State Of The Industry 2012: More Of The Same

An old sports adage says that teams should enjoy winning streaks for two reasons — they tend to happen so rarely and often end quickly, without much prior notice.

Following two very difficult years in 2008 and 2009, the world of agriculture today is on an unparalleled growth curve. And based upon information from CropLife 100 and State of the Industry respondents, ag retailers think the winning streak will continue into 2012.

“I think we will ride this horse a little while longer,” says Steve Mossbarger, facility manager for Crop Production Services, Washington Court House, OH. “When there’s more money at the farmgate like there is today, ag retailers tend to end up with more money.”

Most of Mossbarger fellow ag retailers apparently agree with this prediction. When asked to describe their level of optimism for 2012 on a scale of one to 10 on the CropLife 100 survey, 29% thought the year would rank a solid eight, with another 22% saying the year would rate a seven and 18% thinking it would be a nine. Nine percent even gave the outlook for 2012 a perfect 10. So overall, 78% of respondents believe next year will be as good or better than the one they just experienced in 2011. Only 8% thought the year would rate a four or lower on the optimism scale.

Some Warning Signs

Still, by their nature, ag retailers are a cautious lot. “Overall, when I look at the prospects for 2012, I couldn’t be more excited,” says Harlan Asmus, Asmus Farm Supply, Rake, IA. “Right now, I expect my business to be up 20% or more again, just like what happened in 2011. However, that assumes corn prices stay in their current $7 per bushel range or better. If corn suddenly drops below $5 again, the desire by growers to invest in some of our most profitable management practices such as foliar feed and fungicide use will probably wane.”

Scott Firlus, agronomy manager for Wisconsin River Coop, Adams, WI, agrees. “Right now, 2012 looks good based on the conversations we’ve had with producers and our customers,” says Firlus. “But there are always those things that could cause everything to change. And it doesn’t have to be a big something to pop an economic bubble. Instead of one big pin, you need to keep an eye out for a bunch of little pins that could do the same amount of market damage.”

