Farmers are facing dramatic financial challenges with farm revenue falling over 30% in 2015 and further declines forecasted. A study of 160 Midwest farmers found they are shifting strategies to cope, with 50% seeking off-farm income, 74% switching to generic or lower-cost crop protection brands, and 37% postponing equipment purchases (summary ends).

1. May 2016 I Agri Marketing 51
A
fter a decade-long boom in the
agricultural economy, the
fortunes of farmers have
dramatically changed. Farm revenue
fell by more than one third in 2015,
with further erosion forecasted.
As a result, farmers are being
forced to change their strategies. J.L.
Farmakis, Inc. commissioned the
“Farmer Speaks” study to quantify
these changes. Millennium
Research conducted the study in
February 2016.
The “Farmer Speaks” study
included 160 farmers, primarily from
the Midwest. Questions focused on
farmers’ buying intentions for the
2016 planting season and their
efforts to market their crops. The
results showed dramatic shifts in
farmers’ purchases of crop
inputs and an increased focus on
marketing.
Here are a few of the most
striking findings from the “Farmer
Speaks” study:
• Concerned about their financial
futures, 50% of the farmers sur-
veyed are looking for off-farm
sources of income.
• Switching to save, 74% of
growers are replacing their current
crop protection branded product
with generics or a brand offering a
better value.
• For 37% of farmers, equipment
purchases are on hold. The only
bright spot being for precision
farming tools to save input costs
and increase efficiencies.
• Reducing seed trait technology is a
strategy for input cost reduction
among 29% of growers surveyed.
• Among young farmers 70% have
successfully sought reductions in
rent. Only 25% of older farmers
had success in rent reductions.
What should agricultural
marketers do during this time of
change? The old adage “the best
defense is a good offense” comes to
mind in light of this research.
CUSTOMER FOCUSED
Now more than ever,
you must prove the value
of your offer to the
farmer and retailer.
Understanding how the
customer sees your
product or service is vital.
Keep in mind not all your
customers are alike.
Research, both formal and
informal, can help you
identify the key drivers
for each group of
customers.
Look for
opportunities to improve
your offer. Think beyond product
features. Consider pricing,
programs, financing, guarantees,
and other ways you can bring more
value to the customer.
Existing customers are worth
more now than ever before. Invest in
them. Step up your effort to remind
your customers why they previously
purchased your brand.
If your business offers a lower
cost alternative, ride the wave of
customers coming your way.
TELL A COMPELLING STORY
Show and tell a compelling story of
what your total offer can do for your
customer. Videos, print, radio and
social media are all great ways to
connect, encourage trial and share
positive stories.
These are tough times for farmers
and retailers. Let them know how
you can help them. Encourage them
to share experiences. Use peer
selling. Gather testimonials. Help
support knowledge transfer by
bringing people together.
Be prepared with numbers, but
remember, economics are only one
proof point. Your audience is made
up of people, not spreadsheets. You
must engage the whole person, both
the rational numbers side and the
emotional side.
WHAT STILL WORKS
We often question whether
conventional approaches work when
facing challenges like those we are
experiencing. A recent Midwest
READEX study of farmers’ media
usage showed younger growers are
more likely to use all media. Younger
growers recorded the highest use
of print magazine/newspaper
readership weekly (67% for <45
years), while also recording the
highest use of ag websites, mobile
viewing, and texting. They are
hungry for knowledge.
The stress of farming might
propel farmers’ use of social media
as an outlet to share experiences.
OPPORTUNITY FROM CHAOS
The agriculture market is cyclical and
sometimes chaotic. Our current
challenges present opportunities for
innovation on all fronts, including
marketing. We have to be
laser-focused on the customer to
recognize an opportunity, and seize it.
J.L. Farmakis, Inc. will continue
to monitor farmer strategies with
another installment of the survey
this fall. To access the survey results
go to: https://jlfarmakis.com/
farmerspeaks/ AM
AGRI-MARKETERS UPDATE
FARMERSSHIFTTOSURVIVALMODE
by Jeff Whetstine
Jeff Whetstine is President of March
Consulting, LLC, a strategic marketing
firm working with J.L. Farmakis, Inc. and
a number of other agricultural clients to
help tell their stories in a compelling way.