January 15, 2025 • 22 mins
Unlock the secrets to maximizing your farm’s profitability even in challenging economic times! Join us as we explore innovative strategies with Joan Jordan, product manager for BASF's soybean fungicide portfolio, and Kanlaya Barr, head of the economics team at John Deere. Joan and Kanlaya bring their expertise to the table, discussing how to balance agronomics and economics to ensure farm success. From understanding the resilience of the U.S. economy to the strategic use of 0% financing, this episode promises valuable insights into sound investments in crop protection and best management practices.
Dive into the complexities of the global commodity market and its implications for U.S. farmers. With geopolitical events and unpredictable weather patterns affecting supply and prices, our conversation emphasizes the importance of risk management and tailored financial strategies. We discuss the impact of political developments like elections and the Farm Bill on agricultural stability. This episode is filled with practical advice on utilizing resources such as 0% financing and online tools, with a spotlight on BASF's collaboration with John Deere for comprehensive support. Whether you're a seasoned farmer or new to the field, these strategies are designed to keep your farm thriving amidst uncertainty.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Thanks for watching.
(00:31):
Hello everybody, my name is KimTudor, I'm a technical
marketing manager with BASF forcorn and wheat fungicides, and
I'm excited to spend a fewminutes having a discussion
today with two other industryprofessionals talking about
harvesting success.
So, where economics meetsagronomics you all know this
better than I do Growers aretasked every single day with
(00:55):
growing the best crops they can,all the while trying to manage
their margins and, ultimately,their profitability.
So I'm excited to spend sometime today talking about how
growers can maximize yields andtheir overall farm performance
through financially soundinvestments in crop protection
as well as other agronomic bestmanagement practices.
And I'm fortunate today to bejoined by two other
(01:19):
professionals, mrs Joan Jordanand Mrs Galea Barr.
Joan, if you wouldn't mind,would you introduce yourself?
Speaker 2 (01:29):
Sure, hi Kim.
Hi everyone, thanks for havingme on today.
My name is Joan Jordan, I am aproduct manager for BASF,
covering our soybean fungicideportfolio, and my background is
in economics and finance.
Speaker 1 (01:46):
Wonderful Galia.
Speaker 3 (01:49):
Well, thank you so much for having me today.
My name is Galia Barr.
I lead the economics team hereat John Deere.
I am trained as an economist,so I'm so excited to talk about
the economics and the agenvironment and to share with
you and the programs that canhelp you with your operations.
Speaker 1 (02:06):
Looking forward to this.
Fantastic ladies, that'sawesome.
This is going to be a greatdiscussion today, so let's kick
things right off.
We know December cornprojections are roughly around
$4 a bushel.
We know that soybeans areprojecting a roughly $9.90, just
slightly below $10 a bushel.
Tight margins are challenging.
(02:28):
Financial flexibility isimportant.
Galia, can you tell us a littlebit about what you're seeing in
the marketplace currently?
Speaker 3 (02:35):
No, that's a great question.
I know it's remainedchallenging, but maybe I'll do
this.
Maybe I'll start with the goodnews.
Right, if you look at the USeconomy, it's been really
resilient.
The job market is still doingreally well.
We see really good exportdemand for our crops because
Brazilian farmers, europeanfarmers, they experienced some
challenging weather this year.
So that's kind of the good newshere.
(02:58):
And we also looking at we seethat inflation is continuing to
decline and is likely tocontinue if you don't have any
major disruption in the next 12months here.
So those are good news.
But again, as you mentioned,that doesn't come without
challenges, and not only pricesis coming down, we also see
costs continue to be high inmany categories as well.
(03:18):
You look at hiring costs is high, insurance costs is high and
even though we talk about, yes,interest rate rates coming down,
but it is still higher thanwhat we remember pre-COVID.
So what that means to yougrowers and our retailers is how
do you make the most out ofyour capital?
And in these low margins anduncertain environment, it is so
important that you do what youcan control to reduce these
(03:41):
risks.
For example, you think about inyour operation how do you
manage managing your cost?
How do you market your crops,how do you improve the
efficiency and what do you do toget the best deal you can?
Maybe that is throughleveraging technologies that are
available to you today throughyour machines, using the best
practice economically, and thebottom line is you focus on what
(04:03):
you can do to reduce this risk,and that's why there are many
tools that you can help to dothat.
I'm so excited to talk aboutthe tool we have today and
because this is one of the toolsthat can help manage your risk
and also help reduce the costand conserve your valuable
credit line.
Speaker 1 (04:20):
Awesome, glee.
I think you brought up somereally great points.
Also excited to talk a littlebit more about some of those
opportunities in terms offinancing that we have and plan
to discuss today.
You know you mentioned talkingabout agronomic best management
practices and strategies forgrowers to protect their bottom
(04:40):
lines their bottom lines.
I'll just open up the floor toboth of you.
