)