Benedict T. Palen, Jr - How To Get Market Value As A Farmer

 It is also the realization of the market value of the products that greatly defines a farmer's success. This can be a real challenge, especially given the current state of affairs in agricultural markets, according to Benedict T Palen Jr. Nevertheless, being aware of the market value framework can increase a farmer’s profit many times, help analyze the business processes, and guarantee sustainability. There are different methods that will be discussed in this article so that you too can be able to find the market value of being a farmer.

1. Research Your Local Market

The first measure in estimating the value of the services you intend to offer in the market is to research the local market. Among the requirements that you have to analyze will be the demands for similar products as well as their prices with reference to the local market. It will, in this way, assist you in making appropriate decisions on the prices that you adopt for your products. Sources of market research include agricultural cooperatives, farmers’ markets, and government agencies such as the Agricultural Marketing Service- US Department of Agriculture.

2. Check your cost and expenditure

Assessing the expenses of your products when being manufactured is crucial in setting how much the products should go for in the market. These cost factors include labour, machinery, power, seed, fertilizers and any other input that is required in the production process. When budgeting, you are able to put the lowest price figure that you cannot afford to go below if you intend to make some profits.

3. Understand Supply and Demand

The final parameter that affects the market value of your products includes the availability of your various products in the market. This is because in the case where the demand for a certain product is high and the supply-constrained, the value of the product in the market is likely to be higher. In understanding these factors, you can better decide on placing your products to sell at the right price level, according to Benedict T Palen Jr.

4. Competitor Pricing

By viewing the prices at which your competitors are selling their products, some valuable insights can be obtained on the market value of your products. While you should not set your prices based on your competitors, using competitor pricing can be a good benchmark for the market price of the products. Pay attention to their prices as well as the quality of the products they offer for sale; this will help you make a decision about who you compete squarely with or identify a niche that you could sell to your customers from which you can differentiate yourself from the competition.

Conclusion

According to Benedict T Palen Jr., it is important because it will assist you in determining how much your products should be sold for within the market. If you have followed the direction above you will be able to understand the worth of the products and the right price that should be set on them. Indeed, this knowledge will assist you in obtaining the maximum possible profit, creating a sustainable business, and producing a great difference in the agricultural market. A viable farming business is one that operates under sound market intelligence and inputs quality goods to the market at reasonable charges.