SHAKING UP THE PRICING STRUCTURE

Ag companies are changing the way farmers pay for inputs.

- Chelsea Dinterman

Agricultural pricing structures have remained largely the same for decades. While buying seed by the bag and inputs by the jug is the norm, it can lead to headaches when calculating cost per acre or the price of modifying management strategies. Several seed and input companies are looking to change that with new pricing structures, offering increased flexibility and reduced risk for farmers.

Seed by the Acre

One program revamping the way farmers buy seed is GHX offered by Syngenta. MaxScript recommendations match field conditions to hybrid and plant populations and offer those seeds for a flat, per-acre price. An on-call team of experts and access to the GHX mobile app aim to keep the process simple.

"The one key difference is that it all starts with the farmer," says Wade Wiley, head of customer experience strategy and business intelligence for Syngenta. "We're very focused on the farmer winning, and we want to make it easy for the farmer to realize the potential that they have for their farm."

The platform intends to give farmers room to think about maximizing yield rather than the cost of seed.

Rye Randolph, a Canton, Illinois, farmer, started using GHX early last year. His seed dealer knew he liked cutting-edge technology and recommended he try the program and provide his feedback. Randolph says it's made planning and marketing his crop easier. "When you're planning almost a year in advance and trying to get your operating line set in stone, it's nice to know the seed is going to cost me this amount per acre," Randolph says.

Knowing his set price per acre has also allowed Randolph flexibility when it comes to experimenting with plant populations.