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Strategic Planning for Business ProducersMarketing Plan
Worksheet
Introduction: The marketing plan worksheet is a set of goals and
objectives
that sellers develop for the marketing of their grains.Emphasis
is placed on passive marketing, that is, establishing aset of
objectives and selling rules before the commodity is planted.The
marketing plan's decision rules are followed regardless of existing
conditions,and accounts are not actively managed.
Directions: Complete each of the worksheets to develop the
marketing
plan decision rules. Once decision rules are established,
periodicreview of the plan and market conditions should be
performed as warranted.Be sure to fill in allsyellow shaded
cells.
Acknowledgements: The marketing plan template is base on on-line
materials found
at Michigan State University's Cooperative Extension Service
website. The spreadsheetwas completed for the Executive Institute
for Commercial Producers, funded byFarm Credit Services of
Mid-America.
Contact: James Pritchett, Phd.
[email protected](970) 491-5496
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The Relaionship Between The Business Plan and Marketing Plan
In the space provided, describe how the market plan implements
the strategic marketing position. How are the
farm's the long term objectives and the short term objectives
going to be met in the marketing plan? What will
you consider when setting the price and "sold by"
objectives?
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Production History
Directions: Use this worksheet to summarize the recent
production history of
the farming operation. Production history information will help
set the quantityobjectives and how much grain will be allocated to
each marketing instrument.
Corn
Yearcres
Harvested
verage e
(bu)
o a ro uc on
(bu)
an e
Acres
xpec e
Yield
x
Pro
1 500 125 62,500 1000 125
2 750 111 83,2503 800 160 128,000 90% of Expected Production
112.5
4 1500 142 213,000 80% of Expected Production 1005 1500 200
300,000 70% of Expected Production 87.56 1250 165 206,250 60% of
Expected Production 757 1100 135 148,500 50% of Expected Production
62.5
8 850 150 127,5009 750 150 112,500 Use the expected production
totals when setting
10 Average 1000 148.7 153,500 . quantity targets. How much will
you expect to produ
How much are you willing to contract?
Soybeans
YearAcres
Harvested
Average Yield
(bu)
Total Production
(bu)
Planted
Acres
Expected
Yield
Ex
Produ
1 500 45 22,500 1000 44
2 750 43 32,2503 800 37 29,600 90% of Expected Production 39.64
1500 50 75,000 80% of Expected Production 35.25 1500 55 82,500 70%
of Expected Production 30.8
6 1250 48 60,000 60% of Expected Production 26.47 1100 50 55,000
50% of Expected Production 22
8 850 37 31,450
9 750 42 31,500 Use the expected production totals when
setting
10 Average 1000 45.2 46,644 . quantity targets. How much will
you expect to produ
How much are you willing to contract?
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Expected Cash Prices
Directions: Place your own price forecasts on this page. Choose
prices for the
high, medium and low categories using forecasts from USDA,
extension specialists
or marketing services. Use a suitable time frame, that is if you
plan to sellexclusively at harvest, use a harvest forecast, or if
you will sell throughout the crop yearuse a marketing year average
price forecast. If desired, list the target price for the cropFarm
Bill.
Corn ($/bu)High 3.00$ When are the historic futures price highs
and lows?Medium 2.80$ When are futures prices most variable?Low
2.40$ Is there a seasonal pattern to futures prcies?
Farm Bill 2.60$
Soybeans ($/bu)High 7.00$ When is basis the strongest (most
narrow)?Medium 6.60$ When is the basis the msot variable?Low 6.20$
Is ther a seasonal pattern to basis?
Farm Bill 5.60$
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2
3
4
5
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8
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10
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14
15
16
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18
1920
21
222324
25
26
2728
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B C D E F G H I J
Costs
Directions: Price and revenue targets need to be made in the
context of
the revenue needed to meet costs. This worksheet helps to
ascertain price per bushel
needed to meet costs given the expected yields. Input the cost
per acre in the yellow cells below.
Are the needed prices realistic given your forecasts in the pink
cells?
Measures
Revenuerequired/acre
Farm:
Variable Costs 122.00$
Variable + Machinery + Rent 296.00$Variable + Machinery + Rent
+Family 333.00$
Corn: Measures
Revenuerequired/acre
ee e
Price/bu.@
expected
yield
Variable Costs 147.00$ $1.18 1000 acres
Variable + Machinery + Rent 321.00$ $2.57 125 yield/acVariable +
Machinery + Rent +Family 358.00$ $2.86
High Medium Low Farm BillCorn Price Estimates ($/bu) 3.00$ 2.80$
2.40$ 2.60$
Soybeans:Variable Costs 97.00$ $2.20 1000 acresVariable +
Machinery + Rent 271.00$ $6.16 44 yield/acVariable + Machinery +
Rent +Family 308.00$ $7.00
High Medium Low Farm BillSoy Price Estimates ($/bu) 7.00$ 6.60$
6.20$ 5.60$
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Price, Date and Quantity Targets
Directions: Given the price and yield information you have
entered, formulate price and Expected Pricequantity targets that
will meet your marketing plan objectives. Be sure to input the
Highquantity sold, method for selling (e.g., forward contracts),
trigger price, and target date. Medium
Low
Expected Prod
Corn: Trigger
Target Date Method of sale/contracting % Priced Bushels
In Period Cumulative In Period Cumula
Prior to March15 (e.g. forward contract) 0%Late Spring 0%Harvest
0%Post-Harvest(Feb.) 0%
Soybeans Trigger
Target Date Method of sale/contracting % Priced Bushels
In Period Cumulative In Period Cumula
Prior to March15 (e.g. forward contract) 0%Late Spring/ early
summer 0%Harvest 0%Post-Harvest(Feb.) 0%
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Review and Evaluation
Directions: As the marketing year progresses, record sales of
the crop on
this worksheet and compare to the planned triggers, while noting
any points ofinterest (unexpected conditions, circumstances
changing expected productionlevels). Reviewing the record will
prove useful in revising the marketing plan forthe next season.
Corn: Target
Date
Method(s) of
contracting / sale Bushels Target Price
In Period Cumulative In Period CumulativePrior to March15 (e.g.
forward contract) 0 0 $0.00 $0.00Late Spring 0 0 $0.00 $0.00Harvest
0 0 $0.00 $0.00Post-Harvest(Feb.) 0 0 $0.00 $0.00
Corn: Actual
DateMethod(s) of
contracting / sale Bushels Target Price
In Period Cumulative In Period Cumulative0 $0.000 $0.000 $0.000
$0.00
Actual Production:Amount Purchased to Fulfill ContractsTotal
Cost of Purchased Grain
Soybeans Target
Date
Method(s) of
contracting / sale Bushels Target Price
In Period Cumulative In Period CumulativePrior to March15 (e.g.
forward contract) 0 0 $0.00 $0.00Late Spring/ earlysummer 0 0 $0.00
$0.00Harvest 0 0 $0.00 $0.00Post-Harvest(Feb.) 0 0 $0.00 $0.00
Soybeans Actual
Date
Method(s) of
contracting / sale Bushels Target Price
In Period Cumulative In Period Cumulative0 $0.000 $0.000 $0.000
$0.00
Actual Production:Amount Purchased to Fulfill ContractsTotal
Cost of Purchased Grain
