Agriculture is littered with lingo that’s designed for specific context and environments. However, sometimes these expressions can lose the original meaning or be misconstrued. In the case of the phrase “direct ship,” the definitions are determined by circumstance. During the GROW Rewards Farmer Conference in December, we heard several comments from our farmers about what “direct ship” really meant. Who does it apply to? What does it mean? Does it involve knowledge that the farmer doesn’t already have?
The answer: it depends on who you’re asking. The definition is split into two areas of expertise — agronomy and grain.
On the agronomy side, direct ship tends to reference fertilizer that farmers can purchase. Farmers may be better off purchasing dry fertilizer through a partner like Landus that can buy from a desired dealer or find the best price for their specific application. Ultimately, direct ship on the agronomy side cuts out steps in the supply chain and may decrease the amount of time the farmer would typically dedicate to finding a dealer and comparing prices and products.
Direct ship example for agronomy: If a grower has the infrastructure to handle direct ship fertilizer, Landus can operate as the sourcing agent for that transaction. Landus can also help with storing product that the farmer may not be able to hold in season for a smoother situation for their logistics plan. Direct ship can be an expensive proposition from an infrastructure standpoint. However, companies, like Landus, who have the infrastructure already in place, make the decision to partner with a company that helps source products from multiple vendors easier.
The grain side of direct ship looks quite different than the agronomy definition. Landus’ direct ship program for grain refers to the end user that’s purchasing the grain. By selling grain in Landus’ name to a different end user, Landus will pay farmers for the sale, and farmers still ultimately get the choice of selling grain to their desired end user. Landus farmer-owners get the benefit of selling to Landus, likely receiving patronage, and having access to Landus grain merchandising experts that know their operations. Landus offers a one-stop-shop during their selling process.
Direct ship example for grain: When farmers have an ideal end-user they typically sell grain to, they can also do so through Landus. Customers will need to contact their Landus Account Lead or the GROW Solutions Center to market their grain to their preferred direct ship location, at the end-user's price level, while also capturing the cooperative’s patronage.
The Landus GROW Solutions Center is available to answer any additional questions on “direct ship” and more. Give the Landus GROW Solutions Center a call or text (515) 800-GROW (4769). or via email at growsc@landus.ag.
