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USDA Forecasts Farm Sector’s Profits To Fall in 2023 After Record Highs In 2022

The USDA, Economic Research Service forecasts inflation-adjusted U.S. net cash farm income (NCFI)-gross cash income minus cash expenses-to decrease by $44.7 billion to $150.6 billion in 2023.

This marks a 22.9 percent decline after reaching a forecast record high of $195.3 billion in 2022. U.S. net farm income (NFI) is forecast to decrease by $30.5 billion (18.2 percent) to $136.9 billion in 2023 after reaching a forecast of $167.3 billion in 2022, its highest level since 1973 after adjusting for inflation. (Calculations include rounding.)

Net farm income is a broad measure of farm sector profitability that incorporates noncash items, including changes in inventories, economic depreciation, and gross imputed rental income.

If these forecasts are realized, both NCFI and NFI would remain above their respective 20-year averages (2002-2021) in 2023. Underlying these forecasts, cash receipts for farm commodities are projected to fall by $38.9 billion (7.0 percent) from 2022 to $519.8 billion in 2023.

During the same period, production expenses are expected to increase by $5.7 billion (1.3 percent) to $459.5 billion.

Additionally, direct Government payments to farmers are projected to fall by $5.8 billion (36.2 percent) from 2022 levels to $10.2 billion in 2023, largely because of anticipated lower payments from supplemental and ad hoc disaster assistance programs.

CLAAS Announces The Next Generation XERION Tractor

CLAAS of America announces updates to the 2023 XERION tractor line. The latest model delivers even more, offering best-in-class performance right where four-wheel drive tractor growers need it with powertrain upgrades, improved hydraulic flow and added versatility.

Since the North American launch, the XERION line of high-horsepower tractors has been known for its refined ride, high transport speeds, excellent fuel economy and a whisper-quiet cab. The high-horsepower (435-530 hp) tractor offers confidence-inspiring technology with a higher level of capability, ultimately helping customers work more productively and efficiently.

“We designed the XERION to be our customers’ favored choice for true tractor capability,” said Frans Reijmers, CLAAS tractor product manager. “The enhancements to 2023 models build on its core strengths and provide the power, a better balance in the design and operator confidence that makes tackling those all-day, tough jobs more convenient than ever.”

New Transmission, Proven Features

Tackle steep terrain and experience a smoother ride with the all-new Eccom 5.5 continuously variable transmission (CVT). Like previous transmission technology (Eccom 4.5 and ZF Eccom 5.0), the Eccom 5.5 is also a 4-range CVT that better transfers the engine’s torque and power for superior efficiency and higher productivity. A maximum forward speed of 31 mph can be achieved at a low, fuel-saving rpm.

Industry’s Highest Hydraulic Power

The switch to the new Eccom 5.5 enables higher hydraulic flow than not only just its predecessor, but also competitive brands. With up to six double-acting rear spool valves, a brand new pump transfer gearbox and optional tandem pumps allow an oil flow of up to 111 gallons per minute – more than sufficient hydraulic volume for implements with a particularly high oil flow requirement, such as wide air seeders. Up to two spool valves can be supplied with a high flow rate of 37 gallons per minute with standard load-sensing working hydraulics.

In addition, two spool valves (standard equipment) and three spool valves when equipped with the optional tandem pump can be prioritized in CEBIS. A separate and optimized 120 hp hydraulic system with 66 gallons per minute at 3,770 psi is available for attachments such as manure tanks and front-mounted implements requiring high-horsepower hydraulics. A hydraulic dual-circuit trailer brake can also be supplied for North American customers.

Intelligent Ballasting And Conveniences

Also available in model year 2023 units is a new base weight plate for the multi-purpose carrier space behind the cab. Using the intelligent ballast concept with additional 882 Ib. weight plates and ballastable front weight, up to 15,432 Ibs. of additional ballast can be loaded. Depending on the application, the XERION can be optimally balanced for a 50:50 weight distribution under load for maximum multi-pass effect.

The lineup enhancements in the new model year includes XERION 5000 and 4500 models in TRAC or TRAC VC configurations. In celebration of its 25th year in production, all model year 2023 XERION tractors will come with a limited-edition anniversary sticker at time of delivery.

For more information on the XERION tractor, visit www.claas.com.

Bluewhite’s “Pathfinder” Turns Tractor Into A Robot

Bluewhite invites all growers to visit Booth R37-R39 next week at World Ag Expo, Feb. 14-16, in Tulare to experience their Top 10 New Product Winner the Pathfinder product; the latest autonomous technology in the agriculture industry. Growers will see multiple autonomous tractor types, and multiple implements.

