Category: Grain Marketing

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Good farm employees are hard to find, and even harder to keep.
It seems that today, people just don’t have the work ethic they used to. But you, as a farm manager, have a role to play too.
The default training system of many farmers is to throw an employee in a tractor and tell them to go. But that doesn’t make the employee successful, confident, or motivated.
Believe it or not, it’s easy to motivate people—if you have the right plan. Use these 10 strategies to keep work morale and ethic high on your farm.

1) Set/Discover Goals, Both Personal and Professional, With Your Employees
 If you use no other strategy, at least use this one.
Start with a five-year goal. Find out where your employees want to be, not just in finances, but in “health, wealth, love, and happiness.”
Since every decision they make impacts their goals, they’re going to be motivated towards them. So understand their goals, and that will help you align their work with those goals, which brings me to my next point…

 2) Align Their Goals With Doing High-Quality Work for You

 If one of their goals is financial and they want to be bumped up, offer an incentive. Maybe Steve’s making $15/hour now, but tell him that if he puts in four weeks of quality work, you’ll knock that up to $15.25.
Here’s another example. I’ve got one employee who loves to work out. I talked to him during harvest last fall, and he was stressed out because he didn’t have time to go to the gym.
I said, “Obviously, getting to the gym is one of your goals, so as we’re getting into the busy season, if you’re willing to work a little extra into the evenings, I’ll schedule somebody every other day so you can work out 3-4 days a week.”
He worked the same amount of hours in a week, but the hours shifted. It was a win-win: I got a more effective employee, and he was happier to do the work.

3) Create Training and Certification Programs for All the Processes You Want Your Employees to Partake In
Remember, if an employee fails or makes a mistake, it’s your fault. Either he was mis-trained, or the communication wasn’t clear. You might get a couple of klutzes, but most are capable of doing the work with the right guidance.
So train them. Make sure they know how to start up each tractor safely, and how to accomplish the checklist. For example, have them check the oil daily and tire pressure once every week, write that down, and turn it into you. That way, you set up a system and keep them accountable to it.[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] 4) Create Clear Expectations of the Job and What Is Required to Successfully Perform It

 I’ll keep this step simple: read The One-minute Manager. It’s 111 pages, so you can literally read it in an hour or two. It will give you a good system for making employment clear for your employees.
Basically, the idea is to create a one-page document explaining exactly what that employee is going to do for you, and make sure they understand it.
Then, meet regularly as things change.

 5) Communicate Weekly With Management and Have Management Communicate Daily With Employees
 I have a weekly meeting with my farm manager, and he meets with the employees both weekly and daily, during morning coffee.
The purpose of these meetings is that everyone would have a clear picture of daily and weekly goals, and what must be accomplished to reach them.

 6) “Make Sure You Not Only Have the Right People on the Bus, but That Everyone Is in the Right Seat”
 I borrowed this from Jim Collins. Obviously you don’t want negative, cancerous employees, so bring the right people onto the bus. But once they’re on, they also need to be in the right seats.
Match personal strengths with relevant jobs. For example, I had a guy who worked for me who wasn’t really tech-savvy. Showing him a monitor rocked his world, and he didn’t understand it. It wasn’t a good idea to have him drive a planter.
He wasn’t interested in learning the computers, and you don’t want to make people do what they’re not interested in (or suited for).[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] 7) Have Everyone Take a Personality Test 
 You and any managers need to know how to manage and avoid conflict. Personality tests are great for that.
You learn who works well together. You don’t want to put the wrong people on the same team. Try to keep strengths together or, sometimes, add a guy with a different strength to balance the team out.
There are a number of great personality tests, but StrengthsFinder is one of the best.

 8) Understand the Key Motivational Factors for Each Employee and Use Those to Reward Good Work
 If they’re motivated by money (and everyone is to a point), give out clear performance bonuses.
Or, if they love certain parts of the job, tell them to finish a few other things in their work and then you’ll give them a few days doing what they love.

