Ag Retail Outlook Positive For 2013

As anyone in the sporting world will attest to, there’s only one problem with winning streaks — they eventually come to an end. No matter how dominate a team or skilled the players involved, inevitably they will have a bad day or just be unlucky, resulting in a loss.

This is a lesson many market watchers think agriculture should pay attention to. Since the dark days of mid-2008 and 2009 — when high fertilizer prices led to a severe downturn in ag retail fortunes — retailers have enjoyed three relatively prosperous years. Better yet, these gains have come in exceptionally wet seasons (as in 2011) and unseasonably dry ones (as happened this year). No matter what curve balls Mother Nature has thrown, ag retailers and their grower-customers have been able to overcome these obstacles and largely thrive.

And right now, many in ag retail think this unprecedented winning streak for agriculture will continue well into 2013. “The outlook for 2013 looks good,” says Gordon Cockrum, crop protection manager for The McGregor Co., Colfax, WA. “Commodity prices look strong and growers are excited about farming and the future.”

Solid Numbers

This level of optimism for 2013 is borne out by other member companies of the CropLife 100 as well. In the 2012 annual survey of the nation’s top ag retailers, CropLife magazine asked respondents to rank their confidence in the fortunes for 2013 on a scale of one to 10 (with one being very negative and 10 being very positive). Of the 90 retailers to answer this question, the vast majority (79%) thought that 2013 would rate a seven to 10 in terms of growth. Another 13% believed that the year would be average in overall growth, rating it between a five and six. Only 8% believed 2013 would be a “down” year in terms of revenue, rating it between a two and a four. Significantly, however, not one of these 90 ag retailers gave 2013 a very negative mark (one).

Among some of those surveyed, CropLife 100 retailers thought there were some after-effects from the nationwide drought that hit agriculture during mid-2012. “It slowed the end-of-year sales and is making producers cautious for next year,” wrote Lane Mielke, sales manager for North Central Farmers Elevator, Ipswich, SD.

Other respondents indicated that their grower-customers were waiting a bit before proceeding with their 2013 plans because of the drought’s impact on their operations. “Our customers have been slow in making decisions until after they receive their insurance checks,” wrote Dennis Montavon, general manager for Effingham Equity, Effingham, IL.

Despite this slowness, however, the general feeling among CropLife 100 retailers is that 2013 will be “another winning year” for agriculture. “I think things will continue to stay positive for next year,” says Matt Hynes, manager, agronomy marketing for GROWMARK, Bloomington, IL.   

Topics:

