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Sunnyside, WA | Consolidation will continue as time moves on. I think it has more to do with debt load than size. An operation with less debt to asset that is more vertically integrated (growing feed to put through cows/pigs/dairy) will outlast a more leveraged operation. This has nothing to with size. There a lot of large operations with lower debt per animal or per acre than some small operations.
Ag is also becoming much more market based. How you buy your inputs and sell your products is having much more to do with profit than how good of an operator you are. Bad times take out the low end and raise the bar and the bar will continue to be raised. Most left are all good operators.
I see a niche for smaller operations. I don't see that market growing rapidly, but it is a great way to get started in business. Probably a great way to sustain long term if it fits with your goals. | |
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The future of agriculture
