In July 2023, RealAgristudies looked at farmers’ opinion on consolidation and how it is impacting their farm businesses.
While 90 per cent of farmers say that they are concerned about consolidation in the agriculture industry, not all industry verticals are viewed the same.
Canadian farmers have the greatest concern about consolidation of equipment dealers, with 66 per cent saying it has a negative impact. Fertilizer manufacturers (62 per cent), ag retailers (60 per cent) and seed/chemical companies (60 per cent) tied for the second most concerning segments. Farmer were least concerned about the impacts of consolidation of ag tech/precision ag companies (28 per cent) and animal nutrition companies (25 per cent).
There are several factors driving equipment dealer consolidation. As farms have consolidated so have the industries serving them. Ageing dealer owners, pressure from manufacturers, and expanding service capacity requirements have all factored into the consolidation of equipment dealers.
We do hear anecdotal concerns from farmers on the RealAg Radio Farmer Rapid Fire to support this survey data. Farmers mainly express concern over difficultly to get competitive quotes, service availability and service quality, and convenience of part pick ups.
In reference to the overall responses regarding consolidation having an impact, the largest farms (those over $5 million in revenue) are less concerned about consolidation than the smaller counterparts. Additionally, farmers over the age of 55 are more concerned about consolidation than younger farmers according to the RealAgristudies Insights Panel responses.