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

Syngenta Seedcare Institute
Seed/BiotechSyngenta Opens New North America Seedcare Institute In Stanton, MN
September 23, 2016
Syngenta unveiled its new Seedcare Institute in Stanton, MN, during a recent grand opening celebration. More than 150 industry leaders, Read More
Crop InputsJim Loar Promoted To President And CEO Of Cool Planet
September 22, 2016
In a move that reflects and reinforces the company’s commitment to the agricultural market, the Cool Planet board of directors Read More
Crop InputsMonsanto, Bayer Officials Defend Proposed $66 Billion Merger
September 21, 2016
Top officials for Monsanto and Bayer defended their proposed $66 billion merger before skeptical senators on Tuesday, insisting that the Read More
Corn
Crop InputsEPA Settles With Syngenta For Alleged Multi-Regional Pesticide Violations
September 19, 2016
The U.S. EPA has announced a multi-region settlement with Syngenta Crop Protection, LLC (Syngenta) in Greensboro, NC, for alleged violations of Read More
Trending Articles
Corn Field
Eric SfiligojFacing Ag Industry Challenges
September 26, 2016
At the 2016 annual Mid America CropLife Association (MACA) meeting in September, a pair of crop protection company representatives discussed Read More
Bayer Monsanto
Crop InputsBayer-Monsanto Mega-Merger: 6 Things You Need To Know
September 14, 2016
Mega mergers have become almost routine in the agricultural industry. Right on the heels of Monday’s news that fertilizer giants Potash Read More
Potash Corp Agrium
Crop InputsAgrium, Potash Corp To Merge To Create $36 Billion Company
September 12, 2016
Canada’s Agrium Inc. and Potash Corp of Saskatchewan Inc. have agreed to combine in a deal that would create a Read More
Osage Co-op Elevator Osage, IA Finished Building
OpinionAre We Crazy?
September 8, 2016
At some point in the first few months of my employment here at CropLife® magazine, I started getting curious about Read More
ManagementMAGIE 2016 Highlights and Deere Anti-Trust
September 1, 2016
CropLife Editor Eric Sfiligoj discusses the recent Midwest AG Industries Exposition and the Department of Justice’s objection to John Deere Read More
ASMARK 2016 Retailers Live! Tour - CPS
CropLife 100CPS Acquires Texas Retail Operation
August 23, 2016
Crop Production Services (CPS) has acquired the assets of Larry’s Chemical and Spray, Inc., for an undisclosed amount in an Read More
Latest News
Growmark FS Outlet
Industry NewsGROWMARK To Purchase Suncor’s Share Of UPI
September 26, 2016
GROWMARK and Suncor have reached an agreement in which GROWMARK will purchase Suncor’s 50% interest in UPI, Inc. in Ontario, Read More
Corn Field
Eric SfiligojFacing Ag Industry Challenges
September 26, 2016
At the 2016 annual Mid America CropLife Association (MACA) meeting in September, a pair of crop protection company representatives discussed Read More
Syngenta Seedcare Institute
Seed/BiotechSyngenta Opens New North America Seedcare Institute In …
September 23, 2016
Syngenta unveiled its new Seedcare Institute in Stanton, MN, during a recent grand opening celebration. More than 150 industry leaders, Read More
StewardshipMonsanto Invests $1.6 Million In System To Quantify Gre…
September 23, 2016
The USDA – Natural Resources Conservation Service (USDA-NRCS) recently awarded the National Corn Growers Association (NCGA) and its Soil Health Read More
Pipe rack
LegislationCourt Sides With Ag Retailers On PSM
September 23, 2016
The D.C. Court of Appeals has ruled the Occupational Safety and Health Administration violated the Occupational Safety and Health Act when Read More
ManagementPacific Coast Fertilizer Announces Interest In Longview…
September 22, 2016
Pacific Coast Fertilizer LP (PCF) announced at the Cowlitz Economic Development Council board of directors meeting its interest in developing Read More
Young corn plants in soil
UncategorizedCool Planet Raises Additional $9 Million To Commerciali…
September 22, 2016
Cool Planet has announced the first close of a new financing round to commercialize the company’s Cool Terra Engineered Biocarbon Read More
Crop InputsJim Loar Promoted To President And CEO Of Cool Planet
September 22, 2016
In a move that reflects and reinforces the company’s commitment to the agricultural market, the Cool Planet board of directors Read More
BlendersNorth Dakota Coop Debuts Dry Fertilizer Plant
September 22, 2016
North Central Grain Cooperative has begun operations at a new dry fertilizer plant at its Rolla, ND, site. It is Read More
Crop InputsMonsanto, Bayer Officials Defend Proposed $66 Billion M…
September 21, 2016
Top officials for Monsanto and Bayer defended their proposed $66 billion merger before skeptical senators on Tuesday, insisting that the Read More
ManagementUpcoming Shows & Recent Events
September 19, 2016
Editors Paul Schrimpf and Eric Sfiligoj talk about upcoming trade shows and events and review the Mid America CropLife Association Read More
Industry NewsVerdesian Life Sciences Appoints New CEO
September 19, 2016
Verdesian Life Sciences, a plant health and nutrition company, today announced that its board of directors has named Kenneth M. Avery Read More
Corn
Crop InputsEPA Settles With Syngenta For Alleged Multi-Regional Pe…
September 19, 2016
The U.S. EPA has announced a multi-region settlement with Syngenta Crop Protection, LLC (Syngenta) in Greensboro, NC, for alleged violations of Read More
ManagementMerger Mania
September 16, 2016
Editors Paul Schrimpf and Eric Sfiligoj discuss this week’s mega-ag mergers of Bayer and Monsanto and Potash and Agrium. Read More
Monsanto sign
Crop InputsMonsanto Ends Up Being A Bargain For Bayer
September 16, 2016
History will say Bayer got a bargain in its $66 billion purchase of Monsanto, writes David Nicklaus, St. Louis Post-Dispatch. The Read More
Greg Musson, Gar Tootelian
CropLife 100California Ag Retailer Steps Up To Feed Families Affect…
September 16, 2016
GAR Tootelian, Inc. (GAR) in Reedley, CA, is challenging the Central Valley to help raise enough money and provide 525,000 meals Read More
Crop InputsBayer, Monsanto CEOs Discuss Merger
September 15, 2016
Werner Baumann, Bayer CEO, and Hugh Grant, Monsanto CEO, discuss why they decided to merge their companies. Read More
Corn close up
Crop InputsNY Times: Bayer-Monsanto a Bad Deal for Farmers
September 15, 2016
Via NY Times: Don Halcomb, a 63-year-old farmer in Adairville, KY, is expecting his profit to vanish this year, largely Read More