Maximize your agricultural yields with Aleop and agrilog

The years go by, but they are never the same. Similarly, for two companies of comparable size, the economic situation can vary significantly. Thus, there is no single answer that applies to everyone. Moreover, unless one has a crystal ball or consults a genie, it is difficult to predict with certainty the ideal moment to sell or hold onto one’s harvest.

Was your harvest good? Are your revenues meeting your expectations? Did you follow your plan, or is it time to make a new one? Whatever your situation may be, Aleop and agrilog are here to support you in maximizing your results and preparing for the coming year with confidence.

Time to crunch the numbers!

From an economic standpoint, Aleop provides thought-provoking insights to help guide your grain market placement decisions. Here are some key steps to consider in order to optimize your marketing strategy:

• Let your numbers do the talking.
• Identify your cash flow needs and take advantage of the available programs.
• Establish a strong marketing strategy.
• Explore opportunities in international markets.

Thus, the best approach is to rely on your data and your business context. Your accounting figures, combined with a solid understanding of international markets, often reveal much more than predictions.

Grain storage can enhance your profitability, but be careful!

Storing grains for a longer period also means maintaining their quality over time. Generally, as time goes by, the price of grains tends to increase. This phenomenon is explained by a 'market premium' given for delaying the sale until buyers have a greater need.

However, increasingly regularly, as seen in 2024, the average prices do not follow this trend. For the 2024 harvest, let’s hope that the upward trend returns. If you’re considering storage, be cautious; storage always comes with risks!

Puisque l’histoire à tendance à se répéter, il est crucial de tirer des leçons des erreurs passées. En 2020, les conditions de récolte étaient idéales : grains secs, temps chaud et récolte abondante. Pour protéger vos revenus de récolte cette année, nous vous suggérons d’adopter des pratiques d’entreposage sécuritaires. Cela vous permettra non seulement de protéger vos revenues, mais également de maximiser votre rentabilité. Vous pouvez vous référer aux recommandations d'agrilog to learn more about the best grain storage practices.

Accounting: letting your numbers speak

Keeping your accounting up to date is essential. It allows you to monitor your working capital and observe its fluctuations over time. It is one of the best indicators of your financial health. With the Aleop's indicators, you can even access a complete history of this data.

Implementing managerial accounting, specifically departmental accounting, it becomes easier to establish your production costs, whether you do it alone or with the help of a professional. Knowing your production costs gives you a clear overview of what each crop must generate to ensure a profit.

The production cost is divided into variable costs and fixed costs. By considering only the variable costs, you determine the minimum threshold, which is the minimum price to receive. This cost includes the following elements: seeds, fertilizers, herbicides, crop insurance, as well as costs related to machinery from planting to harvest, drying, storage, and financing fees. If you also include the fixed costs specific to that crop, you then obtain the target optimal price threshold.

Does the business need liquidity?

First of all, have you taken advantage of the financial tools available to support your operation, such as the Advance Payments Program (APP)? This program offers you an interest-free loan on the first $250,000 advanced, which can greatly improve your cash flow. In addition, you can also explore financing for seeds and inputs through Farm Credit Canada (FCC), or establish similar agreements directly with your supplier. These options allow you to reduce the financial pressures associated with the initial production costs.

Next, developing a good marketing strategy for your harvest is essential. This involves monitoring market trends, anticipating price fluctuations, and planning the ideal time to sell your production. A well-thought-out strategy can help you achieve a better price for your grains while mitigating the risks associated with market uncertainties.

By combining smart financial management and an effective marketing strategy, you will maximize your income while ensuring the stability of your operation. Don’t hesitate to seek external assistance, such as the network Agriconseil, to help you select advisory services suited to your needs or consult an expert advisor.

Taxation

Keeping accounting records up to date is an essential asset for facilitating optimal tax planning with the help of a professional. It not only allows for a better understanding of your business's financial health but also helps in making informed decisions about the sale of your harvests. With accurate data in hand, you will be able to determine whether it is more advantageous to sell your harvests before the financial year-end or to defer the sale to the following year, while assessing the extent to which these sales should be made. Well-structured planning can help you minimize your tax burden and optimize your net income.

The next step is to implement a solid marketing strategy, taking into account price fluctuations, market trends, and emerging opportunities. It is essential to monitor economic conditions and market needs to choose the optimal time to sell. This strategy should be based on dependable indicators, such as commodity price trends, weather forecasts, and macroeconomic data that influence international demand.

By combining rigorous tax planning with a well-thought-out marketing strategy, you ensure not only the maximization of your profits but also the long-term financial stability of your business. This approach allows you to navigate market uncertainties with greater flexibility while seizing the best opportunities for your sales.

The Global Market

You already know that weather conditions, both locally and internationally, have a major impact on crops and yield. Monitoring grain prices and current events helps to better understand global markets and anticipate pricing trends. In this context AgWeb is an excellent reference for gaining an overview of harvest conditions worldwide and the global events that influence the market.

Moreover, the PGQ offers advanced digital tools to track monthly price fluctuations. These tools allow farmers to analyze data and make informed decisions, particularly regarding the best time to sell or store their crops. By combining these resources with careful monitoring of economic and climate trends, you can better anticipate market movements and optimize your results.

Maximisez votre succès avec agrilog et Aleop

The best approach is to rely on your internal data and the specific context of your business. Your financial figures, combined with a strong understanding of international markets, provide a more reliable information base than many forecasts. By analyzing production costs, liquidity needs, and market fluctuations, you can make more informed decisions tailored to your reality. This strategy helps maximize profits while minimizing risks associated with market uncertainties.

Vous voulez maîtriser vos opérations et maximiser vos revenus de récolte? Explorez les solutions de agrilog, experts en séchage et en entreposage des grains. Pour découvrir leurs recommandations sur les meilleures pratiques en matière d'entreposage, consultez cet blog article.