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Aggregating Saves Money

There are savings to be realized in volume purchasing of inputs.

  • Seed corn has been purchased at $7 - $8 less than the company quoted price.
  • Fertilizer was purchased at the best price available from three equal suppliers.
  • Chemicals were purchased 5 to 10% below typical suppliers.

Based on experience a farm could easily spend $100,000 on crop inputs. A 5% cost reduction is $5,000 of extra profit. This can be accomplished with very little extra effort and no pressure on suppliers.

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