Bluewhite will include multiple manufacturer’s tractors, showcasing the Pathfinder’s autonomous system with multiple types of implements. Pathfinder is a holistic solution for the 21st-century farm – supporting multiple jobs, year around.

“We are excited to share our Pathfinder technology Expo,” said Ben Alfi, Bluewhite CEO. “Our Pathfinder product has helped to maximize productivity and reduce operating costs by up to 85%, supporting the growers’ journey to a more profitable and sustainable farm.”

The Bluewhite booth (R37-R39) will also provide attendees with the experience of an autonomous tractor driving through a virtual reality set. Bluewhite also plans to share exciting news about new partners, and its vision of the 21 century data-driven autonomous farm at the World Ag Expo.

Pathfinder Technology

Pathfinder was developed by Bluewhite, to be a cost effective, flexible, and safe solution for permanent crop growers. The platform can transform any brand of existing orchard or vineyard tractor into a fully autonomous fleet, capable of executing multiple tasks, such as spraying, applying herbicide, discing, mowing, or harvesting with high precision and operating efficiency. By retrofitting a growers existing fleet, Bluewhite has not only been able to help the grower maximize their existing assets, and lessen their environmental footprint by providing more precise technology, but they have ultimately been able to increase the grower’s bottom line.

The platform is unique and is currently the only commercialized offering on the market that allows growers the flexibility to update and use their existing fleet with the capability of autonomy. Pathfinder uses the unique fusion of multiple sensors, LIDAR, cameras, and GNSS, enabling safe navigation in every crop and application without the reliance on GPS/RTK or cellular connection, which is not available in all operating conditions.

About Bluewhite

Bluewhite was founded in 2017 with a vision to bring sustainable innovation to growers worldwide. Today, Bluewhite is a global company with U.S.-based headquarters in Fresno, Calif. Bluewhite partners with growers around the world, to support their continual progress. Their goal is to grow farm profitability, productivity, and safety.

Bluewhite’s diverse team of engineers, farmers, designers, and field operators, hold decades of experience in autonomous technologies, and share the same values: Fellowship, love of the land, and innovation. Grow Forward with Bluewhite.

For more information visit bluewhite.co.

Farmers Planting Pioneer Brand Sorghum Continue Winning Streak In NSP Yield Contest

The results of the National Sorghum Producers (NSP) Yield Contest have been announced, and farmers who grew Pioneer brand sorghum hybrids represented more than 80% of all national first-, second- and third-place winners and earned four of seven first-place national honors. The winning extended to the state level, where farmers who grew Pioneer brand sorghum won 35 of 47 state first-, second- and third-place titles, accounting for 75% of all state category winners.

Many sorghum producers battled exceptionally difficult weather conditions all season, including extreme drought in key sorghum production areas. The results drove down overall sorghum yields to levels not seen since 1984, but producers who planted Pioneer brand sorghum still managed to deliver winning results.

“Sorghum farmers are accustomed to challenges, but this year really demonstrated the importance of selecting hybrids that are capable of performing in the toughest conditions,” said LeAnn Larson, Pioneer Sorghum Marketing Manager. “We saw several national NSP winners who grew Pioneer brand sorghum submit their harvest results from a 100-acre contest plot instead of the required 10, showing how consistently strong the yield results were across their fields.”

Over the past five years, more than 80% of the NSP Yield Contest national winners grew Pioneer brand sorghum hybrids, demonstrating a clear pattern of top-end yield performance across diverse geographies and various field management practices.

The NSP Yield Contest awards participating farmers with first, second and third places in each of seven divisions: dryland-no till east, dryland-no till west, dryland-tillage east, dryland-tillage west, irrigated-east, irrigated-west and food grade.

For a complete list of winners click here.
More information about top-yielding Pioneer brand sorghum hybrids is available from your local Pioneer sales representative.

About Pioneer

Pioneer, the flagship seed brand of Corteva Agriscience, is the world’s leading developer and supplier of advanced plant genetics, providing high-quality seeds to farmers in more than 90 countries. Pioneer provides agronomic support and services to help increase farmer productivity and profitability and strives to develop sustainable agricultural systems for people everywhere.

Join the discussion and follow Pioneer on Facebook, Twitter, Instagram and YouTube.

