For Seed and Ag Retailers, a Classic ‘Good News/Bad News’ Scenario in 2021

Over the past few growing seasons, the seed category among all crop inputs/services has taken some lumps, metaphorically speaking. In fact, during the extreme weather of 2019, almost 19 million acres of farmland ended up not being planted, which depressed overall seed sales. While this situation was expected to improve during 2020, the revenue numbers told a different story. According to the 2020 CropLife 100 survey, the seed category saw its sales volume drop $100 million, from $4.8 billion in 2019 to $4.7 billion.

Would 2021 be better? Yes, but…

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On the bright side, the seed category recorded one of its best sales years ever in 2021. According to the 2021 CropLife 100 survey, seed sales for the nation’s top ag retailers improved 6.4% from the previous year, topping the $5 billion mark for the first time ever. On the surface, this would seem to indicate nothing but good news for seed.

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But in 2021, every other crop inputs/services category experienced growth. And the seed category’s 6.4% increase was overshadowed by the growth percentages of every other category. So, when all the final numbers had been tabulated, the seed category ended up losing market share compared with the rest of the marketplace. As of the end of 2021, the seed category holds a 14% share of all crop inputs/services sales among CropLife 100 ag retailers, down 1% from 2020.

In 2022, based upon projections from the 2021 CropLife 100 survey, ag retailers are expecting a shift from corn to soybean. According to the survey, 42% anticipate the demand for soybeans seeds in 2022 to increase between 1% and more than 10%. This compares with 34% of CropLife 100 ag retailers looking for corn seed sales to grow by these same percentages.

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