What are some of thosestrategies that you would
recommend to help growersmitigate their financial risks
while still making the necessaryinvestments that they have to
in terms of technology and cropprotection?
Speaker 2 (04:58):
Sure, I can start with this one.
So, you know, in times likethese, it's more important than
ever to maximize the bushelsthat farmers are producing,
because we know that morebushels at any price means more
revenue for the farmer.
So that's our, you know, mostimportant challenge in the 2025
season, and farmers should thinkabout building a strong
(05:22):
agronomic plan from thebeginning.
So how can they maximize theiryield, maximize their production
and then using tools like our0% financing offer to alleviate
credit line concerns for thatagronomic plan.
So, depending on the farmoperation size, you know, tools
like this 0% financing offercould help them save thousands
(05:43):
of dollars in interest savingsalone.
Speaker 1 (05:48):
Yeah, you know.
I know Galea mentioned thatinflation is coming down.
I know it takes some time forthat to kind of trickle down
throughout the marketplace andfor folks to really feel the
effects of that reduction ininflation.
I'm curious, could either ofyou just comment?
So, Joan, you mentioned the 0%financing.
What does that mean for agrower when you say 0% financing
(06:08):
?
Speaker 2 (06:11):
You want to take that one, Kalia?
Speaker 3 (06:13):
Yeah, and, by the way , if I hear 0% financing, my ear
perked up because in these daysand age of high interest rate,
anything that's 0% should cutyour interest here, because the
first thing that means to me isif I could get anything with
zero interest, that means thatgoes straight to my bottom line.
That means my cost is reduced.
(06:33):
That helps me protect myworking capital.
The second thing is anythinglike this protect also.
Any program like this also helpyou with your protecting your
downside risk.
Now you know what your cost isand be able to eliminate that
uncertainties from your, fromyour mind.
And also think about this whenyou, when you're working in your
(06:55):
farms, there are many thingsyou're every day making
decisions.
So be able to pin down some ofthe costs allow you to spend
time doing other things as well.
To pin down some of the costsallow you to spend time doing
other things as well.
So I think that freeing up yourtime is very important for you
to make decisions, to reducecosts elsewhere.
So that's really helpful.
And then, finally, when you arethinking about taking advantage
(07:16):
of a program like this, it alsohelps free up your credit line.
It is important in thisenvironment.
You just never know when thoseemergencies are going to come up
, when you're going to need moremoney, or maybe there are those
opportunities for you to expandyour operations that just
happen in this environment.
So you want to be able topreserve your credit line, be
able to preserve your workingcapitals, so things and programs
(07:38):
like this really allow you totake advantage of that as well.
Speaker 1 (07:42):
What's the old saying ?
It takes money to make money.
Right, I mean we have togrowers have to make investments
right.
They have to make seedselections, they have to
purchase fertilizer, they haveto make crop protection
investments as well, and so,yeah, I mean the sound of 0%
financing.
I mean I mean that's phenomenal, especially you know with what
(08:04):
current market interest ratesare doing.
So you all also mentioned JoanI think it was you you were
talking about the importance ofhaving a plan and I think that's
really really critical in anygiven year, but in particular in
those years where margins aretight, right, where prices,
commodity prices are low,growers are feeling hesitant
(08:25):
about the investments thatthey're making.
So let's take a few minutes,let's talk about some of those
agronomic best managementpractices that growers can
implement to help protect thatyield and their bottom line.
You know when I think about youknow, and I selfishly, I work
with fungicides, right, but Ithink about how to protect that
(08:49):
investment all the year through.
So you've made your seedselection right and as soon as
that seed gets put in the ground, then it's subject to the
elements.
You know you've got all kinds ofstress that our crops are going
to battle year in and year out.
It could be disease, right.
It could be environmentalstress, it could be heat,
(09:09):
drought, cold, wet.
I think about pests that cancome in later on in the seasons,
whether it be insects, whetherit be diseases, a couple of
diseases that are really top ofmind for a lot of growers right
now.
You think about tar spot andcorn.
We had the earliestidentification of tar spot in
(09:31):
2024 than we ever have, back inMay.
When I think about soybeans, Ithink about those really
problematic diseases like frogeye, leaf spot, cercospora, leaf
blight.
So there are always challenges,right.
So what are some of the waysthat we can help protect that
investment?
And I'm curious, joan, how, inyour opinion, can farmers
(09:54):
justify, in particular in thesereally tight times, justify
investing in crop protectionproducts like our
performance-driven fungicides?
Speaker 2 (10:04):
Yeah, that's a great question, Kim.
I think you hit it really wellbecause when does that seed have
the most potential?
You know when it's in the bag,exactly.
There's so many stressors thatcome in through the season, so
we definitely want to do all wecan to protect that yield
potential.
So I think it's important tokind of take a look back here.
