GrainsWest Winter 2021

Winter 2021 grainswest.com 35 “There’s always going to be disruption in the marketplace, but it’s how the retailer responds.” —Mitch Rezansoff ne time-honoured tradition within agriculture is that of a physical retail location. With more than 1,300 across Canada, approximately 70 per cent of them can be found in the West. Even in a competitive world of ongoing consolidation, ag retailers are plentiful, and for good reason. They typically stock whatever a farmer may need, be it fertilizer, herbicide, seed or any number of additional farm supplies. It may not be a perfect system, but it is the one germane to Canadian farmers. That is, until recently. Digital-first companies continue to gain traction and compete against well-established players for farmers’ attention and none may be growing faster than Farmers Business Network (FBN). The American outfit had its 2014 genesis in the heart of Silicon Valley in San Carlos, Calif. Part data analytics, part input supplier, FBN’s central hook is that as it provides cheaper input deals, farmers may start to loosen the reins on their data and share it with the company. If interested, farmers also have access to its crop marketing and financial services. After two years in business, FBN captured market share on eight million American acres. Not long after proving it had legs in the U.S., the company began fielding requests from Canadian farmers to expand northward. After a market analysis, the company made its move into the Canadian market, established its Canuck headquarters in High River, and promptly hired its first employee, Tom Staples. He still operates in the small town and these days is known as president of “FBN Direct, Global,” the company’s inputs division. His title is also a likely nod to the organization’s business aspirations. Already operational in Australia, international plans to capture farmers’ attention will soon focus on Europe and South America. Staples, who came pre-loaded to his FBN position with 20-plus years of agronomic and retail experience, said it is prime time to shake up the outdated, opaque marketplace of input buying. “Our pricing is open to the world,” he said. “It democratizes information to the grower for market prices, for their inputs and how they compare [with other companies]. We are most known for being transparent.” And he’s right. One of FBN’s most utilized features is the ability it gives members to compare pricing nationwide. Users can examine histograms that display minimums, maximums and means on input prices. In addition, farmers may upload their invoices for the benefit of others. Prices can be compared for each of the last three growing seasons that FBN has been operational in Canada. The ability to view costs is valued by users. Staples references examples of 30 per cent price spreads on routine herbicides between farms located mere kilometres apart. Its other big boast is Seed Finder. Farmers search within a radius and geography to see how a certain variety has performed. Results may also be separated out by soil type. “It gives them a way to assess different varieties’ performance without having all the marketing spin going around varieties,” explained Staples. “It’s apples to apples— here’s how different varieties perform on different soil types, different weather conditions … they can make that assessment themselves.” Farmers are often reluctant to talk about data, let alone share it. FBN guarantees customer data is on lockdown. It is one of only 21 companies in North America to have received the Ag Data Transparent certification. A rigorous third-party audit of a company’s technological processes, protections and data, such a distinction is not handed out lightly and Staples is fiercely proud of the credential shared by precious few, including John Deere and Nutrien. “We absolutely will not sell any of that data,” he said. “Anything being done with their data, they know what’s being done.” The company is pleased with its Canadian progress since late 2017. With just under 3,000 farmers registered in Western Canada and Ontario, FBN carries more than 15 million acres of cropland managed by its 60 employees. Across North America, acres now sit at more than 64 million under the company’s lock and key. By 2022, FBN intends to implement a livestock program for Canadians already active in the U.S. To sweeten the whole deal, the $800 membership fee has been waived indefinitely due to COVID-19. COLD SHOULDER With such change come detractors and skeptics. Naturally, retail owners may not exactly be thrilled with FBN and other digital-firsts crowding their turf. Mitch Rezansoff is the executive director of the Canadian Association of Agri-Retailers. He has observed the shifting delivery models yet remains in steadfast support of the established sales model. He believes that new-school companies have all missed one critical detail. “There still is a large percentage of farms that recognize the value of bricks and mortar,” he said. “The value of having people that they know and trust, that’s developed over time.” O