Ever since Broadacre Agriculture requested bankruptcy protection social media has been abuzz with producers and ag industry stakeholders commenting on the efficacy of the large corporate farm model. Some commentators claim bigger isn’t necessarily better and that the benefits of economies of scale do not increase infinitely, that a point of diminishing returns is reached.
Others said the there is nothing wrong with the large corporate farm model, and that whether a company is successful or not depends entirely on how it’s managed. The more employees a company has, the better management is required. One employee with poor work habits and is hard on equipment is costly, having dozens such employees would be catastrophic.
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Worrisome drop in grain prices
Prices had been softening for most of the previous month, but heading into the Labour Day long weekend, the price drops were startling.
What are your thoughts? Is the large corporate farm model inherently flawed or will it become the new norm in west Canadian grain production?
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The Western Producer reporter Sean Pratt wrote a series of articles related to Broadacre Agriculture in the November 27, 2014 edition of the Western Producer:
Lack of capital to blame: Broadacre