Leave a Reply

State of the Industry Stories
State of the IndustryAgriculture’s Troubled Waters
March 3, 2014
Water quantity and quality issues threaten to hamper agriculture on a wider scale in the not-too-distant future. Technology breakthroughs and improved practices are providing potential solutions. Read More
State of the IndustrySponsor Profiles: Simplot, SST And WinField Support CropLife State Of The Industry Report
January 8, 2014
The sponsor partners of the CropLife State of the Industry report have demonstrated ongoing leadership including their support of this report. Read More
State of the Industry2014 State Of The Industry: Agricultural Concerns Creep In
January 2, 2014
With many strong sales years under its belt, the agricultural community is hoping for another positive growth experience in 2014, but mindful of a few challenges that might keep this from happening. Read More
State of the IndustrySeed Systems Top Watch List
January 2, 2014
Retailers are closely following herbicide tolerance and drought resistance traits. Read More
Top 100 Articles
CropLife 100Pinnacle Agriculture Acquires Minnesota Retailer
April 14, 2015
Pinnacle Agriculture Holdings, LLC, ranked No. 6 on the CropLife 100,  has successfully acquired Liebl Ag, LLC in Ada, MN.  Read More
CropLife 100CHS, Aurora Cooperative Complete Fertilizer Storage, Grain Shuttle Loading Facility
April 13, 2015
CHS Inc., the nation’s leading cooperative and ranked No. 5 on the CropLife 100, and Aurora Cooperative (ranked No. 21) Read More
CropLife 100GROWMARK Acquires Missouri Refined Fuels Terminal
April 2, 2015
Bloomington, IL-based GROWMARK and Magellan Pipeline Co. have entered into an agreement in which GROWMARK will acquire the refined fuels Read More
CropLife 100Wilbur-Ellis Acquires South Dakota Retailer
April 2, 2015
Wilbur-Ellis Co.’s Agribusiness Division, a recognized leader in precision agriculture technology and the distribution and marketing of plant protection, seed Read More
CropLife 100The McGregor Co. Closes Smith-Kem Acquisition
April 2, 2015
The McGregor Co. — ranked No. 16 on the CropLife 100 list of largest U.S. ag retailers — has completed Read More
CropLife 100BRANDT Commemorates National Ag Day
March 20, 2015
The Illinois agriculture community gathered at BRANDT global headquarters on March 18 to celebrate National Ag Day behind this year's theme Sustaining Future Generations. Read More
Latest News
FertilizerSimplot’s Gal-XeONE Technology Moves West
April 27, 2015
The J.R. Simplot Co. remains committed to creating customer value through technology. In 2013, Simplot purchased the Gal-XeONE controlled release Read More
Eric SfiligojThe Need To Defend Production Agriculture
April 27, 2015
Last week, I spent the better part of my time on the road visiting with ag retailers and market suppliers Read More
FertilizerStarter Fertilizers Show Value In Stressful Spring Cond…
April 27, 2015
From wet, cold conditions in the eastern Corn Belt to excessively dry, cool soils in the Plains states, spring field Read More
StewardshipTFI Announces Renewed Financial Commitment To Fertilize…
April 24, 2015
Today, The Fertilizer Institute’s (TFI) President Chris Jahn announced that TFI and over 100 partners will more than double existing Read More
Industry NewsMACA Names New Ambassador Coordinator
April 23, 2015
The Mid America CropLife Association (MACA) has named Michelle Kilper as its new Ambassador Coordinator. Michelle is a graduate of Read More
ManagementAg Retailer’s Role In Local Policy Making; Raising The …
April 23, 2015
CropLife’s Paul Schrimpf and Eric Sfiligoj review their recent travels, precision ag efforts in Washington, DC, and the role of Read More
TMX-2050 In-Cab Display Launch Run Screen
Precision AgIn-Cab Computing 2015: Connectivity, Compatibility Take…
April 23, 2015
In terms of in-cab computing solutions for the agriculture market, companies like Case IH, Topcon, Trimble, John Deere and Raven Read More
USDA
StewardshipUSDA Outlines Building Blocks For Climate Smart Agricul…
April 23, 2015
Today, the USDA has announced a comprehensive and detailed approach to support farmers, ranchers, and forest land owners in their Read More
Industry NewsArysta LifeScience Welcomes New Territory Sales Manager
April 23, 2015
Arysta LifeScience North America recently announced the addition of Kaitlyn Acaster to the Canadian sales team. Acaster will fill the Read More
Crop InputsMarrone Bio Innovations Opens New Research Greenhouse
April 23, 2015
Marrone Bio Innovations, Inc. (MBI), a leading provider of bio-based pest management and plant health products for the agriculture, turf Read More
Crop InputsDuPont Acquires Taxon Biosciences
April 23, 2015
DuPont has agreed to acquire Taxon Biosciences, Inc., a leading microbiome discovery company. This acquisition will build on DuPont’s in-house capabilities Read More
Farmer on tablet
ManagementStudy: Consumers Don’t Care If U.S. Farmers Feed …
April 23, 2015
“We’re feeding the world” is a mantra often used by those involved in farming and food to build support for Read More
Industry NewsCorporate Responsibility Magazine Names Monsanto One Of…
April 22, 2015
Corporate Responsibility Magazine (CR Magazine) named Monsanto Co. to its 100 Best Corporate Citizens List for 2015. This is the Read More
FertilizerSpring Nitrogen Management: Form And Timing
April 22, 2015
Most corn producers have planned their spring nitrogen program for 2015, and many have already started to implement their program. Read More
FMC 3Rive 3D
Industry NewsFMC Corp. Completes Acquisition Of Cheminova
April 22, 2015
FMC Corp. has completed the closing of its acquisition of Cheminova A/S, a multinational crop protection company based in Denmark Read More
SoftwareSyngenta Expands AgriEdge Excelsior Nationwide For 2015
April 22, 2015
Growers across the country can now take the guesswork out of improving their farm’s production, land value, farm stewardship and Read More
Cornfield near Sioux City Iowa
HerbicidesU.S. Regulators May Start Testing Food For Glyphosate R…
April 21, 2015
U.S. regulators may start testing food products for residues of the world’s most widely used herbicide, EPA told Reuters’ Carey Read More
FungicidesBRANDT Adds Zonix Biofungicide To Portfolio
April 21, 2015
BRANDT has added Zonix biofungicide to its rapidly expanding line of organic and sustainable products. Zonix is a contact fungicide that Read More