Chemical Rebates

[WoolyBear]

How many of you are getting fed up with all the deals out there for volume rebates?

BASF's 20/20 program is way out to lunch for most farmers....... I know lots of us that wouldn't spend $10000 total for chemicals, and why shouldn't we get the best price like the "BIG GUYS"?

Why should producers have to buy so many units of product A, just to get a better price on Product X?

Why should a producer have to pay the TUA to Monsanto, if we choose to not to us Roundup? They won't let us have the "crop insurance" if we use another glyphos........ why all the rules?

I guess it just another way for the big chemical companies to get rid of all the medium size farmers by giving the bigger farmers a better advantage

[grrrr]

I agree. It just burns me when I pick up the mail and there are all these great deals on chemical, if I were to farm three of four or ten times as much land. They just don't want us around.

[gwynplaine]

Yes, it is unfortunate that smaller producers cannot capitalise on the high-end of the Chemical Rebates. That being said, lets turn to the supply and demand table. High volume = lower price. This stands true in every industry, the more volume you buy, the lower price you pay per unit. The chemical companies are, in fact, trying to sway the business of the larger farm operators. Is this fair? Of course not. Does it happen everywhere, every day? Of course.

Now, there are other options out there. Form a buying group, and take advantage of the economies of scale presented by consolidating the demand of a group of producers. This is difficult to co-ordinate, but can get you a lower price. I believe the concept is called "a co-operative". I can give you some examples of places and groups this has worked for. You still won't get the chem rebates (the companies discourage this, due to the inheirant complications), but you can get lower price.

[gwynplaine]

And, oh yeah, I doubt that any company is maliciously trying to put you out of business. Not out of any sense of altruism, mind you, but simply for the fact they make too much money off you and other producers your size.

Again, reality of the situation.