b'SW: What do you recommend as next steps for your independentMARKET CONSOLIDATION BY peers?THE NUMBERSSS: I would encourage each independ-ent company to take a serious look at the challenges they are facing in their busi- In June, 2023, the USDA released a Concentration ness and marketplace and come to anand Competition in U.S. Agribusiness study, which honest conclusion of what it will take toshowcased U.S. market share values held by major meet those challenges head-on. The cur- companies for various crop types. rent trajectory of the independent com-pany sector is not sustainable, and we willAccording to the study, the retail value of the U.S. need something to change in order forcorn seed market nearly quadrupled from $2.11 the independent companies to becomebillion per year in 2000-2003 to $7.91 billion healthy and thriving again.per year in 2018-2020. The five most dominant SW: How is IPSA tackling this issue?companies controlled 59.5% of the corn market in SS: As the loudest voice for the inde- 2000-2003. By 2018-2020, market share for the top pendent companies, the IPSA organiza- four companies had grown to an estimated 83.9% tion is meeting regularly to discuss theof the corn market, accounting for $6.63 billion per current challenges and try to come upyear. with solutions from our perspective. However, IPSA is made up of independ- In soybeans, the retail value of seeds more than ent companies who, because of thetripled from $1,501 billion per year in 2000-2003 to current challenges in the marketplace, are$4.74 billion per year in 2018-2020. The five most Scott Sanders, general manager atnot always in a great position to speakdominant companies controlled just under half Peterson Farm Seeds and IPSA boardtoo loudly about their situation. They are member. afraid of how their stance may affect their(48.2%) of the soybean market in 2000-2003. In businesses moving forward. Its a very2018-2020, the top four companies controlled an ketplace that make it incredibly challeng- difficult situation, but I know Todd Martinestimated nearly four fifths (78.1%) of the soybean ing to compete on an economically viableand the IPSA board of directors aremarket, accounting for $3.70194 billion per year.basis. working hard to fight for the independ-ent companies because we know thatCorteva and Bayer alone accounted for 71.6% of SW: Why is making surea strong, thriving independent sector istotal U.S. corn seed sales and 65.9% of total U.S. independents can compete sowhat is best for farmers. soybean seed sales in the 2018-2020 estimates. In critical to the health of the entirecotton, the retail value of seeds increased just over seed industry?SW: What else do you want people50% from $611 million per year in 2000-2003 to SS: One of the biggest characteristics ofto know about building a fairer seed$966 million per year in 2018-2020. The five most the American farmer is independence. Itmarket? is something that any farmer will tell youSS: Ive been a part of panels and Q&Adominant companies controlled 88% of the cotton if you ask them. Independent compa- sessions on this topic in the past and themarket in 2000-2003. In 2018-2020, the top four nies offer the farmer the opportunity tomain message I have for everyone withincompanies controlled an estimated 93.5% of the choose the product or service that is bestthe agriculture market is to be proud ofcotton market, accounting for $903.21 million per for their farm. Independent companieswhat we are doing and to not be afraidyear. In other key U.S. crops where GM traits are spend much of their valuable time andto speak truth to farmers or corporationspopular (including canola, sugar beet and alfalfa), resources understanding what is best atabout what is best for our industry. Our the local agronomy level, providing theindustry is very large, but when you boilmajor players retain significant market share. The farmers the best opportunity. We all knowit down, it is made up of small (and large)largest seed companies also have a strong foothold agronomy is very local to each farmerfamily farms and businesses who are allin proprietary vegetable seeds, but nowhere near and each of them face their own uniquelooking to do what is best for their opera- the dominance they hold in key field crops.challenges. Independents are able to offertions and, ultimately, their communities. a product or service that is uniquely cre- America is still largely based on strong ated to solve issues (or create opportuni- family values and a great work ethic, and I ties) for farmers in their backyards, wheredont think those of us in agriculture should it matters most. be shy about that conversation.SW 38/ SEEDWORLD.COMJANUARY 2024'