(10:25):
So we know that over the pastshort term, the past few years,
farmers have enjoyed reallyhistorically high corn and
soybean prices and we've startedto see that normalize and come
back down.
And also over the past 20 yearsthere have been fungicides on
the market but those may havebeen lower performing, maybe
(10:49):
less consistent options thatwere available for growers to
use and because of that, youknow, less consistent options,
lower performing.
The ROI growers saw from thosesolutions didn't always pay out,
especially in lower commodityprice environments.
And you mentioned tar spot.
(11:26):
You know, lately we've reallyseen the threat around this
historical narrative offungicides delivering
inconsistent ROI in lowercommodity price environments.
So with the launch of Revisol,which is the active ingredient
powering all three of thesebrands, basf introduced the
(11:46):
newest and most consistentlyhighest yielding active
ingredient on the market andthese brands are providing
consistent yield responses yearin and year out in different
seasonal patterns and in factwe're seeing over 1,000
head-to-head on-farm trials.
We're seeing over 8 out of 10times.
(12:09):
These brands are outperformingother fungicides on the market,
so growers can feel confident inthe performance they're going
to see from theseperformance-driven fungicides
from BASF.
Speaker 1 (12:21):
So, joan, I think that's a really important
statistic that you called out.
So eight times out of 10,veltema, revitec and Revilock
fungicides are going tooutperform other fungicide
brands on the market today.
I don't know about you guys,I'm not much of a gambler Never
really.
You know, I like my money in mypocket If I had to make a
(12:43):
choice, if I was forced to placea bet.
I want to bet on a productthat's going to perform year in
and year out, right, and I thinkyou're exactly right.
I think that's what we see withthose particular brands.
And you mentioned Tarspot.
There are a couple things Ithink that are also important to
call out.
I think sometimes you knowourselves included, but growers
(13:08):
also kind of take the approachof okay, we see a disease, we
spray, right.
But with tar spot and I thinkin particular why that's been
such a problematic disease itcomes back to this idea of a
latent period, so that timebetween initial infection and
reproduction, or when you canactually start to see some of
those lesions show up on thoseleaves with our naked eye, and
(13:31):
there's this latent period.
That happens, and every diseasehas a latent period, right.
Tar spot actually has one ofthe longest, it's upwards of two
to three weeks.
Where that disease can beinside that plant.
It's robbing it of water,nutrients, it's reducing your
overall yield potential beforeyou even know it's there.
And so I think, like you allhave both talked about today, it
(13:53):
comes back to having a plan.
It's important that we have aplan in place.
We can't wait to be proactive.
Fungicides in my opinion,they're very different from
herbicides you see a weed, youspray it, you kill it or you
don't, but with fungicides it'sa little bit more complex than
that, and so I think it's reallyimportant just to keep that in
(14:14):
mind.
It's important to be proactiveinstead of reactive, again, just
trying to protect thatinvestment year in and year out.
The other thing you talk aboutthat it triggered in my mind,
joan, when you were talkingabout that consistent
performance year in and year out.
Again, not every year is aheavy disease pressure year.
There may be some years where,you know, in 2024, yes, the
(14:37):
Midwest saw a lot of disease,they saw a lot of tar spot, but
there were pockets that were hotand dry, and so I think it's
also important to call out thereare other agronomic benefits of
our performance-driven brands,those being Veltema, Revitec and
Revilock.
We do also provide environmentalstress mitigation.
We help those stomates stayopen right.
(14:58):
We help those plants maintainthose cooler internal
temperatures and continue tophotosynthesize, because we know
that's what drives yield.
And there's also optimizedgrowth efficiency as well.
So I think oftentimes it's realeasy to forget about the
benefits that we can providebeneath the ground because we're
just so used to looking at whatwe can see above ground and we
know that our performance-drivenbrands.
(15:19):
We have the data and thescience to back it up.
We promote root growth.
We promote better nitrogenuptake, nitrogen being a key
component of chlorophyll,chlorophyll being a main driver
for photosynthesis.
So if I again was a bettingperson, I never know what my
stress is going to be.
Yes, there are disease models.
(15:39):
Yes, there's all kinds ofpredictors.
Yes, we can keep our eye on theweather, but I think it's
important to remember that thereare all those benefits that I
think help drive that consistentperformance year in and year
out.
So really appreciate yourcomments there.
Galea, I'm going to switch backover to you, so can you share
(16:00):
just you know some thoughtsabout.
You talked about the globalcommodity markets.
You know global demand.
When we first hopped on thecall this morning.
You know how does thatinfluence the financial need of
farmers, how can they staycompetitive in this volatile
environment and what should theybe thinking about?
Moving forward, what are youseeing in terms of watchouts or
(16:24):
areas to pay attention to movingforward into 25 and after that?
Speaker 3 (16:29):
That was fantastic question, and so I think it's
all coming down to when we arein this low price, low margin
environment.
You look back into your toolkit, because the environment is
what you can't control.
