Different Types of Suppliers
FNA works with many different different businesses to become suppliers to FNA Members.
FNA approves programs for promotion to its Membership and negotiates the terms — including price — which will be presented to Members. The supplier gains access to a highly valuable customer base, and Members gain competitively priced products and services on advantageous terms.
Since everything we do is directed toward building Member Value, we categorize businesses into suppliers that provide different kinds of value to Members. In general, the value suppliers provide is mapped to the Priority List, for three primary categories: Major Suppliers, Intermediate Suppliers and Preferred Suppliers. The value offered through programs negotiated with those suppliers are similarly are mapped to Major Value and Intermediate Value.
Major Suppliers are businesses that provide value to Members in one or more of the five priority areas and have agreed to offer Members competitive pricing on farm inputs such that the supplier’s participation provides opportunity for “major” contributions to maximizing Member profitability. Examples of Major Suppliers include AgraCity Crop and Nutrition (AgCan), AgraCity Services (AgServe), the FNA Farmers Fertilizer Limited Partnership (FNA FLP), Farm Credit Canda (FCC), John Deere Financial, Atradius and AgriCard.
FNA’s service team may take instruction from Members to place orders with Major Suppliers on the Members’ behalf; FNA may authorize some Major Suppliers to contact the Membership directly; or the supplier may be approved to deal with Members through a dealership or other third-party entity.
For example, Atradius
provides farmers receivables insurance through the MarketPower Assurance Program
. AgraCity Crop and Nutrition has business representatives who are authorized to deal directly with FNA Members.
Intermediate Suppliers are businesses that have agreed to provide competitive farm inputs that do not fall under the “major” category. Their participation is often in the form of dealership agreements with AgServe. Examples are AI Products, and AgLeader GPS.
Intermediate Suppliers deliver significant value, but the products and services they provide do not feature as prominently in a farmers budget. Products offered by Intermediate Suppliers include things like farm tires, farm parts and livestock equipment.
Neither Major nor Intermediate Suppliers provide their pricing in a discount off “posted prices” approach, as the prices provided are negotiated exclusively for FNA Members, and some products exclusively available to Members.
New products or programs that any supplier wishes to offer to FNA Members must be first approved by FNA.
Preferred Suppliers are part of what is traditionally thought of as a “Membership Benefits” package. The benefit, usually a discount off posted prices, is obtained through normal retail channels, usually by simply presenting the Membership card or providing the FNA Membership number at a retail location of the Preferred Supplier. Preferred Suppliers may provide additional benefits such as enhanced rebates or preferential shipping terms. NAPA Auto Parts is a good example. Some Members report receiving thousands of dollars in rebates from NAPA.
Preferred Suppliers are never given direct access to the Membership.
In some FNA communications you may see references to Major Programs and Intermediate Programs. This is how suppliers to FNA Members may be presented with their products in easy-to-find groupings such as “Major Program – Crop Protection” or “Intermediate Program – Tires.”