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Interest in Marketing Groups Zooming By Betty Thom It’s likely that producer interest in marketing groups in the region has About 10% of farmers in Barnes County are now benefiting from marketing groups, thanks to funding that was approved in the 1999 ND Legislative Session, says Shawn Vachal, Barnes County extension agent. Vachal says producers are learning how to use marketing tools to improve their profitability. The sharing of information and experiences, plus having a built-in peer support group, is giving them more confidence to implement marketing plans. They’re learning how to figure out their break-even point and target price, Vachal says. Some members are using this information to lock in a better basis on wheat and soybeans. There’s discussion on other facets of farm profitability as well. Group members will discuss farm programs, and look at ways to reduce input costs. As a group they can get better deals when purchasing fuel, chemical and fertilizer, Vachal says. For instance, members of a Hillsboro marketing group contracted fuel in the spring of 1999 at 48 cents per gallon. The North Dakota State University Extension Service and the North Dakota Farm Business Management (FBM) program joined forces to help start 22 clubs across the state within the last year. Trained facilitators provide education and a network of guest speakers for weekly to monthly meetings. “We are still encouraging producers to create their own clubs without the limited state funds. We have developed a web site at NDSU to link all clubs together,” says George Flaskerud, NDSU extension crops economist. Marketing groups are also flourishing in Minnesota. “About three years ago the Minnesota Department of Agriculture and the Minnesota Wheat Research and Promotion Council got together to come up with ideas on how we could help farmers with their marketing,” says Dave Torgerson, executive director of the MWRPC. “We decided to pool our resources to provide ongoing education to our growers.” By working with Northland Community and Technical College, three instructors were hired to coordinate marketing clubs in west central and western Minnesota. The marketing group members actually receive college credits towards a certificate in ag commodity marketing. Most of the groups in Minnesota meet every other week, typically early in the morning, to discuss current marketing news, government programs and sales strategies, Torgerson says. The demand for the program has been strong, with most of the groups running at capacity. Two more clubs are starting this winter in East Grand Forks and Grygla, MN. “Good marketing clubs can be very effective in improving the bottom line of a producer’s financial statement,” Vachal says, adding that interacting with other groups can spur ideas. “We are learning from other clubs what works.” What helps sustain a marketing group? • Limiting membership to 30 (10-20 members is optimal). • Meeting as much as possible in the beginning months. • Having an agenda and following it. • Requiring membership fees ($120-$150/year helps cover speakers and coffee). • Requiring attendance. • Limiting meeting time to an hour.
How to join or start a marketing group In North Dakota, contact your county extension agent or FBM instructor for information on the nearest group, or starting your own group. Tips on how to start a club, as well as marketing tutorials, can be found online at www.ag. ndsu.nodak.edu/aginfo/cropmkt/clubs/clubs.htm. Tools like creating a budget and seed variety trial results can |
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From left to right, Jared and Wendell Sands, Alvarado, MN; and
Joel Osowski, Oslo, MN, discuss grain marketing strategies, at a marketing group meeting held recently in East Grand Forks, MN.