Farm Marketing Plans for Profit

• marketing
• planning
• profit

What is a farm marketing plan?

A marketing plan is a short written document that describes your products, your customers, how you will reach them and the prices you need. It is separate from a full business plan but feeds into it.

Extension educators often describe marketing as a puzzle with many pieces: production costs, price risk, timing, buyers and tools. A plan puts the pieces on the table in one place.

A one- or two-page plan is enough to start. Length matters less than whether you update it and use it when a buyer calls or the market moves.

Where do you start: costs or customers?

Start with costs. You cannot set sound prices or targets until you know what it takes to produce each unit, including a fair wage for your own labor and a share of overhead. If your records are thin, this exercise will show you what to improve.

Then identify who buys. For commodity producers that means elevators, packers and processors. For others it may mean restaurants, grocery buyers, farmers markets or households. Describe each buyer's needs, volume and payment habits.

Many extension offices and farm business programs offer cost of production worksheets. If you do not track costs by enterprise, start with the biggest expenses and refine as you go.

How do you set price targets?

Set three numbers for each product: a breakeven price that covers costs, a target price that earns the profit you want, and a walk-away point below which you will hold or sell elsewhere. Written targets help you act when markets offer them.

Check your numbers against sources such as USDA Agricultural Marketing Service market reports, which publish prices for many commodities and regions.

Write a brief note beside each target explaining why you chose it. When prices rise or fall sharply, those notes remind you of your reasoning and keep emotion in check.

How do you pick sales channels?

Each channel has different margins, labor and risk. Commodity buyers take volume at market prices. Direct channels may bring higher prices but demand more time, packaging and customer service. Mix channels so a problem in one does not stop all your sales.

List the true costs of each channel, including travel, fees, packaging and time, before judging which one pays best per hour and per dollar invested.

Be honest about capacity. A channel that wants more volume than you can deliver reliably can damage the relationship and your reputation.

• Volume each channel can absorb
• Price you can expect
• Costs and time required
• Payment terms and reliability
• Risk if the buyer disappears

How do you spread sales and manage price risk?

Selling everything on one day is a gamble. Many farmers spread sales across several months, use contracts for part of their production and keep a share for opportunities. The mix depends on your cash needs and comfort.

Insurance and contracts can protect revenue. Discuss options with your lender, insurance agent and extension marketing specialist before making commitments.

Contracts, insurance and hedging each cover different risks. Choose the tools that match the risk you are worried about, not every tool available.

How do you put the plan to work?

Turn the plan into a calendar: when to check prices, when to talk to buyers, when to renew contracts. Assign tasks, even if you are the only person on the farm, and set aside a regular time each week for marketing.

Record what you actually sold, when and at what price. These records improve next year's plan and give lenders confidence in your cash flow projections.

Teach your plan to anyone who sells for you. A market helper who knows your price floor will not give product away.

When should you review and change the plan?

Review after each sales season and whenever costs, buyers or markets change significantly. Compare results with your targets and ask what you would do differently. A plan that never changes soon stops matching the farm.

Share a short version with your lender and family members who work in the business. Everyone makes better decisions when they know the targets.

Consider a simple annual summary: what you planned, what you did, what you earned and what you learned. It makes the next plan stronger.

Last reviewed: November 12, 2026. Written by the Farm Money & Grants Editorial Team. Educational only, not tax, legal or financial advice. See our editorial policy.