A group that puts farmers together to gain volume discounts on farm inputs has thrown its support behind Buhler Industries’ bid to buy the former Versatile tractor plant in Winnipeg.
Farmers of North America, based in Saskatoon, has volunteered to organize farmer investment in the project.
The organization says its motivation is to maintain competition in the tractor manufacturing sector.
“Traditionally, farmers are price takers. Any diminishment in competition will be a detriment to them,” said Steve Nixon, general manager of Farmers of North America.
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If the plant is sold to a foreign company, Nixon fears farmers will face higher equipment costs in the future.
FNA was set up about a year ago to try to lower input costs for farmers. It has 1,000 members.
As the agent for the members, FNA negotiates with suppliers for volume discounts on materials such as fuel, crop inputs, equipment and insurance.
Buhler is the Winnipeg-based manufacturer of Allied and Farm King equipment. It also is a partner with Weidemann, Europe’s sales leader in diesel-powered articulating tractors in the 30 to 70 horsepower range.
Buhler said it received the details of the bidding procedures for the former Versatile plant on Jan. 13.
New Holland Canada owns the plant. It has been ordered to sell it to comply with United States requirements regarding the merger of New Holland and Case.
“The FNA support reaffirms that Buhler’s intentions to purchase the Versatile plant are in line with the marketplace demand, that a local manufacturer enter into the agricultural tractor manufacturing business,” said a Buhler news release.
Nixon said his group would review the New Holland offer and work on the mechanics of getting farmers to invest in the plant.
One option would be to bid on the plant through a new company, with the majority of shares owned by Buhler and a minority owned by farmers.
