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By Heather Ranck

I am no stranger to agriculture and farming; I grew up on a dairy farm in Lancaster, Penn., and despite youthful protestation, my family knew I would come back to my roots in the agriculture industry in one way or another.

As an international trade specialist with the International Trade Administration’s U.S. Commercial Service in Fargo, N.D., a significant part of my job is working with farm equipment companies, helping them sell their machinery all over the world. Darn it, my parents were right!

Fear of the unknown prevents many businesses from exploring exporting. Though exporting can raise unique challenges, only 5 percent of the world’s consumers live in the United States. Selling to exclusively domestic markets could significantly limit business potential.

In 15 years of experience in agribusiness and the farm equipment industry, I have recognized five guiding principles for export success that apply to any aspiring farm equipment exporter.

First, do your research.

Knowing the landscape and big players in an export market sets you up for success, but for many aspiring exporters, researching a new market can seem daunting and feel unlimited in scope. The U.S. Department of Commerce has a (REC) to make this daunting task easier and more accessible for farm equipment companies and other rural manufacturers.

Through the REC, companies can get customized research to help assess export potential, identify the best markets for products, learn about relevant industry trends in target countries and develop contacts in targeted overseas industries.

Leveraging the experienced research staff at the REC saves time and lowers the risk involved in export exploration. Through the REC, companies can access more than $1 million in proprietary databases to benefit their business. Contact them for a free consultation and quote on research options available to your business.

Second, prepare to invest.

The investment needs to include an explicit commitment to exporting at the most senior levels of the company, including human and financial resources dedicated to global expansion.

Business cultures in many countries rely more heavily on trust and relationships than the contractual and legal framework we know in the U.S. Building this trust requires time and investment in getting to know prospective overseas partners. Exporters will want to first build a personal connection to vet their potential partners and ensure they are capable of buying and managing the equipment in their country.

Of special note for farm equipment companies, the U.S.-Mexico-Canada Agreement (USMCA) has opened new opportunities in already successful export markets. From 2017-2019, the share of U.S. farm machinery exports going to Canada and Mexico was between 40-45 percent of the total farm equipment exports, and with the new USMCA, these markets are a good place to start for most companies looking to expand.

Though travel has become more challenging in the current environment, the U.S. Commercial Service has multiple that companies can use to make connections with potential partners overseas.

Third, leverage partners.

The International Trade Administration’s U.S. Commercial Service has staff in more than 100 U.S. Export Assistance Centers throughout the U.S. as well as a global network of staff in U.S. embassies and consulates in more than 70 countries, including staff specialized in agribusiness. These professionals stand ready to assist U.S. businesses with in-country partner searches and any other exporting challenges.

In addition to the U.S. Commercial Service, a wide variety of agencies such as the Export Import Bank, USDA’s Foreign Agricultural Service, and state trade offices can also assist U.S. businesses exploring exporting.

Businesses too time-strapped to tackle exporting on their own can even consider hiring an experienced export management consultant to handle that side of the business. Tapping into the U.S. Commercial Service is a great starting point to explore resources available to you. Get started at your .

Fourth, be specific.

As you plan for success with your overseas partners, be detailed and put into writing dollar figures, dates, responsible parties, key performance indicators and more. A common mistake among exporters is overreliance on goodwill and general promises. Overseas partners should always be willing to develop and discuss a detailed business plan for importing, including product positioning and sales targets.

This plan can also guide resource allocation for trade shows, advertisements, demonstration days, etc. With this plan in hand, exporters can then evaluate partner success and reforecast and plan accordingly.

Fifth, be patient.

Building relationships, committing to extensive travel, and navigating cultural differences can be intimidating and time-consuming. Exporting is a marathon rather than a sprint, but those who prepare and enter thoughtfully can set themselves up for the benefits of selling abroad.

Over the long term, exporting can help bring stability to business because a diverse client base is not as tied to one country’s market ups and downs, and the world’s geographic and meteorological diversity adds and lengthens equipment selling seasons.

To see how other companies use the U.S. Commercial Service, look at these from North Dakota and northwest Minnesota. Agricultural machinery manufacturers and dealers feature prominently in Commercial Service successes, and that trend should continue.