Outlook 2010: Crop Protection

In the grand scheme of agriculture, 24 months doesn’t seem like a very long block of time. However, from the perspective of the crop protection products business, 24 months must seem like an eternity ago. As many ag retailers and suppliers are quick to note, the entire industry was positively giddy with excitement at the start of 2008. Agriculture was just coming off a record year in corn acreage, and a positive growth curve for ethanol was expected to fuel increased sales for years to come.

Initially, things panned out this way. In its annual survey of ag retailers, CropLife found that crop protection product sales among CropLife 100 dealers increased more than $1 billion from 2007 to $6.5 billion.

But the upward trend didn’t last very long.

“Compared with other years, 2008 was an anomaly,” said Bill Buckner, North American head of crop protection, president/CEO for Bayer CropScience. “As a year, 2008 brought to light all the fears and unknowns in agriculture, countries that normally exported grain started hoarding it. Furthermore, wild swings in glyphosate and fertilizer prices made the world topsy-turvy for most companies that do business in agriculture.”

This made for a very difficult 2009 for the entire ag marketplace. According to data compiled in the CropLife 100 retailer survey, crop protection product sales fell $100 million to $6.4 billion. “Customers made much more cautious purchasing decisions in late 2009 vs. early in 2009,” said Buckner. “In the end, everyone suffered a downturn in sales. This also probably means we are in for much more challenging times going forward.”

Getting Better

Despite this fact, Buckner is optimistic that the outlook for crop protection products in 2010 is getting brighter. “Next year looks fairly promising for all of us,” he said, speaking at December’s Agricultural Retailers Association meeting. “I don’t think we will see the growth in crop protection product sales as we did in 2008, but the pounds on the ground should shape up to make it a pretty decent year.”

According to his market intelligence, there are two reasons to expect positive growth in the industry. First, he surmised, market growth should occur in part because of 2009’s late harvest and resultant poor crop quality in many regions of the country, particularly parts of the Midwest. This will most likely mean the nation’s carryover stocks will continue to decline, increasing pressure on growers in 2010 to bolster production in major crops such as corn, soybeans, and wheat to compensate. “We will have to figure out ways to get more yield out of what we produce in this country,” said Buckner.

To achieve this, grower-customers will have to utilize crop protection products instead of foregoing these inputs in favor of newer biotech seed varieties. “I don’t care how many germplasms you have stacked in that seed,” he said. “If you don’t have ag chemicals on the ground, you are not going to produce the crop yields you want.” Buckner added that research has consistently shown that not using crop protection products leads to a average yield reduction of 48% for most crops.

The other reason to anticipate crop protection product growth in 2010 could be a result of the continuing battle against resistant weeds. For the past few years, the number of weed species with confirmed resistance to popular active ingredients such as glyphosate has been steadily on the rise.

To keep grower-customers from experiencing future yield losses to these weeds, Buckner believes it is critical for the industry to expand its efforts to find new active ingredients and new modes of action to retake crop ground. “Mother Nature will always come back to bite us if we ignore this,” he said.

