Dealers on the Move

Industry Consolidation Part 3

What’s Driving Consolidation Among Farm Equipment Dealers?

Farmer consolidation and growing capital requirements for dealers has contributed to the need for dealerships to expand and grow.
All aspects of the ag industry have been consolidating over the last several years, and it seems to have picked up recently. This is no different for farm equipment dealerships. Some of the consolidation is being led by the major equipment manufacturers, some of it is in response to farm consolidation (see “Farms Shrinking in Number, Growing in Size,” page 12), and still some is due to dealer owners exiting the industry.
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Consolidation Impacts All Aspects of Ag Industry

Consolidation has hit all aspects of the agriculture industry from farmers, suppliers, manufacturers to dealers and even associations.
The landscape of the agriculture industry has been changing over the last several years, and is showing no signs of easing up. Consolidation and mergers are redefining the industry. Three mega-mergers on the crop protection and seed industry side of the business have dominated headlines — Dow-DuPont, ChemChina-Syngenta and Bayer-Monsanto.
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