That was given to you.
So you look back and you guyshave brought up a lot of good
points here, excellent points onwhat are in your toolkit, what
(16:49):
you can do to control in orderto maximize your profit in this
environment.
So it's very, very importantthat you look into that.
Risk management how do you makesure you protect the downside
risk right If you want to take abet, how do you make sure that
you leave the upside and youprotect that downside at the
reasonable cost?
And also keep in mind that notsolution is going to be one size
(17:12):
fits all.
So you figure out what is bestfor your operation and make sure
that you make a decision early,because there's also the
element of uncertainties as well.
You look back in 2022 when wesee the disruption broke out
between Ukraine and Russia.
Those are the things that couldhave a disruption globally.
(17:34):
So we just don't know.
With the current environmentgeopolitics, volatilities those
are not going to come downanytime soon.
So I think be able to ensurethat you would have the products
, you would have things you needwhen the time comes.
I think those are alsoimportant things to keep in mind
as well.
And as we look into the nextplant harvesting or even the
(17:55):
next six or 12 months here, howdo you think about the economy?
Well, if you look at we are inthe middle of our harvest is
almost done.
Then the next key point to lookat would be in South America
How's the South American cropslooking?
Because that would determinewhat does the global balance
sheet looks like next year.
And a couple of weeks ago Imight be a little bit more
(18:17):
concerned looking a little bitdry in Brazil, but since then we
had a pretty good, timely rainand it seems like the next
couple of weeks we'll havepretty good rain there as well.
So right now, so far, maybe theplanting is coming a little bit
behind historical level inBrazil, but no major things
we're seeing in the moment.
So that see how that crop isplaying out is going to be
(18:38):
important for us to figure outwhat kind of crop we're going to
have, what kind of price we'regoing to have in the next six or
12 months here.
But so far.
If we looking at a pretty goodcrop coming off South America,
so that's going to meanpotentially we could have, you
know, a lot of supply globallyand I think that's going to
there might be someopportunities for price rally.
(18:59):
But if we have a good crop downthere, I think it's going to
continue to be a more headwindfor the US farmers to be
competitive in the market there.
So that's one thing we'relooking every day.
The other things we're lookingis also the election results.
So it'll be really good to havethat behind us, to have more
certainties.
And the third thing would be onthe Farm Bill side.
(19:21):
I think we still haven't hadFarm Bills, but the majority of
the safety net program is gonnacontinue.
So I think that at least thatwould help folks here, but
nonetheless it'd be really goodfor us to have another
certainties in the Farm Bureauarea.
So those are the things thatwe're looking at as we look at
the next six or 12 months here.
Speaker 1 (19:42):
All incredible points , very, very valid.
You know and you hit on itagain, galia just the importance
of having a plan.
You know a lot of growersacross the US right now are
importance of having a plan.
You know a lot of growersacross the US right now are in
the midst of harvest.
You know, nobody wants to slowdown, but we got to start
thinking about and talking aboutwhat we're going to do for next
year.
Right, Go ahead and get theproducts booked, take advantage
(20:04):
of the zero percent financing,have conversations with those
retailers and with thoseagronomists Because you said it
very well, every farmingoperation is unique and that
uniqueness necessitates a uniqueplan.
But I think going ahead andbeing proactive instead of
reactive does allow you a littlebit of flexibility in season
because you can go ahead andtalk about well, if this happens
(20:26):
, then we're going to plan to dothis, if this happens, then
we're going to do that, and so Ithink it just it just comes
back to planning right, anddoing the best that we can to
hedge our bets.
So, joan, just kind of wrappingthings up here, can you tell
our audience today where, wherecan they go to learn more about
BASF's partnership with JohnDeere financing?
Speaker 2 (20:49):
Well, absolutely Well .
First, I would say if growersare interested in learning more
about how some of theseperformance-driven fungicides
are performing in their localareas, they can visit
RebexFieldscom to zoom in on themap to their state, their
county you know, their region tosee some similar trial results.
(21:10):
And then, in terms of thefinancing program, definitely
recommend reaching out to yourretailer.
Understand your multi-useaccount position with John Deere
.
You should have a local JohnDeere rep that you can speak to
as well, and then the BASF repcan help with that as well.
In addition, there is a cropinput financial calculator on
(21:33):
John Deere where growers can putin some information, you know,
just to simulate what could thesavings look like for their farm
.
Speaker 1 (21:43):
Fantastic.
So, folks, yes, we justencourage you to reach out to
your local BASF representative,your John Deere representative.
Find that financial calculatoronline, Put some numbers in Play
around with it.
I think you'll really besurprised at the benefits that
you can take advantage oflooking forward to 2025.
Well, ladies, I have reallyenjoyed the time today.
(22:06):
Thank you so much, reallyappreciate your insights and
really enjoyed the conversation.
