Think about taking the risk out of buying inputs, especially threat related to attempting an unfamiliar product. Would it not make you extra keen to strive for products or practices in which you’re not acquainted?
Bayer’s banking on it. Company executives recently defined Bayer will change the way it markets products to farmers in a try to better share risk.
“With our data science we can make particular recommendations to the grower and provides them outcome-based mostly pricing,” says Liam Condon, president of Bayer Crop Science. “In case you don’t obtain the result we predict you, don’t need to pay for that outcome. If you achieve more, we share in that incremental value.”
For example, if Bayer’s models let you know to use fungicide at VT for a three bu. Per acre achieve, and you only gain two bu. Per acre, you get a refund on a few of what you paid for the fungicide. Alternatively, in the event, you acquire six bu. Per acre, you’d pay a few of that worth to the corporate after the fact. Note, anything above a ten bu. per acre achieve above expectation would be “all yours.”
“It’s not just for seeds, it’s for fertility, fungicide/crop protection prescriptions as nicely,” says Mike Stern, Bayer’s head of Climate Company. “Though we would need to refund some, the grower is almost definitely in a good spot, and we’re nonetheless selling fungicide. All suggestions are based on the truth that we can bring data profiles in.”
The new system shall be primarily based on info gathered in Climate Company expertise akin to Field View. The information customers enter in will inform suggestions and anticipated outcomes.
Last year Bayer took its first step towards this new pricing model by releasing Seed Advisor, which makes use of info farmers enter into the system to offer seed recommendations, including multi-hybrid options.
The company doesn’t have a launch date for the brand new pricing system and sure agronomic recommendations as there are several complicated variables but to be finalized.