The agricultural market functions in much the same way as other commodity markets do. The main difference between them is that agricultural markets tend to be more unstable, owing to the constantly changing prices of agricultural products.

Agriculture contributes almost $1.053 trillion to the U.S Gross Domestic Product. With about 2.05 million farms making up the industry, the GDP of the agricultural sector alone would place it among the top largest economies in the world.


Farmers go into the agricultural market hoping to maximize their net revenue and solidify an income stream. However, success in the agricultural market isn’t an easy feat.

If you haven’t experienced the kind of success you’d hoped for in the agricultural market, these are some possible reasons why:

Marketing is an afterthought

Many farmers and ranchers make the mistake of putting marketing efforts on the back-burner. Marketing is a viable strategy to build a brand, determine the value of the products, and connects you to potential buyers—something you’ll need to do to set yourself apart from your competitors.

You can make the most of agricultural marketing by getting a head-start on it. A specific marketing plan put in place before you even start the farming process will ensure you start building an audience by the time your produce is ready to sell.

It’s imperative to take a unique marketing perspective depending on your needs and the audience you’re catering to. Too much farming-related marketing focuses on the negative aspects of the competitors instead of focusing on positively presenting what you have to offer. When you’re developing a strategy, it’s vital to keep these factors in mind so you can steer clear of failure.


You’re not preparing for risks

The volatile agricultural market poses risks for your farm in ways you may not have anticipated. The impact of external factors, prices in constant flux, and uncertain yields make agriculture a risky venture. Your income depends on the product’s ability to yield returns in a volatile market.

Preparing for risks is an essential part of agricultural production. Managing risk involves protecting yourself against falling prices by engaging in risk management techniques like hedging. This strategy allows you to use commodity futures markets to hedge the costs that come with volatile commodity prices.

Successfully operating a farm or ranch relies on a constant flow of positive working capital. Revenue earned through profits needs to be re-invested back into the farm to continue performing at the optimal level. Thus, the success of your agricultural practices relies on negating financial risks through the right strategies.

We can help

Farmers and ranchers rely on market analysis and industry trends to achieve success as agricultural producers. When you need an experienced risk management professional’s support to navigate the volatile agricultural markets, we can provide the help you need.

Chris Robinson of Robinson Ag Marketing has over three decades of experience in trading and agricultural marketing, making him the analyst you need by your side. As the top provider of agricultural marketing, trade marketing, and cattle marketing, his insight and assistance have helped farmers and ranchers develop long-term plans tailored to their needs.

For vital industry knowledge and commentary on market trends, subscribe to the Robinson Review today. Sign up for a free 30-day trial to gain access to exclusive daily comments, regular weather updates, futures prices, live audio services, and much more.

Contact us to learn more about risk management and commodities marketing.


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