Choosing a grain buyer is a critical decision for any farmer. While proximity and competitive bids often top the list of considerations, there are other factors that significantly influence this choice, especially among younger farmers under the age of 40. In an environment where bids and hauling distances are comparable among grain buyers, the decision often comes down to how quickly payments are made and what marketing programs are available.
Speed of Payment – A Crucial Factor
For many younger farmers, the speed with which a grain buyer makes payments can be a deciding factor. According to Bushel’s 2024 State of the Farm Report, when elevator location and cash bid prices are equal, younger farmers prioritize grain buyers who offer the fastest payments. This trend points towards a growing preference for efficiency and quick financial turnover, which helps farmers maintain cash flow and reinvest in their operations quickly. With agriculture’s tight margins, the ability to receive payments swiftly can significantly ease the financial pressure on farmers.
Marketing Programs – Adding Value Beyond the Grain
Another key factor for farmers under 40 is marketing program offerings. These programs can provide crucial support, helping farmers to navigate market fluctuations and optimize their selling strategies. Effective marketing programs not only assist farmers in maximizing their returns, but also offer educational resources and tools that enhance their marketing acumen, enabling smarter, data-driven decisions. The State of the Farm Report showed that grain buyers are the most trusted source for marketing information.
“I tell my farmers – you need to start using the app (to make trade offers). It’s not like old-school marketing. We don’t move 10 cents in a week. We’re moving 30 cents in a day sometimes. You’re missing huge opportunities. You need to use the app – it adds an extra layer of marketing capabilities for you.” – Jeff Smale, Smale Farms
Communication Preferences – The Shift to Digital
Communication style and channels also play a significant role in influencing a farmer’s choice of grain buyer. The same report highlights a clear preference among farmers for receiving communication through text messages, noting that traditional methods like telephone calls and websites are less favored, with an 11 percentage point gap between actual and preferred use.
This shift towards more direct and efficient communication methods like texting aligns with the broader digital transformation in agriculture. Farmers appreciate the immediacy and convenience of text messages, which can provide timely updates and critical information without disrupting their daily operations.
It’s Not Just About The Price Per Bushel
The choice of a grain buyer is not solely about the price per bushel; it’s about the overall service and support that comes with it. For young farmers today, quick payment processes and comprehensive marketing programs are not just perks but essentials that influence their choice of grain buyers. As the agriculture industry continues to evolve, grain buyers need to adapt to these changing preferences, focusing on enhancing their payment speeds and communication methods to attract and retain the modern farmer.
Understanding these factors is crucial for grain buyers aiming to stay competitive and appealing to a new generation of farmers who value efficiency, support, and digital fluency in their business interactions.
