2 Takeaways from the recent Farm Journal Survey

Recently, Farm Journal did a survey of 640 farmers about their view of having sales reps call on them at their farm in light of Covid.

(The discussion runs from 27:10 through 35:00 minutes on the webinar)

          The results indicate that 45% of those surveyed have reservations about salespeople being on their farm.   My first reaction was “Great, send this to your competitors so they stop calling on your customers!”  While that’s fun to think about, my second thought was more typical.  It was disappointment that the role of the on-farm salesperson might be in jeopardy.   In the interview, there is discussion about the importance and value of sending a salesperson to the farm….is it necessary? We might not be needed anymore.  Everything will be phoned in and webinar based.  The self-help – DIY (do it yourself) wave had finally hit agribusiness.  We are no longer needed.  Zoom and Apps eliminated an entire layer of employees.

          Not so fast.  First, let’s look at the information The Farm Journal found.  45% of producers surveyed said they have concern, which means 55% said they don’t.  50% said they want you to observe 6 feet of social distancing.  So, you can still get back on their farms.  18% said they want you to wear gloves and a mask.  So, you can get back on their farms.  36% said no problem with coming out to the farm.  Again, you can still call on this group.  Only 11% said no more farm calls.  Granted this is a good chunk of the market, but you still have a substantial part of your customer base that is not preventing sales calls.

          After looking at the survey results this way, I was back to being bullish on sales again.  Only to be dashed by one of the comments about “bin knockers” and taking customers to lunch.  Somewhere around 27 minutes, one of the producers makes a comment that agribusinesses will take a hard look at their sales force.  He mentions that he doesn’t need a “Bin knocker” and getting a free lunch from a salesperson is fun, but not needed.  If you are not familiar, a “bin knocker” is a salesperson who comes out to the farm and knocks on the bin to see if the customer is out of feed.  It’s often a reference to an old style of selling, which indicates the salesperson is very transnational.  In today’s consultative selling approach, “bin knockers” are looked down upon.

          As I went from positive to negative reactions to the survey, I came away with two main points.  One for the agribusiness and one for the Ag sales professional.

2 Takeaways from the survey:

For the agribusiness: Don’t RIF your sales team just yet.

The cost of a sales team is significant.  To outfit them with trucks, phones, computers, and let them drive the country is expensive.  So, it’s natural to challenge the need for them.  Then, along comes a pandemic and the sales force has to stay home.  Yet, sales didn’t drastically drop.  In agribusiness board rooms, the next logical step is to conclude that maybe we don’t need a sales force on the farm.

         Before you make plans to restructure your sales department, first consider what your sales team actually does.  They go on farm to establish strong customer relationships.  They perform certain diagnostic assessments to determine the best way to serve your customers.  This includes feed, forage, or soil sampling, gathering financial documents, assessing equipment: bins, tractors, balers, etc.  They also get on farm to find out the real story.  Not that customers lie, but sometimes they don’t know what’s what.  Your salesperson goes out to determine what is really going on at the farm. 

          The most important role they perform is that of the trusted advisor.  They develop long term customer relationships which allows your salesperson to help your customer in ways they can’t imagine.  They may network customers with other vendors.  As a feed salesperson, I was often asked about the best supplier for shavings, vet supplies, etc.  Your salesperson may advise customers on the best practices that other producers are using.  Frequently, I was asked about how my other customers were handling animal death loss, weather conditions, shipping livestock, etc. 

          The result is customer loyalty and a long-term relationship which are hard to replace with Zoom and an App.  However, you still argue, “Hey Greg, we didn’t go on farm for the last four months and our sales didn’t drop off drastically or even at all”.  If it did, I would say that your sales team was probably a more transactional sales force.  IF, after years of buying from you, a customer left you the minute you stopped going to their farm, I think that indicates a bigger issue. 

For the Ag Sales Professional: Don’t quit your day job just yet.

           First, let’s discuss the ability to be replaced by the producer doing all their own ordering, sampling, testing.  In theory, this would all be done through your easy to use App or by a phone call to an office of waiting customer service reps who know exactly what to recommend this customer.  Sure, there are those producers that can do this.  And there are those companies that might have a well-trained team of customer service reps that can advise the best product.  If so, you got two choices.  Find different employment because your boss is going to figure out you are not essential.  Or, figure out a way to be essential. 

          There has never been a bigger wake up call to the agribusiness sales force than right now.  Many of the salespeople and teams I meet, feel there is some historical requirement or entitlement in their existence.  They reason that there is no way the company could do without them.  Let me start off by saying, “Yes, they can!  And now more than ever before”.  Tight margins in farming, typically means tight margins in agribusiness.  How do you handle tight margins?  Increase sales or reduce cost.  The P&L (profit & loss statement) is a fairly simple math calculation, despite how complicated we make it.  Gross sales, minus the cost of the product, minus all the internal costs it takes to get that product to the farm.  We are one of those costs.  This is not the time to stop calling on customers because they are worried about you being on their farm.  Social distance.  Throw on a pair of gloves and a mask.  Roll up your sleeves or roll them down if that’s safer.  Do whatever it takes to get on farm and make calls.  It’s time to figure out how you bring value to both your customers and your company.  While producers and your company might be looking for ways to cut costs, they really need you to be at your most effective and productive self.  

          If you are worried about the producers that don’t want “bin knockers” on their farm taking them to lunch, great.  Because, that’s not you.  If you have read my previous articles about, “The Brand of You”, then you are in good shape.  You figured out how important you are to your customers.  You figured out how to be (mostly) irreplaceable.   

          If you are worried about producers not wanting you on their farm, guess what.  They didn’t want you on their farm before.  No farmer was out working on their farm and said to themselves, “I wish another salesperson would drive down my driveway.”  That’s why you are striving to be a trusted advisor.  Because that’s who they want coming down their driveway. 

          I really appreciate that this type of survey is out there.  We all know the world is going through tough times.  More specifically, the Ag industry is going through its own version of tough times.  Now, more than ever before, it’s not business as usual.  Every expense will be brought up for review.  When brought in to review sales teams, I have seen those salespeople who sell beyond their cost and those that don’t.  You really should figure which one you are.  You don’t want your sales manager to figure that out before you do.