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SW MN | Curious to what you think this would be?
I was having coffee with a large farmer friend, and we were talking about seed orders. He and I were getting the same seed from the same place, except he was getting it for $100/bag cheaper than me. I was floored. That's a $40/A competitive advantage due to his size versus mine. I said he can buy my seed and I will pay him $10 a unit more just to get the deal and said he can't do it because they check his planted acres to his order (he has to buy all his seed there to get that rate even though I buy all my seed there too). If it happens there, where else is he getting that type of advantage? I would make the assumption chem and fertilizer, possibly some better discounts at the dealership for parts and purchases.
It is no wonder he can "afford" to bid rent or land purchases higher than I can pencil out. I can't shave my expenses enough to compete on a level playing field. My best guess is that he's about 80-100/acre lower in inputs than I am. | |
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what does farming look like in 5 years?
