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2005 Corn Weed Control Guide

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2005 Soybean Weed Control Guide

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Complete systems

Sep 1, 2005 12:00 PM
By John Pocock


THE WORD “BUNDLING” may cause some ag retailers to cringe, but not Rod Miller, seed systems manager for Crop Fertility Specialists (CFS), Rossville, IN. Miller says he's been bundling seed and crop protection products for many years, and it's been a win-win situation for both growers and dealers.

“We started bundling products as a way to build sales and to ensure customers reap the benefits of purchasing a complete system that helps to optimize yields,” Miller says. “For example, we sell quite a bit of Garst IT [imidazolinone-tolerant] corn in Indiana and bundle it with Lightning. By bundling seed with the correct crop protection products, we help customers select the best system for their crop. Growers also benefit because of the price discount.”

The price discount is based on the quantity of IT corn purchased, Miller explains. “If you buy 500 acres of [IT] corn,” he says, “then you have to buy 500 acres of Lightning to get the discount.”

The program's main benefit is to help CFS secure more sales earlier in the year, which ultimately helps to boost business. “Seed is typically the first crop input purchased by growers, while crop protection inputs aren't usually purchased until December or January,” Miller explains. “By bundling, we ask and often secure [the customer's] crop protection sales when they purchase their seed. We see it as an opportunity to provide more products on the same acres.”

Customer's choice

Seed sales also drive various product purchases at Brandt Consolidated, says Chip Donahue, the company's sales and marketing manager, Pleasant Plains, IL.

“In corn, we have a program for buying multiple categories,” he says. “The categories are seed, fertilizer and herbicide. It all starts with the seed purchase; then the more categories they buy, the greater the discount on the package. The key is to get customers to buy another category, which funds the discounts.”

Farmers can qualify for an extra incentive, over and above the normal discount, if they buy a technology-enhanced hybrid (rootworm-resistant, corn borer-resistant, glyphosate-resistant or a stacked trait), Donahue says. Although Monsanto is by far the largest seed supplier for his retail business, he adds, other seed suppliers (Garst, the company's own private label and a regional brand) also qualify for the program.

“We're funding most of these programs ourselves,” Donahue emphasizes. “It's up to retailers to look at their strengths and skills and decide what they can offer to growers that will build on those strengths. It's not about trying to be all things to all people, but you need to offer something that fits each individual customer.”

Brandt Consolidated also offers an incentive program for soybean sales, which relies on three different levels of service, Donahue says. The first level is to buy Roundup Ready soybeans with Monsanto's WeatherMax herbicide at an additional level of service and guarantees. The second level is to buy Roundup Ready soybeans and allow Brandt to provide full-season weed control with two passes of Roundup WeatherMax herbicide at a bundled or packaged price. The third level adds a biweekly scouting service at $4/acre in addition to everything else included at the second level. If a foliar insecticide or a foliar fungicide is needed, farmers receive a $2/acre discount on the applications.

“We've tried to take other programs and put our own stamp on it from a service standpoint,” Donahue explains. “Everyone can sell a Roundup Rewards program, but not everyone can offer all the services that we can.”

Brandt's program has a low, medium and high value that lets farmers choose what fits their operation best. “Rather than push a product that might not be appropriate, you let your customers choose their own bundle,” Donahue says. “There is power in letting the customers make the decision on what package is right for them.”

Rebate program

Successful discount or rebate programs empower both farmers and retailers, concurs Tim Glenn, Mycogen Seeds, sales and marketing leader. He cites the Dow AgroSciences and Mycogen Seeds Over-the-Top-Program as a case in point.

“We've utilized this program with success for the last four years now,” Glenn says. “It's a combined product offer; it's a tool to cross-sell products, to capture the seed sale with the ag chemical sale — both sides of the business on the same acres.”

Under the program, if a farmer purchases Mycogen Seeds corn, soybeans or sunflowers, he can qualify for rebates on Dow AgroSciences crop protection products, Glenn explains. This year, he adds, the program has been expanded to include rebates tied to different seed products alone, and it is now called Over-the-Top-Plus.