 9) Treat Your Employees Like Your Best Friends, and Respect Them
 Sometimes, you might think of an employee as a pain in the neck.
But I always tell my managers that yes, he might be, but 1) we might be able to turn him around with training and 2) you don’t want to be doing his job and yours. So until we find a replacement or get him turned around, pretend he’s your best friend and focus on what they are doing right.
Some ideas: put their birthday on your calendar, interact with them on social media, or be there for them if they’re having problems (sick kids/wife, etc.).

10) Cut the Negative and Bad Eggs Immediately

 This one’s tough, but you absolutely have to “cut the bad eggs” on your farm. It’s business—it’s not personal.
When employees are negative or incompetent, they bring the whole morale down. Let them go, even if you have to step in and get the work done yourself. Always try to be one man overemployed so you’re never in that position. Then you can cut if necessary.

 Conclusion
You won’t know what your employees’ goals are until you sit down and ask. You may assume they want money, but money only motivates up to a point. Some people are looking for a challenge, just as I am in using Cash Cow to diagnose farms that are in trouble.
You’re going to make mistakes. That’s OK. Still, run your own little experiments: do what’s best for you, and learn by trial and error.
When you figure it out, you’re going to have a pretty sweet operation.

Looking for more help with running your farm? Give us a call or shoot me an email.[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”MAXIMIZE PROFITS WITH CASHCOW FARMER!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]POWERFUL FARM FINANCIAL SOFTWARE THAT IS AFFORDABLE & EASY TO USE![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE 30 DAY TRIAL” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

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 We’re at a low point in the cycle of agriculture.
Commodity prices are low, and margins are razor thin. So we need to strategically plan each field like our whole farm depends on it.
You will probably be able to make decent money on a couple of corn and soybean fields, but for those other fields, you might have to consider different crops to make money.
When the growing gets tough, the tough get a calculator.
Your finance partners want to make sure you’re putting all you have into making money next year. Use the following tips to show them how dedicated you are to making money in these tough markets. These five strategies will help you make every field produce a cash crop this next year.[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]1) Crop Rotation Options
 Every piece of dirt is different in its productivity; based on location, rainfall, and proximity to a buyer. Make a list of different crops you could grow on those fields, then one-by-one figuring out which would be most productive.
Look around, too. You might, for example, have a turkey farmer that needs sunflower or birdseed nearby.
Guys around me grow edible beans. The beans are a lot of work, but the farmers make a lot of money by farming one or two fields of them.
It’s good to mix it up, sometimes.

2) Match Field With Optimal Crops

 Consult your agronomist and soil scientist to see what your options are for each field. Ask them, based on the soil types of a given field, what they would recommend.
Corn on corn usually isn’t profitable in this market. So if you had corn on that field, you might not want to grow it again (since input costs will be more and your yield will be lower).
Ask your agronomist if you should grow wheat, or if you could grow edible beans or some other specialty crop. Agronomists work with lots of producers and know the market well. They come in handy matching optimal crops with your fields.

3) Estimate Which Crops Are Most Likely to Make Money
 This next tip depends on the buying options where you’re located.
For instance, if there are a lot of options in your area for specialty crops, and you don’t have to haul them hundreds of miles, you’ll be able to pick from a wider range than other farmers. Estimate your yields and costs for each one of those crops, and determine which fields will produce profitable yields.
If you have corn fields, for example, what are your expected yields? 200 bushels? And what are your expected input costs?
Make sure the production costs are covered by the marketing of the crop. You don’t want to go into the banker and say, “Hey, I’m gonna lose money on every field this year!”[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]4) Find New Buyers

 Don’t settle for doing the same thing day in and day out.
Feedlots, turkey farmers, organic animal farms, and so on can offer a nice profit on specialty crops, as these farmers use the crops for spoon-feeding year-round.
I have a neighbor who did a certain thing with his wheat so it could be considered organic. He was able to sell it to an organic chicken farmer at a big premium compared to what wheat was offered at the elevator. It was a few simple steps that gave him that opportunity, too.
Or maybe a local brewery needs barley throughout the year. The point is, there are opportunities to find new buyers if you’re willing to grow new crops.

5) Double Crop
 Speaking of opportunities . . . there are ways to generate a second revenue stream off a harvested crop.
I have an example of this myself. I farm next to this guy who has a cattle ranch. He called me, asking if he could put up some electric fence around my field and have his cattle graze for a couple of months. I said sure.
Since the yield was low, I discounted him at 35¢ per cattle per day. Around 60 cattle, grazing for two months, gave me close to $9 an acre off that deal—without costing me anything, plus I won’t have to spray for volunteer corn next year which is an additional $8 dollars per acre.
You can also bale your corn stocks, or have somebody else do it, and sell them to a cattle farmer.
Or put a cover crop in, especially after early-harvested crops like wheat. If you sell the crop to a local rancher as a grazing product, you’ll compound your revenue.

Opportunities Are Everywhere
My advice? Use your resources, know your neighbors . . . basically, don’t be complacent.
There are hidden dollars all over your farming operation. Finding them is your best chance to get through these tough times and back into the golden years.

Need help tracking crops and production costs on your fields? We’ve got you covered.
 As seen on Farm Futures
 Cash Cow Farmer was created to keep you from leaving a single dollar of profit on the table. Give it a look to learn more about how Cash Cow optimizes your operation!
 To learn more about the Cash Cow Farmer program, including software and consulting, give us a ring![/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”MAXIMIZE PROFITS WITH CASHCOW FARMER!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]POWERFUL FARM FINANCIAL SOFTWARE THAT IS AFFORDABLE & EASY TO USE![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE 30 DAY TRIAL” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

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Hope is not a good grain marketing strategy.
The price risk you run when you store grain doesn’t go away, even if you hold your breath. Even though harvest is over, a lot of the numbers are coming out. If you’re already tight with your break-even cost of production, you want to make sure you’re not losing more money as that grain sits at the elevator.
How do you this? By developing a specific risk management strategy—or multiple strategies.
Here are seven strategies you can use to hedge stored grain.

1) Hire At Least 2 Professional Grain Marketing Consultants
Farmers in general are really bad at marketing grain.
It’s not an insult; it’s the reality of your job. You’re busy, and you don’t have time to analyze markets, weather forecasts, etc.
But you need to invest in grain marketing because it’s the most important decision you’re going to make year in and year out. Hire a couple of grain marketing consultants. By a quick Google search, you’ll find a whole slew of them.
I say two because everyone reads the market differently, so it’s good to have multiple perspectives. You could hire 10 if you want, but keeping up with that many advisers might be a little overwhelming.[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]2) Have a Plan With Price Goals

Before you even put grain in the bin, have a plan to get rid of it.
You should have a general idea of when you can get to market, so keep tabs on things such as the basis on those contracted months, and build a plan.
Your first priority is knowing what it cost you to produce your grain. That will inform you on what to do from there.
Talk with your grain consultants about this. Usually, you can call them and speak to them directly.
As Benjamin Franklin said, “If you don’t have a plan, you’re planning to fail.”

3) Futures Contracts
Futures contracts are just instruments. They were essentially developed to hedge risk in price. With them, you can lock in your entire operation at a certain price.
One futures contract will cover 5,000 bushels of corn or soybeans. Make sure you know what you’ve got in the bin. Cash Cow Farmer is a tremendous help for this and can give you an exact number when you’re counting bushels.
Once you figure out your bushels, select how many contracts you want to work with. You’re either buying or selling a contract; talk to your consultants to know which side you want to be on to hedge your risk.

4) Options on Futures Contracts
Options are a little bit different from regular futures contracts.

One option is worth 5,000 bushels just like a regular futures contract. But there are three parts to an option:

1. Is it a put or call? – Meaning long or short.
2. Strike price – The price at which the option can be executed to buy or sell the contract.
3. Time – Probably the most important aspect. For example, if you try to buy a put option on corn for one year out, it’ll be expensive. There’s so much time between when you buy and when it executes the strike price. (Note: there are short-dated options available now.)

