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

Soybean Plant closeup
Crop InputsDow Launching New Soybean Burndown Herbicide
June 30, 2016
With the 2016 growing season nearing the halfway mark, many growers are scouting soybean fields to find unwelcome marestail plants Read More
Valent David Nothmann
Crop InputsValent Names David Nothmann Vice President Of Marketing
June 27, 2016
Valent U.S.A. Corp. has announced the appointment of David Nothmann as vice president of marketing. Nothmann will be responsible for Read More
AdjuvantsPrecision Laboratories Introduces Intact Xtra For Use With Dicamba-Based Herbicides
June 27, 2016
Precision Laboratories announces the launch of Intact Xtra, an adjuvant designed for applicators who want to maximize spray applications and Read More
Crop InputsFields of the Future: WinField Doubles Down with Agri-Education Center Investment (w/Photo Gallery)
June 16, 2016
Land O’Lakes, Inc., joined by Agriculture Secretary Tom Vilsack, today will host Fields of the Future, a live broadcast about Read More
Trending Articles
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
Eric SfiligojPity The Monsanto Haters
May 23, 2016
An old saying goes thus: “Be careful what you wish for. You just might get it.” Given current events, there Read More
Monsanto Luling Plant
Crop InputsReport: Bayer Eyeing Monsanto For Possible Mega-Merger
May 16, 2016
Bayer AG is exploring a potential bid for U.S. competitor Monsanto Co. in a deal that would create the world’s Read More
Latest News
Heritage Cooperative
CropLife 100Heritage, Agland Co-op Explore Mutual Merger Interest
June 30, 2016
According to a report in The Ohio Country Journal, Heritage Cooperative and Agland Co-op have entered into negotiations to consider Read More
Soybean Plant closeup
Crop InputsDow Launching New Soybean Burndown Herbicide
June 30, 2016
With the 2016 growing season nearing the halfway mark, many growers are scouting soybean fields to find unwelcome marestail plants Read More
ManagementUpdates on Glyphosate Use in the EU and Bayer/Monsanto
June 29, 2016
Editors Paul Schrimpf and Eric Sfiligoj discuss the latest important developments on these crop protection fronts. Read More
Industry NewsCompass Minerals Names Protassium+ Sales Director
June 28, 2016
Compass Minerals, the producer of Protassium+ sulfate of potash, has named Scott Johnson director of sales for Protassium+ North America. Read More
Eric SfiligojThe British Leave Vote Impact On EU Agriculture
June 27, 2016
Like virtually everyone else in the world this past week, I’ve watched the global reaction to Britain’s vote to exit Read More
Valent David Nothmann
Crop InputsValent Names David Nothmann Vice President Of Marketing
June 27, 2016
Valent U.S.A. Corp. has announced the appointment of David Nothmann as vice president of marketing. Nothmann will be responsible for Read More
The Andersons Waterloo
ManagementFirst Indiana Facility Certified Under 4R Nutrient Stew…
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
CropLife 100BRANDT Contributes To Mayo Clinic
June 27, 2016
BRANDT, a leading agriculture retailer and manufacturer of specialty agriculture products, has pledged a sizable donation to the Mayo Clinic Read More
ManagementReport: U.S. Farmland Values On Average Continue Gradua…
June 27, 2016
Land price movement has been in the forefront for farmers, landowners, lenders and land brokers for a decade now during Read More
AdjuvantsPrecision Laboratories Introduces Intact Xtra For Use W…
June 27, 2016
Precision Laboratories announces the launch of Intact Xtra, an adjuvant designed for applicators who want to maximize spray applications and Read More
Key Cooperative’s new liquid fertilizer, crop chemical, and seed facility in Grinnell, IA stores 1.5 million gallons of liquid fertilizer and 120,000 gallons of crop chemicals.
Retail FacilitiesKey Cooperative Facility Features The Latest In Murray …
June 27, 2016
When Key Cooperative wanted to improve the overall efficiency at its new state-of-the-art facility in Grinnell, IA, it turned to Read More
Allen Summers Asmark Institute PSM Training
EmployeesAsmark Institute Sponsors 25 ResponsibleAg Auditor Trai…
June 21, 2016
The Asmark Institute has announced plans to provide 25 scholarships through their affiliated State fertilizer and agrichemical associations to help encourage Read More
Kennebec Elevator
CropLife 100Wheat Growers Celebrates Kennebec Elevator Grand Openin…
June 21, 2016
Over 250 patrons and guests were on hand to celebrate Wheat Growers’ Kennebec Elevator grand opening. South Dakota Secretary of Read More
Land O Lakes
Industry NewsLand O’Lakes To Acquire Ceres
June 20, 2016
Land O’ Lakes, Inc. and Ceres, Inc. have announced that they have signed a definitive merger agreement under which Land O’Lakes Read More
Food IT
Industry NewsCalifornia Event Will Mix Ag And Tech Professionals To …
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
LegislationVilsack Christens WinField Crop Adventure, Talks Monsan…
June 17, 2016
The WinField Crop Adventure grand opening ceremonies at Fair Oaks Farms (near Winemac, IN) welcomed USDA Secretary of Agriculture Tom Read More
Crop InputsFields of the Future: WinField Doubles Down with Agri-E…
June 16, 2016
Land O’Lakes, Inc., joined by Agriculture Secretary Tom Vilsack, today will host Fields of the Future, a live broadcast about Read More