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Jan. 2, 2008 Source: AgriMarketing magazine Here is our list of the top ten events that occurred in 2007 and will shape the agri-marketing environment in the coming years: 1. Record Net Farm Income: buoyed by booming demand of crops for bio-fuel production and record exports, net farm income for 2007 soared to $87.5 billion. This is a nearly 50% increase over 2006, and $30 billion more than the 10-year average. Land and cash rent prices are at record levels. 2. 93 Million Acres of Corn: in 2007 U.S. producers planted a near record 93 million acres of corn, a 16% increase over the prior year. As a result, sales of the following products/services to corn producers jumped: *Seed/traits: $805 million, *Plant nutrients: $1.05 billion, *Crop protection: $414 million, *Fuel: $577 million, *Interest: $92 million *40hp+ tractors: $717 million (U.S.); $65 million (Canada), *Combines: $210 million (U.S.); $10 million (Canada), 3. Stock prices: as a result of the booming crop markets, stock prices of organizations with a significant presence in the ag industry nearly doubled. Leading the list were: *Terra (fertilizer): 368% *Mosaic (fertilizer): 337% *CF Industries (fertilizer): 331% *Potash Crop (fertilizer): 199% *CNH (machinery): 147% *Agrium (fertilizer & distribution): 131% *AGCO (machinery): 120% *Lindsay (irrigation): 120% *Monsanto (seed/traits): 111% *Deere (machinery/credit): 95 *Bayer (crop protection/seed): 70% *Valmont (irrigation): 63% 4. Year of alliances: significant and deep new relationships were formed by: *DuPont and Syngenta's formation of Greenleaf Genetics to license the companies' genetics and traits, *Monsanto and BASF: Research & Development and Commercialization partnership, *Monsanto and Dow AgroSciences: cross-licenses each firm's traits to create an 8-stack SmartStax varities to be introduced in 2010. 5. Much more than genetics: the seed business is now much more than presenting the best genetics package. It has now moved into providing traits offering resistance to crop protection products, insects and other crop pests. For example, since its introduction in 2005, Monsanto estimates that 17% of the U.S. corn crop now contains a triple-stack (Roundup Ready and YieldGard-corn borer and rootworm) and expects the market will grow to 55% by 2010. 6. Energy bill: the new energy bill that was signed into law by President Bush last month includes the Renewable Fuels Standard (RFS) which mandates the use of 9 billion gallons of ethanol in 2008. In 2006, 4.8 billion gallons of ethanol was produced, the industry currently has 7 billion gallon production capacity on-line. RFS increases to 36 billion gallons by 2022 of which half is to come from cellulosic feedstocks. 7. Agrium's acquisition of UAP: Plant nutrient producer and crop input retailer Agrium, Calgary, AB, acquisition of United Ag Products (UAP), Greeley, CO, will result in the largest retailer in the U.S. with over 800 locations. Next largest retailer is Helena with 289 locations. Last year, Agrium doubled its locations with its acquisition of Royster-Clark. 8. Cotton seed shuffle: Monsanto's acquisition of Delta & Pine Land (D&PL) resulted in its divestiture of its Stoneville brand to Bayer CropScience and its NexGen line and certain D&PL germplasm to Americot. 9. BIO stewardship program: The Biotechnology Industry Organization (BIO) launched a new program, "Excellence Through Stewardship: Advancing Best Practices in Agricultural Biotechnology," the first industry-coordinated effort to address product stewardship and quality management. The overall intent of the program is to set certain standards for biotechnology-based products before their commercial release. 10. 2007 Farm Bill: Finally passed the Senate and is awaiting conference committee before being sent to President Bush who has threatened a veto. Acquisitions/mergers (in addition to those listed above) included: *Schering-Plough acquired Intervet, *Chicago Board of Trade was merged into the Chicago Mercantile Exchange, *Canada's Agricore United is acquired by Saskatchewan Wheat Pool, *Monsanto acquired Brazilian based seed corn company Agroestes Sementes, while its American Seeds Inc. unit purchased Hubner, iCorn, Jung, Lewis and REA. *Poultry producer Pilgrim's Pride acquired Goldkist, *Agriliance's parent companies CHS acquires its crop nutrients wholesale distribution business and Land O'Lakes acquires its crop protection products business. *AmVac Acquires Chemtura's fungicide product line, *DTN acquires Progressive Farmer magazine and internet content provider QuickFarm, *DuPont sold its fenbutatin-oxide miticide (Vendex) and triphenyltin hydroxide contact fungicide (Super Tin) assets to United Phosphorus Limited; its terbacil herbicide (Sinbar) to Tessenderlo Kerley, Inc., and its Cotoran herbicide to MANA. *Owner Lawhorn Farm Services closes its Stauffer Seed unit. Legendary agri-marketers who we lost this year include: Rex Parsons, NAMA Bert Hutchison, The Brady Agency Ed Slusarczyk, Ag Radio Network Hal Dean, Ralston Purina Gary Plummer, AgriBank Orville Sweet, National Pork Producers Council Bob Miller, WLW radio Allen Campbell, Bock & Associates Ken Mills, Rain Bird Corp. Tweet |
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