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Re: Farm Implement Dealer Consolidation


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Posted by farmer boy on February 04, 2018 at 09:58:39 from (104.224.109.160):

In Reply to: Re: Farm Implement Dealer Consolidation posted by Traditional Farmer on February 04, 2018 at 09:09:55:

There are two major things that many Americans feel obligated to believe, that kind of wrap into one. Captalism is good, and therefore, greed is good. You show me where in the bible has greed, EVER, EVER, EVER, been a good thing. Greed is not good. All of these companies do very questionable and often corrupt things in the name of money. Of all the system's in this screwed up world, capitalism is good, but it does not therefore follow that greed is good, because it isn't.
The only prefect system would be communism with Jesus in charge, short of that, capitalism is where it has to be at.
As far as the majority of sales and profits coming from 2 groups, I'm not so sure about that. I'd have to see the numbers before I'd go making a claim like that. What I can tell you is that sales and profits don't go hand in hand. I don't know if you're ever heard of Multi Unit Discounts(MUDs), but the discounts are substantial enough that if a manufacturer is having a tough go of it now, if every customer was large enough to qualify for MUDs, the manufacturer wouldn't be able to make it work.
You may be over estimating how many CUT's are sold, and while you'd think the margins on them would look really good, in the case of Deere, they don't manufacture any of their own CUT's, instead, sourcing them all from YANMAR, which means they aren't as competitive as they could be. At this point, Deere hasn't figured it to be worth the investment to manufacture their own CUT's, which should say something about the scale and/or profitability. Either that or Yanmar can build them in Japan and transport them 1/2 way around the world for less than Deere could build them in North America.
Now, beyond all that, 97% of farms in the US are family owned (2015 stat). I'm aware there are a lot of large family owned farms, but to supplement that above statistic, 88% of all American farms are considered 'small family farms'. A small family farms is one with a GCFI (gross cash farm cash income) of under $350,000, which I'd consider to be a very fair estimation of farming in the US today.


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