The Farmers Club Newsletter

The “Club Notes” for Friday, the 8th of March, 2024.

By Dwain Duxson

FarmTender2024 video available now

The feedback from our second-ever event, FarmTender2024 - Entrepreneurs in Farmering, has been overwhelmingly positive (surveys went out last night). And I have relistened to a couple of the interviews, and I will get to the others very soon. We carefully select our speakers, and alot of time goes into asking the right questions, which will bring out answers the audience can take away and use in their own businesses. It's a unique approach. So, the video you can now purchase has nearly 6 hours of gold nuggets. Reply to [email protected]

Actions stations

There is alot going on the the Machinery Dealer world right now. Case Dealers Kenway and Clark announced yesterday that they bought out Carruthers Machinery Co at Cowra and Young in what is a move South for them. We announced the other day that AGCO will close down any Dealers that don't have an individual location tunover of under $20 million and any Group Dealer that's under $100 million. I find this an extraordinary move by AGCO. Why? Because some of those smaller owned Dealership are family-run businesses and Farmers like dealing with them. Most provide a much better service than the Corporates who are on the nose. Imagine being told that your business virtually has no value and can't be on sold. To many, that was probably their super. But the biggie is, and it only a rumour at this stage, is that Titan, who bought O'Connors, has onsold the business to the Indians. As I said, it's only a rumour at this stage. Who's your favourite Dealer, and what makes them stand out? Reply to [email protected]

Field Days going forward

I have had a few reports come in that the just-completed Wimmera Machinery Field Days lacked the atmosphere of years gone by. A person I know who works in the Marketing space for alot of Ag businesses who exhibited there said that very little was transacted. Our friends at Ag Surveys did a survey on Field Days (it's still open) and came up with these stats. 73% say Field Days are still relevant in any of their purchasing decisions. But only 7% said they were going to purchase. 20% said they were going for a social day out, and 20% said they would not be attending any Field Days this year. So, going by this, Field Days still have their place as far as Farmers are concerned, they are still part of the purchasing process. There are just fewer Farmers around, and the organisers are just going to have to get used to lower revenues, which might see some struggle financially. In your personal opinion, do you think Field Days are still relevant, and why? Reply to [email protected]

Elders doing a Ruralco

Elders are on the acquisition path. They announced yesterday that they bought Mark Flagg Livestock out of Barellan, NSW. Before that, it was Charles Stewart, and the list goes on. Their latest model of acquisition is they are allowing the Agency to retain their name, and in most cases, the Agency owner has stayed on. This is like the old Ruralco model, and I think it's a sound business move by Elders as it's saying yes, we are corporate, but we still retain that localised feel. I am not sure how the financial engagement works, whether it's a complete buyout or not. I heard one business media person say it's a tactic to keep the revenue growing by tacking on this extra business to keep the analysts happy. So, as we mentioned above, with the Machinery Dealers becoming more corporatised, Agencies are heading that way too. Do you think it's a good thing that smaller Agencies (and Dealers) are becoming corporatised? Reply to [email protected]

Your replies

Below are snippets from some of the replies you sent in. All quotes will remain nameless. See a few current ones below:

• “Just this school term, I was actually quite excited when my 14-year-old boy came home to ask if I would mind paying the extra $700 to do the Ag program at school (Kelmscott High School in suburbia Perth has a small farm on the school property). I was so happy that he would learn and hopefully come to appreciate Ag what I've only learnt now, encroaching into my late 40s. - This came from a parent who runs a business that has some ties with Ag but is city-based.  

• “No different to mining companies getting rich off our gas or minerals. Farmers should be getting rich off our Land.....not supermarkets”. - In reply to our Supermarket stories.

• “Ag businesses are generally at the bottom of the supply chain without much line-of-sight to the end customer, so they struggle to understand what the customer actually wants. Therefore, I believe rebranding Ag in line with what consumers are looking for - is desperately needed”. - One person’s opinion in our Farm Tender story about rebranding Ag. You can read it here.

• “I was just reading the part about succession, and I believe you are right. It's not something that can be worked out in 3 months where you reluctantly sit around a table and split up assets that could have taken generations to build up, and all of a sudden, it’s all split up and worthless”. - A Farmer replying to our Note on how we should be looking at succession over a 10-year or more timeframe.

• “I really enjoy your emails each morning, it gives me and others, I'm sure, a few things to ponder on for the day”. - I like how the stories get some people thinking.

• “We don't have much competition from the outside public as sporting codes do. As soon as Ag involves the public in our space they then have the right to tell us how to Farm. Take Cow farts as an example. Ag is a bulk commodity and should be treated as such. Let market forces shape innovation.”. - In reply to our rebranding Ag story.

End of message.

Dwain Duxson
0427 011 900

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