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NE Corn
Member

Remove Anti-Trust Exemption for Coop's

I hate to say it, but we need to see the breakup of farmer cooperative over a certain asset level.  In our area, the coops are creating a monopoly in regards to seed and chemical sales.  Because of anti-trust protections that are out dated, we are seeing an end to private business and a farmer's options are very limited.  When the "local" coop owns the ethanol plant, fuel terminal, nearly all chemical and agronomy services, grain terminals, and Arial applicators; we have a problem and farmers will suffer.

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4 Replies
Jim Meade / Iowa City
Senior Advisor

Re: Remove Anti-Trust Exemption for Coop's

Interesting.  Around here, the co-ops are not competitive.  Private industry, both large and small, are taking co-ops to the cleaners.  Private buyers pay more for your grain and charge less for your herbicides.  Many co-op customers here are heritage customers - people who have always done business with them out of habit and haven't been pricing around.  Those who pick up the telephone and get quotes are leaving.

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NE Corn
Member

Re: Remove Anti-Trust Exemption for Coop's

In SC Nebraska we have two very large coops that control nearly every sector of the business. In addition to the other areas mentioned they will insure and finance you and under cut the private companies. You must have the old guard still in control. As those people have been replaced here they have forgotten they are running coops. In January one of them announced they were ending equity payouts because of the economy. Then promptly bought two aerial companies and built two new agronomy locations.
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WI AgLender
Contributor

Re: Remove Anti-Trust Exemption for Coop's

complain to the board members!

or better yet, run for the board yourself and make the changes

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NE Corn
Member

Re: Remove Anti-Trust Exemption for Coop's

Doesn't quite work that way. Would be nice to be that idealistic though! Glad you don't have it in your area yet.
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