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elcheapo
Senior Advisor

Cutting out the middle man

News that general Mills bought 34,000 acres and
Use it for organic production.
Many are laughing
But this company has some smart people
Working for them.
It has been speculation that company's will
Have seed they want to control.
Oh by the way...they are doing organic
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14 Replies
clayton58
Veteran Advisor

Re: Cutting out the middle man

So where are they buying? Will they rent out to area farmers? Hire it custom farmed? Do it all in house? Any manager position open? Fill us in please.
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k-289
Esteemed Advisor

Re: Cutting out the middle man

TV  station KLKN in South Dakota reports  Gunsmoke Farms LLC  in middle South Dakota  ?  ?

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k-289
Esteemed Advisor

Re: Cutting out the middle man

West  of  Pierre South Dakota  - certified  organic by  2020 according to the article, being the target date ---

 

Is this a minor shift,  a trend,  a  waking call from the consumer ? ? 

 

Maybe piles of homeless , perishable, commodities aren't the answer  / ?

 

My neighbor selling 140/bushel/ acre corn @  $11.00 was a wake up call , for a few around these parts - in a story I reported  2 yearZ ago,  hmmmm---

 

Grandpa mentioned when the ''' heard turns right ''' take a left - decades ago &  time will take care of the rest of the  B S - is that still a factor ? ?          

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elcheapo
Senior Advisor

Re: Cutting out the middle man

Must not have fit the ideas of markets

Nor an important story

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k-289
Esteemed Advisor

Re: Cutting out the middle man

40 loaves  or 45  boxes / bushel - being the matrix  - millennial market place (organic) is the push - like it or not - fade diet , to soon to tell ---

 

I'm sure the retail market has been  '' researched '' ---

      

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k-289
Esteemed Advisor

Re: Cutting out the middle man

Article in  '' Capital Journal ''  online - $41,000,000. oo deal states the newspaper ---

 

The  Capital article states the land was switched from  grass to wheat etc,  in the 1970's ---

 

New owner  R D Offutt  from MinnEsota  according to  Capital ---   

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elcheapo
Senior Advisor

Re: Cutting out the middle man

So ya all are rolling in the isles laughing, it's
A joke. No way they can make money with organic,
No fertilizer or herbicide(s).

Well kids, they would not spent that much if the
Numbers did work ((ah, they are not farmers !!!))
But let's see, say the mill out is 40 loafs (or whatever
Product) per bu, let's say $2 a unit, that figures
Out to $800 an acre.....any you fellows making
That much on 10 bu acre wheat ???
Granted there is mill and product profit built
In. I am guessing the organic producers just
Could not produce the amount wanted, plus they
Can use their own special breed wheat seed that
May have some unique qualities.

We used to have a fellow on here from the PNW that
Was in the organic grain business and he was always
Looking for some.

Last couple yrs organic wheat in excess of $7/bu.
But the distance to haul, plus 3 year wait are
The killers
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sw363535
Honored Advisor

Re: Cutting out the middle man

One other benefit of this project out on the high fringe........ owning ones own production...... it is easier to control the production restrictions........ and a lot easier to limit the auditing of claims or proof on not meeting those quality claims.

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k-289
Esteemed Advisor

Re: Cutting out the middle man

Friend  of  mine  is  transporting trailer loads  of  organic  fertilizer  to  some  popcorn  growers, and  keep  in  mind  the  gentleman  shaking  the  details  on  this  venture  being  a  volume  spud  grower  from  Red  River  Valley  ---

 

Who  knowz   boom or  bust  ?  ?  

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