2018 Online Purchasing Behavior Study for Crop Inputs PRESENTED BY FARM JOURNAL MEDIA

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1 2018 Online Purchasing Behavior Study for Crop Inputs PRESENTED BY FARM JOURNAL MEDIA

2 Are you involved in the purchasing of crop inputs (seed, crop protection chemicals, fertilizer/nutrients, soil enhancers) for your farming operation? Yes 95% No 5% Statistics based on 1,015 respondents

3 Do You Currently Buy Any of Your Crop Inputs Online? Yes 8% No 92% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Statistics based on 967 respondents

4 Why Don t You Buy Online? Satisfied with current input provider 85% Lack of product support/guarantee/respray/replant 38% Don't trust quality of product purchased online Don't trust delivery/timeliness of online purchases Don't trust online purchasing in general 22% 26% 25% Need access to application equipment Financing options 15% 14% Bad experience buying online crop inputs before Other 2% 4% Statistics based on 892 respondents

5 For the 2019 Crop, Do you Plan on Buying Any Inputs Online? Current Online Purchasers + Plan to Purchase in 2019 Yes 13% No 87% Statistics based on 967 respondents

6 State Distribution: Yes, Buying Crop Inputs Online or Planning To 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 8% Buy Online 13% Will Buy Online 0.00% NE MI MO IN SD IL MN ND IA MT WI MS NC OH OK TX AR KS MD NY PA SC Yes, 2018 Yes, 2019

7 Who is Your Online Retailer? Farmers Business Network (FBN) 48% CommoditAg 11% AgVend 7% Other 49% Statistics based on 75 respondents

8 Other Online Retailer Mentions Hafia Ag Chemical XS Ag AgChemical.com FarmTrade Gen Tech Ag Chemical Solutions AgExpress Jdparts.com Agroy Group FarmAg Ebay Wilco-Winfield Varopus Reichmann Chemical Interstate Farm Products Rob See Co B&B Chemicals Amazon Richmond

9 What are the Reasons You Purchase from FBN? Price Transparency 78% Value 58% Competitive financing Service Seed and agronomic data analysis 17% 19% 22% Reputation Farm production performance data Lack of satisfaction with former input provider Other 6% 3% 3% 3% Statistics based on 36 respondents

10 How Satisfied are you with FBN? Very satisfied 36% Somewhat satisfied 25% Satisfied 39% Not at all satisfied 0% Statistics based on 36 respondents

11 Of Online Purchasers, Percent that Bought Any Seed Online For 2018 Crop, and Plan to Buy in % 64% 36% 23% 2018* 2019** *Statistics based on 64 respondents **Statistics based on 109 respondents Yes No

12 State Distribution: Purchased Seed Online Or Planning To 2018: % of Seed Bought Online 2019: % of Seed Bought Online 10.00% 9.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 23% Do Buy Seed Online 8.00% 7.00% 6.00% 5.00% 4.00% 36% Will Buy Seed Online 3.00% 3.00% 2.00% 2.00% 1.00% 1.00% 0.00% NE SD WI IL MI ND OK AR MT IN MD MN MO MS 0.00% NE SD WI IL MI ND OK AR MT IN MD MN MO MS < 25% 25-49% 50-74% 75-99% 100% < 25% 25-49% 50-74% 75-99% 100%

13 Of Online Purchasers, Percent that Bought Any Pre-Emerge/Burn-Down Herbicides Online For 2018 Crop, and Plan to Buy in % 62% 38% 21% 2018* 2019** *Statistics based on 72 respondents **Statistics based on 112 respondents Yes No

14 Of Online Purchasers, Percent that Bought Any Post-Emerge Herbicides Online For 2018 Crop, and Plan to Buy in % 79% 29% 21% 2018* 2019** *Statistics based on 70 respondents **Statistics based on 111 respondents Yes No

15 Of Online Purchasers, Percent that Bought Any Insecticides Online For 2018 Crop, and Plan to Buy in % 55% 37% 45% 2018* 2019** *Statistics based on 64 respondents **Statistics based on 104 respondents Yes No

