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Upstream Ag Professional - January 26th 2025
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Upstream Ag Professional - January 26th 2025

Essential news and analysis for agribusiness leaders.

Welcome to the 77th Edition of Upstream Ag Professional!

This week in the Upstream Ag Professional audio edition, I cover:

  • 3Bar and their Innovation Challenge (story #3 below)

  • Stratus Ag Research Data and Insights into Grower Programs (story #2)

  • What I see the most impressive agtech companies do that sets them apart (story #4).

Index

  1. Beyond Retrofits: The Growing Importance of Tech Stacks in Ag Equipment and the Consideration of Integrated vs. Modular

  2. Unlocking Loyalty: The Evolution of Grower Programs in North America with Data from Stratus Ag Research

    1. Are Manufacturers Getting the Results They Want from Their Incentive Programs?

  3. 3BarBio Announces Concept to Creation, Microbial Delivery Innovation Challenge

  4. 2025 in AgTech… So what? with Shane Thomas

  5. A Distinguished Expert and Senior Science Fellow’s Observations and Insights about Bayer’s DSO Reorganization

  6. Algorithms, Agents and Agriculture

    1. The Future of AI will Transform Everything

    2. AI or die? AgTech leans into the future

    3. How AI Agents Fit Into Agribusiness

  7. AGCO Precision Planting Conference Highlights

  8. John Deere Announces its 2025 Startup Collaborators

  9. Reputation Capital

  10. Other Interesting Ag Articles (9 this week)


1. Beyond Retrofits: The Growing Importance of Tech Stacks in Ag Equipment and the Consideration of Integrated vs. Modular - Upstream Ag Professional

Key Takeaways
  • Integration vs. Modular — Integrated solutions, such as See & Spray Ultimate from John Deere, tend to deliver superior performance and user experience compared to modular or retro fit systems. Integrated systems ensure reliability, speed, and accuracy, which are critical for high-performance precisio applications. Modular systems prioritize compatibility and flexibility across different brands but often sacrifice performance.

  • When it comes to OEMs and precision technology, will integrated capabilities win out in terms of superior market share and/or profits, or will modular systems (eg: retrofit) systems be “good enough?”


When I first meaningfully wrote about autonomy and automation of smart equipment in August of 2021, I talked about my view that integration in the equipment space will win out. While this view isn’t universally agreed upon, and there is ample rationale to be bullish on multi-color, retrofit solutions, I think it is worthwhile to dive deeper into what "integration” means and why I think this approach is important in the context of equipment manufacturers with precision and autonomous functionality.

Tech Stack’s and the Conservation Of Attractive Profits

First, let’s define tech stack.

The term “Tech Stack” originated in the software development community as a set of technologies an organization uses to build a web or mobile application. It is a combination of programming languages, frameworks, libraries, patterns, servers, UI/UX solutions, software, and tools used by its developers.

It has progressed to be a set of technologies an organization uses to build differentiation.

John Deere enthusiasts will recognize the John Deere tech stack that commonly shows up in their materials (image in full article linked above).

Each layer of the stack is a unique technology and internal capability that Deere has. We will talk more about the “hardware and software” layer in a bit.

Strategy legend Clayton Christensen developed what’s known as Conservation of Attractive Profits:

Formally, the law of conservation of attractive profits states that in the value chain there is a requisite juxtaposition of modular and interdependent architectures, and of reciprocal processes of commoditization and de-commoditization, that exists in order to optimize the performance of what is not good enough. The law states that when modularity and commoditization cause attractive profits to disappear at one stage in the value chain, the opportunity to earn attractive profits with proprietary products will usually emerge at an adjacent stage.

The Conservation of Attractive Profits starts with a categorization of how all of the different components of a product or service interact with each other: predictable and independent (modular) versus proprietary and interdependent (integrated).

Modular is defined as constructed with standardized units or dimensions for flexibility and variety in use. Integrated is defined as combine (one thing) with another so that they become a whole.

A modular architecture specifies the fit and function of all elements so completely that it doesn’t matter who makes the components or subsystems, as long as they meet the necessary specifications. Modular components can be developed in independent groups or by different companies working at arm’s length.

For the full Upstream Ag Professional article, check out the link above.

  1. Tech Stack’s and the Conservation Of Attractive Profits

    1. Example: Apple iPhone’s vs. Samsung/Android

  2. Systems Over Point Solutions

    1. Example: John Deere ExactShot

  3. Commoditization and Strategic Cores

  4. CNHI Acquisitions of Raven, Augmenta and Hemisphere and Strategic

  5. AGCO the Integrator

  6. Final Thoughts


2. Unlocking Loyalty: The Evolution of Grower Programs in North America - Upstream Ag Professional

Key Takeaways
  • On average, one-third of customers participate in grower programs, with higher participation among Mid-West farmers, larger farms, middle-aged farmers, those planning to expand, and early adopters.

  • Participants in grower programs consistently use one additional product from the company compared to non-participants.

  • Ag retailers are more positive about grower programs than they were a few years ago, especially co-ops, salespeople, high-service retailers, and younger retail staff, though independent retailers remain less enthusiastic.

  • While retailers still find these programs a hassle to administer, these concerns have significantly decreased since 2020.


This week I read the following:

Are Manufacturers Getting the Results They Want from Their Incentive Programs? - Crop Life

I think evolving incentive programs is a good thing, as a general statement, but I do think there is a lot more nuance than saying their impact is minimal:

While they may generate short-term sales, their long-term impact on customer behavior—and the bottom line—is often minimal.

The data I have looked at from Stratus Ag Research suggests something different, though there is always room for improvement.

For the full breakdown including how programs are perceived by farmers and retailers, how retailers can lean into to supporting programs, companies working to help navigate programs and where the optimal tool to support farmers might lie, check out the full Upstream Ag Professional article at the link above.


3. 3BarBio Announces Concept to Creation, Microbial Delivery Innovation Challenge - 3Bar Biologics

Key Takeaway
  • 3BarBio’s Concept to Creation Innovation Challenge invites microbial companies to collaborate on solving delivery challenges in microbial products. This initiative focuses on areas like shelf-life maximization, supply chain management, co-packing, and equipment integration to improve the viability and usability of microbial products from production to in-field application.


3BarBio, the only microbial contract development and manufacturing organization (CDMO), today announces Concept to Creation, Microbial Delivery Innovation Challenge. 3BarBio increases grower results and streamlines application with innovative supply chain management and in-field delivery systems.

The Microbial Delivery Innovation Challenge seeks delivery challenges and/or opportunities from microbial companies or ag distributors to maximize or enable living microbial products from development through the supply chain, and to the grower. 3BarBio’s team of microbiologists and engineers will dedicate resources to develop a solution, working alongside the selected company for input and collaboration.

3BarBio is aiming to identify and address novel challenges microbial companies face in successfully delivering microbes throughout the value chain—from production to farm application, and ultimately to the soil/plant:

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