Speaker 3 (22:13):
Thank you so much, really appreciate your insights
and really enjoyed theconversation.
Thank you so much.
Speaker 4 (22:20):
Thanks for joining us on Spilling the Beans, where
every episode gets you one stepcloser to maximizing your
soybean profitability.
If you found today's insightsvaluable, subscribe and leave us
a review on your favoritepodcast platform.
Download the Grow Smart Liveapp for more resources and share
the podcast with other growers.
See you next week with moreexpert tips to help you grow
(22:43):
smarter and achieve the bestyields yet.
No-transcript.
Thanks for watching.
(00:31):
Hello everybody, my name is KimTudor, I'm a technical
marketing manager with BASF forcorn and wheat fungicides, and
I'm excited to spend a fewminutes having a discussion
today with two other industryprofessionals talking about
harvesting success.
So, where economics meetsagronomics you all know this
better than I do Growers aretasked every single day with
(00:55):
growing the best crops they can,all the while trying to manage
their margins and, ultimately,their profitability.
So I'm excited to spend sometime today talking about how
growers can maximize yields andtheir overall farm performance
through financially soundinvestments in crop protection
as well as other agronomic bestmanagement practices.
And I'm fortunate today to bejoined by two other
(01:19):
professionals, mrs Joan Jordanand Mrs Galea Barr.
Joan, if you wouldn't mind,would you introduce yourself?
Speaker 2 (01:29):
Sure, hi Kim.
Hi everyone, thanks for havingme on today.
My name is Joan Jordan, I am aproduct manager for BASF,
covering our soybean fungicideportfolio, and my background is
in economics and finance.
Speaker 1 (01:46):
Wonderful Galia.
Speaker 3 (01:49):
Well, thank you so much for having me today.
My name is Galia Barr.
I lead the economics team hereat John Deere.
I am trained as an economist,so I'm so excited to talk about
the economics and the agenvironment and to share with
you and the programs that canhelp you with your operations.
Speaker 1 (02:06):
Looking forward to this.
Fantastic ladies, that'sawesome.
This is going to be a greatdiscussion today, so let's kick
things right off.
We know December cornprojections are roughly around
$4 a bushel.
We know that soybeans areprojecting a roughly $9.90, just
slightly below $10 a bushel.
Tight margins are challenging.
(02:28):
Financial flexibility isimportant.
Galia, can you tell us a littlebit about what you're seeing in
the marketplace currently?
Speaker 3 (02:35):
No, that's a great question.
I know it's remainedchallenging, but maybe I'll do
this.
Maybe I'll start with the goodnews.
Right, if you look at the USeconomy, it's been really
resilient.
The job market is still doingreally well.
We see really good exportdemand for our crops because
Brazilian farmers, europeanfarmers, they experienced some
challenging weather this year.
So that's kind of the good newshere.
(02:58):
And we also looking at we seethat inflation is continuing to
decline and is likely tocontinue if you don't have any
major disruption in the next 12months here.
So those are good news.
But again, as you mentioned,that doesn't come without
challenges, and not only pricesis coming down, we also see
costs continue to be high inmany categories as well.
(03:18):
You look at hiring costs is high, insurance costs is high and
even though we talk about, yes,interest rate rates coming down,
but it is still higher thanwhat we remember pre-COVID.
So what that means to yougrowers and our retailers is how
do you make the most out ofyour capital?
And in these low margins anduncertain environment, it is so
important that you do what youcan control to reduce these
(03:41):
risks.
For example, you think about inyour operation how do you
manage managing your cost?
How do you market your crops,how do you improve the
efficiency and what do you do toget the best deal you can?
Maybe that is throughleveraging technologies that are
available to you today throughyour machines, using the best
practice economically, and thebottom line is you focus on what
(04:03):
you can do to reduce this risk,and that's why there are many
tools that you can help to dothat.
I'm so excited to talk aboutthe tool we have today and
because this is one of the toolsthat can help manage your risk
and also help reduce the costand conserve your valuable
credit line.
Speaker 1 (04:20):
Awesome, glee.
I think you brought up somereally great points.
Also excited to talk a littlebit more about some of those
opportunities in terms offinancing that we have and plan
to discuss today.
You know you mentioned talkingabout agronomic best management
practices and strategies forgrowers to protect their bottom
(04:40):
lines their bottom lines.
I'll just open up the floor toboth of you.
What are some of thosestrategies that you would
recommend to help growersmitigate their financial risks
while still making the necessaryinvestments that they have to
in terms of technology and cropprotection?
Speaker 2 (04:58):
Sure, I can start with this one.
So, you know, in times likethese, it's more important than
ever to maximize the bushelsthat farmers are producing,
because we know that morebushels at any price means more
revenue for the farmer.
So that's our, you know, mostimportant challenge in the 2025
season, and farmers should thinkabout building a strong
(05:22):
agronomic plan from thebeginning.
