SELL CONFIDENCE, NOT CUTS: Protecting Fertility Investments

Retailers know the pressure farmers face this season as fertilizer costs remain high across key nutrients. DAP averages $853 per ton, up 12 to 13 percent from last year, and MAP is $880 per ton, up 9 percent. Potash holds near $484 to $486 per ton, about 9 percent higher year-over-year. Nitrogen sources show similar increases, with urea at $567 to $611 per ton and anhydrous ammonia at $865 to $869 per ton, both reflecting significant year-over-year gains. Rising input costs continue to challenge margins and force closer evaluation of every fertilizer dollar.

Brandon Meiners, director of agronomy at Midwestern BioAg, notes that the real challenge is not only the high price of fertilizer but also how much of that investment fails to reach the crop. “Standard fertilizers often lose significant value through runoff, leaching, or immobilization, and in many cases, more than 60 percent of applied minerals never reach the crop,” he explains. “These losses represent the hidden cost farmers are trying to control, especially in a year when every input decision carries more financial weight.”

This challenge has shaped Midwestern BioAg’s history and continues to fuel product innovation, including the development of Bio-Gel^®, a delivery technology designed to improve efficiency across fertility applications. Created to support nutrient and moisture retention, Bio-Gel now fits a wide range of systems and geographies. “Whether farmers are using a dry fertilizer, UAN at sidedress, in-furrow starter, pre-emerge applications, or seed treatments, Bio-Gel helps keep nutrients available, supports uptake, and limits loss,” says Meiners.

In a year when margins are tight, the goal is simple: help more of every dollar reach the crop. Bio-Gel provides retailers with a tool for existing programs without requiring major changes. Cody Donoven, a Midwestern BioAg channel partner and farmer in Montana, notes that the fit was immediate. “In our area, we can go five or six weeks without rain. In our arid environment, moisture is almost always the limiting factor,” he says. “Bio-Gel fits how we make fertility decisions; anything that helps build soil function and moisture-holding capacity gets our attention.”

Protecting Margin Without Cutting Rates

Retailers are feeling pressure from both sides. Farmers want to manage costs, and competitors are lowering prices. When budgets tighten, many rely on reducing rates or cutting prices. Both approaches can move product, but often erode retailer margin and increase farmer risk if fertility is reduced without understanding the yield or efficiency impact.

Meiners believes the better strategy is to help farmers cut waste, not inputs. “In this market, retailers don’t win by selling the cheaper fertilizer; they win by helping more of what’s applied reach the crop,” he says. “Bio-Gel strengthens existing programs and creates a higher value conversation than price alone.”

A Rare Move in Agriculture: Shared Risk

To reduce adoption barriers, Midwestern BioAg launched the 2026 Bio-Gel Warranty Program paired with a 0 percent financing option. The warranty provides up to a 6 percent yield guarantee when farmers follow program requirements. If results fall short, farmers can file a claim. Years of internal and independent research support the program, giving retailers a transparent, defensible tool and giving farmers confidence in the economics.

“We wanted to build confidence,” Meiners says. “Farmers can try the technology knowing there’s a clear, structured warranty behind it. If performance doesn’t meet the program threshold, they can file a warranty claim payment. It takes a lot of the hesitation out of trying something new.”

Retailers typically capture about 10 to 15 dollars per acre in gross revenue with a single Bio-Gel product, while farmers often see returns of 30 dollars per acre or more across major crops. Donoven says the warranty and financing have shifted conversations, making farmers more willing to try the technology because they feel protected.

Sell Confidence, Not Discounts

As farmers protect their margins, retailers can guide them toward smarter nutrient management rather than simple input reduction. Bio-Gel helps support that strategy. As Meiners puts it, it works like an insurance policy for the inputs farmers are already buying.