The next 12 months in farming.....

The next 12 months in farming are going to be tough and I'm not going to shy away from that.

Yield and grain intakes are down roughly 25%, interest rates are up and further cuts to the BPS are coming which all means less money for farmers to invest.

For those selling into the industry it can be incredibly tempting to batten down the hatches and rein in your marketing spend when sales are down.

I’m going to tell you today why that’s the worst thing you can do.

The real cost of cutting marketing spend

In a downturn, it’s incredibly difficult to look beyond the here and now. Sales numbers are down so it seems only logical that marketing expenditure should follow suit, right?

Well, no. 

Looking beyond the current economic blip enables you to see the bigger picture and the long term ROI from your marketing.

Economic or industry downturns level the marketing landscape allowing competitors space to attract new business at the expense of those who have reigned in the purse strings. 

A failure to invest risks you losing market share when things get better.

Making a bad situation worse

Marketing at its core is designed to get you noticed and ultimately sell something. So reining in marketing spend when sales are down will only make a bad situation worse. 

Marketing and sales are intrinsically linked - you can’t have one without the other. Your marketing and advertising spending may appear to be the quickest way to cut costs, but it can also be the fastest way to collapse.

Try to think critically, not reactively when sales are down to stop the situation going from bad to worse.

Time for change

When times get tough, everything comes under the spotlight. Businesses analyse every cost and trim the fat to maximise profitability. Your marketing should be no exception.

Every challenge presents an opportunity. Whilst economic downturns can bring with them many trials, they also act as a catalyst for innovation and change. It can be an ideal time to try something different, change tact or pivot your marketing to meet changing consumer demands. 

The bottom line

If there is one thing I've learnt about farmers and farming in this country is that we are incredibly resilient. Whatever the weather or economic climate holds, we will find a way through.

As in every industry, change is inevitable. And whilst change brings with it uncertainty, it also holds opportunity. Rather than look at the next 12 months as a time to play it safe, look at it as an opportunity to win over new customers. Because if you don’t, I'm fairly sure your competition will. 

Until next week……