So how can they maximize theiryield, maximize their production
and then using tools like our0% financing offer to alleviate
credit line concerns for thatagronomic plan.
So, depending on the farmoperation size, you know, tools
like this 0% financing offercould help them save thousands
(05:43):
of dollars in interest savingsalone.
Speaker 1 (05:48):
Yeah, you know.
I know Galea mentioned thatinflation is coming down.
I know it takes some time forthat to kind of trickle down
throughout the marketplace andfor folks to really feel the
effects of that reduction ininflation.
I'm curious, could either ofyou just comment?
So, Joan, you mentioned the 0%financing.
What does that mean for agrower when you say 0% financing
(06:08):
?
Speaker 2 (06:11):
You want to take that one, Kalia?
Speaker 3 (06:13):
Yeah, and, by the way , if I hear 0% financing, my ear
perked up because in these daysand age of high interest rate,
anything that's 0% should cutyour interest here, because the
first thing that means to me isif I could get anything with
zero interest, that means thatgoes straight to my bottom line.
That means my cost is reduced.
(06:33):
That helps me protect myworking capital.
The second thing is anythinglike this protect also.
Any program like this also helpyou with your protecting your
downside risk.
Now you know what your cost isand be able to eliminate that
uncertainties from your, fromyour mind.
And also think about this whenyou, when you're working in your
(06:55):
farms, there are many thingsyou're every day making
decisions.
So be able to pin down some ofthe costs allow you to spend
time doing other things as well.
To pin down some of the costsallow you to spend time doing
other things as well.
So I think that freeing up yourtime is very important for you
to make decisions, to reducecosts elsewhere.
So that's really helpful.
And then, finally, when you arethinking about taking advantage
(07:16):
of a program like this, it alsohelps free up your credit line.
It is important in thisenvironment.
You just never know when thoseemergencies are going to come up
, when you're going to need moremoney, or maybe there are those
opportunities for you to expandyour operations that just
happen in this environment.
So you want to be able topreserve your credit line, be
able to preserve your workingcapitals, so things and programs
(07:38):
like this really allow you totake advantage of that as well.
Speaker 1 (07:42):
What's the old saying ?
It takes money to make money.
Right, I mean we have togrowers have to make investments
right.
They have to make seedselections, they have to
purchase fertilizer, they haveto make crop protection
investments as well, and so,yeah, I mean the sound of 0%
financing.
I mean I mean that's phenomenal, especially you know with what
(08:04):
current market interest ratesare doing.
So you all also mentioned JoanI think it was you you were
talking about the importance ofhaving a plan and I think that's
really really critical in anygiven year, but in particular in
those years where margins aretight, right, where prices,
commodity prices are low,growers are feeling hesitant
(08:25):
about the investments thatthey're making.
So let's take a few minutes,let's talk about some of those
agronomic best managementpractices that growers can
implement to help protect thatyield and their bottom line.
You know when I think about youknow, and I selfishly, I work
with fungicides, right, but Ithink about how to protect that
(08:49):
investment all the year through.
So you've made your seedselection right and as soon as
that seed gets put in the ground, then it's subject to the
elements.
You know you've got all kinds ofstress that our crops are going
to battle year in and year out.
It could be disease, right.
It could be environmentalstress, it could be heat,
(09:09):
drought, cold, wet.
I think about pests that cancome in later on in the seasons,
whether it be insects, whetherit be diseases, a couple of
diseases that are really top ofmind for a lot of growers right
now.
You think about tar spot andcorn.
We had the earliestidentification of tar spot in
(09:31):
2024 than we ever have, back inMay.
When I think about soybeans, Ithink about those really
problematic diseases like frogeye, leaf spot, cercospora, leaf
blight.
So there are always challenges,right.
So what are some of the waysthat we can help protect that
investment?
And I'm curious, joan, how, inyour opinion, can farmers
(09:54):
justify, in particular in thesereally tight times, justify
investing in crop protectionproducts like our
performance-driven fungicides?
Speaker 2 (10:04):
Yeah, that's a great question, Kim.
I think you hit it really wellbecause when does that seed have
the most potential?
You know when it's in the bag,exactly.
There's so many stressors thatcome in through the season, so
we definitely want to do all wecan to protect that yield
potential.
So I think it's important tokind of take a look back here.
(10:25):
So we know that over the pastshort term, the past few years,
farmers have enjoyed reallyhistorically high corn and
soybean prices and we've startedto see that normalize and come
back down.
And also over the past 20 yearsthere have been fungicides on
the market but those may havebeen lower performing, maybe
(10:49):
less consistent options thatwere available for growers to
use and because of that, youknow, less consistent options,
lower performing.
The ROI growers saw from thosesolutions didn't always pay out,
especially in lower commodityprice environments.
And you mentioned tar spot.
(11:26):
You know, lately we've reallyseen the threat around this
historical narrative offungicides delivering
inconsistent ROI in lowercommodity price environments.
