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Contributor
Posts: 23
Registered: ‎07-20-2014

many speak of BTOS

as someone who runs 5K to 20000 acres,that will be nothing when this is over.

Veteran Contributor
Posts: 110
Registered: ‎05-15-2010
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Re: many speak of BTOS

especially when certain implement companies are starting to build 10 mph planters..............

 

 

Honored Advisor
Posts: 7,487
Registered: ‎07-18-2011
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Re: many speak of BTOS

technology is already driving this and all it will take is the proper economics. 

 

Too many in agriculture think about the neighbor when the bto tag comes out.  The new bto's in ag may be internationally based entities.

Senior Contributor
Posts: 1,278
Registered: ‎06-14-2010
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Re: many speak of BTOS

I expressed my opinion about consolidation in a post below. I guess the definition of BTO maay change. I alredy think it's a farm over 10k. I picked 10k acre as a starting point because there are so many "family" farms in the 5-10k arce range. Maybe having some neighbors farming over 50k changes my perspective.
Frequent Contributor
Posts: 33
Registered: ‎04-22-2017
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Re: many speak of BTOS

I have a BTO near me that has problems. He has filed for Bankruptcy. He is farming this year. I have found that one of the large land owning  corp. that he leases from get there money from a bank in the Netherlands. I think he is almost thru. W

hat is going to happen to all the land that he rents. I think it's about 100K acres. What is this overseas bank going to do with the land. Dump it on the market? I don't know of anyone that can take over this large of farming operation. Even if you broke it into 10 pieces they would be huge.

Advisor
Posts: 1,354
Registered: ‎08-04-2010
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Re: many speak of BTOS

SW, we have seen what it looks like to have an international investment group prop up a certain 100,000 acre BTO, it failed. Sad thing is, its rumored that companies like John Deere and CHS let the arrogant POS farm another year. 

 

In my region I've seen a 10,000 acre farmer, a 40,000 acre farmer and a 100,000 acre investment entity backed farmer go broke. Its common to hear the BTO's brag up how little they pay for inputs, but if they pay 20% more for the land to operate on just to have it, its a wash. If the large grain companies like ADM, Cargill or Bunge seen lots of money to be made in farming, they would have done it a long time ago. Every BTO seems to think they can learn from the previous BTO's mistakes, they all seem to think they can do it better and the guy to go broke won't be them. Its like a broken record.

Honored Advisor
Posts: 7,487
Registered: ‎07-18-2011
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Re: many speak of BTOS

Wishfull thinking maybe.  Or just ignoring the truth...........

 

The number of farms in the US continues to decline...

 

The average farm size in acres continues to grow.........

 

Cargill, ADM and Bunge are examples of large monopolies that exist in place of thousands of independently owned grain elevators..... in our area there were 28 independent individually owned grain buyers, many farmer owned, in a 50 mile radius in 1965, now there is a large coop and ADM.  Or selling direct to end users like the large farms do.

Cargill, ADM and Bunge,  did it years ago and the trend continues...

 

Question...... What % of us corn and bean production sells on a local elevator basis market??

 

I could say the same.  but I would have to ignore too much............. The US economy is based on faliures of the many and dominance by the few that succeed.  No diferent in farming.  in every area of the country production by a few is dominant.

And in every segment of farming..... eggs, poultry, pork, dairy, Beef,  and grain....... the trend is not going away just because of the failure of one poster child.

 

Foreign ownership is huge and being encouraged by a government that is struggling to hold an economy together.  In most areas it is difficult to sell grain and not sell it to foreign owned buyer.  

And where are we when we are hoping for the trend to fail..............(seems a lot like a bad position in marketing)

 

 

 

 

 

 

 

Honored Advisor
Posts: 7,487
Registered: ‎07-18-2011
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Re: many speak of BTOS

I could name a failure or two of size in this area, and the size might be an impressive factor, but I doubt that size is the reason for failure.

 

I could make wild comments on that failure but I would have to ignore too much to be right.

 

to my southeast is Braums Dairy's large farm and a good example of vertical growth, bypassing the "basis" sales all the way to the retail counter.

 

to my southwest is large cattle and hog feeding owned by a few of those "small" farms  that have been in the huge category in acres for decades and the largest employers in more than one county....  

to my north is grain and cattle production through 4 kansas counties that is dominated by a group of close and interrelated farms that back in the 1970's sold off its Collingwood grain elevator system to ADM (at the time the largest elevator chain in western Kansas) and continued to expand its huge land ownership position.

to my west is a large farm in the Elkhart, Kansas area that has diversified into holdings into a very large chain of Theatres across three states.

to my northwest is another large farm that has diversified into banking in three different counties of Kansas. --- while adjusting to the changing status of groundwater.

 

this point is getting too long........ but my point is these entities have been "BTO's" since the 1950's with roots long before that.  They have grown through many "conditions" and trends, growing up with the energy, irrigation, cattle feeding, technology changes over decades.  

We have a better chance of succeeding in this industry if we observe the successes of our industry.

 

If we are depending our success on the failure of our competition what are we hoping to learn?  And where do we end up?

Advisor
Posts: 1,354
Registered: ‎08-04-2010

Re: many speak of BTOS

SW the reason operators are so large in your area is simple, nobody wants to farm on the great plains. A 10,000 acre farmer in the midwest is considered large, a 10,000 acre farmer on the great plains is considered slightly larger than average. Most people look at the price of farmland in Kansas, Oklahoma and the Dakota's and think they might be able to make a go of it, wrong. You have to have some balls to deal with about every biblical plague on a yearly basis lol!

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Frequent Contributor
Posts: 33
Registered: ‎04-22-2017
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Re: many speak of BTOS

Blacksand. I think that we are thinking about the same BTO. I live in N.W. Van Buren County. Most of the farm land around me is owned by a  overseas bank. What will happen to it next year. Will it set empty. Will the farmers that lease to him get paid this year.