Leave a Reply

Crop Inputs Stories

FertilizerGypsum Added To List Of Conservation Practices
July 28, 2016
Crop farmers in a growing number of states may be eligible for financial assistance from the USDA’s Natural Resources Conservation Read More
Palmer pigweed seedhead in cotton
HerbicidesStudy: Fall Weed Controls Can Make Significant Impact On Glyphosate-Resistant Palmer Amaranth
July 28, 2016
An article published in the latest issue of the journal Weed Science shows that adopting harvest-time and post-harvest weed controls Read More
InsecticidesSyngenta: Beware Of Early Stinkbug Threat To Soybeans
July 28, 2016
With the record warm temperatures this past winter and confirmations from early entomologist reports, Syngenta encourages growers to monitor stinkbug Read More
Peanut field
Crop InputsVerdesian Introduces New Inoculant For Peanuts
July 28, 2016
As planning begins for the next growing season, Verdesian Life Sciences adds Primo Power CL, a new liquid inoculant, to Read More
Trending Articles
Southeast Farmers Coop - Finished Building
Retail FacilitiesNew Stueve Facilities Offer Ag Retailers Speed, Accuracy
July 9, 2016
Leading the industry in planning and constructing dry fertilizer storage and chemical warehouse solutions, Stueve Construction helped three ag retailers Read More
Heritage Cooperative
Retail FacilitiesKahler Automation Designs State-Of-The-Art Facility For Heritage Cooperative
July 4, 2016
Heritage Cooperative in Marysville, OH, needed an efficient liquid, dry and grain facility to serve the many needs of their Read More
The Andersons Waterloo
ManagementFirst Indiana Facility Certified Under 4R Nutrient Stewardship Certification Program
June 27, 2016
The 4R Nutrient Stewardship Certification Program has announced that The Andersons, Inc.’s Waterloo, IN, facility has been added to its Read More
Food IT
Industry NewsCalifornia Event Will Mix Ag And Tech Professionals To Explore IT Solutions
June 20, 2016
Silicon Valley is hot on agriculture, and an upcoming event in California will bring together the food and tech industries Read More
Monsanto Luling Plant
Eric SfiligojWhat’s Next For Monsanto?
May 31, 2016
For the folks at Monsanto’s headquarters in St. Louis, MO, it has been an eventful few weeks. Back on May Read More
Soybean Plant closeup
Industry NewsMonsanto Rejects Bayer Bid; Open To More Talks
May 25, 2016
Monsanto Co, the world’s largest seed company, turned down Bayer AG’s $62 billion acquisition bid as “incomplete and financially inadequate” Read More
Latest News
FertilizerGypsum Added To List Of Conservation Practices
July 28, 2016
Crop farmers in a growing number of states may be eligible for financial assistance from the USDA’s Natural Resources Conservation Read More
Management2016 CTIC Cover Crop Survey: 33% Report ROI From Cover …
July 28, 2016
Insight from 2,020 farmers from across the country reflected enthusiasm for cover crops and—for the fourth year in a row—found Read More
Palmer pigweed seedhead in cotton
HerbicidesStudy: Fall Weed Controls Can Make Significant Impact O…
July 28, 2016
An article published in the latest issue of the journal Weed Science shows that adopting harvest-time and post-harvest weed controls Read More
InsecticidesSyngenta: Beware Of Early Stinkbug Threat To Soybeans
July 28, 2016
With the record warm temperatures this past winter and confirmations from early entomologist reports, Syngenta encourages growers to monitor stinkbug Read More
Peanut field
Crop InputsVerdesian Introduces New Inoculant For Peanuts
July 28, 2016
As planning begins for the next growing season, Verdesian Life Sciences adds Primo Power CL, a new liquid inoculant, to Read More
Soil Young Corn
Crop InputsSmithsonian: 5 Things to Know About New GMO Labeling Bi…
July 27, 2016
On July 14, the House of Representatives passed a bill requiring large food companies to label products containing genetically modified Read More
Palmer pigweed in soybean stubble
HerbicidesSpecial Issue Of Weed Science Explores Human Aspects Of…
July 27, 2016
Weeds that evolve resistance to herbicides are a serious threat to global agricultural production. In this Special Issue of Weed Science, Read More
CHS Primeland
CropLife 100CHS Businesses In Washington, Idaho Combining For Great…
July 27, 2016
As full-service ag retailers, CHS Primeland and CHS Farmers Co-op collectively serve farmers and other customers in 15 counties in Read More
Storage Tanks at Nachurs
Crop InputsNACHURS Joins Field to Market
July 27, 2016
NACHURS announced today that it has joined Field to Market: The Alliance for Sustainable Agriculture, a leading multi-stakeholder initiative working Read More
Illinois Researchers
FertilizerMeasure Of Age In Soil Nitrogen Could Help Precision Ag…
July 26, 2016
What’s good for crops is not always good for the environment. Nitrogen, a key nutrient for plants, can cause problems Read More
Kochia
Crop InputsNufarm Launches New Herbicide for Resistant Kochia
July 25, 2016
Nufarm introduces Scorch herbicide for U.S. farmers and ranchers combating a broad range of troublesome broadleaf weeds. A unique premix Read More
ManagementNew Rabobank Report Calls for Farmer ROI Focus
July 25, 2016
As U.S. row crop farmers brace themselves for a third year of negative margins, Rabobank believes farmers must lower the Read More
Syngenta Sign
Crop InputsBloomberg: Syngenta-Chem China Deal on Track for Regula…
July 25, 2016
Syngenta AG, which has agreed to be taken over by China National Chemical Corp. for $43 billion, said talks with Read More
ManagementGROWMARK Meeting Visit, Company Takeover Updates, and R…
July 22, 2016
Editors Paul Schrimpf and Eric Sfiligoj discuss their recent speaking engagement at GROWMARK’s eastern event, crop protection company merger rumors, Read More
Crop InputsMonsanto: EU Approves Roundup Ready 2 Xtend Imports
July 22, 2016
Monsanto Co. announced today that the European Commission has granted import approval for Roundup Ready 2 Xtend soybeans. This milestone Read More
Syngenta headquarters in Basel, Switzerland
Crop InputsSyngenta Announces Alfalfa Seed Split Off
July 22, 2016
On September 1, 2016, Syngenta will transfer sales and distribution of alfalfa seed to the NEXGROW branded business that is Read More
Dow DuPont
Crop InputsDuPont, Dow Shareholders Approve Merger
July 21, 2016
DuPont and The Dow Chemical Company announced that, at their respective special meetings of stockholders held today, stockholders of both Read More
ManagementLand O’Lakes Announces SUSTAIN Business Unit, Oth…
July 20, 2016
Land O’Lakes, Inc. today announced the formal organization of a new business unit, SUSTAIN, and its leadership. SUSTAIN will focus Read More