Study: Crop Protection R&D Costs Increase Significantly

CropLife America (CLA) has released a new study of research and development for the crop protection industry showing a nearly 40% increase in investment expenditure over the past decade in the discovery, development, and registration of new pest and disease prevention products in the U.S. and Europe. Commissioned by CLA and the European Crop Protection Association (ECPA), the study offers new perspectives on committed expenditure related to innovation for protecting crops and fighting disease through a constantly changing regulatory process for the industry. Conducted by agribusiness consultant Phillips McDougall, the research indicates how the authorization of a new agrochemical product is highly complex, expensive and time consuming.

While announcing the study’s results during a news conference today at the National Press Club, CLA President and CEO Jay Vroom stressed the importance of research and development in bringing a new crop protection product to market. However, he expressed concern over the lengthy time, an average of 9.8 years from the first research tests, that it takes for final authorization of the product for market introduction.

“This process is essential to helping feed the world’s growing population, projected to exceed nine billion in the year 2050,” said Vroom. “Seventy percent more food will be required just 40 years from now. However, it is only through the vested research interests and funding of both the public and private sectors that we can solve those unique challenges facing modern agriculture and ensure abundant, sustainable and nutritious food.”

“CLA recognizes that innovation in the science of crop protection is equally enhanced by public research and we support sound investment in public funding for research on plant and pest biology and crop protection technologies,” he stated.

Vroom said that CLA will present its priorities for research to the USDA National Institute for Food and Agriculture at a stakeholders’ workshop on April 13, emphasizing that additional future benefits of crop protection products in modern agriculture require a substantial level of research funding.

The Phillips McDougall study reported that discovery and development for new crop protection products reached an average of $256 million in 2005-2008, a 39.1% increase over 2000. During the same timeframe, the cost of taking a product through developmental stages increased to an average of $146 million, nearly double the amount in 2000. The greatest increase was identified in the costs of field trials which rose over 115% in 2005-08 to an average of $54 million.

Even though a high number of products entered the research and development chain, the number of products actually making it through the stages to market introduction declined from four in 1995 to only 1.3 in 2005-08.

“We are facing an urgent need for agricultural innovation, one that is crucial to meeting global demands,” Vroom stated. “Farmers will require new tools, techniques and technologies to meet that demand while using about the same amount of land, water and other natural resources. However, ever-increasing costs and lengthy timelines are challenging our ability to respond.”

Besides exhaustive laboratory and field tests that help ensure all new products are safe, companies must also adhere to constantly changing regulatory requirements, according to Vroom.

“We must inform our legislators and regulators about the stringent regulatory obligations with which the industry is already complying. The crop protection industry is one of the most highly regulated sectors in all of agriculture and we support a sound, consistent and risk-assessment based regulatory system for our products conducted by the Environmental Protection Agency (EPA).” Vroom said. “What we need is a consistent regulatory framework that is supported by science based policies in the support of modern agricultural production.”

14 leading companies in the global crop protection sector were surveyed by Phillips McDougall for the study. Those firms agreed that the overall expenditure in research and development would continue its dramatic increase over the upcoming years. Overall expenditure on agrochemical R&D by the companies surveyed is expected to increase by a further 26.4% between 2007 and 2012, with increases spread across the entire spectrum of the R&D process.

In closing, CLA’s president urged everyone not to take modern agriculture or the research that supports it for granted. “It is essential that we continue to advance modern agricultural production by investing in crop protection research, innovative farming methods and new technologies to meet the unique challenges faced by agriculture and consumers worldwide who rely on it,” he concluded.

To download a free copy of the report, please visit www.croplifeamerica.org/phillipsmcdougallstudy.

