Commodity Marketing

This commodity marketing plan was developed specifically for the Farm Business Development Initiative but can be used independently.

The training will provide the farm manager with the skills necessary to:

•  Develop a financial plan using actual costs/prices/yields
•  Learn what factors affect each commodity market and how to use that information to make pricing decisions
•  Assess financial risk and implement strategies to reduce exposure
•  Develop an action plan and evaluation criteria

The consulting takes approximately 3 months depending upon the availability of the farm manager.

• Financial - week 1 - gather information required to analyze the farm's financial situation. Develop projections and identify benchmarks and risks.
• Industry & Marketing Analysis - week 2 thru 6 - discuss what factors affect each commodity market and how to use that information to make pricing strategies/decisions. Identify where to gather market intelligence.
• Production & Production Risk - week 7 - identify financial risks and develop strategies to reduce exposure including crop insurance, government programs and private insurers.
• Risk Management Strategies - week 8 - identify the types of contracts to be used to price commodities and develop crop specific strategies.
• Action Plan - week 9 - develop an action plan to identify targets, timetables and who is responsible for implementation and follow-up.
• Evaluation - week 10 - identify what skills and strategies were expected and if any areas need improvement.

Financial assistance may be available through the Farm Business Development Initiative.