Always take the reins into your own hands

Over the past period you have been busy with the well-known spring activities such as sowing, planting and silage of the first cut of grass. This is an annual event that opens the season. Often with enthusiasm, as we see so beautifully with the jumping and dancing cows that are allowed to go out into the meadow again.

In the meantime, the care period has actually arrived, which is again special this year, given the long period of cold and dry conditions. Although the consequences of this are still difficult or impossible to estimate at present, it does keep people busy. Broken nights and sleep deprivation have already been established left and right.

Simultaneously with the growth of the crops, we also collectively grow towards the holidays. Those with children in the exam classes are already experiencing it firsthand. After an exciting period of exams, they are now fully enjoying their freedom, at least temporarily.

Exciting period to start
By the time the holidays end, the most exciting time of the year, the main harvest, is about to begin. Well-organized sales, both organizational and financial, are necessary for the continuity of the company. I would almost like to say: 'For the next round of the year, including the holiday with the accompanying feeling, that is a must.' What occupies me most is sales and payment.

Ensuring good drivers
A number of matters, such as sugar beet and milk, are usually arranged cooperatively. As an individual entrepreneur you have only limited influence on this. Well, of course that's not quite the case. It is up to the farmer members to jointly take care of good administrators. In turn, they have the task of appointing, among other things, a well-functioning board of directors who actually run "the tent". If it works well, everything is aimed at making it better for the farmers.

For the free crops you agree everything yourself. Everything may be a big word, but within reasonable limits, customers also have their requirements, that's possible. I am thinking of things like the moment of harvesting and delivery, the quality agreements and what if these are not (fully) met, the price per unit and the moment of payment.

Settlement
A well-known saying is "we just pass on our products". Normally, after some time a settlement will follow, which has been drawn up by the customer. Quite a special method, when I want to buy something somewhere, the seller always indicates what it costs, he draws up the bill and often it is butter with the fish. So the question is, which one do you go for: a settlement or for the bill?

On the one hand, we know that fortunately in the vast majority of situations it works fine between the farmer and his buyers. On the other hand, it is also known and as "old as the road to Rome" that discussions are held between parties up to the court. These cost very negative energy, money and often last for years.

Commitment to yourself
As an entrepreneur, I think you have the task, no the obligation to yourself, to buy and sell competitively and professionally with everything that goes with it. Might sound a bit harsh, but it's just part of your job. It reminds me of a well-known English saying "if can't stand the heat, get out of the ktichen".

On course
If I find something difficult or want to learn even better, I go to a training. This way I know that there is also a negotiation training course and I am almost certain that your purchasers have followed it. Maybe a recommendation?

A few considerations on my part that I don't want to withhold from you. Focus mainly on the financial yield and only then on the costs, make choices, do not linger and set your own requirements for the settlement. And the last one is perhaps the most important: don't confuse business with rudeness and indecent behavior. My father always said "take the reins into your own hands" and I think he was absolutely right.

Peter Pals

Peter Pals is an entrepreneur at Farmers Funding & Advies and grew up on a farm. From his farming heart, he has decided to build up a business for business, financial and tax advice for agricultural entrepreneurs.

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