b'toward commodity prices, the expectation is for a more bal- STRATEGIES FOR SUCCESS AMIDST ECONOMIC anced cost environment in the coming seasons, Taylor says. Examining the relative affordability of nitrogen further empha- UNCERTAINTY IN 2024sizes the urgency for cost reductions. Despite this, farm income continues to decline, not keep- Gather Information: Invest in systems and processes to gather and analyze ing pace with falling commodity prices. This trend has led to ainformation about global market dynamics, including commodity prices, fertilizer weaker margin environment, with farmers anticipating significantprices, geopolitical events, and regulatory changes. This can help in making decreases in net farm income for the upcoming seasons. This could potentially lead to demand destruction and pullbacks ininformed decisions and developing proactive strategies to mitigate risks.investments, Taylor says. Diversify Supply Sources: Explore opportunities to diversify the sources of seed The energy complex plays a significant role in global marketand other inputs to reduce reliance on specific regions or suppliers that may be dynamics, with fluctuations in natural gas and coal pricesimpacted by geopolitical or environmental factors. This could involve building impacting the nitrogen and pesticide sectors. However, recent trends indicate a gradual decline in production costs, offeringpartnerships with suppliers from different geographic regions or investing in some hope for price relief in the future. alternative supply chains.Stamp extols the transformative power of new genetics andMitigate Risk: Develop scenario plans to anticipate various potential disruptions plant breeding in mitigating such market volatility. Seed emergesand their impacts on the supply chain. This includes considering scenarios such as one of the few inputs that can actually help farmers to be more profitable amid economic uncertainty. as trade disputes, extreme weather events, regulatory changes, and shifts in New seed varieties offer some hope amidst economic tur- consumer demand. Implement risk management strategies to mitigate the moil, you might say, Stamp says, emphasizing the relationshippotential negative impacts of these scenarios.between innovation and economic resilience. Engage in Policy Advocacy: Engage with policymakers at local, national, and For example, the advent of higher-protein varieties and solid stem cultivars exemplifies the transformative potential of geneticinternational levels to advocate for policies that support a stable and predictable innovation, offering farmers a competitive edge in an unpredict- business environment for seed retailers. This may involve participating able market landscape. in industry associations, lobbying efforts, and providing input into policy As Stamp and his customers grapple with the ebb and flowdiscussions related to agriculture and trade.of economic currents, the importance of strategic planning and adaptive resilience emerges as a crucial theme.Invest in Resilience: Allocate resources towards building resilience in the Harnessing the power of new genetics is not just a luxury butsupply chain, infrastructure, and operations. This could include investments in a necessity in an era defined by economic volatility, Stamp adds. technology, infrastructure upgrades, supply chain optimization, and training Taylor agrees. programs for staff to enhance adaptability and responsiveness to changing Seeds are one of the least discretionary inputs in farming. Ofmarket conditions.course, seed isnt just about the crop itself; its also a carrier of a vast array of technologies. From seed treatments to gene editingEducate and Support Your Customers: Provide support and education to to new traits, seed serves as a conduit for innovation in agricul- customers, such as farmers, about the factors influencing input prices and ture, Taylor adds.market dynamics. This can help them make informed decisions about crop Its fascinating to see how seed varieties evolve, and I believeplanning, input purchasing, and risk management strategies.seed will remain a key vehicle for future agricultural technologies as well. Plan for the Long Term: Develop long-term strategic plans that take into account Fonseca says as we look at the average trends in Brazil wethe potential impact of ongoing trends and disruptions in the global landscape. see that, particularly for soybeans, farmers are continuing toThis includes evaluating opportunities for innovation, diversification, and expand their planting areas. This directly increases the demandsustainable growth while remaining adaptable to changing market conditions.for soybean seed in the coming years, he says.On the other hand, for corn, especially the corn planted right after soybean, the demand will depend on the corn prices closer to the planting period, Fonseca adds.SW WHERE ON THE WEBWatch our full-length webinar on this topic! Visit seedworld.com/seeds-for-success-webinar32/ SEEDWORLD.COMLATAM'