Agricultural giants in the US like Cargill and Archer Daniels Midland are at risk of being squeezed out of the market by big farm operators, who are pushing them for better grain prices or making deals directly with supply manufacturers. A combination of low crop prices, greater crop-storage capacity at farms, and competition for crops from livestock operations and ethanol plants has led to a shift in the balance of power. The biggest threat is that farmers will be forced into bankruptcy if they cannot get access to more efficient equipment and higher prices.
Agricultural giants in the US like Cargill and Archer Daniels Midland are at risk of being squeezed out of the market by big farm operators, who are pushing them for better grain prices or making deals directly with supply manufacturers. A combination of low crop prices, greater crop-storage capacity at farms, and competition for crops from livestock operations and ethanol plants has led to a shift in the balance of power. Start-ups have developed services that scan grain buyers or connect farmers directly with food manufacturers, cutting the middleman out.