The True Value Agri-Input dealers Provide to Farmers
September 2024
Agri retailers are crucial players in the entire agri input value chain.
They are the primary touchpoint for farmers’ agri inputs and advisory needs. These two are seen as part of the value that retailers provide to farmers. There is an unseen part as well, which is the real reason.
See, farmers can buy inputs and seek advisory from many other places/people. Yet, retailers become focal because of the convenience and comfort they provide.
Convenience:
Collateral-free credit against the purchase of products. Flexibility to repay the credit. Advisory by visiting fields. Immediate access to products. Comfort:
In case of a bad season or crop damage, the retailer extends the credit repayment timeline. The retailer is someone to rely on for farmers’ farm-related questions. Now one might wonder, why would retailers do all these?
It helps them win the trust and loyalty of farmers. It shows that their skin is in the game.
Second question: How come retailers were able to provide credit to their farmers?
Most agri input retailers evaluate their business in terms of having consistent cash flow instead of profit/loss. Also, the credit they provide to farmers is basically the extension of credit they receive from agri input manufacturers.
This is also a reason why many farmers don’t change their agri input retailers for many years.
Finally, an important contribution to their success is their close proximity to farmers.