Honesty and trust are critical components of a broker–producer association. Successful and long-term relationships result in benefits for all parties involved.
For a hay producer or user, the decision to work with a broker can feel like a last resort — everyone has a horror story about a crooked broker. However, dealing with an honest broker who is well-versed in the market can have many advantages that can save a farmer or customer time, resources, and money.
The core of a broker’s role is to move products to market, which requires empathy, a deep understanding of the market, and transparency to both producers and buyers. Asking good questions, considering all factors, and doing the appropriate research are necessary first steps in choosing a suitable hay broker.
A successful producer-broker relationship should benefit both parties. Rather than having to delve into the marketing and sales side of their hay, farmers can focus on production. While selling direct to customers can sometimes translate into a higher price per ton, the trade-offs of time spent lining up deals and taking on the financial risk of selling to new customers will often cancel out the potential extra profit margin. When dealing with a brokerage, the producer’s scope of responsibility is reduced to accurately grading and communicating the quality and quantity of the product they are looking to sell.
April 29, 2024 02:55 PM
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