So with the launch of Revisol,which is the active ingredient
powering all three of thesebrands, basf introduced the
(11:46):
newest and most consistentlyhighest yielding active
ingredient on the market andthese brands are providing
consistent yield responses yearin and year out in different
seasonal patterns and in factwe're seeing over 1,000
head-to-head on-farm trials.
We're seeing over 8 out of 10times.
(12:09):
These brands are outperformingother fungicides on the market,
so growers can feel confident inthe performance they're going
to see from theseperformance-driven fungicides
from BASF.
Speaker 1 (12:21):
So, joan, I think that's a really important
statistic that you called out.
So eight times out of 10,veltema, revitec and Revilock
fungicides are going tooutperform other fungicide
brands on the market today.
I don't know about you guys,I'm not much of a gambler Never
really.
You know, I like my money in mypocket If I had to make a
(12:43):
choice, if I was forced to placea bet.
I want to bet on a productthat's going to perform year in
and year out, right, and I thinkyou're exactly right.
I think that's what we see withthose particular brands.
And you mentioned Tarspot.
There are a couple things Ithink that are also important to
call out.
I think sometimes you knowourselves included, but growers
(13:08):
also kind of take the approachof okay, we see a disease, we
spray, right.
But with tar spot and I thinkin particular why that's been
such a problematic disease itcomes back to this idea of a
latent period, so that timebetween initial infection and
reproduction, or when you canactually start to see some of
those lesions show up on thoseleaves with our naked eye, and
(13:31):
there's this latent period.
That happens, and every diseasehas a latent period, right.
Tar spot actually has one ofthe longest, it's upwards of two
to three weeks.
Where that disease can beinside that plant.
It's robbing it of water,nutrients, it's reducing your
overall yield potential beforeyou even know it's there.
And so I think, like you allhave both talked about today, it
(13:53):
comes back to having a plan.
It's important that we have aplan in place.
We can't wait to be proactive.
Fungicides in my opinion,they're very different from
herbicides you see a weed, youspray it, you kill it or you
don't, but with fungicides it'sa little bit more complex than
that, and so I think it's reallyimportant just to keep that in
(14:14):
mind.
It's important to be proactiveinstead of reactive, again, just
trying to protect thatinvestment year in and year out.
The other thing you talk aboutthat it triggered in my mind,
joan, when you were talkingabout that consistent
performance year in and year out.
Again, not every year is aheavy disease pressure year.
There may be some years where,you know, in 2024, yes, the
(14:37):
Midwest saw a lot of disease,they saw a lot of tar spot, but
there were pockets that were hotand dry, and so I think it's
also important to call out thereare other agronomic benefits of
our performance-driven brands,those being Veltema, Revitec and
Revilock.
We do also provide environmentalstress mitigation.
We help those stomates stayopen right.
(14:58):
We help those plants maintainthose cooler internal
temperatures and continue tophotosynthesize, because we know
that's what drives yield.
And there's also optimizedgrowth efficiency as well.
So I think oftentimes it's realeasy to forget about the
benefits that we can providebeneath the ground because we're
just so used to looking at whatwe can see above ground and we
know that our performance-drivenbrands.
(15:19):
We have the data and thescience to back it up.
We promote root growth.
We promote better nitrogenuptake, nitrogen being a key
component of chlorophyll,chlorophyll being a main driver
for photosynthesis.
So if I again was a bettingperson, I never know what my
stress is going to be.
Yes, there are disease models.
(15:39):
Yes, there's all kinds ofpredictors.
Yes, we can keep our eye on theweather, but I think it's
important to remember that thereare all those benefits that I
think help drive that consistentperformance year in and year
out.
So really appreciate yourcomments there.
Galea, I'm going to switch backover to you, so can you share
(16:00):
just you know some thoughtsabout.
You talked about the globalcommodity markets.
You know global demand.
When we first hopped on thecall this morning.
You know how does thatinfluence the financial need of
farmers, how can they staycompetitive in this volatile
environment and what should theybe thinking about?
Moving forward, what are youseeing in terms of watchouts or
(16:24):
areas to pay attention to movingforward into 25 and after that?
Speaker 3 (16:29):
That was fantastic question, and so I think it's
all coming down to when we arein this low price, low margin
environment.
You look back into your toolkit, because the environment is
what you can't control.
That was given to you.
So you look back and you guyshave brought up a lot of good
points here, excellent points onwhat are in your toolkit, what
(16:49):
you can do to control in orderto maximize your profit in this
environment.
So it's very, very importantthat you look into that.
Risk management how do you makesure you protect the downside
risk right If you want to take abet, how do you make sure that
you leave the upside and youprotect that downside at the
reasonable cost?
And also keep in mind that notsolution is going to be one size
(17:12):
fits all.
