2020 U.S. Crop Protection Programs for Distributors, Retail, and Growers 

Kline recently published its second report analyzing the 2020 crop protection programs offered to distributors, retail, and growers by the key researchbased and generic crop protection suppliersThe EFFECTIVENESS OF U.S. CROP PROTECTION COMPANY CHANNEL INCENTIVES: AN OVERVIEW AND ANALYSIS report includes a spreadsheet layout of program summaries, organized by supplier, product type, and type of program, along with the estimated percent payout potential by product.  

Suppliers included in the report are generic companies ADAMAAlbaugh, Arysta, and UPI, plus research-based BASF, Bayer, Corteva, FMC, Syngenta, and Valent. They represent an estimated 85% to 90%or about $9.3 billionof the total crop protection business in the United States. The suppliers were ranked on the management and effectiveness of their programs by distributorsIn 2020, BASF, Bayer, and Corteva ranked the highest of the researchbased suppliers, while UPI and Albaugh topped the rankings of generic companies. 

The average supplier program incentives in 2020 for distributors, retailers, and growers are estimated at 33.8for the researchbased companies and 30.3when adding midmajors and generic volumes. These percentages represent the maximum payouts based on distributor invoice prices. Bayer and FMC had the highest payout potential in their programs, followed by Syngenta. The largest rebates appeared to be in the Midwest corn markets. Distributors, retailers, and grower programs represent 30.5%, 52.6%, and 16.9% of program dollars, respectively. 

Researchbased manufacturers use several types of program rewards or incentives to maintain or increase product sales. These include the traditional early order/stocking, prepay discountsdelivery allowances; inventory protection; brand loyaltypair or matchup on multiple productscompetitive allowancesgoal achievement; corporate financing; and unpublished programs 

Rewards and incentives information in Kline’s report can be viewed by fungicide, herbicide, insecticide, PGR, nematicide, and seed treatment product. Private-label products are excluded from the report; distributor lists or estimated net pricing are provided in a summary of incentives by product.  

A summary by supplier is provided, detailing the various types of programs offered and the value of eachAnother key feature of this report is that it will include distributor managements’ likes, dislikes, and suggestions regarding the major programs, along with their perceptions of the programs’ relevance and value.

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Posted in Ag/Specialty Pesticides.