Fall marks the end of the harvest season, a time when farmers reflect on what they hope was a fruitful year. It's also an ideal moment to gather and sort through vital farm data, which can be critical for planning the next year's crops.
Harvest time also provides an excellent opportunity to collect and organize data on farm performance, allowing farmers to reflect on how the growing season unfolded. These data can include yield figures, production costs for each crop and projections of market prices for crops that will be sold in the coming months. Additionally, farmers can compile a list of any challenges encountered during the season and assess how these issues impacted productivity.
Why collecting data matters
Collecting and organizing data is crucial for preparing and planning for the next crop year. For example, data on acreage, yield and expected prices can help estimate gross returns. This information is valuable when negotiating with a banker for a new loan or refinancing an existing one. It’s also useful for setting lease terms with a landlord for the upcoming year.
Another important type of data to gather is production cost information. These data are crucial in negotiations with buyers or processors to ensure that the prices they offer cover your production costs. It’s also valuable when negotiating with input suppliers, helping to secure necessary inputs at reasonable prices or with favorable payment terms that reduce financial strain. Additionally, production cost data can be useful in discussions with landlords, particularly when exploring cost-sharing options or establishing a more manageable payment schedule.
Lastly, it is important to document any pest or weather issues that affected your farm during the crop year. Keeping lists, photos and other records of these problems can be helpful when negotiating compensation with crop insurance providers or landlords. This documentation can also be beneficial when discussing with peers, neighbors and experts to gain insights on the likelihood of these issues recurring, evaluate the effectiveness of your mitigation strategies and explore new methods for preventing similar challenges in the future (Table 1).
Using data to negotiate
One key aspect of the table is that each potential usage of data/information example begins with the word “negotiate.” This emphasis highlights the old saying, “Knowledge is power.” Or, more specifically, “Data are powerful.” Having clear, well-organized data that tells the story of your farm's operations can be a significant advantage in negotiations with business partners such as bankers, landlords, input suppliers and crop buyers.
Resources for better negotiations
In recent years, the authors of this article have developed two sets of resources to help members of the agricultural community prepare for and conduct successful negotiations. The first set is available online at the Negotiation in Agriculture website. This site offers seven guides and a template designed to assist with planning and executing negotiations. These guides are further supported by four online learning modules, which feature expert presentations, additional reference materials and quizzes to test your knowledge. These resources are publicly accessible and ready to use.
A second set of materials is currently designed for agricultural professionals, such as extension personnel, state agriculture department staff, the USDA Natural Resources Conservation Service (NRCS) staff and others who provide educational programs to stakeholders. These resources are hosted on the Train the Trainer program website and are organized into a Moodle-based learning course.
Course materials include modules on topics such as preparing for negotiations, conducting negotiations, managing family business relationships, family succession, mediation versus negotiation and agricultural leases. The team is also expanding the section on agricultural leases to include additional modules covering crop leases, solar and rangeland leases, and regulatory issues related to using public lands for agriculture. These materials will be made available to the public when completed.
Learning and sharing in the off-season
In closing, fall and winter are prime seasons for agricultural professional meetings. We encourage crop producers, farm staff and stakeholders to attend these events and engage with one another. Sharing experiences, knowledge and ideas at these meetings is invaluable. They present chances to learn about the challenges and successes of the 2024 crop year and to develop strategies that will help Idaho and other surrounding farm businesses thrive in the year ahead.
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