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Opportunities and Challenges of Marketing FGD - Gypsum to Agriculture David Flack Marketing Director Ag Spectrum Compa PowerPoint Presentation
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Opportunities and Challenges of Marketing FGD - Gypsum to Agriculture David Flack Marketing Director Ag Spectrum Compa - PowerPoint PPT Presentation


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Opportunities and Challenges of Marketing FGD - Gypsum to Agriculture David Flack Marketing Director Ag Spectrum Company. Overview. Market size in acres by major row crop Value of FGD-Gypsum in Agriculture Barriers to Adoption Benefits to Agriculture Benefits to Industry

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Opportunities and Challenges of Marketing FGD - Gypsum to AgricultureDavid FlackMarketing Director Ag Spectrum Company

overview
Overview
  • Market size in acres by major row crop
  • Value of FGD-Gypsum in Agriculture
  • Barriers to Adoption
  • Benefits to Agriculture
  • Benefits to Industry
  • Key Elements of Marketing to Farmers
market size summary
Market Size Summary
  • Row Crop Agriculture is HUGE!
    • 200,000,000 + acres of major row crops alone!
  • Row Crop Agriculture is CONSTANT!
    • Total production acres of major row crops does not change drastically year to year
  • Row Crop Agriculture is PREDICTABLE!
    • Planting intentions are accurately forecasted short and long term
  • Row Crop Agriculture is RELIABLE!
    • Once a production practice is proven and adopted there is high resistance to change
the real value of fgd gypsum in row crop agriculture
The Real Value of FGD – Gypsum in Row Crop Agriculture
  • Most farmers utilize tillage to prepare soils for planting
    • Tillage releases carbon from the soil into the atmosphere
    • Expensive in the face of high fuel, labor and equipment costs
the real value of fgd gypsum in agriculture
The Real Value of FGD – Gypsum in Agriculture
  • FGD – Gypsum allows farmers to reduce or eliminate tillage
    • Carbon is accumulated in soils when tillage is reduced
    • ½ ton per acre per year in a corn/soybean rotation
  • Carbon credits generated by reducing tillage are worth $4.00 - $4.10/ton on the Chicago Carbon Exchange (CCE)
  • Future value of Carbon Credits $12, $17, $20 per Ton ??
barriers to adoption
Barriers To Adoption
  • Cost
      • Most growers are located $20/ton transportation from sources
      • There is a cap to cost for the farmer
  • Dependable supply
      • Developing a cropping system involving FGD-Gypsum
  • Misinformed Agriculture Industry leadership
      • Current failure to understand the value
  • Material characteristics
      • 8-12% moisture
      • No adverse crop production effect
      • Heavy metals meet regulated standards
  • Regulations
      • EPA – Each state has to approve land applications
      • Agriculture – farm use subject to oversight of Department of Agriculture
benefits to agriculture
Benefits to Agriculture
  • Lowered capital requirement for equipment
    • Opportunity to invest equipment capital in technology and land for growth
  • Lowered fuel costs
    • Environmental Stewardship Bonus
  • Lowered labor costs
    • At the very least, opportunity to re-allocate labor
  • Improved soil quality
    • Better air and water management equals better yields
    • Better soils erode less and require less applied fertilizer
    • Environmental Stewardship Bonus
  • Government regulation/compliance payments
benefits to industry
Benefits to Industry
  • Long term low cost disposal
    • Dependable market year to year
  • Potential carbon credit accumulation
    • December 2005 – Two dairyman receive first carbon credit payments in excess of $26,000
    • Trade Carbon Credit Value for FGD-Gypsum Value??
  • Environmental Stewardship
    • At the plant
    • On the farm
  • Public Relations
    • EVERYBODY WINS!
key elements of marketing fgd gypsum to farmers
Key Elements of Marketing FGD- Gypsum to Farmers
  • Limitations to marketing in Agriculture
      • No T.V. or effective radio
      • Limited publications and newspapers
      • Farmers require “Proof” of concept before purchasing
      • Market “Noise” obscures the truths of nature
      • Every farmer has an “Expert” that already influences their buying decisions
  • Successful marketing of FGD-Gypsum will occur through the “Right” local experts
      • Technically competent to integrate FGD – Gypsum into a complete production plan
      • Established farmer relationships and historical reputation of improving production results
key elements of marketing fgd gypsum to farmers16
Key Elements of Marketing FGD- Gypsum to Farmers
  • Establish supply and logistics to meet current demand
      • Direct sales transaction between the utility and the farmer
  • Establish value equation for new farmers
      • FGD-Gypsum as a component to a production plan that lowers cost, improves soil quality and increases yield potential
      • Low cost, dependable supply of FGD-Gypsum available via carbon credit accumulation as a result of tillage reduction
  • Expand demand
      • Trial Use – Early Adopters
      • Service – Educate the farmer in-season
      • Monitor and Measure Results – Link role of FGD-Gypsum in the farmers mind to specific results i.e. crop emergence, crop health, air and water management, fertility management, cost reduction etc.
      • Establish adoption via proof of local results