Dealer Getting to be Very Large Farmer?

[SASKFARMER3]

We have a local dealer that just picked up another 8 quarters and that gets him in less than 5 years bigger than 80% of his clients. Hm.
Now I have to purchase from him Fert and Chem and still have to compete for rent. He rents most then buys.
Now I know some will say whats the problem go buy a dealership, and that had crossed my mind back in 90s. But here is the problem. I don't want to sell to any one but the farm and guess what cant get a dealership for that companies wont allow, to low volume etc. Yet dealer can play on farmers turf with no problems. Or can their be problems as farmers start to vote with their wallets. This happened up north where I spend the summers JD dealer lost lots of sales due to this. But when farmer goes to his dealer for agronomic information then cant pay because the farmer did every single thing the Dealer said and mother nature throws a curve ball the farmer quits and guess who farms the farm. Wink wink.
It happens over and over and over why cant we learn some one selling to you has a motive its not in your best interest its their best interest. So read read read and higher private agrologist if you have to or guess what it will happen to you.

[lakenheath]

You must be drinking again. As you regress into your whining state you make even less sense then usual.

[SASKFARMER3]

Laken just saying if this was happening in your area would you be very very happy its going on or would it PS you off to. All is fair in farming but when your competitor starts into your line of work and you cant get into his its wrong or is it just me.

[checking]

SF3.

If land came on the market in your neighbourhood, would you have a problem in competing for it with an oil or gas company that doesn't want the hassle of dealing with you should you purchase it?

Just curious!

[ColevilleH2S]

Checking, the oil and gas guys have no interest in owning the land. That would just add a whole other layer of hassle to their operations. Better to just stoke one cheque a year, and avoid it all.

As for having a chem/fert dealer buying land, I would avoid doing business with him altogether. Why would I put dollars into his pocket so he can turn around and use them to out bid me? My money would be going down the road for shear self preservation.

[fjlip]

This area had two huge farming dealers in the 70's and 80's. Both went broke. It hurt business and they were just too busy managing it all. Hired help made too many mistakes etc. There are still more farming, not expanding. We all know about Farm World.

[checking]

ColevilleH2S

Oops, I guess I attended the wrong farm land auctions, then!!!!

One of the companies that did this became involved on our property the following year. In our formal meeting with them, they were asked if that was a smart thing to be doing. Answer - if the opportunity presented itself again, they would likely do it.

That's interesting. So even though the dealer (fertilizer, chemical, machinery)etc. - right?, would have advantages, which is why I would deal with him, you would walk away because he sideline farms as a competitor.

How far along the chain would your principles go. If the local electrician, plumber was a farmer, would you have him fix your farm problems in an emergency?

How about, because you know farming is not easy, your neighbour who has a second job as a battery operator on your property. Would you tell the oil company that you won't have him working on your farm because he is a potential land competitor?

Would you send your child to a different school because the competition's wife happens a be the teacher of your child?

Where's the dollar cutoff point for you that the competitor for land can make before you go elsewhere?

[ColevilleH2S]

Electrician, plumber,teacher, battery op, etc. if they where working those jobs they wouldn't be much of a threat would they? I don't know of many teachers with a million dollars sitting around to buy 8 quarters of land, but I do know of a dealer who would think of that as pocket change (nothing wrong with that, good for him). But I stay out of his business, I would expect him to stay out of mine.

[cottonpicken]

freedom

practise what you preach

[ColevilleH2S]

I do. If I had a dealer like SF3's I'd exercise my freedom to go down the road. Simple eh.

[charliep]

If you were selling land and the dealer put the best offer in front of you, would you tell them to take a hike? Or put another way, if you had a younger farmer tending who you respected and felt could be successful, would you accept an offer below the market.

I have seen a couple of good articles and a presentation at farmtech on succession planning for farms with no family members interested in taking an active role in managing the farm. Do you keep the farm together? Do you have someone in mind you would like to see farm your land? Are you willing to support them to some greater or lesser extent.

[cottonpicken]

Exactly....

[checking]

Would you know with the govenment trying to prevent a housing bubble in Canada by inceasing the downpayment a first time house buyer needs, if that also applies to those buying bare farmland? Some are saying they don't know which way farmland values will trend, just like a house.

If it were a straight cash purchase, ColevilleH2S, you're likely correct. However, that extra, neighbourly, income as a down payment could easily become as toxic to your land expansion plans as a dealer's outright buy. It could be the tipping point where a non-competitor becomes a competitor. So, I don't see your selective avoidance of one group over another.

Sorry, but thank you for the input. What do you say SF3?

[cottonpicken]

35 year morgages and well there is no housing bubble
says captain flaherty and first mate stephan harp,but
we are uping down payments because.....

[SASKFARMER3]

Their is a huge housing bubble, Crap old neighbor just sold his house down the street for 695,000.00 and guess what its bought by a nice young couple with no kids. Guess what there is a housing bubble these guys will be paying for years.
Now on the land issue, if a plumber buys property or rents no problem, I could have been a plumber or electrician or what ever. But if I want a small dealership guess what no way not enough volume for 10000 acres and they wont sell me one.
And oil company Ill rent it from them, But paying for product and then having that firm in turn compete against me for rent that's wrong.