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Senior Advisor
Posts: 1,039
Registered: ‎05-20-2010

Re: No more Monsanto

Just another example of zero interest rates having unintended consequences.

Maybe you should give the boys and girls in St Louis a little credit. They are

selling the thing for way more than it is really worth. Free enterprises at its

finest.

 

I remember Mitch Daniels catching grief for selling the northern tollway in

Indiana to a foreign company for something like 6x what it was worth.

Good move.

Honored Advisor
Posts: 7,494
Registered: ‎07-18-2011
0

Re: No more Monsanto

Oh to have that much wisdom............

 

To know what a business is worth in income value, what it is worth if up for sale, and what its potential worth is in both time(the short life of technology) and flexability of management.

 

and not fall in love with any of those too much.

 

There is a lesson there somewhere

 

Thanks Time

 

 

 

Senior Advisor
Posts: 1,039
Registered: ‎05-20-2010
0

Re: No more Monsanto

Great points SW...I admittedly don't know the answers to your questions...

my reference point is merely that stocks are over-valued by about 200%

and commodities are grossly under-valued IF stocks are not. So,

it is a good time to sell paper stocks to some unsuspecting foreigners :-)

 

Monsanto doesn't have an exclusive on genetic innovation and their

germplasm pool has been very well exploited so maybe this is their peak?

They certainly have trouble making money given their monopoly pricing

position.

 

No idea...but if paper would become less over-valued...this sale might be

like selling land in 1980. Who knows.

Veteran Advisor
Posts: 901
Registered: ‎05-13-2010
0

Re: No more Monsanto

I heard a snippet of conversation about the following subject on one of the business channels..

 

" given the somewhat negative connotation that the name "Monsanto" inspires in variety of groups ranging from farmers to anti-gmo'ers, would it be a "good thing" if the name went away as the result of this pending merger"??

Senior Advisor
Posts: 3,228
Registered: ‎04-30-2010
0

Re: No more Monsanto

You don't mean that to apply to how we market corn, do you? Smiley Happy
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Senior Advisor
Posts: 3,228
Registered: ‎04-30-2010
0

Re: No more Monsanto

The danger on names is that now Bayer could get all the bad connotations that Monsanto has.  Might be just as well to keep Monsanto for a lightning rod.  Or change Monsanto to something else but not roll the name under Bayer.  One reads comments that the two enterprises will retain separate headquarters, etc.  No doubt the back-office staff will start to consolidate and save money there.

 

We'll see.

 

The deal on this is we are going to face a highly integrated, systems approach to farming and I predict we farmers are going to get a high-pressure dose of "keep it in the company" the way we get from John Deere.  Right in the middle of all of this will be farmers being persuaded by their own data being presented by someone with every interest in massaging it in Bayer's favor.  Why would they not?

 

We all saw many different 3-point hitches and different hydraulic fittings as companies tried to keep you in the family.  Will we see it splitting out again in agronomy?  Already we see that if you want precision ag equipment on your John Deere you'd better buy their system, no more add-ons that work as well or are supported.

 

How does this fit being in the Marketing Talk forum?  I'll tell you again that in 1995 I sat in a meeting with a Cargill Vice-President who said that within 10 years they wanted to have grain farmers in the same position that poultry and hog farmers are today.  Cargill hasn't made it on schedule but there is nothing we see that goes against that trend.

 

Investors will own the land and big end-users will provide the inputs and the instructions.  A farmer-owner or a farm manager will have the job of makeing the plan work efficiently.  Agriculture will still be a commodity business and the commodity will be the person on the hot seat.  The rest of it will be factory style operations in a way that the environmentalists who yap about factory farms never realized.

 

 

Veteran Advisor
Posts: 901
Registered: ‎05-13-2010
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Re: No more Monsanto

who was the Cargil VP??

 

I must have been way too far down the food chain, because I was NEVER involved in a discussion as you describe

Honored Advisor
Posts: 5,254
Registered: ‎01-10-2012
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Re: No more Monsanto

It seems to be the "Master Plan", don't know a single seed company that hasn't renamed farmers. All call us growers now....same name all people with hog and poultry buildings are called.  

Senior Advisor
Posts: 3,228
Registered: ‎04-30-2010
0

Re: No more Monsanto

Ray, it's over 20 years ago and I don't recall the name.  I recall the circumstances quite vividly.  We were meeting in a seed facility near Marshalltown.  The internet was just getting going and I was pretty active in helping farmers set up modems and such plus doing some writing.  I don't remember the circumstances for getting together with the VP, but I was quite surprised by the comments.

Senior Contributor
Posts: 12,639
Registered: ‎05-13-2010
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