Where are chemical prices and where are they going?

The short answer? Down. What a change we have seen in the chemical market from last year to today. I would imagine your local retailer is hesitant to tell you that most product prices are down. We are seeing this more in the generic space vs. branded products but with the right amount of pressure the basic manufacturers will most likely follow. The drivers to the decreases are truly just a lack of demand. As products were tight last year everyone ordered all they could get, and guess what, towards the end of the season it all showed up! Tech prices continue to drop overseas due to a lack of orders. Interest costs and softening prices have retailers and manufacturers “offloading” inventory at a rapid pace.

This is good for the farmer. It puts you in the driver’s seat when shopping ag chem. Do your research. We believe at Farmerce Ag we will always have the lowest prices because we only connect you with people who have inventory. We help you bypass links in the channel to save. If you are not buying a product on Farmerce because the price is too high, our sellers can realize that and adjust. If they begin to sell product, then you have helped to establish the market price. 

Logistics

We have talked price but at the end of the day you need your chemicals when you need them. Local retail is the "Hey I need 25 gallons of this brought to me this afternoon." We are not trying to replace this market. We want to be another option for your farm. With prices dropping there is a hesitancy to buy your inputs as they could go down. That is a wise strategy, but as an industry we have a short window to ship and get products in the right places at the right time. Shop now, plan now, begin to get your foundation products ordered. Let us know what we can do to help at support@farmerceag.com.

Ask the Owner- Lance Ramthun 

  • How is Farmerce a better option than other online retailers or my local retail?

"I see Farmerce as just another option for input purchasing. Local retail is no doubt a vital part of the ag industry and provides a service. That said, farmers need options and without some transparency in the market farmers don't always know what options exist. We are an open marketplace for ag chemical. We connect buyers and sellers and let them dictate the market on branded and generic chemicals. "

  • How do farmers save money through Farmerce?

"That is an easy formula to explain. First and foremost, we have no overhead. We don't own products, we don't own trucks or warehouses, we have a small and efficient support staff. Our growing network of sellers are the most competitive in the market. As Farmerce continues to grow this will only get better. An open marketplace and competition is what the crop protection market has been missing."

  • Why did Farmerce begin?

"As an independent consultant my mission has always been to bring value to farmers by providing unbiased solutions that increase farm profitability. When the Farmerce model was bouncing around in my head I was determined to ask questions and find out how the current market was shaped. I wanted to use an efficient technology platform to bring the entire crop protection market to farmers. We talk about helping empowering farmers to not be price takers. Farmerce allows them to be price and market makers."

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