07 Jul 2021

Will a crop marketing team help improve my profitability?

We’ve all heard the saying ‘2+2 = 5’, which essentially defines the word synergy.

But how does this apply to crop farming and the management of a crop marketing team more specifically? Let’s find out…

The Facts:

Groups of 3 – 5 perform better than individuals

This stems from the fact that groups of 3, 4, and 5 perform better than the best of an equivalent number of individuals. A powerful statement when you think about it. [1]

Easier access to specialised marketing skills

Larger farming operations already have more human capital resources with specialised skills, this enables them to adopt more complex forward pricing methods. A team approach will not only complement the larger farms but also empower the smaller farms to have easier access to specialised marketing skills. [2]

4 – 5 team members are enough

According to research optimal satisfaction with team size is found between four and five members. This indicates that smaller team sizes are more preferable, small teams with 4 – 5 team members are enough. [3]

New ideas not considered

Daily collaboration with specialists will mean better decision making and increased profitability. Having trusted partners to gut-check plans can be invaluable, because there may be ideas and technicalities not considered. [4]

Improved communication

The ability of a producer to create and interact with a team of trusted business partners for his farm is important. Analysis of historical margins allows collaborating producers and lenders to set up marketing strategies to reach the desired profit goal more effectively. [5]

Collaborate and gain a competitive advantage

Forget the days of tiring paperwork and stressing over whether you’ve done your crop marketing calculations accurately: With CropsProfit in your pocket, you now have a digital hub that’s been custom-designed for farmers and partners to improve marketing effectiveness and profitability.


CropsProfit captures relevant data about a season or transaction, interacts with live market price fluctuations and advises on recommended next steps. It also allows you to easily run simulations for the purpose of improving decision making by learning from past mistakes and gaining confidence for the future. Team members can create their own test seasons and use their simulations to verify the success of specific approaches, functioning as a home base for collaboration.


Now your trusted advisors can be invited to join your CropsProfit team and quickly get a clear picture of your current situation to offer more beneficial advice. From Financiers and traders to portfolio managers and precision farming consultants – all can be welcomed to your team for the benefits of synergy to be realised. Considering that there is only one paid team member at a given time on a CropsProfit team – the platform also allows you to share the cost through a feature allowing one to pass on the subscription freely to other team members.


So yes, being part of a well-constructed team will most definitely improve your profitability.


Perhaps invite your close family members on the app and give them an outlet to add real value. The possibilities for collaboration are amazing on CropsProfit!

Remember, 2+2 = 5, and if you’d like to learn more about CropsProfit, download the eBook by clicking on the button below, then download the app and you’ll get your first 30 days of full access for free!

 

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Reference list

  1. Laughlin, P. R., Hatch, E. C., Silver, S., & Boh, L. (2006). Groups Perform Better Than the Best Individuals on Letters-to-Numbers Problems: Effects of Group Size, Journal of Personality and Social Psychology, 2006, Vol. 90, No. 4, pp. 644-651. doi: 10.1037/0022-3514.90.4.644
  2. Jordaan, H., & Grove, B. (2007). Factors Affecting Maize Producers Adoption of Forward Pricing in Risk Management: The Case of Vaalharts. Agrekon: Agricultural Economics Research, Policy and Practice in Southern Africa, Vol. 46, No. 4, 548-565.
  3. Hackman, J. R., & Vidmar, N. (1970). Effects of Size and Task Type on Group Performance and Member Reactions, American Sociological Association, Vol. 33, No. 1 (Mar., 1970), pp. 37-54. Retrieved from
  4. Schafer, S. (2016). Cash In With a Well Written Commodity Marketing Plan, Agweb Farm Journal, 02:52PM Nov30, 2016, Retrieved from Agweb.com/article/cash-in-with-a-well-written-commodity-marketing-plan-NAA-sara-schafer.
  5. Roberts, D., & Mc Fadden, S. (2010). Lean Hogs Hedge Model and Crush Margin Calculator, AgStar Scholar Research Project, Department of Applied Economics, University of Minnesota. Retrieved from https://www.apec.umn.edu/sites/apec.umn.edu/files/lean-hogs-hedge-model-and-crush-margin-calculator.pdf