Depending on where you are in your farming cycle, some of you may already be thinking about purchasing chemical for your next season. Well, there’s a well-kept secret in this industry that you should be aware of, and that secret is that as of 2013, 77% of all ag chemicals are off-patent. This means that there are identical generic versions that you can now buy at a fraction of the branded price. Here are some other points regarding these off-patent chemicals to keep in mind:
- 28% of the 77% are fully commoditized. They’ve been off-patent for several years and branded versions probably don’t exist anymore (Examples are Atrazine or 2,4-D). Prices for these chemicals should be very competitive no matter where they’re purchased.
- Another 9% have recently transitioned which means there are still a lot of branded products (like Acetochlor) in the market and few or no generic versions. Prices may be higher, and at this stage the original manufacturer could be selling upgraded products that contain the off-patent molecule.
- The final 40% of off-patent chemicals are generics. These chemicals such as Glyphosate and Dicamba have been off-patent for several years and at least one generic version is on the market. Here’s where you can see considerable savings, controlling input costs without worrying about lost effectiveness.
- More than half of the still patented chemicals on the market will be going off-patent by the year 2020, which means that in the next 5 years almost 89% of ag chemicals will most likely be available in a generic form. This means farmers could save a lot of money.
As always, when purchasing ag chemicals, more than just price should be considered. Other aspects such as concentration, effectiveness, application capacity and support should also be taken into account. Log on to https://blog.farmersbusinessnetwork.com/community/are-you-overpaying-for-ag-chemicals They have some great resources if you’re interested in learning more.
-Terry Olson, Titan Outlet Store Team