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Growers Edge and Growmark Develop Yield Guarantee Program
Growers Edge Financial, Inc. (Growers Edge) and Growmark have developed a yield guarantee program.
“In today’s stressed farm economy, farmers are incredibly wary of taking on more financial risk – even when taking that leap could boost profitability. They need guarantees,” said Joe Young, president and chief operating officer, Growers Edge. “Working with strategic partners like Growmark, we are providing the financial incentives farmers need to confidently adopt the new technologies that can ultimately drive their long-term sustainability and business success.”
Earlier this summer, Bayer Crop Science announced it was piloting an outcome-based pricing program, which sets a specific yield goal or other metric. If the goal is not reached, Bayer would make up the difference to the farmer. If the goal is exceeded, Bayer and the farmer would share the extra yield that was garnered.
Customers leveraging Growmark crop inputs and ag technology will be able to take advantage of the Growers Edge guarantee program to improve yield and profitability without the financial risk, according to a news release sent out by the companies.
Based on Growmark Product Yield Trials and the Growers Edge Growers Analytic Prediction System (GAPS), an artificial intelligence platform, Growmark and Growers Edge have developed a proprietary Agronomic Performance Product (APP) specifically for Growmark crop inputs. When farmers follow the specified agronomic practices for the Growmark solutions, they are assured yield improvements backed by a performance guarantee provided by Growers Edge, according to a company news release.
“Growmark is committed to helping our customers grow their bottom line with new ag technologies, which makes Growers Edge an ideal partner for us,” added Lance Ruppert, director of agronomy marketing technology, Growmark, in a company news release. “The Growers Edge team is removing some of the risk and creating a new value stream for both the farmer and our technology providers. We think the yield guarantee program will help customers deploy the technologies needed to improve profitability, and we are eager to see it in action.”
Required agronomic practices for the Growmark APP include implementing Growmark seed, grid soil sampling, and variable-rate fertilizer applications, as well as following farm-specific recommendations for phosphorus, potassium, lime, nitrogen, herbicides, fungicides, etc.