Dealer Getting to be Very Large Farmer?

[fjlip]

This similar to One Earth with suppliers involved with shares or contracts for a whole range of inputs and iron. Should we buy those products when their investment will influence what we pay for rent, and give a cost advantage to One Earth?

[Ron]

WTF? "But if I want a small dealership guess what no way not enough volume for 10000 acres and they wont sell me one" Big deal, you dont want a dealership you want to bypass the dealer.
You said you only wanted to supply your own farm, thats not a dealer. Thats you trying to buy cheaper.
Quit whining about it.

If you dont like a fert/equip dealer farming then dont deal with them.
From your posts you already shop around constantly so you have no loyalty and should expect none. From the whining about input prices, elevators (and/or CWB) screwing you and (gasp) other farmers daring to want to either be bigger than you or the little guys not enjoying being outbid or bought out by you I dont think anybody would be really hurt by losing your business.

You have some really good posts but this isnt one of them.

[SASKFARMER3]

Sorry Ron but this post asks the question is it right for Dealer to take over farms. It happens in allot of areas I am just looking for discussion its not a case of it hurting my operation its just I am PST at this taking place. But shopping around will send a message fast.

[may-be]

Our JD dealer been gobbling up land too. The other shareholder did not like seeing some people turning red because of this. This conflict made the farmer to sell out his share this spring.

[SASKFARMER3]

Good point my question has always been why bite the had that feeds you. Simple isnt it.

[Ron]

My comment wasnt meant as snappy as it sounded but I still dont see the difference between a fert/equipment/dealer competing with you and a neighbor bidding against you?
Farming is becoming less and less of a priority for me so our viewpoints are from opposite ends of the spectrum. (I am pretty sure as long as we stick to marketing issues we are on the same page though)

Ron

[DogPatch]

years ago farmers use to be able to buy chemicals from some suppliers and then turn around and sell for their cost. They got their product for the same price as the dealer then. Never any margin left to pay for regular dealer costs like labour, fuel, electricity, hydro, security, inventory carry over, Customer appreciation days, community donations etc. I wonder what a CPIC Warehouse costs to maintain? Been out of that racket for alot of years now.

[malleefarmer]

Its happening here in aust dealers buying land. For what its worth most aussies are supportive of it, the dealers actually go and get there hands dirty and understand real problems.
Plus they seem to put a floor in the market somewhat they seem to buy value for money farms rather than top dollar purchases.

[JACKFLASH]

Sask. Are we talking about Precsion Ag, Was just taking a circumfrence of 106 miles and hey seem to fall in that circle.

[SASKFARMER3]

No not them, But Up at Kamsack a Dealer got huge and farmers rebelled. One traded all for red.

[gregpet]

You mean Paul Cherkas? That green dealer is getting larger acreage wise but how do you think Huyde got so large?

[SASKFARMER3]

Yea I know thats happened big time in that area it is probably the worst for Dealers getting big big big.

[furrowtickler]

Rick Simmonds is one as well.

[frustrated1]

Fair competition is one thing, twisting an advantage is another. We have 3 farms in this area that apply here. Fertchemfuel dealer. Machinery dealer. Management in local grain co. If I have to cough up extra rent because the neighbour's boy wants to expand, maybe I need to sharpen my pencil. If I'm pushed out because the "demo" combine or drill is putting in and taking off the crop, my costs are not on the same field. If the fertilizer and fuel used are "at cost" across the fence, it's a bit twisted. If a numbered company finds out about a canola premium in the office before anyone else, or "demo" products show up in the managers machine shed, it changes the picture. This one has even bragged he can afford to pay an extra $10 acre rent from his advantage.

Here's another twist. These 3 are all in position to know who's in trouble, who wants to quit, who has to quit and they're doing this out of their offices. Offices they expect us to pay for by doing business with them and then get pouty and can't understand why people are pst. After all, they are such nice guys. I don't do business with them. I don't have to do business with them and I've got very secure landlords who don't put up with them using their positions to procure land. They have tried to scoop my land from their offices but so far have been told to take a hike. Mostly they are not winning any friends. But I quess if you're only chasing the $$, the friends don't much matter. You can buy a new bunch in Arizona.

[DogPatch]

You should check the credit apps that those dealers have you sign. I bet most of them require land for security.