Leave a Reply

Crop Inputs Stories

Untreated soybean seed Heartland Coop
Seed/BiotechMarrone Bio Innovations, Groundwork BioAg Bio-stacked Microbial Seed Treatments Result In Increased Yields
February 13, 2017
Marrone Bio Innovations, Inc. and Groundwork BioAg, Ltd have announced successful seed treatment field trials of the world’s first all-biological Read More
Fertilizer Storage
Crop InputsThe State Of The Fertilizer Industry
February 9, 2017
He’s all hat, no horse.” It’s a humorous way of describing a person who tells a good story, but is Read More
Corn Field
InsecticidesArysta LifeScience, DuPont Collaborate On Rynaxpyr Premix Formulations
February 8, 2017
Arysta LifeScience recently announced that it has entered into a global collaboration with DuPont Crop Protection for the development of Read More
World Agri-Tech Innovation Summit Panel 2016
Crop InputsWorld Agri-Tech Innovation Summit To Be Held In San Francisco
February 8, 2017
“Breakthrough Applications and Business Models for Sustainable Farming” is the theme of the World Agri-Tech Innovation Summit to be held Read More
Trending Articles
Farmer and aptop
Matt Hopkins10 Warning Signs Your Website Is Grossly Outdated
February 8, 2017
Your Website is often a visitor’s first impression of your ag retail business. A positive first impression can set the Read More
AgriSync
Matt Hopkins17 Agriculture Apps That Will Help You Farm Smarter In 2017
December 9, 2016
Ag professionals are working smarter, not harder, than ever before. Smart farming technologies have enabled them to reduce costs, maximize Read More
R4023 Sprayer, John Deere
CropLife 100Ag Retail Equipment Report: The Green Party Continues
December 7, 2016
In the annual race for sales in the ag retail equipment marketplace, the color schemes for participants are a little Read More
Mike Stern
Precision AgClimate Corp. CEO Talks Retailer Support For Digital Ag
December 1, 2016
CropLife Magazine’s sister publication, AgriBusiness Global, recently sat down with Mike Stern, CEO of The Climate Corp., following the Monsanto subsidiary’s Read More
Precision AgTrimble Debuts End-to-End FMIS Platform
November 28, 2016
October’s inaugural PrecisionAg Vision Conference left this author with many thoughts and things to ponder in the coming months. Probably Read More
CHS Primeland
CropLife 100The 2016 CropLife 100 Report: Reviewing The Many Bulls And Bears Impacting This Year’s Marketplace
November 28, 2016
For virtually all of 2016, the nation was wholly focused on the big Presidential election. Some folks aligned themselves with Read More
Latest News
ManagementSouth Africa Update and the New New Leader G5
February 24, 2017
Editors Eric Sfiligoj and Dan Jacobs discuss the recent visit to South Africa by sister magazine AgriBusiness Global and the Read More
Fall Creek Watershed
StewardshipUpdate: Nutrient Stewardship In Indiana Requires Cool, …
February 24, 2017
Update: The application deadline for NCRS funding has been extended to March 17, 2017. Green leaves sparkle in the sunlight. Trees Read More
Greenleaf Technologies TADF03-D Dual Fan Nozzle
NozzlesSix Greenleaf Nozzles Approved For XtendiMax With Vapor…
February 22, 2017
Greenleaf Technologies has announced that six of its TurboDrop D Series nozzles have been approved for use with Monsanto’s XtendiMax Read More
Winter Wheat
Industry NewsTiger-Sul Hires Manitoba And Eastern Canada Account Man…
February 22, 2017
Tiger-Sul, a global leader in sulphur fertilizers and crop performance products, has announced that sales veteran Trevor Loewen has joined Read More
NFMS 17 Hagie Sprayer
Eric SfiligojThe Read From Louisville: Uncertain
February 22, 2017
By the time this column appears across the country, the annual Commodity Classic will be in full swing. This means Read More
SprayersApache 1000 Series Sprayer Earns 2017 EquipmentWatch Hi…
February 21, 2017
ET Works has been named a winner in the 2017 EquipmentWatch Highest Retained Value Awards program, the industry’s only award Read More
Measuring Bulk Tanks
StewardshipMeister Media Among 2017 Award Winners Presented By The…
February 21, 2017
The Pesticide Stewardship Alliance (TPSA) held its annual conference in San Diego, CA, earlier this month where three awards were Read More
John Reifsteck
CropLife 100GROWMARK’s Reifsteck Earns NCFC Director Of The Y…
February 21, 2017
GROWMARK Chairman of the Board and President John Reifsteck has earned the prestigious Director of the Year Award from the Read More
Roy Blunt
LegislationARA Recognizes Blunt, Heitkamp For Legislative Efforts …
February 17, 2017
Agricultural industry continues to face federal regulatory challenges. Thankfully, agriculture’s allies in the U.S. Senate stepped forward. The Agricultural Retailers Read More
LegislationThe Fertilizer Institute Commends Senate On Confirmatio…
February 17, 2017
The Fertilizer Institute (TFI) President Chris Jahn issued the following statement on the Senate confirmation of Oklahoma Attorney General Scott Read More
Trump, Senate, Cabinet
LegislationBREAKING: Trump EPA Nominee Scott Pruitt Confirmed by S…
February 17, 2017
Scott Pruitt, who as Oklahoma’s attorney general spent years suing the Environmental Protection Agency over its efforts to regulate various Read More
ManagementFebruary Road Trip Edition
February 17, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss their recent visits to Indiana and Kentucky. Read More
Heritage Cooperative Finished Building Aerial
ManagementHeritage Cooperative, Agland Co-op Approve Merger
February 17, 2017
Agland Co-op and Heritage Cooperative stockholders have both approved the merger agreement between Agland Co-op and Heritage Cooperative. Now begins Read More
LegislationARA Fly-In: Ag Retail Descends on Capitol Hill, Lawmake…
February 15, 2017
More than 100 agricultural retailers, distributors and suppliers headed to Capitol Hill Tuesday morning for the Agribusiness Congressional Fly-in, according to a Read More
Untreated soybean seed Heartland Coop
Seed/BiotechMarrone Bio Innovations, Groundwork BioAg Bio-stacked M…
February 13, 2017
Marrone Bio Innovations, Inc. and Groundwork BioAg, Ltd have announced successful seed treatment field trials of the world’s first all-biological Read More
NL5000 With G5 Technology
SpreadersNew Leader Introduces NL5000 Dry Nutrient Applicator Wi…
February 13, 2017
New Leader, a division of Highway Equipment Company (HECO), has announced the next generation of spreading technology with the NL5000 Read More
Fertilizer Storage
Crop InputsThe State Of The Fertilizer Industry
February 9, 2017
He’s all hat, no horse.” It’s a humorous way of describing a person who tells a good story, but is Read More
CropLife 100Pinnacle Agriculture Agrees To Credit Agreement Amendme…
February 9, 2017
Pinnacle Operating Corp. has entered into an amendment (the “Amendment”) to its First Lien Credit Agreement that will provide for, Read More