LIKE it or not, information is so readily available, and there is so much of it – 24 hours a day, seven days a week, on demand.
We can log on from the tractor or the comfort of home and look at crop conditions in Russia or the United States, or simply find out what yields are doing in NSW. Information is driving the markets and shrinking distances. The problem becomes information overload and being able to utilise this ‘knowledge’ while understanding the bigger picture.
As consultants, we invest a large amount of time reading, discussing and dissecting information from many different sources.
This ensures the delivery of well-considered messages that we believe will have a positive effect on our client’s profitability. Admittedly, it isn’t the highest octane part of the job, but there is so much information that sways markets, it becomes integral to forming an opinion.
A case in point is the US election. We were watching events unfold, while at the same time keeping a close eye on the fall in the Australian dollar. We advised our clients to sell canola on that day, not only due to the opportunity created by the weaker dollar, but also the impending pressure on price the following day.
It’s a fair comment that the increase in information is creating a more liquid marketplace. This creates opportunity but also has its frustrations.
Social media is arguably the fastest growing and most engaging form of media that is available. It is a fantastic resource, but must be used with some caution.
On social media, there are different opinions and different perspectives, not to mention the potential implications on your own ‘brand’.
Twitter is a fantastic community that I admit I am new to. My Twitter account is set up for work, whereas my Facebook is more social. With the right following, it is possible to gain a large amount of information quickly in what is a global farming and agribusiness community.
But, this only shows one side to the story and it is very emotive. Earlier in the year I remember seeing drowned canola in NSW and it made us think the rest of the crop must be ruined, too. This was before we got a crucial opinion from elsewhere to suggest that the broader picture was still very good. We could verify this second opinion by looking at rainfall and seeing where the damage occurred.
If someone has had a bad experience, it is human nature to show the very worst of it. Likewise, if they have a great experience they want to show the best of it.
The recent corn crop in the US has been very good, but the price has been poor. There was a trending hashtag #noyieldtweets, so one can only imagine the crop. This can only have served to keep pressure on the price without needing to see a yield monitor or a picture of the crop.
Another perspective is to look at doctors to see how this information overload is affecting daily practice. Everyone has a general practitioner but some people are tending to self diagnose with Doctor Google as a first port of call.
Almost always it comes up with a list of symptoms and ‘explanations’. Human nature kicks in and they think the worst. On a visit to the GP, a huge amount of time is then spent unravelling the cause and effect of what a person thinks they have.
What does this have to do with farming?
It is all to do with seeing something on social media and self diagnosing based on one piece of information.
Decisions such as cutting for hay after frost, or burying commodities can be reactive and sometimes not all the outcomes are fully considered for each business.
When posted on social media it can quickly become a case of self diagnosis and a one-size-fits-all approach.
What works for one may not work for all businesses. Cash flow implications, differing outlooks and the goals of on-farm strategies must all be taken into consideration.
Make social media a part of the decision-making armament but not the be-all and end-all. It is a great community that brings an already tight-knit industry closer, but it is crucial to look further afield and get a hold of the bigger picture.
Social media has tremendous power, but it can lead to decision paralysis, or emotionally-driven reactive decisions that may not take in the broader view or long-term implications.
