Purdue University’s Center for Food and Agricultural Business has released a new study that takes a look at the relationship between farmers and ag professionals.
Participants were asked to report the size of their farm and the frequency of their interactions with advisors such as agronomists, nutritionists, sales reps, processors and lenders. Local ag professionals were found to be the most common resources of not only supplies and services, but also knowledge.
Sales Representatives
The study found producers interact less with sales reps from manufacturers than they do with ones from dealers and retailers. Dealer/retailer sales reps also work less with smaller operations (under $300,000 in yearly revenue), with just 37% reporting interactions. That’s compared to 52% of large operations (over $5 million in yearly revenue) and 42% of commercial operations ($1 million to $5 million in yearly revenue.)
Looking at this information, the study’s authors, Scott Downey and Masie Keshavarz, suggest agribusinesses should prioritize strong sales teams and relationships with these reps to ensure effective supply and service distribution.
Agronomists
Over 80% of row crop farmer-participants shared they work with agronomists. However, smaller operations were less likely to have agronomist interactions – only 43%. That’s compared to 84% of large operations and 81% of commercial ones.
Downey and Keshavarz again conclude this is an area for agribusinesses to invest in and promote.
Nutritionists
Work with dealer/retailer nutritionists is perhaps the most divided between large and small operations. Only half of the livestock producers who participated in the study reported working with a dealer/retailer nutritionist. But at the same time, 48% of livestock producers said they use independent nutritionists in another survey question.
Downey and Keshavarz suspect commercial and large operations hire independent nutritionists and are therefore less likely to work with those at the local dealer or retailer. They recommend agribusinesses provide more customized or independent consulting options to meet the needs of larger farms.
Lenders
Work with ag lenders and loan officers was not largely influenced by an operation’s size, as each group reported frequent interactions. The authors say this emphasizes the importance of offering robust financial support and advisory services to help farmers manage their operations effectively.
Processors
Small farms reported the most processor interactions – 72% compared to 31% for large operations.
Downey and Keshavarz encourage agribusinesses to explore opportunities to enhance processing services tailored to small farms to support their unique needs.
Find the full report here. Purdue’s next study on farmer buying behavior is scheduled for January.
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