Senate Panel Hears Ag Consolidation Testimony

Cindy ZimmermanAg Group, Agribusiness, Audio

senate-judiciary-committeeAt a Senate Judiciary Committee hearing Tuesday on “Consolidation and Competition in the U.S. Seed and Agrochemical Industry,” executives of DuPont, Dow AgroSciences, Syngenta, Bayer and Monsanto defended the current spate of mergers and acquisitions as being important to continue to deliver on the innovation that farmers need to feed a growing global population, while agricultural organizations urged caution.

Bayer CropScience President and CEO Jim Blome and Dr. Robb Fraley of Monsanto talked about the deal between the two companies announced last week. “This transaction brings together creative minds from two complementary segments of the industry to address the challenges farmers face today and in the future,” said Blome.

Fraley contends that competition will actually increase under the mergers proposed. “Innovation drives competition. Innovation strengthens the farming economy. And innovation lifts our society and improves the environment,” he said.

Also speaking at the hearing were James Collins, DuPont Executive Vice President, Agriculture Division; Tim Hassinger, President & CEO Dow AgroSciences; and Mr. Erik Fyrwald, Chief Executive Officer, Syngenta International AG. [wpaudio url=”http://traffic.libsyn.com/zimmcomm/hearing-agribusiness.mp3″ text=”Judiciary Committee Hearing Agribusiness Company Statements”]

Representatives from the American Farm Bureau Federation, National Corn Growers Association, and National Farmers Union also had their say on the consolidations announced this year which are poised to cut the number of major companies in the seeds, chemicals and crop nutrients market in half.

young-novak-hearingAFBF Chief Economist Dr. Bob Young told the committee that farmers and ranchers cannot afford to lose access to technology and innovation through consolidation. “AFBF has had several—and repeated—assurances from the companies involved as to their intent to maintain as strong an innovation arm as they can,” Young said. “We have no reason to doubt, but we also are reminded of the old line: trust, but verify.”

Speaking on behalf of both corn growers and the American Soybean Association, NCGA CEO Chris Novak told the committee that consolidation in the industry is being driven in part by the regulatory climate. “The process of developing and testing new products, and then securing regulatory approval to bring them to market, requires a substantial amount of time and money. As a result, fewer and fewer companies have the resources to be players in the market. This trend toward consolidation will continue unless and until Congress addresses these regulatory hurdles,” Novak testified.

NFU president Roger Johnson asked the panel for more oversight of antitrust enforcement in agriculture. “The hands-off approach we’ve seen in antitrust enforcement has led to the highly consolidated economic conditions prevalent today and the resulting vulnerability of American farmers. We must do more to prevent consolidation that results in a few firms controlling substantial percentage of market share,” Johnson said.

Listen to the opening statements of all three agriculture group representatives here: [wpaudio url=”http://traffic.libsyn.com/zimmcomm/hearing-ag-groups.mp3″ text=”Judiciary Committee Hearing Ag Group Statements”]

Alltech Increases Production with New Facility

Kelly MarshallAgribusiness, Alltech, Company Announcement

Alltech Crop ScienceThis month marked the grand opening of a new crop science production facility in Uberlândia, Brazil for Alltech Crop Science.  The plant will serve Central-West and Northeast Regions of Brazil with an annual production of about 10 million liters.  That number increases Alltech’s production capacity by 150 percent.

“The city is a prime example of logistic infrastructure for Brazil, so moving to this area (the Triângulo Mineiro) will benefit many of our customers,” said agronomist Ney Ibrahim, director of Alltech Crop Science in Brazil. “We will have greater options for transportation, logistic gains in speed and cost-effectiveness for the entire central region of Brazil, which will have an impact on agility and quality of service.”

Recently Alltech Crop Science has grown by 30 percent each year.  The new facility allows this growth to continue.

“Our production was already at 100 percent capacity,” said Ibrahim. “This expansion is an important step in our development and will give us the opportunity to reach our growth and production targets.”

