Insights into Ag Business from our Marketing and Business Solutions Agronomist, Matt Owens
Farmers are in in a volatile risk environment due to many fundamental changes in the global agricultural economy. Among these changes are increased price and yield variations, increased global competition, rapid changes in agriculture’s business structure, new technology, and deficit reduction efforts narrowing the government’s ability to respond to agricultural disasters. The potential to harvest new opportunities and to increase profits and net worth through disciplined integrated risk management has never been greater.
No manufacturing, service, or production industry can be prolific without a sound production plan. Effective planning is fundamental in any business; it’s a complex process that covers a wide variety of activities that ensure that materials, equipment, and human resources are available to complete the work. Production planning is like a roadmap to reach your destination. It helps you know where you are going and how long it will take you to get there.armers are in in a volatile risk environment due to many fundamental changes in the global agricultural economy. Among these changes are increased price and yield variations, increased global competition, rapid changes in agriculture’s business structure, new technology, and deficit reduction efforts narrowing the government’s ability to respond to agricultural disasters. The potential to harvest new opportunities and to increase profits and net worth through disciplined integrated risk management has never been greater.
One tool used to plan effectively is forecasting. Business forecasting is a critical step in the creation of any business plan. Forecasting is almost never completely accurate, but it helps businesses look at the big picture. Business forecasting takes a lot of time and effort; however, it is definitely worth it.
Forecasting does not provide you with a crystal ball to see exactly what will happen to the market and your company over the coming years, but it will help give you a general idea. This will provide you with a sense of direction which will allow your company to get the most out of the marketplace.
Predicting the future in the agriculture industry can be very difficult. But by doing so, a farm can predict future trends and then change their company objectives to achieve success in this new environment. In the business of production agriculture it seems like no two years are exactly alike, but looking at what has happened in the past can help predict what will happen in the future, thus making a company stronger and most likely more profitable.
Every year we see product shortages and situations where supplies get extremely tight or non-existent. We attempt to strategize and make forecasts to secure product each winter with our suppliers, but at times that is nothing more than a shot in the dark. When our customers communicate their plans to us it allows us the opportunity to go out and secure the products that have the best fit for their specific operations. This past year, we were very successful in fulfilling the requirements of our customers who took the time to sit down with us to forecast and formulate a plan for the 2014 growing season. We are here to assist you in any form of your farm’s production processes and by working together and creating a plan moving forward we can ensure to fulfill your operations needs and requirements to make your farm as efficient and successful as possible.
By forecasting on a regular basis, it forces companies to continually think about their future and where their company is headed. This will allow them to foresee changing market trends and keep up with the competition. In order for us to keep our customers satisfied we need to provide you with the product or service you want when you want it. This advantage of forecasting in business will help predict product demand so that enough products are available to fulfill customer orders. By using business forecasting to look ahead, we are able to make sure that we always have product available for purchase.
I would like to take this opportunity to thank you for your continued business this season and over the years. It is always a pleasure to catch up with each and every one of you when the opportunity arises to talk strategies, markets, products, or just how everyone is doing. I wish all of you great success and prosperity during the rest of the 2014 growing season.