Last month we reviewed the fluctuating nature of the agriculture market and tips for navigating the boom/bust cycle’s highs and lows. As we wrap up Q1 2021, rising demand, global market recovery and other indicators point to an upward trend in the ag economy and projections have the year producing the highest farm incomes since 2013.
The promise of higher incomes and confidence means we can expect farmers will make significant capital investments in their operations in Q3 and Q4. One area where we’re expecting to see the biggest shift is equipment. For the last six years or so, farmers relied on depreciating assets to balance their lagging profits. The new year has brought a new outlook, and ag marketers should be prepared for the current growth wave to continue to swell.
A Rosy Outlook for Ag
David Oppedahl, economist for the Federal Reserve Bank of Chicago, recently said the outlook for agriculture was “the rosiest in years” based on a survey of bankers. Commodity prices continue to inch up, demand remains high, land values are up, and farm incomes are expected to continue to climb. One of the first things farmer are going to do is look to invest in new equipment and new technology.
No one knows how long this period of growth will last, but we do know that those who are prepared will benefit. If you are a marketer for any brand in the ag equipment or ag technology sector, seize the moment now and engage with these farmers to ensure you are at the front of the line for consideration in their upcoming capital investment.
Marketing to an Upswing
Getting in front of a thriving audience doesn’t just mean running more print ads, radio spots and tv commercials. Think about where your products can have the biggest impact on your customers’ bottom line – through improved profits or enhanced efficiencies. Tell your story through the lens of their needs and wants with content that is engaging, relevant, authentic, and perhaps most importantly, targeted properly.
Those other paid mediums have a place too, but don’t make the mistake of just pouring money into more impressions. Periods of growth like this are critically important for brands as they represent an opportunity to dramatically impact market share in ways that will continue to either benefit or punish the bottom line for years to come.
Fortifying Your Strategic Framework
Lay the groundwork for an effective marketing investment by ensuring you have a clearly documented set of objectives and strategies specifically designed for this period of growth. Secure the budgets you need to be successful, and work with your partners to engage with customers in a meaningful way so you’re their first call when they are ready to invest in their operations again.
John Deere just revised their 2021 forecast up 25% since the prior November, with expected earnings of $4.6 to $5.0 billion. All signs indicate the near future will bring a wave of aggressive growth. Marketers: be ready. If you’d like help getting prepared, don’t hesitate to reach out. It’s not too late – yet.
If you need a sounding board to discuss your ag marketing strategy, contact Gino Tomaro, R+K Business Development Director, at gtomaro@rkconnect.com to start a discussion.