Preparing and updating a marketing plan - an important piece of your farm operation

As a farmer, success isn’t just about what happens in the field - it’s also about how effectively you can bring your products to market. With fluctuating commodity prices, shifting consumer demands, and unpredictable weather patterns, having a well-thought-out marketing plan is essential for long-term stability and profitability. Regularly updating that plan ensures you can stay on top of industry trends and unexpected challenges.

What is the purpose of a marketing plan?

A marketing plan helps farm owners make informed decisions about when, where, and how to sell your products. Rather than relying on reactive, last-minute selling strategies, a solid plan allows for proactive decision-making that aligns with financial goals. Some key benefits include:

• Price risk management – A marketing plan can outline strategies like futures contracts, options, and diversified sales channels to protect against volatile market conditions.
• Improved cash flow planning – Knowing when revenue will come in helps with budgeting for expenses like seed, equipment, and labor.
• Stronger negotiating power – A farmer with a clear marketing strategy can negotiate better terms with buyers, co-ops, or grain elevators.
• Adaptability in a changing market – With consumer preferences shifting toward organic, locally sourced, or sustainably produced goods, a plan can help farmers position their products effectively.

Essential elements of a marketing plan

It’s clear that a marketing plan is a valuable component of any successful farm operation – but what should it include? A well-structured marketing plan should cover:

• Production goals – Understanding yield expectations helps set realistic sales targets.
• Market research – Tracking commodity prices, demand trends, and buyer preferences can reveal opportunities to maximize profits.
• Pricing strategy – Setting target prices, break-even points, and risk management tools ensures financial stability.
• Sales timing and diversification – A good plan considers spreading out sales to avoid market dips and utilizing multiple sales outlets like direct-to-consumer, wholesale, or contract sales.

Updating your marketing plan: responding to market shifts

Commodity markets, farm regulations and production conditions change frequently, making it crucial to update the marketing plan regularly. You should take the time to:

• Review financial performance (at least annually) to assess whether pricing and sales strategies are meeting profit goals.
• Consistently track industry changes such as new trade agreements, tariffs or shifts in consumer demand.
• Evaluate past sales decisions to refine future strategies and learn from successes or missteps.
• Adjust risk management tactics based on weather patterns, input costs and economic forecasts.

As a successful farmer, a marketing plan isn’t just a word document that you create once and cast aside — it’s a constantly changing strategic outline that guides your decisions for the year. By preparing and regularly updating a marketing plan, you can protect yourself against market uncertainty, make informed pricing decisions, and position your operation for long-term success. In an industry where unpredictability is the norm, having a clear, adaptable plan provides the confidence needed to navigate rapidly changing conditions.

Expertise you can trust

When it comes to managing your marketing plan and financial goals for the year, you need a perspective you can trust. At Minnwest Bank, our agri-business bankers have gained the trust of growers across the Midwest. That’s because they’re also farmers and producers who live and work in your community. We know what’s at stake and we have the resources to help you find solutions.

Get expertise you can trust to help your farm thrive. Make an appointment with a Minnwest ag banker today!