Senate Judiciary Hearing On Consolidation Today

Kelly MarshallAg Group, Agribusiness, ASA, ASTA, NCGA

NCGA-Logo-3The U.S. Senate Judiciary Committee is hearing testimony pertaining to the consolidation and competition in the seed and agrochemical industry today.  Agriculture groups are weighing in on Capitol Hill to ensure the voices of farmers are heard and the future of the industry is protected.

asaChris Novak, CEO of the National Corn Growers Association is testifying on behalf of NCGA and the American Soybean Association.  Combined, the two organizations represent more than 500,000 corn and soybean producers nationwide and have a direct interest in maintaining a competitive marketplace for crop production inputs.  NCGA and ASA submitted a written statement, arguing that competition isn’t just measured by the number of competitors, but also by their size and ability to compete.

“We’ve seen a significant decline in the number of small-to-medium sized family farms. Fewer farmers means that the agribusiness industry that supports the farm community has fewer customers—resulting in consolidation beyond the farm gate. The speed at which the industry continues to consolidate, and the tenuous state of our farm economy, dictate that we work diligently to ensure that our farmers will still have access to a range of technologies without suffering higher costs,” the written testimony states.

asta-logoThe American Seed Trade Association also released a statement in preparation for today’s testimony.

“As the U.S. government reviews the current proposals for mergers and acquisitions in the seed industry, it is the responsibility of the Department of Justice and the Federal Trade Commission to fully review the proposed mergers for potential market impacts and to ensure there will be choice and improved varieties in the future. Seed companies are responsible for bringing improved varieties to growers every year, and they will continue to fulfill that responsibility,” states CEO and President, Andrew W. LaVigne.

“The U.S. seed industry is extremely diverse, both in terms of size and crops covered, with hundreds of regional and independent seed companies doing business across the country, producing seed for all sectors of the industry, including row crops, flowers, vegetables, grasses, forages and turf. They strive to provide variety choice and performance for America’s growers, gardeners and landscape managers to ensure the best seed is available for the market.”

New CEO for Verdesian Life Sciences

Kelly MarshallAgribusiness, Company Announcement

Verdisian Kenneth M. Avery has been named chief executive officer of the plant health and nutrition company, Verdesian Life Sciences. Avery began his new position with the company on Monday. He follows in the footsteps of J.J. Grow, who is now chairman of the Verdesian board of directors.

“Kenny is a dynamic leader who challenges teams and expectations to help companies grow and succeed in diverse global marketplaces,” said Grow. “He has shown that he can successfully bring people together to enhance operational efficiency, implement new customer-centric approaches and improve pipeline commercialization – all areas of opportunity and growth for Verdesian in the coming years.”

Avery previously served as vice president of Monsanto’s division for global operations, vegetables and Asia row crops, as well as vice president of the company’s global business operations, where he drove critical business process redesign efforts across all geographies and divisions and throughout many functions. He also lead the Asia Pacific vegetables division at Monsanto, which is based in Singapore, and served as regional business director and later strategic accounts lead for row crops in the United States.

He served as vice president and chief financial officer at Delta & Pine Land Company. He was a partner with Arthur Andersen LLP in Memphis, Tennessee, from 1990 to 2002, where he primarily served public and large private companies in both auditing and consulting roles. Avery also provided consultation for startup entities and private companies, and serviced companies in Brazil, Mexico, the United Kingdom, Australia and China.

“Verdesian is in a unique position to provide crop nutrient, seed treatment and biological solutions as well as value creation to farmers across the globe,” said Avery. “It takes a culture of adaptability, a customer-centric focus on retailer and distribution partners by providing sound agronomic solutions to farmers, and a clearly defined strategy and execution to move the needle during challenging periods of growth in the agriculture industry. I am looking forward to working with the exceptional teams and people at Verdesian who are already hard at work to bring new technologies and greater value to farmers.”

Syngenta Settles with EPA

Kelly MarshallAgribusiness, EPA, Regulation, Syngenta

syngentaSyngenta Crop Protection has reached a settlement agreement with the EPA for alleged violations of the Federal Insecticide, Fungicide and Rodenticide Act.  The agreement states that Syngenta will pay $766,508 in civil penalties and spend $436,990 on a Supplemental Environmental Project.

“The repackaging, sale and distribution of unregistered and misbranded pesticides is illegal and puts people and the environment at risk,” said Anne Heard, Acting Regional Administrator for the Southeast. “Users rely on accurate, up-to-date information about ingredients, directions for use, hazards and safety precautions. This settlement sends a strong message to pesticide companies to maintain compliance with all federal environmental laws.”

A multi-regional investigation was conducted by EPA Regions 4, 5, 7 and 8 resulting in evidence supporting the alleged violations against Syngenta. The investigation started in August of 2012 and concluded in January of 2015. Based on a review of the evidence, EPA determined that Syngenta distributed and/or sold numerous pesticide products to refillers prior to having written repackaging agreements with the refillers. Syngenta failed to maintain records of the repackaging agreements as required by the Pesticide Management and Disposal rule (Pesticide Container Containment Rule).

Syngenta also violated FIFRA by selling and distributing misbranded pesticides. Many of the labels affixed to the pesticide products and/or containers bore labels that were either outdated or not in conformance with the EPA accepted label. Some of these misbranded labels were of pesticides that were classified as restricted use.

The Supplemental Environmental Project (SEP) involves a four-year educational awareness training and campaign to educate those whom the regulations affect on compliance requirements.  The training will focus on requirements relevant to bulk pesticide containers, containment, labels, storage, transportation, delivery, clean-out, repackaging agreements and record keeping.

Payment must be payed to the U.S. Department of  Treasury by October 15, 2016.

AFPC Conducts Study of Agribusiness Mergers

Kelly MarshallAg Group, Agribusiness

afpcThe agriculture industry is quickly changing.  While producers are usually quick to accept change that means advancements in technology or improvements in environmental conservation, the recent rash of mergers hasn’t been as readily accepted.

In response to this shift in the industry, the Corn Producers Association of Texas (CPAT) and the Southwest Council of Agribusiness (SWCA) have requested an analysis of potential impacts from the Agricultural and Food Policy Center (AFPC) at Texas A&M.

“A delicate balance and competition in the market is key to ensuring quality, quantity and costs of technologies and resources are available to the farmers producing quality, healthy food, fiber and goods for the American consumer,” CPAT President Bruce Wetzel said. “The impact of these mergers has the potential to go beyond the short term on seed prices and development – leaving an impression on the industry for years down the road.”

According to the executive summary of AFPC’s study, the changes in market concentration resulting from the mergers meet criteria “that the Department of Justice and Federal Trade Commission would consider them ‘likely to enhance market power’ in the seed markets for corn and cotton.” Based on these findings, more studies should be done to evaluate the impact on other production inputs from the proposed merger of these large suppliers.

Results have been sent to member of Congress and relevant committees in hope of Congressional oversight.  The organizations also plan to send the study to the Department of Justice.  You can read an online summary here.

Clear Ag Hosts Harvest Profitability Webinar

Kelly MarshallAgribusiness, Harvesting, webinar

ClearAgLogo Iteris Clear Ag is offering a free webinar to help growers improve profitability during the harvest season.  The event will focus on minimizing crop drying costs and show how Clear Ag apps can help manage information like atmospheric data to make decisions. The online event will be held this Friday, September 23, 2016 at 11:30 a.m. ET/8:30 a.m. PT.  You can register for the webinar here.

For more information, check out the video below.


Valent Features Solutions at the #FarmProgressShow

Kelly MarshallAgribusiness, Audio, Herbicides, Insecticide, Pesticides, seed

fps16-valent Dawn Refsell is a field development manager for Valent.  At the 2016 Farm Progress Show she took time to talk to Chuck Zimmerman about whats happening in the world of crop protection.

Valent is focused on a few new programs, Refsell explains.  One of those is seed treatments.  Their INTEGO SUITE soybean seed protectant launched just last year and is certainly something to consider, since Refsell compares seed treatments to insurance.  After the major investment in seed a growers should protect the maximum potential, she says.

They’re also excited about a product that resulted from farmer feedback.  Growers wanted a liquid treatment and registration for more crops.  Zeal for soybeans answers that request and protects against two-spited spider mites and other mites that can cause potential yield-loss.  The mode of action of Zeal offers three weeks or more of residual control, stopping the mite from egg to adult.

Herbicides are also at the top of Valent’s list.

