Bayer VAlora: understand how the program works

A few days ago, during Agrishow, Bayer Crop Science announced the Bayer VAlora program for corn. Through it, the company recommends the ideal planting density in chosen areas. Aims to increase productivity. In this context, it shares some risks with the producer. Extra information was released by the company.

Firstly, it is important to clarify certain terms of the partnership. The division of risks is restricted to any indication of excess corn seeds (difference between the recommendation and the producer's standard). If the estimated "profitability" does not materialize due to suggestions of excessive density, Bayer undertakes to return the value of these seeds to the producer. An extra explanation is needed here. Anna Malmskov, the company's director of new business models for Latin America, explains: “we consider profitability, ROI, at the end of the harvest taking into account gains in productivity, market price – additional seed investment. Even if the producer gains productivity, if the gain does not exceed the costs with our recommendation, we will return the value of the seeds”.

It is easy to see that the initial risk division proposal does not accommodate any additional inputs used as a result of greater planting density. Only the value of the seeds is covered. And this raises doubts, obviously.

The idea of ​​the program, however, is to use the same inputs previously adopted. Anna explains that "the producer will not make additional investment in other products to participate in the program -- except seeds. The management he uses in the Bayer recommendation and in the 'test' range must be exactly the same. The difference in the program is in testing a population density greater than the producer standard, but this does not imply an increase in the use of fertilizers or pesticides. The only variable in the area will be the difference in seed population density (Bayer recommendation versus producer standard).

The issue is described on the company's website as follows: "If the yield of the recommendation is lower than that of the control range, you will receive back the extra seeds purchased to execute our recommendation. The recommendation is generated based on expected productivity. Delays in planting, lack of water, nutrient deficiencies, as well as more extreme weather events, can affect areas with greater plant density more. In this case, in order to be increasingly assertive, it is also important to understand what may have happened. We will continue to ensure investment on the extra seeds invested, but remember that there will be no refund on lost productivity.".

The refund will be made through Orbia. Also on its website, Bayer informs that a coupon will be sent via email to the producer: "with the value corresponding to the return of seeds due. The coupon must be applied when paying for the purchase. Keep in mind that only seeds can be redeemed with the amount provided.".

Secondly, for the next harvest, only producers who are already using Climate FieldView should receive a proposal to join Bayer VAlora corn. This is a situation classified by the company as "pre-commercial". The opportunity will be open to others from the 23/24 harvest, explains Anna.

Operation: VAlora and FieldView

Bayer VAlora for corn works in conjunction with Climate FieldView. But don't get confused.

VAlora is an outcome-based model. Uses FieldView as a means to suggest seed population recommendations and audit (monitor implementation and results) of the program.

VAlora is a Bayer program; not FieldView, which is a digital agriculture platform, with benefits that go beyond seed prescription and operations mapping. It can also be used by producers who use competing brands.

In FieldView, using the system's instruments, you can access farm data, maps, weather forecasts and others. This data can be analyzed using algorithms.

What does that mean? An algorithm is a finite sequence of executable actions that aim to obtain a solution to a problem. You can compare it to a map. Or, as is usually observed, a cake recipe. From the algorithm, a "computer program" (software) can be developed. The software is not the algorithm, but consists of something built from it.

Thus, returning to Climate FieldView, the data captured on the rural property is used as a means to reach conclusions on how to make more assertive decisions in certain situations. Or, to put it another way, the reports generated support the producer in making decisions.

The algorithms developed by the company, the ways in which data is interpreted, constitute the core of the entire system. This is what differentiates the service from others on the market.

Consider that, based on the same set of information, different algorithms can suggest different solutions. This is why we understand the profusion of services of this nature today. The situation can be better understood when thinking about another data analysis service: weather forecasting. There are several forecasting "models". They start from the same collected data, but interpret it differently. Some have a higher hit rate. (There is more information about this at the end of the article.)

Back to corn

Returning to the initial question, the application of data capture and interpretation resources allows Bayer to indicate corn planting density. Or, as Bayer describes it: "we use satellite images or harvest maps to identify management zones and propose the best plant density for each of these zones. Then, informing the expected productivity, the FieldView Seed Prescription tool suggests the ideal plant density for each part of the field. "

But how do you know if there was a positive result? The answer will be given from the comparison between the results of the areas in which Bayer's recommendations were applied and those of the adjacent ranges (control; producer standard). Everything according to the mapping of operations and results presented by FieldView. The precise -- technical -- terms of how this occurs have not been released to the general public. Obviously, they are included in the contractual instruments signed by the parties.

future

The fundamental reasoning behind this service is not new. In 2016, the issue was already being talked about openly. Anna Malmskov explains that the company aims to enable farmers to produce more with less input use. The system fits the idea.

At the meeting of Bayer's board of directors with shareholders, on April 29, several questions contained themes related to environmental issues. It is a concern that can be seen in many structures.

Asked about prospects for similar actions by Bayer VAlora in relation to other crops and inputs, the director said they were possible. But she emphasized the absence of release dates.

Why VAlora?

And why the spelling "VALora"? Branding! This is the explanation from marketing manager Carolina Cardoso. She continues: "the 'VA' has the same weight. Both are shaped like arrows (up and down). The proportional arrows reinforce our commitment that the client does not lose out with the program. It is also clear that the highlight it is always on 'A' -- the upward arrow --, which represents our objective of bringing increasingly positive results to the producer."

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Links

https://revistacultivar.com.br/noticias/bayer-projeta-compartilhar-riscos-com-o-produtor

https://revistacultivar.com.br/noticias/bayer-cropscience-anuncia-mudancas-na-estrategia-de-negocios

NOTICE: The texts placed in quotation marks and in italics literally correspond to those on the Bayer website on 11.05.2022/XNUMX/XNUMX.