Doing Business in the U.S and EU: Avoiding the 2025 Roadblocks

Renee Targos Editor

There are big shifts happening in the U.S. crop protection market this year. Crop protection companies that are established or starting up are finding business deals and plans are in constant change.

To help your business strategizing for the U.S. and EU, we found a few U.S. ag retailers and consultants to share their perspectives on the four most prominent 2025 challenges in the U.S. with advice on what you need to do to stay on top of your game, followed by tips on doing business in the EU.

Four Top U.S. Challenges

Number one — Geopolitics

President Donald Trump’s tariffs in China, Canada, and Mexico—along with the back-and-forth of what may or may not be, is complicating the global supply chains. The increased price of raw materials and more complex supply chains means companies need to find trusted partners and keep a close watch on the market.

Mike Snyder, President of Red Rocket Consulting, says, “Companies must stay on top of competitive pricing with stable sourcing. They must also be aware that these cost and price changes may impact what alternative products farmers are going to use.”

The just-in-time sourcing may not be the strategy going forward. Instead, find a trusted partner who can respond to quick changes in the market and provide reliable service.

Number two — Competition

Big players are reducing the number of new active ingredients they are bringing to the market. This is causing a heightened competition among companies producing generics.

“The U.S. crop protection business will see some big changes in the next 5-10 years,” says Casey McDaniel, Vice President for Loveland Products. “We are seeing fewer new active ingredients from the traditional R&D companies and more patent expiries of big actives. The difference today from years past, are the number of new entries trying to find access. Unless something changes in China, we will continue to see over production and a desire to find alternate channels.”

Jeff Pritchard, Chief Executive Officer for Westlink Ag Group agrees.

“There is a minimum of $1 billion in market value worth of agri-chemical products coming off patent.  Thereafter, there are very few major patented technologies left to eventually feed generic suppliers,” says Pritchard.  “The speed for which generic companies exploit this space immediately after patent expiry is impressive.  Already with chlorantraniliprole for example, we have seven post patent, technical registrants within 18 months of this vital technology going off patent.”

Pritchard’s advice, after considering production and logistic costs, focus on quality products and develop trusted relationships with retail.

“Most of the products are proven to be substantially similar to the original registrants end-use-product, leaving market gains down to who has the best price, terms and/or motivated discounts,” says Pritchard.  “Those who meet these basic criteria and develop relationships with the retail space that are strategic and mutually beneficial, will advance their success. Those that continue to fight for the bottom via opportunistic pricing will limit their long-term potential by reducing investment earnings and lost trust with potential channel partners.”

One last point, companies should not use cheap packaging.

“Poor boxes for 2×2.5s can hurt you reputation as bad as a poor formulation,” says Snyder. “Do your research and match the packaging to the farmers’ needs. As an example, if your product usage is on small acreage or your product is very concentrated, then you may not need 265-gallon totes.”

Number three — Regulations

U.S. regulations are very stringent for new and previously registered products, making this our third and most costly hurdle.

“New active ingredient registrations are more expensive, time-consuming, and demand extensive data on environmental impact, toxicology, and non-target organism effects,” says Snyder. “Furthermore, the re-registration process for existing products is also becoming more rigorous, requiring ongoing investment in studies and data. This translates into higher costs, longer time-to-market, effectively raising the barrier to entry for new players.”

Your company can prepare for the long game of registration by secure financing, having a clear understanding of your targeted market, and joining associations like CropLife America, the Council of Producers & Distributors of Agrotechnology (CPDA), The Fertilizer Institute (TFI), and Biological Products Industry Alliance (BPIA) to advocate for revised U.S. regulatory laws and registration processes.

Number four — Ag Tech

With technology companies advancing artificial intelligence (A.I.) and developing quantum computing in a competitive phase, ag tech continues to change the world and agriculture. As drone adoption increases exponentially in the U.S., ag tech is an important development to watch.

“The advent of A.I. into agricultural inputs will be huge,” says Pritchard. “Already, drone applied crop protection has taken hold, but it is not unimaginable that these carrier-limited applicators could be converted to laser applied technology, zapping weeds via computer vision technology and covering more acres than the present-day drones can cover. We are already anticipating reduced post applied, foliar herbicide treatments via John Deere’s See and Spray technology, which allows for advanced detection for targeted treatments where weeds are present versus broadcast applications across entire fields. Will this technology soon advance toward insect and disease control?”

