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| Coup Are you a independent fertilizer, seed, crop insurance agency, and chemical dealer as well as a grain farmer already or is this just all hypothetical? Would you be able to beat or match the price of fertilizer and chemicals from a farmer willing to buy online wholesale and pick up fertlizer at the river and spread it themselves? What if this same farmer would also buy semi loads of seed corn directly from the seed company at the same price your paying? If that was the case the only value you could provide would be in financing and that didn't work out very well for some independent dealers and CO Ops during the eighties and nineties. I would want to be the 1st lein holder on land owned free and clear before I did that. Farmers now have local banks, farm credit, JD financial, Rabo and equipment company financing So a lot of lenders possibly looking to get paid from too few dollars and assets when things go bad. So part of the problem I see is the people that will want to do this will be the ones with poor financials and what if the crop insurance check is not enough. Also the guy that can buy and pay for his inputs for next year's crop the summer before will not need you for operating and will probably just buy the farm or out bid you on rent.
That's how I see things working for the independent local guy now a big outfit could get ahold of someone like borson then and finance that mess and maybe make well if they get paid but that would be like trading penny stocks or buying junk bonds.
For the really big money the smart play will be further consolidation and squeezing the farmer with higher cost from companies that have a monopoly on the market ie: Fertilizer companies, seed and chemical companies, equipment companies and even equipment dealershipsLike what just happened here with JD equipment.
The poor farmers will be like Morrie and our suppliers will be like Jimmy Conway
https://m.youtube.com/watch?v=JKDgjLf_rk4
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coup-more high rent?
