Visit with farmers on coffee row and there’s no end to the criticism of farm input prices. Glyphosate, fungicide, fertilizer and diesel are constant sources of discussion and complaint.
The fertilizer manufacturers are ripping us off. Fertilizer produced in Canada should be cheaper. Prices shouldn’t be based off gulf import prices. Nitrogen is being manufactured in our backyard and yet we don’t get any price break.
Herbicide manufacturers are ripping us off. Thank goodness for the few generic products coming onto the market. Unfortunately, competition is still limited.
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Big oil companies are ripping us off. Crude oil prices have been low for a long time, but diesel and gasoline are higher than they should be.
Seed companies are ripping us off. Have you seen the price per pound for the newest canola varieties?
However, replacement parts at farm equipment dealerships have become my pet peeve.
There’s really no way to gauge what anything will cost when you walk up to the parts counter. Gaskets that look like they should be worth $20 to $40 may be up as high as $600. A small terminator plug for a wiring harness with a $20 appearance may be 10 times that amount. Rubber pieces on a seed meter roller could be made of gold instead.
Sometimes prices are justified. The piece is unique. Plus, it has to be transported and warehoused, and the parts people at the dealership all need to be paid.
Other times, it’s hard to imagine how the sale price was derived.
I try not to take out my frustration at the parts counter. Those folks don’t set the prices. In fact, the dealership probably has little latitude in what it charges. If there’s someone to blame, it’s probably the main manufacturers.
Simply put, prices for new parts seem like an absolute gouge. Trouble is, when you have a breakdown in a busy season, you gladly pay the price. You’re just happy the part is available and you don’t have to wait three days for it to come from God-Knows-Where, U.S.A.
Even if it isn’t a breakdown during a busy season, your options are usually limited. Sometimes generic parts can be substituted, but this is relatively rare. The manufacturers all promote their own parts as being superior, but we’re probably paying a hefty price for the brand.
It would be fascinating to see a manufacturing cost versus sale price comparisom. It would also be interesting to see how part prices compare between the major manufacturers. And we shouldn’t be shy about voicing our concerns.
Senior company executives like to rub shoulders with farmers at major equipment shows. Conversations usually revolve around equipment performance and innovation. Companies want to sell you their newest and best and talk about product improvements.
Seldom do we take the time to complain about the cost of replacement parts, pointing out specific examples and asking for a price justification. This is the time to potentially have an impact or at least let companies know that we think it’s an issue.
Maybe someone should start a social media campaign to publicize outrageous pricing examples.
On a per acre basis, replacement part costs don’t usually rank up there with seed, fertilizer, chemical and seed, but the company profit margins might be even more outlandish.
