It puts profitability in focus for crop farming and crop marketing businesses.
- Almost all businesses have a profit goal in mind when selling their products. This is because the primary purpose of a business is to maximize profits.
- The problem crop farmers are facing is that when it comes to the pricing of their crops, they are price takers, which means they must accept the price the market offers them. This led to the mistaken belief among crop farmers that they have limited control over their crop marketing success.
- If a farmer’s crop is at least as profitable as that of the average crop farmer, there will be a time during a season when it will be profitable, but nobody can really predict when it will be.
- A crop marketing plan can start well before seeding and continue after harvest until the total crop is sold each time the plan’s profit goals are reached. The longer a crop is in the market the more profitable opportunities there will be.
- CropsProfit shows good performance because reaching a season’s profit goal is the most important metric for crop marketing success. If managed correctly this focus will increase a farm’s profitability and the stability of its income stream over the long term.