Improvement In Farmer Sentiment Carries Over Into 2023

A breakdown on the Purdue/CME Group Ag Economy Barometer January results can be viewed at https://purdue.ag/barometervideo. Find the audio podcast discussion for insight on this month’s sentiment at https://purdue.ag/agcast.

Download report (pdf)

The Purdue University-CME Group Ag Economy Barometer Index rose again in January, to a reading of 130, 4 points above its 2022 year-end index value. The January survey results also pushed the index 34% above its 2022 low point which occurred last June. The barometer’s modest rise in January was primarily attributable to better expectations for the future as the Future Expectations Index rose 5 points to 127 while the Index of Current Conditions, with a value of 136, changed little compared to December. The Purdue University-CME Group Ag Economy Barometer sentiment index is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted from January 16-20, 2023.

The Financial Performance Index dropped to 93 this month, down from 109 in December, but that primarily reflects producers’ being asked to look ahead to 2023 and compare it to 2022 rather than comparing 2022 to 2021, which is what the question in December did.  To help gauge the change in producers’ expectations for 2023 compared to 2022, the December survey included a question asking producers to look ahead to 2023. Responses to that question were similar to those received this month helping confirm that, compared to a very strong income in 2022, producers expect to see margins tighten in 2023.

Twenty-two percent of the respondents in this month’s survey said they expect to have a larger farm operating loan than in 2022, which was down somewhat from last January when 27 percent of respondents expected to have a larger operating loan. Among respondents who expect to have a larger operating loan this year, only 5% said it was because they are carrying over unpaid operating debt while 80% said it was attributable to input cost increases. The percentage of respondents who attribute their need for a larger loan to unpaid operating debt has fallen sharply since we first posed this question in January 2020. In 2020, just over one-third of producers who anticipated needing a larger operating loan said it was because of unpaid operating debt. That percentage fell to 20% in 2021 and 13% in 2022 before declining again to just 5% in 2023. The sharp decline in the percentage of producers expecting to carry over unpaid operating debt provides support to the idea that the vast majority of producers are entering 2023 in a strong financial position.

Figure 1. Purdue/CME Group Ag Economy Barometer, October 2015-January 2023.
Figure 1. Purdue/CME Group Ag Economy Barometer, October 2015-January 2023.
Figure 2. Indices of Current Conditions and Future Expectations, October 2015-January 2023.
Figure 2. Indices of Current Conditions and Future Expectations, October 2015-January 2023.
Figure 3. Farm Financial Performance Index, April 2018-January 2023.
Figure 3. Farm Financial Performance Index, April 2018-January 2023.

The January reading of the Farm Capital Investment Index climbed 2 points to 42. January marked the second month in a row the index rose, the first time that’s occurred since the fall of 2020. January’s modest rise pushed the index up 35% compared to its November 2022 low, although the index remained 7% lower than a year earlier. Just over 7 out of 10 survey respondents in January said they think now is a bad time to make large investments in their farm operation. Among those respondents who feel that way, 39% said it was because of high prices for machinery and new construction, down from 47% who pinpointed cost as the primary reason for holding off on investments back in November. Compared to November more respondents in January pointed to rising interest rates (25% vs. 19%) and uncertainty about farm profitability (12% vs. 10%) as their primary reason for thinking now is a bad time to make large investments.

Figure 4. Farm Capital Investment Index, October 2015-January 2023.
Figure 4. Farm Capital Investment Index, October 2015-January 2023.
Figure 5. Why Is Now a Bad Time to Make Large Investments?, July-January 2023.
Figure 5. Why Is Now a Bad Time to Make Large Investments?, July-January 2023.

The Short-Term Farmland Value Index declined again in January, falling to 120, 4 points below its year-end reading. Compared to a year earlier, this month’s short-term index was down 22 points, a decline of 15%. Weakness in the index this month was primarily attributable to respondents’ opinion shifting from expecting farmland values to rise in the upcoming year to expecting values to hold steady. The Long-Term Farmland Values Index rose slightly to 142 from 140 in December. Over the last year, the long-term index has declined just 2% as producers continue to retain a more optimistic long-term than short-term view of farmland values. Among producers who expect to see farmland values rise over the next 5 years, the top 2 reasons for their optimism continue to be non-farm investor demand and inflation, chosen by 63% and 23% of respondents, respectively.

Figure 6. Short-Term Farmland Value Expectations Index, January 2018-January 2023.
Figure 6. Short-Term Farmland Value Expectations Index, January 2018-January 2023.
Figure 7. Long-Term Farmland Value Expectations Index, January 2018-January 2023.
Figure 7. Long-Term Farmland Value Expectations Index, January 2018-January 2023.

