The production of ag commodities is more than just a business, it’s a lifestyle. Whether a producer is cultivating grains, nurturing livestock, or processing dairy goods, efficiently delivering a tangible product to market is the name of the game.
An ag marketing firm can be a valuable asset in the pursuit of operational efficiency. Through the development of a customized marketing plan, a dedicated team can help improve many facets of a producer’s business, not to mention the bottom line.
No matter what the product or commodity is, many related markets contribute to asset valuation. Although being an industry expert is not an option for most, acquiring a working knowledge of the derivatives markets can be useful when integrating them into your business.
A competent ag marketing firm is a wealth of educational resources. Through their guidance, developing a basic aptitude in the following areas can be a solid first step to approaching the markets confidently:
- Understand the vital aspects of market behavior
- Identify fundamental drivers of asset value
- Introduction to technical analysis
- Trends and patterns in cyclical asset pricing
No doubt about it, knowledge is power. By becoming familiar with the basics of how the futures and options markets function, producers can successfully use these markets.
Promote Capital Efficiency
Saving money is a favorite pastime of profitable businesses. The ag sector is no different. Regardless of size or location, one thing that all ag producers have in common is a burning desire to eliminate unnecessary costs.
Ag marketing firms can help reduce market-related expenses in the following ways:
- Limited transaction fees: ag marketing firms often waive fees related to portfolio management or information services.
- Competitive commissions: Due to their volume of trade, larger firms have several pricing advantages in regards to commissions and trade-related costs.
- Complimentary evaluations: A thorough examination of a long-standing marketing plan is likely to reveal areas ripe for cost-improvement.
Access to reduced fees and commissions, coupled with the expertise necessary to overhaul an existing marketing plan, is a recipe for savings.
Ag producers are susceptible to many factors that can destroy profitability. Inclement weather, storage issues, supply bottlenecks or international politics can cause havoc for farmers and ranchers. Producers can mitigate many of these risks through comprehensive hedging strategies.
No doubt about it, hedging is a complex and integral part of preserving hard-earned capital. From an operational standpoint, the market experience and know-how of an established ag-specific firm may bolster hedge performance to unexpected heights.
Saving time and money go hand in hand. An ag marketing firm understands this fact and will provide many options for remaining up-to-date on important developments. Technology has given producers the ability to connect seamlessly via mobile or desktop software applications, as well as the traditional telephone.
Whether monitoring open positions, placing or managing orders, or staying abreast of breaking news items, a support staff is at the ready to answer any and all inquiries in a timely fashion.
Expert Guidance and Advice
The derivatives markets are dynamic environments where change is the norm. Having access to an industry professional who is familiar with the ebb and flow of the contemporary marketplace can be indispensable.
When the unexpected happens, being able to actively tailor your strategy becomes a necessity. An ag marketing firm can provide in-house resources or find the solutions required to overcome some unforeseen obstacles and preserve the bottom line.
Selecting an Ag Marketing Firm
Choosing an ag marketing firm may seem like a daunting task, but with a little effort it can be a very rewarding endeavor. A great place to start your search is with Daniels Trading’s Ag marketing team. Backed by a futures industry leader since 1995, Daniels Ag Marketing has the tools to help build your marketing plan.