20 Miles West of Indianapolis Indiana | Coup has said many times over he isn’t doing anything on the buying side that someone else couldn’t do if they wanted to.
His offer would likely appeal very well to say a father/son operation farming the 1500 acres he is talking about and the father wants to provide room for his son to move into the operation. Especially when the father realizes how much money he could save on his own acres... and especially if they have the equity farm the extra 500.
In reality if you buy all your inputs off of a coop and then sell all your grain to them, they are probably making more money per acre then you are. The real money is in the fert/seed/chem markup and the drying and blending of the grain. If their customer base starts to figure that out more and more they may consider attempting to rent some large estates (large chunks of land) and then sub contract out the planting and harvesting. Might be something like 1000 acres and 250 acres each contracted out to 4 guys? The coop keeps spraying and applying the fertilizer and handles the grain... |
coup-more high rent?
