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WC MN | Coup's post about seed is just one example of what we are facing in Ag. I know the seed he plants, plant some myself every year. Seems to hold up with other brands pretty well. They don't advertise around here, no DSMs, no hats, no "free" vacation or equipment giveaways. They seem to have eliminated a lot of the overhead that all other companies have.
Local fertilizer retailers usually need to add $60-$80 to each ton to pay overhead and handling I'm told. I doubt that number has gone down. Lots of guys sitting at counters. Lots of pickups and other overhead.
The big dealers have only increased office jobs and many are going to a more corporate way of handling customers. How many dollars in an hour of service go to people sitting at an office for titan? How many dollars in a new piece of equipment go to service overhead that doesn't do us any good or increase production of equipment?
Every facet of ag is pretty bloated and at the end of the day ever dollar has to be generated from the ground (or the govt handouts). Seems like the disconnect continues to grow over time. It will probably be sustainable to some point but it is just interesting to see how many people make huge money in this industry. We are definitely on the wrong end of the food chain at times
With all that said, as a grain farmer, we still have it pretty good.
Edited by IALTO 2/18/2024 17:21
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Overhead in Ag
