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| No of course someone like coup wouldn't be dealing directly with the Co-Op although he could be indirectly because some of the fertilizer terminals on the river are partially owned by the Co-Op. If you're gonna be a farmer dealer on anything and you start getting aggressive on running land or buying land you will start to lose customers "here". I agree the consolidation will continue but a low cost of production operator that owns a lot of land will not be forced out.
I can see the small retailers and COOPS trying to survive with farmers continuing to cut the fat but maybe they would do it by just becoming farm managers and taking a percentage of the rent instead? The cash flow would be better without having the money tied up in cash rent! They could still bully the farmer from buying inputs from them and they make a percentage for doing nothing. It would be like Amazon making more money off of people who sell their product on Amazon versus when Amazon fulfills the order itself. The big squeeze I still feel though will come from CaseIH, John Deere, Corteva, Bayer, and the fert industry. Like this year the fertilizer industry is making prices go up because they can.
I'm sure the changes of the future will be interesting | |
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coup-more high rent?
