Maximizing Farm Profitability itself is a core value.

It is a moral and economic imperative to seek value for our members. Revenues from increasing farm product prices are transferred disproportionately to farm input suppliers, resulting in what economists call a “misallocation of resources.” This misallocation distorts the economy by, for example, reducing the amount of money that stays in the local area where the farmer lives. We believe that monopolistic pricing is the moral equivalent of theft, since the beneficiary is taking money that is not earned.

By having input prices capture a disproportionate share of farm revenue, economic and social resources are shifted away from choices the farmer would make to choices the input supplier makes.

By creating competitive pricing, more money stays in the farmer’s pocket. The final result is that the local community where the farmer lives is better off if there are GFA Members operating there than if uncompetitive prices are paid and shipped off to shareholders around the world. GFA shifts income from Wall Street to Main Street!

Setting Priorities

Priorities are determined through strategic planning sessions that focus on data from member surveys, farm cost analysis, research on excess margins in different sectors and other factors relevant to farm profitability. As those these factors change, priorities may change with them. Management listens closely to Members and the GFA Advisory Board for ideas that may lead to redirecting strategies, priorities, and tactics.

Farmers of North America divides its priorities into five primary objectives in our mission to maximize farm profitability.

1. Crop inputs

• Crop Protection Products
• Fertilizer
• Seed

2. Other Operating Expenses

• Insurance
• Finance/Credit
• Grain Handling & Transportation

3. Revenue

• Product Marketing

4. Farm Information Services

• Cost of Production Analysis
• Marketing
• Agronomy
• Farm Business Management
• Benchmarking

5. Capital Assets

• Equipment & Building

Members make their needs known to GFA through direct communication with GFA’s management team and indirectly by which GFA services they choose to employ. By using GFA suppliers, members are voting with their wallets which suppliers they prioritize. Suppliers that are popular with members stay on the priority list. On the other hand, when members don’t make use of programs or suppliers in one of the categories, they may be sending the message that those services are not priorities.

GFA management makes decisions, informed by consultation and research tools and according to a “best-bang-for-the-buck analysis.”

GFA’s resources consist entirely of our Membership fees, therefore the management team needs to be efficient and effective in using those resources.

GFA’s current priorities look like this, and its resources are spent accordingly:

1. Crop Protection
2. Fertilizer
3. Grain Handling & Transportation
4. Farm Information Services
5. Farm Product Marketing
6. Seed
7. Equipment and Buildings
8. Insurance & Risk Management
9. Finance

GFA’s management team is highly entrepreneurial–when an opportunity to build value for our farms is seen, it is acted on regardless where on the current priority list it may sit.