Options can be extremely valuable. My favorite thing to do with them is sell them, because they lose value every day that they get closer to when they execute.
I’m not greedy about options: I definitely don’t sell my whole crop with them. But it’s a nice strategy for protection and for possibly pulling 20 or 30 cents out of the market for some of those bushels.
If your head is spinning a little, don’t worry. Do your homework and talk to your consultants about options, because if you know what you’re doing they can bring you substantial risk protection.[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]5) Basis Management
Basis is all locally based. The more you’re in tune with your local area, the better. Chat with your local co-op as much as possible because they’ll communicate what’s going on with the basis markets.
Pick a target, and execute the month you can deliver at a good basis. Basis contracts are nice because once you have one, you normally don’t get charged storage.

6) Use Multiple Strategies

You don’t want all your eggs in one basket.
Selling options is great, but I wouldn’t do it on everything. Break your production down in tenths or quarters and pick a strategy for each of them. Use a futures contract for some, a cash contract for others, and so on.
Again, your consultants come in handy here.

7) Avoid Emotion—Keep Calm and Hedge On
The worst thing is when farmers double their losses by panicking.
It happens like this: a farmer has grain in the bin, and he’s sold futures for $3. The grain goes up to $3.50; he sees that he’s lost a ton of money on paper, panics, and sells his futures contracts but doesn’t deliver his grain.
If he would have sold his grain, the whole deal would have ended up a wash. But if he doesn’t sell and the futures comes back down to $3, and then he sells, he ends up with $2.50 for his grain. This is compounding a loss.
Many farmers have trouble with this because they deal on emotion. If you’re going to sell contracts, match those with cash sales to balance it out—always. Make it a calculated head decision instead of a wavering, emotional one.

Conclusion
If you’re interested in this information and having a live Q&A with me, I’d be happy to go over grain-hedging strategies in way more detail. If you could leave a comment or email me, I’ll get back to you and set something up!

Cash Cow Farmer was created to keep you from leaving a single dollar of profit on the table. Give it a look to learn more about how Cash Cow optimizes your operation!
To learn more about the Cash Cow Farmer program, including software and consulting, give us a ring![/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”FREE GRAIN MARKETING STRATEGY SESSION!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]DON’T LET THE MARKETS WIN…SCHEDULE YOUR FREE SESSION TODAY![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

SCHEDULE YOUR FREE SESSION TODAY!

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listen here
[smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/EP_005-_Uncovering_Hidden_Profit.mp3″ social=”true” social_twitter=”true” social_facebook=”true” social_gplus=”true” ]

It feels like video games back in the day were always hiding something.
In all those classic 2-D games (e.g., Super Mario and Donkey Kong) there were secret parts of the “level” that led to treasure, goods, or new places—if you knew where to look. The good stuff was all right there, under your nose, but you wouldn’t find it unless you were looking.
I think there’s a good lesson farmers can learn here. There are nuggets of profit hidden all over your operation, right now, that you can find if you know what to look for. Honestly, a few tweaks here and there can be the difference of tens of thousands of dollars for you annually.
Let me help you start looking by showing you six areas where your profit is hiding.

1) Interest rates savings
This one involves a little paperwork, but the money earned is worth it.
Farmers have operating lines of credit from which they borrow money during the planting stages. These lines of credit are usually taken with 4-5% interest rates. That means if a farmer borrows $1 million, he’ll pay $50,000 in interest costs.
Usually, the farmer won’t have all the grain sold at harvest; probably, he’ll sell half a million worth or less. The extra grain will sit in the bin and start incurring costs for next year.
In this case, the farmer can go to the FSA and take out a commodity loan. The interest rates for commodity loans are at about 1.375%. The farmer can use this loan to pay off his operating line and save 3% or more every month, cutting that $50,000 down to $20,000 annually.
This is one of the beautiful subsidies farmers get that they don’t always take advantage of.[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]2) Field-by-field economics

This is where Cash Cow Farmer comes into play. It takes all operating expenses and divides them into categories by field, so the farmer can see the profitability of each field.
Cash Cow reveals those fields that are consistently “losing.” The good news is that you can make almost any field profitable. But first, you have to know each field’s profit and loss.

