The march-released Farmers Business Network, FBN survey clearly talks about the discrepancy in prices for a similar product for farmers.
Almost 300 farms in 37 states contributed more than 3,000 data points for the analysis. Although online shopping has become the norm, farming products are not always flexible. Not all farm products are available online, and price comparison does not happen quickly.
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“After 18 months of extreme price volatility in the agricultural chemical supply chain, the company believes it’s time to revisit the notion of price transparency.FBN launched in 2014 out of the need for more transparency and competition in input markets which the internet helps address, but as we see, it’s still a major problem for farmers. Providing more transparency on the market enables producers to make informed buying decisions to drive ROI from every input dollar,” says Kevin McNew, Report author and Chief Economist, FBN.
The data collected through the survey hints at some possibilities. For example, some crop protection sellers will offer more transparent pricing. Besides, many places need more competition.
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Price volatility affects farmers disproportionately, who pay more incredible prices for their agricultural chemicals. Farmers who paid above the average list price did so by an average of 19%.
Additionally, The average discount received by the remaining 50% of farmers, who paid less than the average list price, was just around 14%.
Regional pricing disparities frequently demonstrated that some places were predisposed to paying more for particular products.