2025 Predictions in Agriculture: Farm for Value, Not Just Volume
September 16, 2024 Farming has always been a challenging profession, but today’s farmers face a unique set of pressures that demand a shift in thinking. Gone are the days when simply maximizing crop volume was enough to ensure success. A new imperative is clear: farm for value, not just volume.
Let’s face it, farmers around the world are masters of adaptation. They’ve always focused on what they can control amidst unpredictable circumstances. And, as we enter the 2025 growing season, so must we — whether farmer, supply chain partner, or investor. This approach is more crucial than ever as the agricultural sector navigates through turbulent times. Farmers have traditionally zeroed in on things like input costs, quality, and farming practices to optimize productivity. Row crop farmers are constrained by the commodity value of their crop, and therefore the road to success is productivity while optimizing inputs. While these factors remain important, they’re no longer enough to guarantee profitability in the face of declining commodity prices and shrinking margins.
The situation looks even more challenging as we look ahead to 2025. According to economic projections, net farm income is expected to fall to its lowest level in nearly a decade, with a forecasted decline of 15%-20% from 2024 levels. This steep drop highlights the urgent need for farmers to find new ways to create and capture value from their crops.
So, what’s the answer? It’s all about generating and capturing greater value from the acre. This isn’t just about working harder; it’s about working smarter and more collaboratively. The shift requires significant innovation and, crucially, collective action.
One exciting example of this collective approach is the Corn Value Chain Challenge, a partnership between U.S. Corn Growers and Radicle Growth. This initiative is offering $1.5 million in equity investment to innovators who can develop advanced technologies and business models that create new, sustainable demand for corn. It’s not just about finding new uses for corn; it’s about reimagining the entire value chain.
The Challenge is uncovering some fascinating possibilities. We’re seeing advancements in fermentation technologies that could create bio-based alternatives to petrochemicals. There’s work being done on thermo-catalytic processes to develop drop-in replacements for industrial materials. And let’s not forget about the efforts to reduce the carbon intensity of corn production, which could significantly boost its value in increasingly carbon-conscious markets.
But here’s the thing: this isn’t just about corn. The model of innovation and collaboration we’re seeing here has the potential to transform the entire agricultural sector. By leveraging the collective power of grower associations and partnering with forward-thinking investors, farmers across all crops can drive industry-wide value growth.
As we look to the future, it’s clear that farming for value will require a multifaceted approach. We’re talking about embracing new technologies, fostering partnerships across the value chain, and adapting to market demands for sustainable, high-value products. It’s a big shift, but it’s an exciting one.
And we’re already seeing dramatic progress in this direction. Take, for instance, the adoption of variable rate technology (VRT) for pesticide application. According to the CropLife/Purdue Precision Agriculture Dealership Survey, the use of this technology has skyrocketed from 20% in 2019 to 50% in 2022. This represents a remarkable 150% increase in just three years, highlighting farmers’ growing recognition of the value that precision agriculture technologies can bring in improving efficiency and reducing input costs while potentially increasing crop yields.
To our agricultural leaders and agtech entrepreneurs: the time for action is now. We need your vision, your innovation, and your commitment to drive this transformation. Let’s work together to create new value chains, develop groundbreaking technologies, and forge partnerships that will redefine agriculture for the 21st century. Whether you’re leading a grower association, running an agtech startup, or investing in the future of farming, your role is crucial. Join us in this mission to farm for value, not just volume. The future of agriculture – and the prosperity of our farmers – depends on it. Let’s sow the seeds of change today for a more valuable and sustainable harvest tomorrow.
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