This month’s survey included questions about leasing farmland for carbon sequestration. Compared to responses received when we first included questions about carbon sequestration in the first quarter of 2021, it appears that interest in carbon contracts has been relatively consistent. During the first quarter of 2021, approximately 7% of survey respondents said they had engaged in discussions with companies about being paid to capture carbon on their farms. When we repeated the question about carbon payments in August 2022 and again in January 2023, approximately 9% of respondents said they had discussed a carbon contract with a company. Despite producers’ ongoing interest in carbon contracts, few have signed a contract. Just 1% of survey respondents in January reported that they had signed a carbon contract.

Wrapping Up

The improvement in farmer sentiment observed in December carried over into the new year as the Ag Economy Barometer Index rose 4 points above the December reading in January. An improvement in future expectations was the driver behind the modest rise in sentiment, as the Future Expectations Index rose 5 points in January. Although producers were a bit more optimistic about the future this month, they again reported expectations for tighter margins in 2023 than in 2022. Just over one out of five producers expect to have a larger operating loan in 2023 than in 2022, with higher operating expenses being the most commonly cited reason. But producers appear to be entering 2023 in a strong financial position despite the rise in production costs. The percentage of producers who reported the reason for a larger operating loan in the upcoming year declined for the third year in a row, dipping to just 5% in 2023. U.S. farmers continue to express interest in and engage in discussions with companies offering carbon contracts, although to date just 1% of producers report having signed a carbon contract.

AGCO, Case IH And Deere Executives Discuss How Autonomy Will Reshape Ag

AGCO, Case IH and John Deere jumped at the chance to address elite precision dealers during the first ever OEM panel at the Precision Farming Dealer Summit in St. Louis, Mo.

Seth Crawford, AGCO senior vice president and general manager, precision ag and digital, Kendal Quandahl, Case IH precision technology marketing manager for North America, and Matt Olson, manager of precision ag go-to-market for John Deere, fielded questions about their strategic direction for business and outlook on autonomy.

An audience member asked for their thoughts on how fully autonomous machines are going to reshape agriculture.

“Our key thing is making sure that we’re understanding the value that’s created for the customer, making sure that they retain the greatest share of that,” Olson says. “But then we look at sharing some of that value with our dealers and for us as a business.

“And so, to me, outside of the work that is done, it should be really pretty seamless because we’ve talked a lot about, we’ve been on this journey to autonomy for a long time, and now we’re just getting to the point where we say, “Get out of the cab, you don’t need to be in there.

“So, I think the experience and what the customer gets, I think that’s pretty consistent when you look at how much investment in technology, and software, and the maintenance of that software, that’s a huge investment that we have to make, and you just, in a lot of cases, can’t sell that once and be able to support that for the rest of the machine’s life.”

“I think if we do this right, collectively as a whole, we won’t notice because we took everybody one step at a time to deliver the solutions they’re asking and then in 2 years and 5 years and 10 years, we look back and say, ‘Man, we had to do that?’ If we’re all invested in the autonomy journey, we won’t even realizing that it’s happening,” Quandahl says.

To read the entire report click here.

DPH Biologicals Releases EPA-Registered Biological Seed Treatement

To meet demand for sustainable crop protection, DPH Biologicals launched today a multi-action biofungicide seed treatment, BellaTrove™ Companion Maxx ST, that helps seedlings fight pathogens and ensures healthy root systems.

BellaTrove Companion Maxx ST is derived from DPH Biologicals’ proprietary strain of a plant-stimulating rhizobacterium. The EPA-registered OMRI-certified biofungicide and bactericide stimulates a plant’s natural defenses against pathogens while improving nutrient uptake and root health. BellaTrove Companion Maxx ST offers greater value to organic and conventional growers at a time when input costs continue to increase.

“With BellaTrove Companion Maxx ST, growers get a biological seed treatment in a scientifically proven formulation wrapping crop fertility, stress reduction and disease suppression up in one easy-to-use, farmer-friendly package,” said Mick Messman, president and CEO at DPH Biologicals and former director of global seed treatment for DuPont.

The emerging biological seed treatment market is growing rapidly, predicted to record a 12.7% CAGR over the next seven years and reach an estimated $3.59 billion global market share by 2029, according to a new market research report. Growers are turning to biological seed treatments to meet increasing needs for more sustainable ways to optimize yield, increase plants’ ability to respond to abiotic stress and protect against pests and disease.