Leave a Reply

State of the Industry Stories

Fertilizer Tender close-up
MicronutrientsHow Micronutrients Fit Into 2017 Fertility Plans
January 10, 2017
Where do micronutrients stand going forward in fertility plans? For one thing, Tim Mundorf, Field Representative with Midwest Laboratories, says Read More
Fertilizer application
State of the IndustryCautious Optimism On Fertilizer In 2017
January 10, 2017
What kind of fertilizer rates are growers and retailers looking at in 2017 and beyond? According to stakeholders CropLife magazine Read More
Asmus Farm Supply crop protection products in storage
State of the IndustryCrop Protection Products Market: Complexity Begets Opportunity
January 10, 2017
While other key market segments in agriculture continue to see tumultuous shifts in sales volumes going forward (large equipment sales are Read More
Pioneer corn seed in storage
Special ReportsState Of The Seed Industry: Better Later Than Never
January 3, 2017
Traditionally, the majority of the nation’s grower-customers made their seed planting decisions in the late fall. Normally, when folks attended Read More
Trending Articles
Stewardship‘Gonna Fly Now’ with Environmental Respect
July 20, 2017
One of the most memorable moments in movie history occurred in the Academy Award-winning 1976 film “Rocky.” Haven gotten his Read More
StewardshipEnvironmental Respect 2017 Kicks Off Enjoying an American Pastime
July 18, 2017
Following months of planning and scheduling, the 2017 Environmental Respect Awards (ERA) celebration kicked off in fine fashion as more Read More
Soybean Closeup
Crop InputsMissouri Lifts Dicamba Ban, Issues Stricter Application Parameters
July 14, 2017
The Missouri Department of Agriculture has lifted its barely week-old ban on new dicamba technologies, which have been at the Read More
Crop InputsMonsanto Responds to Arkansas, Missouri Dicamba Bans
July 10, 2017
Monsanto, provider of the dicamba-tolerant Roundup Ready Xtend crop system for soybeans and cotton, issued the following statement on Friday, Read More
Retail FacilitiesPCS-Hammond Meets Fertilizer Storage Needs with New Dome Facility
July 8, 2017
The new barrel dome facility at the PCS-Hammond Regional Distribution Center in Hammond, IN, can hold more than 100,000 tons Read More
PrecisionAg Vision Conference
Precision AgPrecisionAg® Vision Conference: Focused on the Future
June 13, 2017
PrecisionAg® is pleased to announce the return of its PrecisionAg Vision Conference, October 10-12, 2017. Based on overwhelmingly positive response Read More
Latest News
ManagementCropLife Retail Week: Dicamba Update and InfoAg Preview
July 21, 2017
Editors Eric Sfiligoj and Paul Schrimpf discuss reports from the field and comments from Monsanto about dicamba drift this season, Read More
Stewardship‘Gonna Fly Now’ with Environmental Respect
July 20, 2017
One of the most memorable moments in movie history occurred in the Academy Award-winning 1976 film “Rocky.” Haven gotten his Read More
StewardshipEnvironmental Respect: Grand Grounds, Posters Parade
July 19, 2017
To celebrate their accomplishments in the area of environmental stewardship, award recipients at the 2017 Environmental Respect week spent much Read More
StewardshipHarden’s Message to ERA Winners: Do Tell Your Good Stor…
July 19, 2017
As the daughter of a peanut farmer, Krysta Harden, Chief Sustainability Officer for DuPont Crop Protection, understands the importance the Read More
StewardshipFarming Smarter Hinges on 4R Best Management Practices
July 18, 2017
Preserving water quality while feeding another 2 billion people by 2050 is the challenge facing North America’s farmers and its Read More
StewardshipEnvironmental Respect 2017 Kicks Off Enjoying an Americ…
July 18, 2017
Following months of planning and scheduling, the 2017 Environmental Respect Awards (ERA) celebration kicked off in fine fashion as more Read More
Soybean Field Sunset
OpinionPicking Partners in the Crop Protection Market
July 17, 2017
Agriculture is a market awash in highs, lows, and everything in between. This is certainly true in the world of Read More
TMX-2050-In-Cab-Display-Launch-Run-Screen
EquipmentGPS Auto Steer: Innovating in a Mature Market
July 17, 2017
In the world of Big IRON, GPS auto steer has closely mirrored the evolutionary path of consumer GPS Navigation systems Read More
MFA-Centralia-MO
Eric SfiligojThe Resilience of Ag Retailers
July 17, 2017
After covering the ag retail market for 17 years, I think one of the most impressive character traits I’ve seen Read More
SERA-meeting
Stewardship4R Event Explores How to Minimize Phosphorus Losses
July 17, 2017
This year the Southern Extension and Research Activity (SERA) – 17; will be meeting in Oregon, OH, from August 14-17. Read More
Students Soybean Field
StewardshipCCA 4R Study Guide Available
July 17, 2017
In June the International Plant Nutrition Institute (IPNI) released the Certified Crop Advisor (CCA) 4R Nutrient Management Specialist (4R NMS) Read More
Soil soybean closeup
FertilizerThe 4Rs and Potassium
July 17, 2017
Are we meeting crop K needs? Using the 4R nutrient stewardship approach of selecting the right source at the right Read More
Soil Young Corn
StewardshipTop 10 Themes from the 2017 4R Nutrient Stewardship Sum…
July 17, 2017
Preserving water quality while feeding another 2 billion people by 2050 is the challenge facing North America’s farmers and its Read More
Soybean Field Sunset
Crop InputsWhich is Better for Soybeans: Fall or Spring Applicatio…
July 17, 2017
There have been many questions about fall versus spring applications of phosphorus (P) and potassium (K) to soybeans, writes Dr. T. Read More
corn-potassium-deficiency-University-of-Minnesota-Extension
Crop InputsRecognizing Potassium Deficiency Symptoms in Crops
July 17, 2017
Some crops exhibit characteristic deficiency symptoms when adequate amounts of K are not available for growth and development, according to Read More
ManagementComplexity in Agriculture: The Rise (and Fall?) of Mons…
July 17, 2017
Sometimes it seems as if the ag world is changing so fast that we can barely keep up with it Read More
Crop InputsMonsanto: Illegal, Improper Use at Root of Drift Proble…
July 14, 2017
Monsanto isn’t backing down from the position that its tool — the Roundup Ready Xtend dicamba-tolerant system for soybeans and Read More
Soybean Closeup
Crop InputsMissouri Lifts Dicamba Ban, Issues Stricter Application…
July 14, 2017
The Missouri Department of Agriculture has lifted its barely week-old ban on new dicamba technologies, which have been at the Read More