The Internet has gone to seed.
And so have a whole host of farming suppliers, in what developers and marketers of the new DirectAg.com Web site claim to be the world’s first online community and distribution outlet for the agricultural business.
The site (www.directag.com) offers farmers and farm product producers an online venue for buying seeds, pesticides, animal vaccinations, heavy equipment and other agriculture-related supplies, as well as financing opportunities, says Kip Pendleton, president/CEO of St. Paul, MN-based DirectAg.
Farmers visiting the site can also research agricultural brands; get news and information gathered by the company’s own editorial staff; see market prices updated every 10 minutes; and view weather reports and other information.
Those interested in using the service must first fill out an online profile with the company. After that, they will be automatically contacted to set up an account and begin purchasing online.
DirectAg.com makes its money from distributor fees ranging between 20% to 30% per transaction. Some fees, especially those connected with financial products, might be higher.
So far, the company has lined up four participants: seed suppliers Cargill and AgriBioTech; Case Credit, a unit of tractor manufacturer J.I. Case; and agricultural journal Farm Progress. At deadline, Pendleton was in New York to talk with potential providers of additional financing. In addition to Cargill and AgriBioTech, DirectAg.com is reportedly in discussions with other major seed companies interested in offering their products this crop year.
In all, the company hopes to land 5,000 customers this year. Each of these individual “producers” spend more than $200,000 annually on supplies. Already DirectAg.com has received more than 1,000 phone requests and 12,000 e-mail inquiries.
The site is free to farmers. DirectAg.com was also in the process of setting up chat rooms and other forums for farmers to get together and discuss farming-related issues free of interference from suppliers.
DirectAg.com is spending $1 million on a print and radio campaign with spots on farm-belt radio superstations like WGN and WCCO, and ads in vertical farm trade publications. These ads, which started in July, are scheduled to run through December.
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