.

July 1999 -- 1999 Number 7

INDEX - July 99 Going West Anatomy Of A Decision Quote Corner Commodity Quiz The Three That Work It's Not Too Early For 2000 Targets The Coffee Shop

"You put together the best team that you can with the players you've got, and
replace those who aren't good enough."  -- Robert Crandall

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There was a time when much of our nation was unsettled. Most of the population was concentrated along the eastern shores, and many were content to remain there. There were some brave and independent souls, however, who wanted to make a home for themselves in the untamed country further west. Groups of these pioneers began loading their families and belongings in covered wagons and starting out on the long journey toward turning their dream into reality. On some days, it was probably relatively easy going -- the weather was fair, wagon wheels didn't break, the terrain was smooth, and no hostile indians attacked the wagon train. Often, though, things did not go so smoothly. Some never reached their goal, turning back in discouragement. Those who did finally reach their destination did so through sheer determination -- they had their goal in mind and nothing could shake them from it. With every step, every turn of a wagon wheel, every new morning, they were getting closer, and they knew that if they could keep it up for long enough, they would get there. We've all grown up admiring the pioneers, and with good reason. They set an example of courage and determination that we would all do well to follow. Every one of us has goals to reach, and while we may not have to deal with the same problems they did, we have more than sufficient problems and distractions to keep us from reaching our goals if we let them. For farmers, low prices, crop scares, a clamor of "expert" voices offering price prediction services, and myriad other problems threaten to take your concentration off of reaching your goals. Remember this -- if every marketing step you take is in the right direction, no matter what the current circumstances, you are following the surest path to reaching your goals.     Anatomy of a Decision Like a chocolate chip cookie, any decision is only as good as the ingredients that go into making it. Which of these qualities best describe your marketing decisions? Looking back at any bad decision we have ever made, most of us will find that it had some or all of the following "ingredients"-- * It was made in a hurry Most bad decisions are made on the spur of the moment. * It was based entirely on emotions How we feel about a situation or a decision should be a factor in any important decision, but it shouldn't be the only factor. * It was made with little or no thought given to all possible consequences Any big decision will affect many areas of our lives, and it's easy to be taken by surprise if we haven't thought the decision through carefully. If those are the ingredients of a bad decision, it stands to reason that the ingredients of a good decision are just the opposite -- * It was made slowly and carefully Good decisions involve an appropriate amount of time for careful thought and preparation. * It was based on a combination of emotional and rational logic Good decisions are rational, but they also allow for how we feel about them. After, how we feel determines a great deal how we behave and whether we look at any situation as positive or negative. The right decision may not make us feel good at first, but should always have an emotionally positive outcome. * It was made with careful thought given to all possible consequences Any big decision will affect many areas of our lives. We should give careful consideration to all possible consequences before committing to a decision. It's still possible to be surprised, of course, but taking the time to look at as many different outcomes as we can will put us ahead of the game.   Quote Corner A little encouragement for tough times. . . "Always bear in mind that your own resolution to succeed is more important than any other one thing." Abraham Lincoln   "Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no help at all." Dale Carnegie   "Note how good you feel after you have encouraged someone else. No other argument is necessary to suggest that never miss the opportunity to give encouragement." George Burton Adams   "If we had no winter, the spring would not be so pleasant; if we did not sometimes taste of adversity, prosperity would not be so welcome." Anne Dudley Bradstreet   "All the adversity I’ve had in my life, all my troubles and obstacles, have strengthened me. . . . You may not realize it when it happens, but a kick in the teeth may be the best thing in the world for you. " Walt Disney     Commodity Quiz What commodity is guaranteed to increase in value if you store it? What commodity becomes more and more valuable the longer it is kept in storage? What is the only commodity that you can store without paying fees? What is the only commodity that the storage facility will actually pay you to let them store? What commodity can you store and not be concerned about if our price goes down? What is the only commodity that we recommend you store? Answers 1. Money 2. Money 3. Money 4. Money 5. Money 6. Money The Three That Work By now, you know that our three favorite marketing alternatives are the Target Contract, Forward Contract, & Minimum Price Contract. We like them because they are easy to understand, and one of these alternatives, or a combination of them, will make the best of just about any situation you might find yourself in -- see for yourself. They're flexible, they're simple, and they work! Scenario Solution Before harvest -- low prices. Target Contract Before harvest -- profitable prices. Forward Contract Want to sell before harvest, worried about crop shortage. Forward Contract & Minimum Price Contract Want to sell before harvest, worried about price going higher after you sell. Forward Contract & Minimum Price Contract Low prices at harvest, worried they might go lower. Minimum Price Contract Low prices at harvest, worried they might go higher if you sell. Minimum Price Contract It's Not Too Early For 2000 Targets The best prices for 1999 crops so far came early. We don't know what the coming months will bring (no one knows for sure), but if you get Target Contracts entered now at profitable prices for next year's crops, you won't miss your opportunity to get good prices locked in. If you are uncomfortable booking all of your production this far in advance, at least enter Target Contracts on some portion of your anticipated yield, and increase the amount you are offering as time goes on. Remember, Target Contracts never sleep; they are always watching the market for you, and can help you take advantage of sharp price movements that you may miss if you don't have time to follow the market every day. We can help you determine a target price that will allow you recover your costs of production and capture a reasonable profit margin. Be proactive with your 2000 crop -- don't leave your marketing results to chance. . Opinion is a strong force in the ag community, no doubt about it. Your neighbor has an opinion, the "experts" have an opinion, you have an opinion, everyone has an opinion. With prices as unpredictable as they are, there are a lot of different opinions floating around out there. Opinions are easy to find and often hard to ignore. We try to stay away from having an opinion on price movement -- in the long run, it wouldn't help either one of us, even if we were right every once in a while. We'd rather focus on helping you farm profitably by following a specific, disciplined, and simple marketing plan.  "There are as many opinions as there are experts." -- Franklin Delano Roosevelt "Too often we... enjoy the comfort of opinion without the discomfort of thought." -- John F. Kennedy "The fewer clear facts you have in support of an opinion, the stronger your emotional attachment to that opinion." -- Source Unknown "A man is getting along on the road to wisdom when he begins to realize that his opinion is just an opinion." -- Source Unknown Click here to return to the Farmers' Corner index