He noted that the current structural change in US agriculture is not just about consolidation, or supply linkages, or technology integration. The key issue is how farmers and ranchers will form strategic alliances as part of a food production consortium. He emphasized that consolidated farms have lower, not higher, profitability, but that they gain by reducing risk.
Strategic partnerships allow effective vertical coordination without actual consolidation.
The key is to pay close attention to the nature of the partnership. This is good advice for anyone entering into a partnership. We need to pay close attention to roles and boundaries to be sure the partnership fits within our mission and capabilities. The message to collaborate is particularly appropriate for ag and rural interests in Idaho. Far too often, agriculture gets to arguing amongst ourselves, due to different perspectives from growing different commodities or having different roles in the food system, e.g. livestock feeders and processors like low crop prices.