An Opposite Feeling

Perhaps it’s a by-product of the ag retail business. Maybe it’s human nature. Most likely, it’s both. I’m talking about attitudes regarding the future.

As I mentioned in my column last week, our magazine is introducing a new industry report. Appropriately titled “CropLife State of the Industry,” this in-depth analysis of the current condition of the world of ag retailers consists of a special 16-page insert in the December 2009 edition of the magazine, a microsite to www.croplife.com featuring special articles and one-on-one interviews with key industry leaders, and informational webinars slated to start after the new year. Given the uncertainty that has dominated the marketplace during the end of 2008 and whole of 2009, the time seemed right to present some insider information from ag retailers on where the business currently stands.

Advertisement

This brings me to my biggest surprise when looking at this information: Retailer attitudes towards the future. Considering how negative the news on crop inputs and commodity prices have been for the past 10 months, I fully expected the majority of retailers polled in our State of the Industry research to carry over with this “doom and gloom” view. After all, these were the same ag retailers in many cases that had told us back during the boom times of 2006 and 2007 that they were “cautiously pessimistic” about the prospects for profits in 2008 and beyond.

Top Articles
Best Agriculture Apps for 2024 (Update)

Yet, when our State of the Industry survey asked retailers about their level of confidence in 2010, 58% said they expected the year to rank a seven to 10 in terms of profit outlook. Another 32% rated 2010 as a four to six. Only 10% expected negative income during the next 12 months.

“I believe the future of the ag retail business is positive,” said Dan Kennedy, general manager for Ritter Crop Services. “As many growers double their farm size, they will need the expertise and equipment support only ag retailers can supply them with to be successful.”

This week, many retailers will gather in Florida for the annual Agricultural Retailers Association meeting. It will be interesting to see how many attendees agree with Kennedy’s assessment of the future or feel that 2009 was a harbinger of bad times ahead.

In next week’s column, I will let you all know what I found out . . .
 

0
Advertisement