“From the grower's perspective, there's no penalty for not using our seed and vice versa,” Glenn says. “There is a reward for use of the entire product line, but it doesn't penalize those who don't use it, whether it's the grower or the retailer.”

The Over-the-Top program allows dealers to offer the rebates without cutting into their margins. “They don't actually have to fund the program,” Glenn says.

He says he's always looking for ag retailers who have ideas on how to expand and enhance his company's rebate programs. “When we work with a particular retailer, we are interested in customizing services to what their needs are,” he says. “We want to work closely with retail customers to serve them as they want to be served.”

One-stop shopping

Convenience and choice are two key components that help incentive programs appeal to both retailers and farmer customers, says Jerry Harrington, Pioneer Hi-Bred International. He holds up Pioneer's Rewards and TruChoice Opportunity Programs as examples.

There are several components to the Pioneer Rewards seed purchase program, including deferred payment, a discount for an early purchase, a discount for cash payments and discounts based on quantity purchased. Harrington adds that Pioneer's TruChoice Opportunity Program provides incentives that ultimately help retailers by making crop protection purchases easier through competitive financing terms.

“There are quite a few choices in this to add value,” he says. “It is convenient and easy for farmers. You've got your financing in one package, and the farmer doesn't need to make a decision on a crop protection product [right away or at all].”

Farmers can finance their seed buys at a low rate and extend those low rates to finance DuPont-approved crop protection products, Harrington explains. “There are a significant number of Pioneer customers,” he adds, “so this is a good way to link crop protection with seed.”

Having an input company's support can make the difference between a rebate program that catches on and one that doesn't, agrees Miller of CFS. The level of support from input companies can range from technical expertise in custom application services to discounts to both dealers and customers on products purchased.

“Garst and BASF have rewarded us by bundling good products together,” Miller says. “We wouldn't bundle products if all parties didn't benefit from doing so.”

CFS currently offers a number of products ranging from corn and soybean seed to crop insurance, financing and research. Miller adds that with so many trait options available today, helping customers match the right seed with the correct crop protection materials is critical.

“We take the position that we're offering many of the tools our customers need to be successful,” Miller says. “The farmer gets the right corn hybrids for the right fields along with the right crop protection trait that optimizes his bottom line.”

Farmers are no different than other consumers who want one-stop shopping, Miller says. “We try to make it easy for farmers to do business with us,” he says. “It boils down to convenience. If something goes wrong in the field, the farmer only needs to make one phone call — to me, and I'll take care of it. We all by nature want to make our lives easy, and we're helping farmers to do that.”

Solutions-based program

Garst Seed Company, an affiliate of Syngenta, recently introduced details about a new program called AgriEdge. The program is designed to help farmers optimize yields and profits in corn and soybean production and to generate data on Integrated Pest Management (IPM) practices, says Rick Henley, marketing development manager, Garst Seed Company.

“This is a solutions-based offer that combines the seed offering with crop protection products (fungicide, insecticide and herbicide) or crop protection traits (herbicide-tolerant or insect-resistant traits),” Henley says. “The overlying concept is to introduce producers to management practices that are going to increase their yields and profitability and reduce the risk that they take.”

The new program also ties seed sales with specific, IPM practices, he adds. For example, a farmer might purchase Garst soybeans and agree to measure the yields from using a seed treatment followed by a fungicide and compare them to yields obtained when not using those treatments.

“These will be replicated, 40-acre trials,” Henley says. “That's where the individual farmer will find out if he made money on these new management practices.”

On IPM trial acres, the AgriEdge Soybean Offer will provide crop investment assurances. “Should you not get an increase in yields that exceed your investment, we'll match your investment from 50 to 100%,” Henley says.

In addition, the information derived from thousands of these trials should prove valuable to producers and retailers throughout the country. The goal for the Garst soybean program is to have 2,500 replications of the IPM trial, Henley says. The goal is 10,000 replications for Syngenta.







 

SEFP ATE




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