To
survive in the new agricultural environment, producers will need to stop thinking of themselves as "independent family farmers," says Minnesota Agriculture Commissioner Gene Hugoson.
Producers need to work with each other and customers for better profitability, says Hugoson. "If
we hang onto the word 'independent,' we're going to kill the family farm. Independent isn't the key word, interdependent is."
Hugoson says producers also need to realize that "the
days of producing what I want and when I want are gone." Rather, producers must get to know their customers, and the farm products they want.
"When is the last time (you as a producer) have taken time to determine who your customer is and what they want? All too often we grow what we want or what we can without determining first if we should, or if the market
wants it."
He points out that in Denmark, people are required to be licensed before they can farm. Part of the licensing process, particularly emphasized for
livestock production, is spending time in the home of a customer; traveling to Japan, for instance, to learn more about their cultural tastes. "If you did
that, you would have a new perspective you didn't have before."
More attention as a whole needs to be placed on marketing, he says.
"Farmers need to spend as much time pushing the pencil as driving tractor. As a farmer myself, driving tractor is more fun. But to market what we
produce is an area I don't think we spend as much time on that we ought to. It's extremely essential for farming to become more market-oriented.
Now, you need a marketing plan before you have a production plan."
"We're presented sometimes with alternatives that we wish weren't so.
But we need to realize that other industries are changing too. We need to figure how we can adapt, rather than putting our heads in the sand."
Hugoson says better marketing skills will allow producers to compete
where others may not. "I'm absolutely convinced the ability to provide a specific product, in a specific time, in a specific market at hopefully a specific price will give us an edge."
Producing identity-preserved commodities will become the norm in the future. "In fact," says Hugoson, "if you don't like the idea of IP farming,
then you better get out of farming." IP farming is one way that farmers can gain a marketing edge; for instance, producing corn that is desirable for ethanol, and other applications as well.
He says one government role in marketing is to help remove barriers, and in some cases, "to get out of the way." Hugoson says Minnesota is forming a
"Farm Cabinet" involving several branches of state government, including commerce, revenue, pollution control, as well as agriculture, for expertise in
different policy areas to help address agricultural issues. "One of the first things we want to do is look at areas of competitiveness, and where
agriculture fits in. Determine where we have advantages, where we have disadvantages, and then work to maximize the advantages and correct the disadvantages."
