Paradigm shifts in agricultural thinking will be coming. How many times have we thought that before?
Agricultural producers are now just under ONE PERCENT of the US population according to the last census. These farmers feed our nation plus produce enough for export that becomes a bargaining chip and a major portion of our export sales, which helps offset our international trade deficit.
I hold dual citizenship, an "ag equipment dealer" and "farmer." So, farmers are the last bastion of individual, capitalist, entrepreneurship, right? Wrong, I am sorry to say. The farmers that we sell equipment to are — by political will — a highly subsidized entity. Right now there are billions of dollars wired to their bank accounts in bailout money due to low commodity prices. Why? To maintain a cheap food policy.
This is the economic manipulation of monies that takes dollars out of taxpayers pocket book and sends it to ag producers to keep them oversupplying produced commodities that are resultantly at or below the cost of production. This keeps what remains in the wallet enough to buy widgets instead of spending what the rest of the world does for food. Thus, the masses do not revolt and vote out all the ones in power. Politicians seem not to like that public sentiment. When politicians use the high price of eggs on a chart during a speech, as during COVID and a supply issue, it proves the point.
We farmers have our own code words in this subsidized area. ARC/PLC, CCP, FCIP, RMA, FCIC, PP, CRP and state programs like our TAEP. I will not expound on these, you can ask Dr. Google if interested. The old joke is why do farmers roll the front of the bill of their caps? To be able to look in the mailbox and see if the government check is in there yet!
I recently saw a political campaign promotion of one running for Secretary of Ag in one of the "I" states. He proposed high solar-powered farms that would allow livestock production below panels and a return to beekeeping and other non-row crops enterprises as a solution. Now this would be a paradigm shift that would require a totally different type of equipment. Would this help? Would this be a grant/tax subsidized change or the farmer foot the bill? Who knows, but it would be a change.
To the rural lifestyle dealers, will their customers' buying habits mind set change and reverse the downward trend of tractor sales? Some think the Big Beautiful Bill's provision will put money back in circulation for just this needed change in buying habits. So, how are we as iron peddlers supposed to intelligently react to these possible changes? As in the past, educate ourselves, think for ourselves and plan likewise. Consultants have as many suggestions as the number of songs written about change. You are smart, write your own song as change occurs.
'Til next time, may miles of smiles and profits be yours.
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Told from the perspective of an in-the-trenches owner/operator — Tim Brannon of B&G Equipment, Paris, Tenn. — Equipment Dealer Tips, Tales & Takeaways shares knowledge, experiences and tips/lessons with fellow rural equipment dealerships throughout North America. Covering all aspects required of an equipment dealership general manager, Brannon will inform, entertain and provide a teachable moment for current — and future — leaders within equipment dealerships. |
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