It is a commonly recognized fact that ag retailers have a huge impact on crop protection product decisions made by farmers. But why do some farmers say that their retailer has more influence on their decisions than other farmers? That’s a complex question with many possible explanations. It could be the length of time the farmer has dealt with the retailer and therefore the level of trust that has been established. It could be the agronomic talent at the retail location. It could be the agronomic knowledge level of the farm operation. It could be advice offered by other sources such as independent crop advisors.
But one of the controllable factors that stands out as a driver of retailer influence is the level of services provided by the retailer. Retailers have more influence when they deliver certain services compared to when those services are not consumed by the farm customer.
We asked 800 US farmers about services that they receive from their ag retailer and the usefulness of those services. The four highlighted services are featured in this report.
- Scouted your fields to identify the problem and determine when and what to spray
- Provided you with data comparing the performance of different brands
- Prepared a cost comparison of different brands
- Reviewed and discussed your crop plans, scouting records or imagery
- Kept records of products used, crop plans and scouting records for your fields
- Advised you about chemical rotation options to prevent resistance
- Provided advice on which products to use
- Informed you of different brands that would meet your needs
- Put you in contact with a crop protection company rep
- Informed you about grower programs/purchase incentives available for different brands
- Custom applied some or all your crop protection products
- Hosted grower information meeting or training session
- Hosted a product demonstration site or field tour
- Utilized field data management software to analyze, interpret and make product recommendations based on my farm’s agronomic data.
Multiple services lead to stronger retail influence.
Retailer influence increases with increasing service levels. Nearly two-thirds of farmers with 6+ services from their main retailer say that retailer has a strong influence on their crop protection decisions. By comparison, only 25% of farmers who get less than 3 services from their retailer say that retailer has a strong influence on their decisions.
Field Scouting Services
- Only 36% of farm customers are getting field scouting services from their main ag retailer.
- However, 65% of farmers consider field scouting to be a useful service that their ag retailer could provide.
- 32% of farmers would find a field scouting service to be useful, but they are not getting it from their main retailer.
- When farmers receive field scouting services from their main ag retailer, those ag retailers have significantly more influence on the farmer’s purchase decisions.
Product Performance Comparison Data
- Only 26% of farm customers are receiving data comparing the performance of different CP brands from their main ag retailer.
- However, 65% of farmers say that performance comparisons for CP products would be a useful service.
- 43% of farmers would find product performance comparisons to be a useful service, but they are not getting it from their main retailer.
- Those farmers who received performance comparison data from their main ag retailer say that those ag retailers have more influence on their buying decisions.
Cost Comparison Data
- 40% of farm customers received CP product cost comparison data from their main ag retailer in 2024.
- A whopping 75% of farmers say that cost comparisons for CP products would be a useful service.
- 39% of farmers would find cost comparisons to be a useful service, but they are not getting it from their main retailer.
- When farmers receive cost comparison data from their main ag retailer, those ag retailers have significantly more influence on the farmer’s purchase decisions.
While results for most services were similar in 2022, fewer farmers were getting the cost comparisons they wanted in 2024. Significantly fewer received cost comparisons from their retailer (down from 48% to 40%) and the opportunity gap was higher with more saying cost comparison data would be useful, but not provided (up from 33% to 39%).
Crop Planning Service
- One-third of farm customers received crop planning services (review plans, records or imagery) from their main ag retailer.
- 54% of farmers say that crop planning services related to CP plans would be a useful service.
- 27% of farmers say that crop planning for CP purchases would be a useful service, but they are not getting it from their main retailer.
- When farmers engage with their main ag retailer in crop planning activities, those ag retailers have significantly more influence on the farmer’s purchase decisions.
Conclusion
The findings of this research confirm the following:
- Retailer influence increases with increasing service levels. Nearly two-thirds of farmers with 6+services from their main retailer say that the retailer has a strong influence on their crop protection decisions.
- Field scouting, product performance comparisons, cost comparisons and crop planning services have a huge impact on the retailer’s ability to influence their customers’ decisions.
- Many farmers would find product performance and cost comparisons for crop protection products to be useful, but they are not getting those services from their retailer.
Retailers who want to strengthen their ability to influence customer decisions should look at how they are delivering services to those customers.