Bayer To Introduce “Outcome Pricing” Model

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Bayer Crop Science is introducing a pricing model that shares risks with its customers. Crop Science President Liam Condon tells Brownfield the company’s outcome-based pricing model means refunds to growers if products don’t provide the yield promised by Bayer, according to Liam Condon, president of the Crop Science Division. Condon adds that the company also shares the upside potential.

“We de-risk the farmer, take away risk from the farmer, and if we achieve more than we had been predicting for the grower then we share in the benefit,” Condon told Brownfield Ag News, “We think that’s a fair deal.”

Outcome based pricing is possible because of the predictive capability of Bayer’s FieldView digital data collection system letting growers know what to apply when, said Condon.

“We can tell a grower ‘if you use this fungicide and this part of your field at this point in time you will get a yield bump,'” said Condon, “and we’re willing to guarantee that.”

No launch date has been determined for pricing model. Condon talked to Brownfield at Bayer’s Jerseyville, Illinois research farm.

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