Bayer tells Investors:

Oct 22, 2021

Even as Bayer’s glyphosate plant in Louisiana was offline for more than five weeks because of Hurricane Ida, and concerns about supply chain issues are causing farmers heartburn, the company told their investors that Bayer’s expected earnings are fiiiiine.

“We lost five weeks of production,” Liam Condon, president of Bayer’s agricultural unit, says. “This will, of course, involve some cost that will have an impact on sales, but nothing to any degree that would impact our full-year guidance for this year.”

What else: Investors asked Bayer if these issues would cause a decrease in corn acres—where Bayer wins big—and Bayer said “it’s a seasonal blend,” since farmers typically make those decisions in the spring based on their crop rotation efforts and weather.

But farmers say: The impact, though, will be seen on prices of seed and inputs for farmers (in fact, they’re already an issue). Condon says Bayer estimates an average increase of about 5% for seed. As for fertilizer and chemicals, they’ll be going up too because of labor issues, export bans, and increased demand due to tight supplies.

Farmers may be re-thinking what they plant in the spring—and crops that require fewer inputs like fertilizer are looking more stable.