As an ag retailer, there’s plenty you can’t control within the industry: input prices, supply chain snags, and tariffs.
Margins are slimmer than ever. And you can’t change the macro-level factors that hurt your customers’ bottom lines.
But for the ROI-savvy retailers, there are ways to help growers get more for less. It just requires a small mindset switch, a little math, and some proven soil science.
Think in acres, not tons
For decades, the status quo of ag retail has been to move as many tons of product as possible. Farmers come in with a clear idea of how much they need for their operation; retailers fill the order. Simple and to the point.
But growers are more mindful of ROI than ever, especially in an era where input prices have skyrocketed and the global economy remains turbulent.
To meet the moment, retailers need to think outside the “sell more tons” box. Instead, how could they promote better ROI on their customers’ acres? Even if it means selling fewer tons of certain products, that efficiency could bring longer-term benefits to the farmer.
Phospholutions, a sustainable fertilizer technology company, engineered Rhizosorb as a product to help boost acre-by-acre ROI.
Rhizosorb, which is integrated directly into the phosphate granule at processing facilities, helps growers reduce their phosphorus applications by up to 50 percent.
Upfront, per ton, Rhizosorb is more expensive, but since growers can use less and still achieve higher yields, it’s cheaper per acre.
“Growers understand that phosphate is very inefficient,” said Craig Dick, Phospholutions VP of Sales and Marketing. “With the elevated costs of the last few years, growers are looking for relief and are trying to find alternatives. When they hear there’s a more efficient product, they instantly get it. If something works better and they can apply a little less, they’re pretty motivated to make that switch.”
Here’s an example: Compared to 100 pounds of MAP 11-52-0 applied (at $40/acre), the average RhizoSorb grower only applied 66 pounds. That broke down to a $36/acre cost, thanks to less product volume.
Those savings of $4/acre can then be applied to other input purchases or crop protection methods. And shrewd retailers can help their growers strategize how to maximize those cost savings.
Build more value for growers
Most growers will budget a specific amount per season to spend on phosphorus. But with a product like RhizoSorb, they can reduce their phosphorus applications by up to 50 percent, saving them money.
Because of those reductions, they have budgeted money left over to spend. Instead of just funneling all of that money to extra, unnecessary phosphorus, retailers can help growers build a more comprehensive fertility plan.
“Are you in the business of providing the cheapest inputs or providing value to growers?” Dick said. “At the end of the day, are you a low-cost inventory provider, or are you trying to support that grower in driving more efficiency and value on each acre?”
Just because growers might use less phosphorus doesn’t mean they don’t have plenty of ideas for how to spend their input budget.
With $4/acre in savings, growers can invest in a new biostimulant or another fertility product. At the end of the day, this leads to healthier crops, better yields, and more ROI at the farmgate. And for retailers, this means happier, more profitable customers — which, downstream, means more sales.
Efficiency that lasts
ROI-driven growers instinctively understand the value of acre-by-acre savings — even if the per-ton math initially looks higher on the invoice.
When a farmer can cut out unnecessary fertilizer applications, optimize their input purchases, and still maintain (or even exceed) historical yields, that’s a huge win. And it’s a win that can set their operation up for even more long-term success.
“Growers are running a business, and they need to be profitable,” Dick said. “The economics drive their decisions, and the agronomics support it. When those two are in alignment, then they get excited about sustainability.”
To learn more about how you can leverage Rhizosorb to offer more value to your customers,
reach out to a Phospholutions representative. We can also take you through our retailer economic model to better understand the potential ROI on the table.
