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Consolidation …Where Do You Stand When the Dust Settles?

Agricultural markets are no stranger to consolidation. Although not necessarily becoming more corporate, American farms have been shifting production to larger and larger acreages for more than three decades. Driven by commodity price pressure and shrinking margins, many participants drop from the marketplace, and those that stay have to get bigger to take advantage of economies of scale. It stands to reason that the product and service providers to a consolidating industry inevitably deal with the same pressures. Through history, the seed industry has certainly seen its fair share of consolidated business … not our first disco, right? We now find ourselves in the latest “round” of consolidation, driven by low commodity prices due to four years of bumper crops, increased stockpiles and the realization that corn (or switchgrass or Read More
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