FBN Report Highlights Ag Chemical Price Variations

FBN farmers business network agtech

The lack of transparency in agrochemical pricing is a significant issue facing farmers, as highlighted by the Farmers Business Network’s (FBN) 2023 Ag Chemical Price Transparency Report. The report revealed a significant variation in farmers’ prices for identical agrochemicals across different regions, with a 15% variance between the average list price and the actual price paid. The report analyzed over 3,000 pricing data points across 37 states, covering over 800 insecticides, herbicides, and fungicides. The data showed that crop protection sellers are not providing transparent pricing, leading to a lack of competition and opaque markets.

In the past 18 months, numerous events created volatility in agricultural chemical pricing and supplies, including Hurricane Ida and port congestion on the U.S. west coast. These events highlighted how U.S. farmers rely on global manufacturing of vital active ingredients and an efficient transportation network to bring products to farms. The report’s findings suggest that the agrochemical market continues to be opaque, posing a challenge for all farmers to get uniform agrochemical costs. The report also revealed that farmers paying higher prices were disproportionately impacted, with half paying an average of 19% more than the average list price.

FBN Direct, the online agrochemical purchasing system of FBN, aims to provide farmers with high-quality generic and brand-name products at competitive, transparent list prices. FBN Direct enables growers to select and plan chemical programs, compare alternative products, see list prices, select delivery timing, get product support, and choose financing options. The system now partners with over 500 farmer Community Builders who work with farmers locally as sales agents, providing farmers with online convenience and local support. FBN’s unique approach aims to give farmers greater price transparency in the agrochemical market and confidence in competitive markets.

Charles Baron, the co-founder of FBN, highlights crop protection sellers’ opaque pricing practices and the lack of competition, resulting in farmers paying varying prices for the same products. To address this, FBN provides transparent purchasing options through its online platform and farmer-selling partners, FBN Direct.

Read the report here.

Photo by Randy Fath on Unsplash 

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