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

Crop InputsMarrone Bio Innovations Submits New Bio-Fungicide For EPA Approval
February 9, 2016
Marrone Bio Innovations, Inc. (MBI) today announced that it has submitted a new biological fungicide (MBI-110) to EPA. The broad spectrum Read More
Crop InputsWeed Expert: Adding A Second Herbicide Not Always Easy
February 9, 2016
In my last post, I reviewed some recent research that suggests one of the best ways to delay the evolution Read More
Crop InputsGenetic Literacy Project: Farmers Need More Herbicide Choices
February 9, 2016
There are two things that I think just about every weed scientist can agree on, writes Andrew Kniss for The Read More
HerbicidesWeed Expert Warns North Dakota Growers Of Coming Herbicide Resistance Storm
February 9, 2016
Ford Baldwin painted a bleak picture of weed control at a recent workshop here exploring the future of ag production, Read More
Top 100 Articles
Elburn Cooperative
CropLife 100Elburn Cooperative Members Vote To Join CHS
December 28, 2015
With 81% of eligible producers voting, 94% cast an affirmative ballot for Elburn Cooperative, a diversified agricultural retailer based out Read More
West Central Cooperative, Jefferson, IA
CropLife 100Farmers Cooperative-West Central Merger Approved
December 21, 2015
The members of Farmers Cooperative Co. (FC), Ames, IA, and West Central Cooperative, Ralston, IA, have both approved the merger Read More
Wheat Growers Innovation Center, Bath, SD
CropLife 100Wheat Growers Opens Innovation Center
December 21, 2015
Wheat Growers’ commitment in providing its farmer-owners with the latest in technological advancements now has a one-of-a-kind focal point, as Read More
CropLife 100ARA Selects The Andersons As 2015 Retailer Of The Year
December 9, 2015
The Agricultural Retailers Association today named Maumee, OH-based The Andersons as its Retailer of the Year for 2015. The award Read More
CPS Washington Court House John Deere Sprayer
CropLife 100Application Equipment Report: It Is Easy Being Green For Top 100 Ag Retailers
December 5, 2015
On The Muppets television show, Kermit the Frog is famous for singing a song about the troubles he encounters in Read More
Fertilizer Bin
CropLife 100Fertilizer Sales: Another Down Year For Top 100 Ag Retailers
December 4, 2015
In pure number terms, the fertilizer category still dominates all crop inputs/services among CropLife 100 ag retailers. In 2015, for Read More
Latest News
Crop InputsMarrone Bio Innovations Submits New Bio-Fungicide For E…
February 9, 2016
Marrone Bio Innovations, Inc. (MBI) today announced that it has submitted a new biological fungicide (MBI-110) to EPA. The broad spectrum Read More
Crop InputsWeed Expert: Adding A Second Herbicide Not Always Easy
February 9, 2016
In my last post, I reviewed some recent research that suggests one of the best ways to delay the evolution Read More
Crop InputsGenetic Literacy Project: Farmers Need More Herbicide C…
February 9, 2016
There are two things that I think just about every weed scientist can agree on, writes Andrew Kniss for The Read More
HerbicidesWeed Expert Warns North Dakota Growers Of Coming Herbic…
February 9, 2016
Ford Baldwin painted a bleak picture of weed control at a recent workshop here exploring the future of ag production, Read More
HerbicidesWSSA Announces New, Updated Free Web Resources
February 9, 2016
Today the Weed Science Society of American (WSSA) announced that new and updated educational materials for both weed scientists and Read More
Soybean field
FungicidesFour Arysta Fungicide Formulations Given FIFRA Approval…
February 8, 2016
Arysta LifeScience North America recently announced the issuance of Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) Section 2(ee) Recommendations for Read More
FungicidesAgri-Fos Systemic Fungicide Plus Receives EPA Registrat…
February 8, 2016
Vivid Life Sciences has announced the EPA registration of Agri-Fos Systemic Fungicide Plus, a highly concentrated active ingredient phosphite fungicide, Read More
Crop InputsBayer Contests EPA’s Decision On Valuable Insecticide F…
February 5, 2016
Crop Science, a division of Bayer, has announced it has refused a request by the Environmental Protection Agency (EPA) to Read More
Wheat Field North Dakota
Seed/BiotechSyngenta Wins Seed Fraud Suit Against South Dakota Grow…
February 5, 2016
Syngenta has obtained a $25,000 settlement from Paul and John Mayclin, Mayclin Farms, Plankinton, SD, in response to their Plant Read More
ManagementOABA Annual Conference Wraps Up In Columbus
February 5, 2016
More than 300 Ohio AgriBusiness Association (OABA) members and industry professionals were on hand to engage in collaborative learning and Read More
Crop InputsBayer To Contest EPA Flubendiamide Decision
February 5, 2016
Crop Science, a division of Bayer, announced today it has refused a request by EPA to voluntarily cancel the uses Read More
Syngenta
Seed/BiotechNot So Fast: ChemChina Syngenta Takeover Could Draw Nat…
February 5, 2016
State-owned China National Chemical Corp. (ChemChina), which plans to buy Swiss seeds and pesticide maker Syngenta, will promptly start preparations Read More
Rendering of Syngenta Seedcare Institute expansion
Seed/BiotechExpansion Of Syngenta’s North America Seedcare In…
February 4, 2016
As demand for seed treatment knowledge and products grows among farmers, retailers and others in the seed industry, Syngenta is Read More
Soybean Field
Industry NewsArysta LifeScience Strengthens Sales Team
February 4, 2016
Arysta LifeScience North America recently announced three new personnel additions: Jake Cook and Peter White are Territory Sales Managers for Read More
Davor Pisk Syngenta COO
Crop InputsSyngenta COO: Why ChemChina Offer Beat Monsanto’s
February 4, 2016
Syngenta Chief Operating Officer Davor Pisk says he is confident the proposed acquisition by ChemChina will ultimately help preserve choice Read More
Young corn plants in soil
Crop InputsKoch Biological Solutions Invests In Pathway Biologic
February 4, 2016
An affiliate of Koch Biological Solutions, LLC has acquired a minority equity position in, and entered into collaboration with, Pathway Read More
Crop InputsABG: China Signs Off On Monsanto’s Roundup Ready …
February 3, 2016
Monsanto Co. on Wednesday announced it plans to launch its Roundup Ready 2 Xtend soybeans in time for the 2016 Read More
Syngenta headquarters in Basel, Switzerland
Crop Inputs6 Things To Know About The ChemChina-Syngenta Deal
February 3, 2016
After months of rumors and speculation, Syngenta has announced that ChemChina has offered to acquire the Swiss-based company. “In making Read More