How much is fair mark up on crop inputs

[furrowtickler]

Darren what you say is very true about agribusiness. Most retailers don't have a real grass roots clue on what they "should " be selling. For most it's about programs, I know I have been in the retail side of it for 15 years now. I quit my first job because of the way certain seed companies treated/blended "certified" canola seed. It used to give me a sick feeling.

[darren442]

I guess on the positive side things may be changing. The number of acres out there are not really changing but the number of farmers are. At one time each retail could have 100 farmers but now maybe 50. As time goes on and farms get bigger and the number of farmers get smaller maybe retailers will have to make changes to keep customers.

Once upon a time an most agronomist became your friend because he wanted to now it's apart of the selling technique so that they can talk you into inputs.

[Lifer]

so very close

[ado089]

Darren, If you set up your own retail and sold product to yourself at a 20% markup you would be paying 16.5% more than you are now on average. As a retail manager I've tried to tackle this issue from several different angles. I've gone as far as approaching bigger producers and offering everything at cost and charging them a brokerage fee as opposed to having a margin markup. This seemed like a good idea until the pencil hit the paper and it was realized how little markup there was on products. As long as grain companies are making $20-50/t on your grain they will give you the inputs to keep that grain coming in. It always amazes me how someone will pay a consultant up to $10/ac for his "services" yet they bitch about an extra 20 cents an acre on their chemical or $3/t for fertelizer that their local independent is offering with that same service. Most small retails have a genuine interest in your buisness and your success as a producer. And will offer you their "services" at greatly reduced cost to you than a consultant would offer knowing that your success is their success.

[Lifer]

I like sardines better then red herring. I know you can do it.

[FarmRanger]

but red herring are such a tasty diversion

[Lifer]

Thank you Mr Ranger sir for being the 100th message on makin' it work. I hope it makes you feel special.

[Professional]

Darren, It's not about what you're doing, it's about how you are doing it. You painted every retail with the same brush. If you are a Professional Agrologist you have just breached the code of ethics and can be brought before the Institute if you keep up with your broad spectrum insinuations. As a P.Ag working in retail, it's about agronomics first for the customer and it's about protecting the public. If you had an ethical dilemma with a previous employer it's good that you left. However, keep it professional and between you and them. If you have a great idea that helps agriculture then get it out there in a professional manner.

[darren442]

No i'm not a P.AG i looked at the brochure and threw it in the garbage. Being a Certified Crop Advisor has more standing in my books.

I take it prof you must have a retail.

[GrainBeetle]

cow photo:

[sidvicious02]

ado089, i think you would be very, very hard pressed to find a grain company making $20-50/mt on commodity.