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Originally Posted by #-3
$1.5 M is pretty marginal buying power, when there are thousands of customers available buying in the same volumes, there are only a few suppliers and there aren't good alternatives outside of that market.
I guess another good reason companies like Vitera would fight this is fear, when your on the top change is not a good thing.
But i still just can't see this, too much new overhead in the building that isn't there with bare land.
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In general most small family owned farms are going away and being replaced by larger conglomerates who have more buying power. This might take a few more decades, but with the price of land being so high and commodity prices being so low, it is tough to make money when you farm 5,000-6,000 acres if you're not raising specialty crops.
I agree, $1.5 million is peanuts when you look at big operators. Especially in Alberta where some guys farm more than 100,000 acres, and you have numerous Hutterite colonies that farm 10,000 or more.