A "perfect storm" may be brewing in farming communities that could have a direct impact on the used agricultural parts industry. In a report published by the USDA this month we learn that, once again, farmland values in the "Farm Belt" have slipped. Lenders have seen another 2% drop in the value of an acre of farm ground. The reason is low commodity prices which, in Iowa alone, will cost farmers $2 billion in income this crop year. The other issue is the rise in oil prices. In just the past week we've seen a barrel of crude go from near $40 to knocking on the door of $50. We are all aware that agriculture uses an abundance of petroleum products from fertilizer to fuel.
All of this, if we pay attention, may signal an opportunity for the used, rebuilt, re-manufactured parts business.
When farmers see the economic reality of lower prices and higher inputs they begin to re-think their spending patterns. If, for example, they can save several thousand dollars on repairs this fall it's money in their pocket.
This has a direct impact on members of NTPDA if we start telling our story. Farmers have long been independent do-it-yourself experts. And when they realize the economics of doing business with you...you are more likely to increase your business.
But, they have to know about you and how you can help so here are three things you might consider over the next several weeks.
- Share the Story - If you are using social media you should start telling your story about being an independent business who can assist the agricultural community through this economic downturn;
- Your Website - If you have, and you should have, a call to action on your website you should use that space to highlight the savings and benefits of doing business with you and how you can provide high quality service at lower prices. If you have a business blog (and you should) consider pointing that call to action to the story about how you can help;
- Media Connections - We all have local newspapers or radio stations. You should consider writing a quick piece about the economics of the farm economy and then pitch that to the media outlets. They are always looking for solid stories that impact their listeners or readers.
You have an excellent story to tell and people are seeking answers. Go get 'em!