So you figure out what is bestfor your operation and make sure
that you make a decision early,because there's also the
element of uncertainties as well.
You look back in 2022 when wesee the disruption broke out
between Ukraine and Russia.
Those are the things that couldhave a disruption globally.
(17:34):
So we just don't know.
With the current environmentgeopolitics, volatilities those
are not going to come downanytime soon.
So I think be able to ensurethat you would have the products
, you would have things you needwhen the time comes.
I think those are alsoimportant things to keep in mind
as well.
And as we look into the nextplant harvesting or even the
(17:55):
next six or 12 months here, howdo you think about the economy?
Well, if you look at we are inthe middle of our harvest is
almost done.
Then the next key point to lookat would be in South America
How's the South American cropslooking?
Because that would determinewhat does the global balance
sheet looks like next year.
And a couple of weeks ago Imight be a little bit more
(18:17):
concerned looking a little bitdry in Brazil, but since then we
had a pretty good, timely rainand it seems like the next
couple of weeks we'll havepretty good rain there as well.
So right now, so far, maybe theplanting is coming a little bit
behind historical level inBrazil, but no major things
we're seeing in the moment.
So that see how that crop isplaying out is going to be
(18:38):
important for us to figure outwhat kind of crop we're going to
have, what kind of price we'regoing to have in the next six or
12 months here.
But so far.
If we looking at a pretty goodcrop coming off South America,
so that's going to meanpotentially we could have, you
know, a lot of supply globallyand I think that's going to
there might be someopportunities for price rally.
(18:59):
But if we have a good crop downthere, I think it's going to
continue to be a more headwindfor the US farmers to be
competitive in the market there.
So that's one thing we'relooking every day.
The other things we're lookingis also the election results.
So it'll be really good to havethat behind us, to have more
certainties.
And the third thing would be onthe Farm Bill side.
(19:21):
I think we still haven't hadFarm Bills, but the majority of
the safety net program is gonnacontinue.
So I think that at least thatwould help folks here, but
nonetheless it'd be really goodfor us to have another
certainties in the Farm Bureauarea.
So those are the things thatwe're looking at as we look at
the next six or 12 months here.
Speaker 1 (19:42):
All incredible points , very, very valid.
You know and you hit on itagain, galia just the importance
of having a plan.
You know a lot of growersacross the US right now are
importance of having a plan.
You know a lot of growersacross the US right now are in
the midst of harvest.
You know, nobody wants to slowdown, but we got to start
thinking about and talking aboutwhat we're going to do for next
year.
Right, Go ahead and get theproducts booked, take advantage
(20:04):
of the zero percent financing,have conversations with those
retailers and with thoseagronomists Because you said it
very well, every farmingoperation is unique and that
uniqueness necessitates a uniqueplan.
But I think going ahead andbeing proactive instead of
reactive does allow you a littlebit of flexibility in season
because you can go ahead andtalk about well, if this happens
(20:26):
, then we're going to plan to dothis, if this happens, then
we're going to do that, and so Ithink it just it just comes
back to planning right, anddoing the best that we can to
hedge our bets.
So, joan, just kind of wrappingthings up here, can you tell
our audience today where, wherecan they go to learn more about
BASF's partnership with JohnDeere financing?
Speaker 2 (20:49):
Well, absolutely Well .
First, I would say if growersare interested in learning more
about how some of theseperformance-driven fungicides
are performing in their localareas, they can visit
RebexFieldscom to zoom in on themap to their state, their
county you know, their region tosee some similar trial results.
(21:10):
And then, in terms of thefinancing program, definitely
recommend reaching out to yourretailer.
Understand your multi-useaccount position with John Deere
.
You should have a local JohnDeere rep that you can speak to
as well, and then the BASF repcan help with that as well.
In addition, there is a cropinput financial calculator on
(21:33):
John Deere where growers can putin some information, you know,
just to simulate what could thesavings look like for their farm
.
Speaker 1 (21:43):
Fantastic.
So, folks, yes, we justencourage you to reach out to
your local BASF representative,your John Deere representative.
Find that financial calculatoronline, Put some numbers in Play
around with it.
I think you'll really besurprised at the benefits that
you can take advantage oflooking forward to 2025.
Well, ladies, I have reallyenjoyed the time today.
(22:06):
Thank you so much, reallyappreciate your insights and
really enjoyed the conversation.
Speaker 3 (22:13):
Thank you so much, really appreciate your insights
and really enjoyed theconversation.
Thank you so much.
Speaker 4 (22:20):
Thanks for joining us on Spilling the Beans, where
every episode gets you one stepcloser to maximizing your
soybean profitability.
If you found today's insightsvaluable, subscribe and leave us
a review on your favoritepodcast platform.
Download the Grow Smart Liveapp for more resources and share
the podcast with other growers.
See you next week with moreexpert tips to help you grow
(22:43):
smarter and achieve the bestyields yet.
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