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Internet enhances, but local sells
By Cindy Snyder, Ag Weekly correspondent, The Times-News (Idaho)
February 5, 2001
 
TWIN FALLS -- Clicking "send" and placing a $100,000 order online is enough to make one Buhl seed dealer's heart beat fast.

Even though the webpage where he places his seed order is as easy to use, it's still a challenge for Leonard Crismor. In the old days of ordering seed by phone or fax, there was always a person to double check if he really wanted that many bags of that variety. Now he just clicks how much of each variety and size he wants -- and hopes he hasn't made a mistake.

As a dealer Crismor places his order online, but for his own farm he prefers to use the Internet to learn more about a chemical or a variety and then go to a local dealer to make his purchases. He hasn't seen his customers rush to the Internet either. In four years, he's only had one customer who's found him through the Internet.

"Most of us need the expertise of our seed dealers or chemical dealers," Crismor said. "We know we're going to pay a little more, but if we don't keep our local communities going we're not going to have them."

Buhl farmer and inventor Glen Gier has been using the Internet since the beginning. But except for purchasing some polyacrylamide online, he restricts his use to information gathering, banking and shipping his product, The Applicator.

"I can't believe how much leg work and phone calling it's saved me," Gier said. "The Internet doesn't answer all the questions, but it really speeds things up."

Studies have shown that up to 75 percent of farmers use the Internet regularly, said David Downey, director of Purdue's Center for Agricultural Business. This tech-savvy has created a more informed consumer and changed the role of salespeople. Agribusiness salespeople used to call on farmers and ask them what they needed to buy.

"Now the farmers say, 'Don't ask me what you can do for me, tell me what kind of ideas you have that might be able to help me,'" Downey explained.

Dan Pinther, manager of Simplot in Twin Falls, has seen his customers become more knowledgeable. Some come in with ideas they've gotten off the Internet about agronomic practices and want to know if Pinther thinks the technique would work in the Magic Valley. Others are product shopping and want to know if Pinther can match a price they found on the Internet.

That's not always possible. For one thing, Pinther isn't sure how old the product is with the cheap price or where it's coming from. Low prices often come with a volume requirement. For example, one Internet site is listing glyphosate for $25 a gallon, but the farmer has to purchase a 30-gallon drum. Most of Pinther's customers buy 2.5 to 5 gallons of glyphosate at a time.

"Most of our customers still want some service, they still want us on the farm," Pinther says.

Equipment dealers see the same thing with their customers. While the Internet has provided new avenues for buying and selling used equipment -- especially antique tractors -- purchasing new equipment still seems to come down to service.

Burks Tractor in Twin Falls has gotten calls from all over the country about parts -- mostly oddball things -- listed on the company's webpage. As farmers become more sophisticated about using the Internet, Rod Burks expects to see more and more parts purchased online.

But having a local connection will remain critical. Burks can't imagine a day when a farmer will have a breakdown during harvest, drive to the house, boot up the computer, check on a part and then order it online. On the other hand, he is hoping to develop a system that encourages farmers to order replacement or maintenance parts online so that the order is ready to be picked up at a specified time and date.

"It's so important to sell to a local customer," he said. "If a customer's combine breaks down at the same time as a combine bought out of the area, I can tell you which one we're going to first."

Agri-Service in Twin Falls also uses its website to reach customers. All of the company's used equipment is on the Internet, and customers are directed to the company's website for more information and pictures of newspaper ads and sales staff. Owner Cleve Buttars describes the website as a mobile brochure, but says sales still come down to the staff.

"It's still a people business," Buttars says. "The local dealership still gets the first and last chance."

He estimates that fewer than 5 percent of Agri-Service's customers shop online, but he expects that number to increase. Five years ago no one predicted the Internet would be so pervasive, and no one can anticipate how it will change sales in the next five years. All Buttars knows for sure is that the Internet is an important sales too, and he is exploring ways to keep the site fresh and interesting to customers.

"We love to have farmers get online and shop around for 15 minutes," Buttars said. "We hope something will hit them."