The long trends in agriculture that pose the biggest risks

Summary:  Explore the driving interest behind carbon and sustainability markets and understand how changing trends can impact the profitability and future opportunities of your farm operation.

Sometimes slow, seismic changes are the most difficult to confront, they don’t create the sense of urgency of a mechanical issue during planting, a supply chain input issue, or racing the weather to wrap up 3rd crop hay. Such immediate issues are easy to spot and relatively easy to address with all farmers having ample experience dealing with such challenges. After all, in the day to day battle to complete a profitable season, tackling these challenges becomes unavoidable.

But what about the big trends? You know, the slow evolution that occurs within the industry? The stuff that we do not deal with on a daily or even yearly basis. The stuff that we cannot control, but nonetheless impacts our farms and the context in which we make decisions. These slow trends can put the slow squeeze on operations not paying attention. I watched this play out during my childhood as my parents farmed and also ran an auction company. Too often I observed farmers leaving the industry and even on auction day, wondering how things changed. We have all witnessed this process. Those late to adopting new technology or approaches are left competing with others who have found competitive advantages. As margins narrow, those late to innovating face increasingly challenging budgets. 

We are all familiar with two common long trends in agriculture; mechanization and scale. Both trends have significantly reduced labor requirements and cost per unit of output. These trends will continue, but other long trends will develop that will have as profound of impacts over the next 20 years as anything we’ve seen in agriculture. 

The three long trends to prepare for:

• Biology: In the 20th century seed genetics provided the path to increasing yields and reducing pest and disease impacts on crops. With the evolution of our understanding of soil and the rhizosphere, advancing yield potential beyond seed genetics will drive future yield growth.
• Carbon and Sustainability: The generation that has grown up learning about climate change since their earliest days have now become the biggest consumer cohort who make purchasing decisions with sustainability as a top priority. This demand has only increased as other generations increasingly include sustainability as a factor when making purchasing decisions. 
• Data: Related to carbon and sustainability, data will play a significant role as the food, fuel, and fiber supply chain increasingly require evidence of practices that generate carbon sequestration or sustainability improvements. 

As these trends continue to emerge and build, growers have a range of helpful tools and products available through Indigo:

• Indigo’s Biotrinsics product boosts crop yields, particularly in challenging weather conditions and can be easily applied to seed.
• Indigo’s Source program allows grain buyers to meet sustainability needs while providing new marketing opportunities for farmers using beneficial practices.
• Indigo’s Carbon program creates carbon credit opportunities for growers adding or intensifying their use of cover crops and/or reducing tillage. 
  

Indigo has numerous tools to sort through and find the best solutions that work for your specific needs.