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Strategy

Promo Industry Spotlight: Agriculture

The Midwest has over 127 million acres of farmland, as well as seven of the top 10 agriculture-producing states in the U.S. It’s clear that agriculture remains one of the most fertile markets in America’s heartland.

Short-term, however, the outlook may not be so bountiful. Net farm income peaked in 2013 and has declined since, with an expected year-over-year drop of 12% in 2018, owing to low crop prices and rising expenses. Chinese tariffs have also left farmers exposed – so much so that the Trump administration and the U.S. Department of Agriculture have paid out $7.7 billion to help farmers weather the storm.

But resist panic: Crops are commodities, and their fortunes fall and rise long-term as the price fluctuates. Demand for food certainly isn’t declining – especially because of the explosive population growth abroad, with countries that will rely on imported American crops to feed their swelling ranks.

Jim Nixson understands the present concerns, but preaches patience. The Johnston, IA-based senior account executive with The Vernon Company has worked in promo products since 1976, and serves a broad range of “ag” clients. These companies still need to market their business. “If you sit there and worry about those things that make you reluctant to pull the trigger on programs and ways to increase your business moving forward,” he says, “then I think you just struggle and die.”

Still, distributors can seek out pockets of stability within the market. Go Promo of Fargo, ND, has found success working with seed companies. “There are ups and downs in the ag market,” says General Manager Casey Glandt, “but regardless of how their crops are doing, the growers have to buy their seed from someone every year.”

A whole slate of products are popular in this market: apparel like caps and jackets and scores of functional hard goods, including flashlights and tools, work gloves, pocket knives, tumblers and lunch coolers. And don’t ignore typical corporate needs like direct mail and trade shows – this is big business, after all.

Stretch flannel shirt (BP-7091) from Backpacker (asi/48746); backpackerapparel.com

6-LED light-bar flashlight (QAK) from Goldstar (asi/73295); goldstarpens.com