3) Planning efficiencies
Your harvest plan is based on the various maturity dates of the seeds you plant. If you plant and think about harvest at the same time, you can open your harvest window. That way, you won’t have soybeans that are too dry because you had planted all the same variety without regard for timing.
One thing I do: I plant shorter-day varieties right away and get into longer-day varieties as I get further on in the planting season. The shorter-days will be ready a week or two before the others, so my moisture stays where I want it. If I were to take soybeans out at 8% moisture instead of 12%, I’d be losing a couple of bushels just in the water weight.
Work with your seed advisor, because bad timing can be the difference in another $10,000. Make sure you’re planning while you’re planting.

4) Water under the bridge
I know it’s hard, but try to let logistical decisions win out over emotional grudges.
Every farmer knows a neighbor who has a grudge against a local co-op. They were cheated, or felt they were, and the co-op never made it right. Maybe you are that neighbor.
I know plenty of farmers who will pass one or two buyers and drive up to 70 miles away in a semi-truck to sell grain. That’s tremendously expensive. Their pride keeps them from burying the hatchet, at their own expense.
I don’t know about you, but there aren’t a lot of buyers in my area. By refusing to use even one, I may double my transportation costs. So yes, I may have had a spat where I thought something unfair happened, but we talk it out and then—water under the bridge.

[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]5) Neighborly love
Every farmer has a different setup. Some have a lot of machinery; some have a lot of storage.
You can work with your neighbors, possibly renting grain storage for half or two thirds what it would cost at the elevator. As an example, I marketed a lot of my crop this year and I’ve got about 300,000 bushels worth of storage. I’m going to use about 100,000, but I’ve got plenty of extra storage left.
So I called my neighbors and said, “The elevator’s charging five cents a bushel. I’ve got storage I’m not going to use; what do you think is a reasonable charge?” We came up with three cents, giving them a 40% discount.
I also offered to let them use my air fans that can dry their grain down. At the elevator, the process would cost 5 cents on every bushel for each percentage point of drying. I offered to do it for four cents.
That’s another $5,000-10,000 you can save, depending on your volume.

6) Negotiate, negotiate, negotiate
This is extremely important. If you can save 10 dollars a ton on fertilizer and a couple of dollars on chemical costs per gallon, that’s going to add up.
There’s always more competition when it comes to buying inputs, so talk to everybody and give them all a chance at your business. Find the lowest price, go back to your favorite input suppliers, and ask if they can match or beat that price. I save at least $50,000 a year by doing this.
For more on negotiating, I highly recommend reading Stuart Diamond’s Getting More.

Conclusion

There’s hidden profit nearly everywhere: I promise you that.
Another quick example is that right now corn prices on the futures exchange are having a hard time getting back to $4. But at the moment, next year’s corn prices are at $4.13.
It’s distant, but you’ve got an opportunity to sell for over $4 next year. You can start to lock in stuff for next year, now.
That’s just one of the many ways you can greatly raise your profit by making simple, smart choices. If you don’t always take what the “level” gives you, you’ll find more—all over your operation.

Cash Cow Farmer was created to keep you from leaving a single dollar of profit on the table. Give it a look to learn more about how Cash Cow optimizes your operation!
To learn more about the Cash Cow Farmer program, including software and consulting, give us a ring![/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”FREE GRAIN MARKETING STRATEGY SESSION!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]DON’T LET THE MARKETS WIN…SCHEDULE YOUR FREE SESSION TODAY![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

SCHEDULE YOUR FREE SESSION TODAY!

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