After years of a soft farm economy, you may think there is no money to be made in agriculture. That is not true according to Shan Hanes, chairman of the American Banker Association’s Agricultural and Rural Bankers Committee. He said despite low commodity prices and domestic and international challenges, the top 20% of farmers nationwide continue to make money.
He said marketing is key to that success. He said for a grower to enjoy positive numbers in this economy, pre-harvest marketing is very important.
“Come up with a marketing plan, has been a big deal for us, and I don’t see that changing. The good marketers seem to break even or make money consistently, and that’s kind of our thing. You’re never going to go broke taking a profit. “
Hanes pointed out the prices for many commodities aren’t much higher above the break even point making marketing even more important.
“Guys were able to produce and sell above their break even by being creative, by marketing and being astute, taking advantages when they could and then reowning it, not trying to make a home run, but adding 15-20 cents each time and they were able to sell above a break even.”
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