agri-business:

Not Your Father’s Farm

We are in a new era of agriculture created by drivers of change that are revolutionizing the industry and permanently altering traditional relationships. Farm businesses that recognize, understand and proactively adapt to this change will grow and prosper.

The rising prices of land, seeds and crops have attracted venture capital and private equity. Large corporations are making investments that are moving key decisions from local to national and, in some cases, international levels. The number of traditional farms is rapidly decreasing while small niche farms and large corporate farms increase. Additionally, crop acreage has shifted to support interest in bio-fuels.

Category innovation and technology is playing a significant role in the transformation of today’s farms. Increasing productivity and efficiency is allowing big corporate farmers to succeed, simultaneously decreasing their dependency on labor while improving yields.

Significant corporate consolidation places a new emphasis on brand strength. Companies must clarify their differences and focus on product lines that have the greatest potential. Business leader reputation is also a key ingredient in developing long-lasting relationships and being considered part of the business advisor team.

To maintain ongoing success in agriculture, corporations must focus on constant innovation that includes the customer in the decision process. There must be a deep understanding of customers’ emotional motivators in order to proactively manage brand image, create market segmentation and deliver the right messaging at all touchpoints. Technology will continue to play a crucial role in the decision-making process.