Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148DECEMBER 2016 SEEDWORLD.COM / 89 DID YOU KNOW? Launched in 2016, the Purdue University/CME Group Ag Economy Barometer is a nationwide measure of the health of the U.S. agricultural economy. On the first Tuesday of each month, the barometer provides a sense of the agricultural economy’s health with an index value. The index is based on a survey of 400 agricultural producers on economic sentiment each month. Quarterly, the index is accompanied by an in-depth survey of 100 agriculture and agribusiness thought leaders. Find the Ag Economy Barometer on the Bloomberg Terminal: AGECBARO, AGECCURC and AGECFTEX. costs decreased by $2 an acre between 2014 and 2015 and that another $2 drop was expected between 2015 and 2016. Seed prices have been sticky to come down, Hill notes. But all agree that there’s been quite a bit of give reported for the 2017 crop year. DuPont, Dow and Syngenta have all dropped their price on even their most elite varieties and other companies are making significant savings deals on bulk or exclusive purchase agreements. Monsanto is reported to have done some pricing adjustments but not on their newest innovations. “There’s certainly some benefit in dropping prices to make the sell short- term, but in the long-term it’s really a lose-lose situation for companies,” Secor says, noting that you erode trust in previ- ous messaging and show just how much margin is built into your prices. He says if you are lowering prices, the key is to communicate why you are doing it. “It is not a lower quality product … it is that we are trying to help the farmer suc- ceed in the long run by lower prices in a tough time,” he says. “That can really help build relationships in the long run and build brand equity. The idea of lowering prices is that you’ll sell more, enough to offset the lower price. It’s a give a little to get more concept. But Secor cautions companies looking to slash seed prices, as it could do more harm than good. “Be very careful about lowering prices, because it’s really hard to increase prices,” he says. “There are unintended consequences, such as the expectation that you will always be able to lower prices and that the brand doesn’t have as much value. “I’m not saying that you shouldn’t lower prices, but you really need to think through it. Think through not just this season, but future seasons as well.” Identify What Customers Value No two farmers are alike. Secor recom- mends talking to customers and learning what it is they value. Then you have to determine how best to communicate the value that you can deliver, he says. “Maybe instead of cutting seed prices, you cut back on the service your provide,” he adds. For example, Secor says he was talking with a group of farmers and some of them are “pretty independent,” so services to them is being on time and delivering the right product at the right amount at the right time, and that’s it. However, others might want to know the ideal planting time, variety and plant population recommendations. “Service means different things to different people,” Secor says. “You have to hone in on what your customers want and what type of products drive that value.” SW Call 1.855.746.8200 or visit www.norstarmfg.com to find a dealer near you. 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