US Farming Market Outlook According to the US Department of Agriculture (USDA), 2018 net farm income, which includes cash receipts and expenses from farming and inventories, depreciation and other non-cash items, is expected to decrease 7% to $59.5 billion, a 12- year low. Average farm household income is expected to increase 0.2% during 2018, but primarily from non- farm income, which is expected to increase 2.8%, to $98,122/farm household. Average on-farm income is forecasted to decrease 10.3%, to $21,130/farm household. With low food and feed commodity prices, many smaller farmers are actually losing money from their farming operations. Median on-farm household income for 2017 was -$1,165 and is projected to be -$1,316 for 2018.

The Constant Fight for Pest Control The 2016 global pesticide market totaled $49.920 billion, a YOY decrease of 2.5%. Phillip McDougall, a pesticide consultancy firm, predicts a 2018 global increase of 1–2%. Farmers use a variety of pesticides, including insecticide, herbicide for weeds and fungicide. Herbicide is the most commonly-used pesticide, applied to 95.99% of planted acres of soybeans, 96.02% of cotton and 87.22% of spring wheat. Fungicide is used on 11.2% of soybean acres, 36.51% of spring wheat and only 2.94% of cotton acres. Farmers use insecticide on 18.07% of soybean acres, 5.10% of spring wheat and 64.551% of cotton acres.

Changing Fertilizer Needs Negatively Affect Market American fertilizer sales for the largest ag retailers has decreased more than $2 billion since the end of 2015 from lower prices and market resistance. The USDA forecasts more growers will plant soybeans instead of corn. Since corn is a more fertilizer-intensive crop, this will hurt sales. Nitrogen, phosphates and potash demand will be flat or lower in the US and increase in developing countries during 2018. Climate Corporation, the leader in digital farm technology, is launching a new product during 2018 that will enable the platform to output manual scripting for N, P, K and lime, which are key soil nutrients, and customize them for specific farm goals.

Inside the Seed Business According to CropLife’s 2017 100 survey, the biggest US ag retailers reported seed sales of $4.667 million during 2017, a 1.1% increase from 2016. Mergers & acquisitions in the industry should boost the seed industry during 2018. Companies, such as Bayer-Monsanto and Syngenta, are investing more money in research and development of seed lines as well as sales and marketing of seeds. Demand for traited seed (seed genetically modified to resist pests) has decreased after years of using traited seed significantly reduced insect populations. Traited seed is more expensive than conventional seed, but it reduces the need for insecticide.

Mega Ag-Chem Companies Mergers and acquisitions have been active trends in the agro-chem industry. During 2017, DuPont and Dow Chemical merged, BASF bought ZedX, ChemChina acquired Syngenta and Bayer CropScience acquired Monsanto. Digital agriculture has improved yields and provided companies, such as The Climate Corporation, a Monsanto subsidiary, with copious data for product development. Climate FieldView™ is the industry- leading big data platform. The top-5 agro-chem companies based on 2016 sales were Syngenta, $9.571 billion; Bayer CropScience, $8.810 billion; BASF, $61.63 billion; Dow AgroSciences, $4.631 billion; and Monsanto, $3.514 billion.

Consumer Demands Are Driving Organic Seed and Produce Markets The global organic seed market is forecasted to reach $4.59 billion by 2022, according to Grand View Research. Increasing disposable incomes, especially in Asia and Latin America, have contributed to the growth, while high seed cost is a deterrent. American consumers are demanding more organic produce. According to Organic Produce Network and Nielsen, 2017 US organic fresh vegetable sales totaled $2.4 billion, a 6% YOY increase and organic fresh fruit totaled $1.6 billion, a 12.6% increase. The top-5 categories in 2017 organic fresh produce sales were packaged salad, $892.8 million; berries, $580.8 million; herbs, spices and seasonings, $297.6 million; apples, $292.8 million; and beverages, $283.2 million.

Advertising Strategies Market biological products to both organic farmers and those who are interested in sustainable farming. Advertise integration of your data capture equipment and your chemical products for precise dosing and application. Highlight seed that is resistant to climate changes and climate-influenced diseases and pests.

New Media Strategies Create online forums where farmers can upload yield and other data and compare their results against others, collaborating on solutions. Create pest-specific email newsletters for growers. Local dealers of agricultural chemicals, additives and seed can create videos as Website and/or social media content with information and insights for farmers and growers matching the local growing season, climate, soil types, etc.