Crop protection companies partnering with ag tech companies are positioning themselves for future shifts in ag tech and adoption in the U.S.

Finding Your Ag Retail Partner

In the U.S., the ag retailer is still the most trusted source to the American grower. Ag retailers not only provide crop inputs (agrichemicals, fertilizer, and seeds), but also finance, equipment supply, energy, and other areas like grain handling and animal feed. Companies working with U.S. ag retailers will need to come with “product quality, market discipline, technology transfer competency and business and agronomic acumen,” says Pritchard.

Start-up companies wanting to find a U.S. ag retail to partner with may want to consider the following advice.

“They need to really fine-tune their offer to create differential advantage in uniqueness and relevance and place these competencies where they fit best (agronomic, cropping, etc),” says Pritchard. “A broad stroke, home-run type approach is perhaps best marketed through large centralized, national distributors.

“To really get the support of independent retailers, like Westlink Ag members, you will need to target specific answers to the specific needs these retailers have that are not being satisfactorily addressed today,” Pritchard continues. “This does not need to be just price, but could be in areas of service, strategic alignment, and/or shared risk provisions. In the case of most U.S. retailers, they already have a broad responsibility to serve their growers and cannot do your job for you. How can you help them better serve their customers and remain satisfied with your market access without the burden of greed?”

Once you get that tough question answered, McDaniel says to consider finding a partner that shares your values backed by data.

“The best companies to partner with are those with consistency in their business, share similar core values, and have a good understanding of market dynamics,” says McDaniel. “We have a diverse portfolio of registrations and innovative offerings that require high quality, reliable partners. Businesses must come prepared with data and analytics to support their aspirations for the partnership.”

Lastly, be realistic about your company’s aspirations when selecting a partner. If your budget allows for one U.S. representative, then focus on a partner that works with your market reach.

“Focus on a specific region or a tier of distribution that aligns with your capacity (for example Tier 1 National Distributors, Tier 2 Regional Distributors/Buying Groups, or Tier 3 Independent Retailers),” says Snyder. “Each tier has different needs, expectations, and market reach. Tailor your plan to your capabilities and expectations accordingly.”

Ag Retailer Checklist

Snyder created this six-point checklist when considering ag retailers for partners.

1.Complementary Offerings: Look for partners whose existing product lines, customer relationships, and geographic reach complement your offering.

2.Assess Capabilities: Evaluate their distribution network, sales force effectiveness, technical support capabilities, and financial stability.

3.Understand Motivations: What’s in it for them? Are they looking to fill a gap in their portfolio, expand into a new segment, or gain a competitive edge? Tailor your value proposition to their specific needs.

4.Build Trust: Partnerships are built on trust. Be transparent about your capabilities and limitations.

5.Provide Strong Technical Support: Be ready to offer technical training, agronomic support, and troubleshooting for the partner’s sales team and their customers.

6.Joint Marketing and Sales Efforts: Be willing to co-invest in marketing initiatives and collaborate on sales strategies to ensure product adoption and success.

Doing Business in the EU

AgriBusiness Global talked with Paolo Marchesini, General Manager of the European Crop Care Association (ECCA) about one of the most difficult regions in the world for crop protection registration. Marchesini says for 2025 to pay attention to the following three developments.

Revised Regulatory Framework

“Firstly, the EU is in the process of shaping a much more distinct and dedicated regulatory framework for plant protection products (PPPs), particularly for biological PPPs, which we expect will include clearer definitions, faster assessment timelines and new guidance documents,” says Marchesini.

Stricter Renewal Process

“The renewal process for active substances is becoming much stricter, with tougher criteria and higher regulatory costs, placing many key PPPs at risk of non-renewal and reducing farmer choice,” says Marchesini.

Data Protection Framework

“The data protection and data sharing framework under EU Regulation 1107/2009 are creating barriers for post-patent PPPs, but targeted reforms could help rebalance the market and speed up access to affordable and effective PPPs for European farmers,” says Marchesini.

While the EU continues to present difficulties in renewing or bringing new products to market, Marchesini remains hopeful.

“Considering the aforementioned developments, we truly believe that today the voice of plant protection companies is more powerful than ever before – but only if it’s united,” says Marchesini. “We, the European Crop Care Association, aim to be the central platform for this united industry voice in Europe.”  •