“It's tough enough to navigate the market, but I think whenever you've got someone that can help you analyze the positive and the negative, it helps remove some of the emotions of marketing,” says Matt Bennett, co-founder of Ag Market, the farm division of John Stewart & Associates. “The one thing that we’ve heard over the years from people is that our outside voice is giving them the confidence to take a step forward and make sales they wouldn’t otherwise make.”

However, Joe Janzen, University of Illinois assistant professor in agricultural economics, says that expecting a massive boost in price by using these marketing services is unrealistic.

“We don't know what will happen in the future to move corn and soybean prices around,” he explains, “and because of that, expecting consistent outperformance, either from yourself as a farmer or from your market advisory service, is probably more than you can ask.”

But if marketing is the part of your farming operation that keeps you up at night, Janzen says finding someone else to do it can bring that stress level down.

Considerations for firm selection

Both men offer insight into what farmers should consider when hiring a grain marketing firm. Here’s a guide to help you make an informed decision:

1. Understand expertise and track record. When selecting a grain marketing firm, the first thing to look for is their knowledge level.

Bennett, who is an Illinois farmer and former grain elevator owner, says you want a firm that is well-versed in calculating breakevens and profitability specific to your operation, The firm should understand the intricacies of your farm and how to tailor marketing strategies to your financial needs.

2. Evaluate range of services. Different firms offer varying services, so it’s crucial to understand what’s available. Some firms operate strictly as brokers, Janzen explains, while others provide comprehensive consulting services that include in-depth financial analysis and risk management strategies.

“The question to ask is, ‘How much help do I need in this marketing tasks?’” Bennett says.

Bennett advises that a firm offering both brokerage and consulting services might be more beneficial. Consulting firms delve deeply into your farm’s financials and help strategize based on your specific needs, while brokers handle the execution of trades and marketing strategies.

3. Focus on risk management. In the current crop market environment, managing risk is more important than ever, Bennett says. Ensure that the firm you choose emphasizes risk management as a core part of its services.

While performance can vary from year to year, a firm’s focus on risk management will provide consistent value. He adds that the right marketing firm helps you manage risk rather than just chasing past performance. They should be adept at navigating the ups and downs of the market.

4. Look for specialization in your crop type. Different firms may specialize in different types of grains or crops.

If you have specific crops such as dry beans or specialty grains, ensure that the firm has expertise in marketing those particular crops. “They need to at least have a familiarity with your crop,” Bennett adds.

5. Prioritize communication and reporting. Effective communication is key. Your chosen firm should provide regular updates and reports on your trades, transactions and overall marketing strategy. Consistent communication helps you stay informed and engaged with your marketing plan.