In today’s agricultural markets, low prices do favor buyers and reduce a seller’s power. However, grain testing gives farmers more power in the market. For example, tools like FarmLead’s GrainTests.com platform give farmers the ability to understand their quality by connecting them to over 50 independent grain testing labs to test their grain.
When buyers are stretched for product, they cite the importance of having all of the data in front of them to make a quick and sensible purchasing decision. “As a buyer, one of the most valuable things that we need to see is those tests,” said Courtney Boryski, a grain trader with Hansen-Mueller, in an interview with FarmLead. “With durum, spring wheat, and hard wheat, we need to see these quality specs.” Boryski admitted that she will pay more money for grain and related specifications that she needs.
However, she also stressed the importance of having all of this data available. “It’s valuable to see if they have grading tests for what they are selling,” she added. “I may pay a higher price because I can get what I want.”
The second way to get a better price in this environment is to consider alternative markets. One of the increasingly popular ways to meet new buyers is to engage them on digital marketplaces that enable farmers to showcase their grain and quality. Farmers who market their grain to more buyers have more opportunities to sell their product to new markets. In some cases, farmers who sell grain through online marketplaces are able to negotiate better crop prices than their local-market average. With access to more buyers, competition for high-quality products increase. In addition, buyers are able to quickly file through a number of offers and new sources that they may not have known existed in specific markets.
Adding a few best practices to farm management and grain marketing efforts will help farmers get a better price and improve their reputation for quality in an increasingly competitive industry. After all, the farmer is catering to the consumer. Getting the most of every dollar that a consumer spends on food is rooted in knowing the quality of grain as soon as it comes off the field.