While DPH Biologicals is known for its liquid biofertilizer SP-1 Classic, BellaTrove Companion Maxx ST leverages the company’s seed-applied technology expertise and biological innovation as part of its overall biocontrol technology platform.

“Seed treatments have become a routine part of many farm operations, but very few biological seed treatments have delivered the same consistent performance. With our team’s deep experience introducing seed-applied technologies for the majors, we know growers are willing to try new products if we show them it works,” Messman said, who is one of several leaders at the company with seed-applied technology expertise having helped establish the category.

After hiring several leaders in biologicals, DPH Biologicals expanded its technical bench with the addition of Cliff Watrin, who led the development of seed treatments for Winfield United and Syngenta. “Farmers continue to want a broad range of crop protection options. Companion remains one of the most trusted and proven products available – now in a seed treatment,” said Watrin, VP of Agronomy.

The product uses DPH Biologicals’ proprietary ENV503 strain of Bacillus amyloliquefaciens, a well-studied rhizobacteria known for its fast colonization of emerging seedlings root hairs and leaves and its production of a broad-spectrum natural antibiotic with strong antifungal activity. Peer-reviewed studies of biologically identical rhizobacterium have proven B. amyloliquefaciens’ ability to suppress fungal pathogens by more than 80% and double root growth as compared to untreated seeds.

An excellent stand-alone product, studies have shown that combining BellaTrove Companion Maxx ST with traditional chemical fungicides produces even superior results while simultaneously reducing the pesticidal resistance often seen with commonly used chemical fungicides. BellaTrove Companion Maxx ST has been specially formulated to easily mix with other crop nutrients or protection products and can be applied via a slurry, a planter box or a hopper box.

The product is currently available with select distributors and on www.dphbio.com.

About DPH Biologicals

DPH Biologicals aims to become the industry’s most trusted biologicals provider. For over three decades, we have delivered value to the row and specialty crop, turf and ornamental markets. With unique applicability across broad soil types, our technology platform, TerraTrove™, built on the SP-1 Classic™ formulation, has been refined across millions of acres to make it the most complete biofertility solution available. We are committed to building upon the DPH Biologicals heritage to help meet the needs of a growing population and address global concerns of climate change, food security and clean water. For more information, visit www.dphbio.com.

Who were the most active food and agriculture technology venture capital firms in 2022?

Data Snapshot is a regular AFN feature in which we analyze agrifoodtech market investment data provided by our parent company, AgFunder, a food and agriculture technology venture capital firm.

Click here for more research from AgFunder and sign up to our newsletters to receive alerts about new research reports.

The food and agriculture technology venture capital market has changed significantly since AgFunder started producing reports back in 2014. Looking at AgFunder’s 2017 AgriFoodTech investing report, the most active VC made nine investments during the year. Fast forward five years and that number was 45 for 2022. That’s in spite of a significant pullback in investment across industries that is likely to see investment in agrifoodtech almost cut in half against 2021 numbers.

To be one of the first to see AgFunder’s leading food and agriculture technology venture capital investment report for 2022, click here to sign up to our newsletter.

For accelerator programs, the number is even higher at 56, albeit less of a striking jump from 41 in 2017.

Below, and in collaboration with FoodHack, which earlier this year published this list of most active investors, is a rundown of the 10 most active food and agriculture technology venture capital firms, excluding pure accelerators. AgFunder will include a list of the most active agrifoodtech accelerators in the upcoming report, which you can sign up for here.

Top 10 most active food and agriculture technology venture capital firms 

Investor  HQ Description Stage  Number of 2022 investments Notable Investments 
S2G Ventures    USA VC fund platform focused on sustainable food production, aquaculture, and clean energy, backed by the Walton family Multi-stage 35 (7 new investments) Faeth Therapeutics, Atomo Coffee, Soli Organic
Siddhi Capital    USA Food and beverage growth equity firm Growth 35 (all new investments) Ark Biotech, Liberation Labs, Mycotechnology
AgFunder  USA Digitally native VC using media, network effects, and technology to invest in exceptional founders and transformational foodtech and agtech. Seed to Series A 30 (25 new investments) Black Sheep Foods, Faeth Therapeutics, Nobell Foods
Hack Capital   Luxembourg Climate-focused syndicate investor for individual investors and other VCs. Early   24 (all new investments) Plantish, Michroma, Cultivated Biosciences
Blue Horizon Switzerland Alternative protein-focused impact fund manager Multi-stage 23 (22 new investments) Tropic Biosciences, Atomo Coffee, Planetary
Astanor Ventures Belgium Food systems investor and impact fund manager Multi-stage 23 (15 new investments) Umiami, MicroHarvest, Galley
Gullspång Re:food Sweden Evergreen investment vehicle focused on waste repurposing, circularity, alternative protein and regenerative agriculture Early to growth stage 21 (7 new investments) Agreena, Mission Barns, Everytable PBC
PeakBridge Luxembourg Sustainable foodtech investor backed by Edmond de Rothschild Private Equity partnership and EIT Food. Multistage 18 (12 new investments) Rival Foods, Standing Ovation, Forsea
Döhler Ventures Germany Corporate venturing arm of food and beverage ingredients company Döhler. Early 18 Clean Food Group, Willicroft
Alexandria Venture Investments USA Venture capital arm of Alexandria Real Estate. Multistage 16 5Metis, Brightseed, Elo Life Sciences

