It's the same problem, just different industry.  The Mom and Pop can rarely beat Wal-Mart at it's own game.  The only solution is find something WM doesn't or can't do and fill that niche.

Fighting a BTO is the same problem.  His cost per bushel is probably less than yours.  He is handling a larger volume so he can get by on less margin per bushel.  You have to find some way to take his advantage out of the equation.

Before  I come off as having all the answers, I'm in a similar situation in a lot of ways.  I've just recently figured out what the questions are I need to be asking.  Still working on the answers.