How Ag Retail Is Expanding Options For Farmers Through Technology
There’s more than what meets the eye in our latest research report from the Farm Journal Crop Input Purchase Behavior Study.
For six years, Farm Journal has surveyed farmers and specifically asked if they buy any of their crop inputs online. The study is unique in its longevity and focus. We also ask farmers what it means to them to buy online — chipping away at their own perception and reality.
In the past five years, ag retail has seemingly heard a rally cry to show up differently to the farmer. I pinpoint 2018 because that’s when Nutrien launched its online portal, which our readers named the New Product of the Year. In the first three quarters of 2020, Nutrien sold more than $1 billion in products via its portal. In the past half of a decade, increasingly retailers developed their own online connection points to farmers or turned to partners to launch apps and digital portals.
As farmers have grown more aware of expanded options for buying inputs, retailers have invested in how they are part of the party.
Simultaneously, we’ve seen a contraction in marketplaces being offered for ag inputs. For one example, AgVend exited the space and transformed to be 100% retailer portal-focused. Another example is CommoditAg, which sold to Farmers Edge, and has since been a little quieter.
The percent of farmers who say they buy online is lower this year than the past four years. However, I think it’s attributable to the fact that when farmers look out onto the market, they are able to find their retailer of choice as an option.
It’s not a brave new world nor is it all about e-commerce. Rather, the momentum is behind a relationship now augmented with a bit of technology.