Have your numbers been misrepresented? Let us know! Louisa@agfunder.com

The Present and Future of Weed Science

Dr. Peter Dotray from Texas Tech University and the Texas Agrilife Extension Service along with Dr. Dan Reynolds from Mississippi State University sat down with Tom and Jason at the 2022 Row Crop Short Course in Starkville to talk about the big picture for weed science and agricultural research. Topics include UAVs in agriculture, site specific herbicide applications, see and spray sprayers, and a host of other concepts.

Bayer And Kimtec Form Partnership To Develop And Commercialize Biological Crop Protection Solutions

Bayer and Kimitec announced today a new strategic partnership focused on accelerating the development and commercialization of biological crop protection solutions and biostimulants. As part of a global agreement, both companies will become key partners to advance and establish biological solutions derived from natural sources: crop protection products that address pests, diseases and weeds, as well as biostimulants to promote plant growth.

Kimitec operates the MAAVi Innovation Center, Europe’s largest biotechnological innovation hub with 15 years of experience in the research and discovery of natural molecules and compounds for agriculture and food sectors, to provide farmers and growers with all types of natural agricultural products.

By leveraging Bayer’s unparalleled product development expertise with Kimitec’s proven discovery capabilities, biological product development will be accelerated to build integrated crop management solutions that can scale and develop through Bayer’s global infrastructure backbone. This includes field testing, product support and commercialization.

“Bayer is committed to providing growers with the benefits of biological solutions as part of an integrated crop management system backed by our leading traits, crop protection products and digital tools,” said Dr. Robert Reiter, Head of R&D for Bayer’s Crop Science division. “Every farmer can benefit from biologicals, from seed treatment to pest control, and Bayer will be bringing together systems of solutions to provide more value by providing farmers greater flexibility.”

With this agreement, Kimitec becomes a key partner for the acceleration of Bayer’s pipeline of Biologicals. As a world leader in biologicals R&D, Kimitec’s MAAVi Innovation Center will provide its expertise and its unique disruptive technology, including AI as an enabler of faster time-to-results. This will fuel Bayer’s ability to market the next generation of biological solutions.

“Our work with Kimitec offers a unique accelerated path to innovative biological solutions that will help us deliver on our shared vision for a new generation of effective, safe, and sustainable solutions derived from nature,” said Benoit Hartmann, Head of Biologics for Bayer’s Crop Science division. “Being able to partner with Kimitec is exactly how Bayer is going to leverage the open innovation ecosystem to work with our different strategic partners and bring the next generation of biologicals to growers.”

The biologicals market is expected to grow to nearly €25 billion by 20281, as consumers’ demand for low- and no-residue food products, and retailer food sourcing standards drive growers to look for new innovations in crop protection. Since 2007, Kimitec has been developing effective biologicals that provide effective alternatives and complementary options to synthetic crop protection, aligning them well with Bayer’s strategy to provide best-in-class solutions for growers through the integration of future and existing technologies.

“15 years ago, Kimitec had a clear vision to change the way food was produced. Our agreement with Bayer will help us get closer than ever to materializing our vision as it allows us to expand our global footprint and bringing our technology to millions of growers for the first time,” said Félix García, Chief Executive Officer for Kimitec.

“As a world leader in biological solutions R&D and manufacturing, Kimitec delivers natural and sustainable solutions without a compromise in efficacy or productivity to the farmer. This agreement with Bayer is closely aligned with our 360 Open Innovation strategy, to partner with world leading innovation companies to bring meaningful and sustainable solutions for the farmer, the consumer, and the planet.”

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