The Evolution of Input Manufacturer Program Perception
The Evolution of Input Manufacturer Program Perception
The Evolution of Grower Programs in the USA
Grower programs have been a staple in Canada for crop protection manufacturers for decades, but have been a newer introduction in the United States.
Stratus Ag Research recently did a survey of US based growers and retailers surrounding the perception of grower programs.
I still remember my opinion of grower programs as a young agronomist— I viewed them as agronomically unfriendly, needlessly complex and ultimately irrelevant.
It initially came as a shock to me as I gained experience in marketing roles seeing the data on how effective they could be in shaping the decisions of farmers and acting as an anchor for sales rep relationship building and communications. And much like I experienced, many in the industry have come to more readily accept the programs because they lead to sales lift.
For crop protection and seed companies, the deployment of rebates involves a carefully calibrated approach, ensuring that these incentives effectively influence purchasing decisions across their product portfolio.
This has led rebate programs to become a cornerstone in the marketing strategies of Crop Protection companies, offering financial incentives that drive incremental sales and enhance customer loyalty.
Rebates and Structure
These programs are structured as end of year rebates that pay out based on buying behavior at the end of the year:
Source: Bayer Crop Science Western Canada (one aspect of a more robust program)
Data from Stratus shows that farmers are likely to purchase one additional product from the manufacturer when they are participating in a program, a nice average lift:
Grower programs have improved from their initial launches— manufacturers have improved designs, leveraged more informed data, offer a more robust portfolio across multiple product segments and enhanced strategic emphasis through the channel. This has improved the grower openness to utilizing them, but they continue to say they will prioritize the right product fit:
Grower openness is not consistent among age, farm size and region— with large farmers between 40 and 59 in the Mid-West being the most open:
