Like any industry, agriculture has some incompatibilities with the Internet. Business relationships that are developed over time are seen as a more important part of a purchasing decision than price. Reduced prices alone are not enough to convince farmers to make a full-scale shift online. As in other industries, replacing the traditional middleman with a virtual middleman has met with resistance and online companies are now looking to add more value to their Web sites. While fragmentation bodes well for online markets, it hinders Internet access.
Some farmers are so remote that their dial-up Internet connection uses a long distance number.
Although service providers are working to expand availability, this limited, costly access forces online companies to develop Web sites to save these remote users money and time. Despite these obstacles, online agricultural use is expected to grow to be a mainstream format to buy inputs and sell outputs. Though there may not be enough room for all of them, several major companies have emerged to serve the agriculture industry. Headquartered in Chapel Hill, N.C., it was initially designed as a cattle auction, but has sprouted into a community for cattle, swine and crops. Available in both exchange and auction format, the Marketplace is now available for swine and will soon be available for cattle.