State Of The Industry: Ag Retailers Center Of Influence For Growers

As the final decade of the 20th century wound down, a media-driven panic over the approach of “Y2K” and the possible effect on electronic devices kept entire industries busy trying to avert a technology meltdown. Behind the scenes in ag, however, a far more profound event was unfolding that would turn the industry on its head in less than a decade: The Roundup Revolution.

In the beginning, it wasn’t always clear that it would be able to deliver on the promise of ease of use and equal or better yields than its conventionally bred competitors. But deliver it did.

As each year in the first decade of the 21st century unfolded, the impact of simplified weed and insect control hit harder and closer to home for the ag retailer. Herbicide and insecticide programs collapsed, taking multiple billions of dollars in sales out of the market. Seeing little hope of profit in new product development, crop protection research and development was pulled back at most companies and shuttered altogether in others.

A generation of farmers, consultants and agronomy students — which some old school agronomists and product managers refer to as “glyphosate babies” — saw advanced weed control become defined as “another application of Roundup.” And, as one retailer quipped, “it made really good farmers out of really bad ones, to be frank.”

And adding insult to injury, at least for the retailer, the rapidly maturing and accessible Internet brought price transparency to farmers and served to chew up what little profit was available in crop protection products. Consolidation slashed the number of manufacturers and distributors across the country, leaving those left standing to figure out how to sustain their businesses in a rapidly commoditized industry.

The Road Back

Looking at agriculture today, it’s hard to imagine that the market outlook was so dismal not so long ago. But today, the full-service retailer finds himself directly in the center of influence with grower-customers, who now operate their farms with unprecedented opportunity coupled with unprecedented risk.

Mother Nature has spurned the old Roundup Ready system, driving Monsanto to accelerate improvements and creating openings for competitors to provide alternatives. And insect resistance in Bt crops is also a growing issue.

Simultaneously, emerging complexities are complicating the practice of farming further, including global competition, increasing commodity crop demand and rising exports, comprehensive fertility management that is driven both by building yield and preserving watersheds, technology implementation, rising input costs and increasingly sophisticated grower customers to serve.

For the retailer who is ready to fully engage the grower and his suppliers has a world of opportunity ahead, and the state of the industry is indeed strong.

Leave a Reply

One comment on “State Of The Industry: Ag Retailers Center Of Influence For Growers

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
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
ManagementMissouri Experts: Spring Planting Slow Start Won’…
April 20, 2015
In the first of the agronomy teleconferences with Extension specialists, University of Missouri Extension climatologist Pat Guinan said the slow Read More
Carl Casale of CHS
Industry NewsCooperative CHS Reports Net Income Of $471.5 Million Fo…
April 20, 2015
CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, has announced company net income Read More
Industry NewsCHS Insurance Names New Director Of Sales
April 17, 2015
Bryan Lewis has been named director of sales for CHS Insurance, the nation’s largest agribusiness insurance broker and full-service insurance Read More