“I would say almost 100 percent of the people who have come to our booth have asked for something in regards to helping manage either palmer or water hemp,” Refsell told Chuck.  “And so we’ve been doing a lot of strategizing, dissecting what they’ve used in the past for their weed management strategy, what they need to use forward, different levels they can incorporate residuals into their program.  We’re very keen on supporting multiple, effective modes of action and also an overlapping residual program.”

Hear what recommendations Refsell has for managing weeds her full interview: [wpaudio url=”http://traffic.libsyn.com/zimmcomm/fps16-valent.mp3″ text=”Interview with Dawn Refseel, Valent”]

2016 Farm Progress Show Photos

BASF Showcases Revysol®

Cindy ZimmermanAudio, BASF, Herbicides

basf-media-16-revysolEarlier this year, BASF started the regulatory process in the European Union for a new active ingredient, Revysol® fungicide, which was showcased at the recent global media event in Germany.

BASF Vice President Global Strategic Marketing Fungicides Rolf Reinecke and Technical Director Bill Clark provided an overview of the fungicide, part of the triazole (SBI) chemical class, which shows biological performance against difficult-to-control pathogens such as Septoria tritici and rust in cereals.

Pending regulatory approvals, Revysol fungicide will be available globally in customized formulations with 2019 targeted for first market introductions.

Learn more about Revysol here. [wpaudio url=”http://traffic.libsyn.com/zimmcomm/basf-media-16-revysol.mp3″ text=”BASF Revysol Showroom”]

BASF Global Press Conference Photo Album

New Holland’s Propane Tractor a Hit

Joanna SchroederAgribusiness, Audio, Equipment, Farm Progress Show, New Holland, propane

Powered by propane on the farm has new meaning with New Holland’s launch of the third-generation Alternative Fuels Tractor prototype powered by propane autogas. The propane tractor was a hit during the recent Farm Progress Show. I got all the details about the cutting-edge tractor from New Holland’s Mike Cornman who said the concept tractor can also be adapted to run on bio-propane, bio-methane or methane itself. Cornman said they decided on propane as the preferred alternative fuel, in part, because of some of its advantages.

One key fadsc_0394ctor when you compare a tractor burning propane versus a tractor burning diesel, says Cornman, includes a 20 to 40 percent savings on fuel costs per year. “It’s also producing up to 80 percent less pollutants up in the atmosphere with propane versus diesel. So it really fits well with us being the clean energy leader standpoint while being able to provide a benefit to the operators utilizing propane rather than diesel.”

New Holland’s baseline tractors are the T-6 series tractors and when they compare diesel versus propane, they found very similar performance in terms of horsepower and engine torque. The company has provided several customer clinics where they have conducted various exercises that included pooling, front end loader use, among others, and found that the propane powered tractor performed just as well as compared to a tractor fueled by diesel. “So there’s no real sacrifices that an operator would be giving up in purchasing a propane tractor over diesel,” Cornman adds.

dsc_0389I asked Cornman how a grower would fill the Alternative Fuels Tractor knowing that many growers have propane tanks on their farms for use in other capacities. He explained that one challenge of the propane concept tractor is that it takes more space for the propane autogas, i.e. the tractor needs a larger fuel tank. So New Holland designed a fitted tank to carry the propane. In addition, Cornman says the fill technology has evolved to a quick-fill type nozzle making it easy for the operator to re-fill the tank with propane.

Cornman said that moving forward New Holland will hold several more customer clinics to get additional feedback and they will also assess market opportunities. He also says that growers interested in the propane autogas powered tractor can call their local dealer for more information. And while there is no set date on commercialization, Cornman anticipates the Alternative Fuels Tractor will go into production in the near future.

Learn more about New Holland’s Alternative Fuels Tractor concept by listening to my interview with Mike Cornman: [wpaudio url=”http://traffic.libsyn.com/zimmcomm/fps-16-newholland-cornman.mp3″ text=”Interview with New Holland’s Mike Cornman on Propane Tractor”]

New Holland 2016 Farm Progress Photo Album

2016 Farm Progress Show Photos

New Holland 2016 Farm Progress Photo Album

Coverage of the Farm Progress Show is sponsored by Coverage of the Farm Progress Show is sponsored by New HollandCoverage of the Farm Progress Show is sponsored by BASFCoverage of the Farm Progress Show is sponsored by Growmark