Being Direct

Matt Hopkins Posted by Matt Hopkins|September 15, 2008

Direct Ag Brian Springer, Randy Main

Anyone who regularly follows the ag marketplace knows how tight money is getting for many companies that earn their living from this particular trade. Although revenues are growing for most due to higher commodity prices, the cost of everything else — from fertilizer to fuel — has risen almost as quickly. In some cases, ag retailers have had to put off buying the new equipment they need to stay competitive in this economic environment.

There is a solution to this dilemma, however. Earlier this year, Direct Ag Rentals, LLC, came into existence. According to Brian Springer, vice president of sales and marketing, Direct Ag Rentals offers ag equipment for rent to retailers who aren’t looking to invest all their spare capital in new purchases. “As a mature industry, we must continue to replace our equipment on a timely basis in order to meet our customers’ needs,” says Springer. “We can replace that old applicator with a new one, but allow our customers to keep more of their capital in their operations to stock inventory or hire more help.”

Five-Year Planning

Direct Ag Rentals does this, he adds, by allowing customers to lock in their rental agreements for up to five years at a time. “In this year, a retailer looking for a new applicator can lock in their annual costs for that piece of equipment for the next five years without having to worry about unexpected increases cutting into his or her budget,” says Springer. “Best of all, Direct Ag Rentals is responsible for all the maintenance associated with the unit during the life of the contract.”

At present, Direct Ag Rentals is doing business primarily in the Midwest, but plans to expand its territory in the near future. The company’s rental fleet consists of Ag-Chem Equipment, John Deere, and Miller-St. Nazianz products at the present time, but it can work with most major manufacturers if needed.

Currently, says Springer, Direct Ag Rentals is building up its customer base among retailers and larger growers. “When we started the company, we thought it would appeal to smaller independent retailers, but the mid-sized to larger ones are the ones jumping at trying it first,” he says.

Direct Ag Rentals will be exhibiting at this year’s Midwest AG Industries Exposition (MAGIE) trade show. The company can also be reached at 877-561-2216, via e-mail at [email protected], or by visiting www.directagrentals.com.

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Hopkins is Senior Online Editor for the CropLife Media Group at Meister Media Worldwide. See all author stories here.

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