16 Of Online Purchasers, Percent that Bought Any Fungicides Online For 2018 Crop, and Plan to Buy in % 63% 36% 37% 2018* 2019** *Statistics based on 59 respondents **Statistics based on 102 respondents Yes No

17 Of Online Purchasers, Percent that Bought Any Biologicals Online For 2018 Crop, and Plan to Buy in % 72% 18% 28% 2018* 2019** *Statistics based on 61 respondents **Statistics based on 96 respondents Yes No

18 Of Online Purchasers, Percent that Bought Any Micronutrients Online For 2018 Crop, and Plan to Buy in % 67% 33% 16% 2018* 2019** *Statistics based on 62 respondents **Statistics based on 101 respondents Yes No

19 Of Online Purchasers, Percent that Bought Any Fertilizer Online For 2018 Crop, and Plan to Buy in % 73% 27% 8% 2018* 2019** *Statistics based on 61 respondents **Statistics based on 103 respondents Yes No

20 When Considering Purchasing Crop Inputs, How Important are the Following? (Important + Very Important) Rebates Financing options 43% 43% Return policy Pricing transparency - what others in my area are paying Farm production performance data Advisor, consultant available for specific questions Delivery process Guarantee/Warranty Ease of purchasing process 71% 74% 76% 77% 81% 82% 84% Statistics based on 593 respondents Availability of products and brands I need Price 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 91% 94%

21 How Many Cropland Acres Do You Farm? ALL RESPONDENTS CURRENTLY BUY ONLINE 6% 2% 6% 9% 4% 4% 9% 18% 26% 27% 47% 42% Under 500 acres acres 1,000 to 2,499 acres 2,500 to 4,999 acres 5,000 to 9,999 acres 10,000 or more acres Under 500 acres acres 1,000 to 2,499 acres 2,500 to 4,999 acres 5,000 to 9,999 acres 10,000 or more acres Statistics based on 964 respondents Statistics based on 75 respondents

22 What is Your Age Range? ALL RESPONDENTS CURRENTLY BUY ONLINE 9.27% 9.44% 6.00% 6.00% 32.21% 24.45% 26.00% 36.00% Statistics based on 961 respondents 24.62% Under to to to % Under to to to Statistics based on 75 respondents

23 Additional Finding A Separate Pulse Poll text survey was conducted on September 20 th This Farm Journal text based research product guarantees 1,000+ responses in a 24 hour period for your most important market questions. Here are results from PULSE, sent to 5133 producer subscribers. 1.Do you currently purchase any crop inputs online? Icon / Value Count Percent = Yes % = No % MAP LINK: What is the number one reason why you purchase some crop inputs online? (YES REPLIES) Icon / Value Count Percent = Unsatisfied with previous input provider 6 14 % = Lower prices % = Price transparency 0 0 % = Product support and guarantees 0 0 % = Seed and agronomic data 1 1 % = Financing options 0 0 % MAP LINK: What is the number one reason why you don t currently purchase crop inputs online? (NO REPLIES) Icon / Value Count Percent = Satisfied with current provider % = Price 12 2 % = Product Quality 3 1 % = Delivery Timeliness 13 2 % = Product support/guarantee/respray/replant % = Financing options 26 5 % MAP LINK:

24 More Research Annual Research Schedule: February Mobile Use March Seeds/Planting Intentions April Agricultural Brand Quality June Machinery/Equipment August Digital Audience Research August Crop Protection October Harvest December Trucks/ATVs Farm Journal conducts ongoing research utilizing our multiplatform touch points to provide insight on various topics related to production agriculture. For a complete list of easy to download studies please visit Our data is available to license and we offer a wide array of data and research services customized to meet your needs.

25 Methodology Farm Journal conducted an online and mobile messaging survey to large acre farmers from September 14th to September 20th There were 1,015 Responses for a margin of error of +/- 3.1% Average Acreage = 1,941 Doug Edge Enterprise Account Director Phone: dedge@farmjournal.com

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