Cropwise™ Commodity Pro, a new offering within the Cropwise digital portfolio, was created with growers in mind to address market volatility and mitigate risk.
While Syngenta crop protection products provide long-lasting residual protection and application flexibility, growers may be concerned over making the investment because of market uncertainty. Cropwise Commodity Pro can help protect the value of the premium product purchases against a drop in the commodity price during the growing season. There is no additional cost to participate in Cropwise Commodity Pro after the Syngenta products are purchased. The offering is only available through participating retailers and is applicable to corn and soybean crops grown in the Midwest and South.
Growers should feel confident in their Syngenta product purchases and how they can help crops realize their yield potential. “However, if the market should work unfavorably, meaning it takes a downward turn, then we will share in some of that risk in the form of a cash back payment with the grower,” says Eric Honeycutt, digital ag solutions marketing lead at Syngenta . “In most cases, that means up to 15% cash back if commodity prices drop.”
How Cropwise Commodity Pro Works
Syngenta conducted pilots over two years prior to the launch, according to Honeycutt. Here’s how the program works:
- Certain qualifications are required, such as acreage and products used. “Many products that qualify are going to be Better Yield is the Better Deal™ brands like Acuron® GT herbicide ,” Honeycutt says. Growers should check with their Syngenta representative or retailer to see if they meet offer qualifications.
- At the end of July, growers will be locked into the commodity price for corn or soybeans, based on their product purchases.
- The locked-in price will then protect qualified purchases against a drop in the Chicago Board of Trade (CBOT) corn or soybean commodity price later in the season.
- If the late-season average commodity price from August to October declines in price, participating growers will receive cash back for the percent difference in the two prices on their qualifying products, up to 15%.
It’s important to note that Syngenta is not marketing the crop on the grower’s behalf. This is an additional commodity price protection that comes with purchasing specific Syngenta premium products. Those enrolled will have access to an online portal to track their potential payout and what the market is doing.
“This is an exciting opportunity within our Digital Ag Solutions portfolio to help growers who are investing in Syngenta premium brands,” Honeycutt says. “They not only reap the rewards of the agronomic benefits in their fields, but when they take their crop to market, they can receive a potentially higher premium and higher price.”