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Tips for Successful Grain Farmers – Part II

Updated: Jan 17

Grain is the staff of life, as the saying goes. That’s because nearly two-thirds of the world population would starve without these essential ingredients. As a grain farmer, you play an important role in the American economy. At Friendly Meadows, we want to help your business thrive and make sure that we're providing all of the resources you need to be successful. The following article will discuss how grain farming is a great way to start a farm, as well as the types of products farmers can sell. There are many types of grain farming, but it all starts with taking care of the land. When it comes to growing crops, a farmer must be able to plant at the right time and harvest at the right time. Farmers can grow a variety of different grains (such as rice, wheat and corn), depending on current market trends and local weather conditions. Here is our second in a two-part series of helpful tips that will make your operation that much more successful:

1. Sell underperforming or nonperforming assets:

If you own a business, then it's likely that you have certain assets that require an inordinate amount of your time and capital in order to operate them. Identifying these "underperformance" or "nonperforming" assets is a necessary step before deciding their fate.

The good news is that underperforming or nonperforming assets should be sold before they become a drain on the profitable parts of the operation.

Identifying these "underperformance" or "nonperforming" assets is a necessary step before deciding their fate. The bad news is that most reasonably intelligent business owners are unaware of the true extent of their financial troubles.

Examples include:

"Inventory" (aka "Lose Money" or "Freight") – This is a stock of inventory that can be sold, then bought back at a later date. If you account is not set up to track this, then you will be liable for the cost of the inventory and not know what you're carrying on your books from quarter to quarter.

2. Develop a marketing plan:

Marketing is another business skill that sets successful farmers apart. It has two critical steps – developing a marketing plan at the start of the season, then executing it. Be a proactive seller.

Plan. Plan. Plan. That’s the secret of every successful farmer, whether the operation is large or small, organic or conventional, upstart or established.

Developing a marketing plan at the start of the season will make you a proactive seller rather than a reactive one. It will also help prevent you from being overwhelmed with take-home produce.

Successful operations develop a plan that deals with crops, weather, labor and markets. A marketing plan is developmental in nature, not critical at the start of the season. It is much easier to make changes along the way rather than having to scrap a marketing plan at midseason because it’s no longer working for you.