Bayer's Regenerative Agriculture Solutions: Leading the Way in Carbon Farming and Sustainability
Bayer has announced its intention to leverage the opportunities presented by the transition to regenerative agriculture in order to expand into related markets, in addition to its core business areas of seeds, traits, crop protection, and digital solutions. During its 2023 Innovation Summit, the company identified several areas with potential for growth, including crop fertility, biologicals, biofuels, carbon farming, precision application services, as well as digital platforms and marketplaces, all of which cater to the needs of the agricultural sector.
As a result, Bayer anticipates accessing over 100 billion euros annually from these additional markets, effectively doubling the potential market size of its Crop Science Division. Currently, the division's core portfolio alone stands at over 100 billion euros. Notably, Bayer aims to shape regenerative agriculture on more than 400 million acres by the middle of the next decade, building upon its leading agriculture input solutions.
This ambitious endeavor, coupled with the division's prominent research and development pipeline for seeds, traits, and crop protection, was showcased in New York. The company highlighted its comprehensive system solutions, uniquely positioning itself to provide holistic support and driving the long-term growth of Bayer as it pursues its ambitious plan to advance regenerative agriculture.
“We are envisioning an even broader role in agriculture. With the most powerful innovation engine in the industry and leading market positions, Bayer is uniquely set to provide the solutions that farmers need in light of food security and climate change,” said Rodrigo Santos, President of Bayer’s Crop Science Division and Member of the Board of Bayer AG.
“We define regenerative agriculture as increasing food production, farm incomes and resilience in a changing climate while renewing nature. Our portfolio will deliver future innovations with regenerative agriculture at the core, and we will explore new market opportunities to further allow farmers to combine productivity, profitability, and sustainability benefits.”
Bayer has announced its intention to leverage the opportunities presented by the transition to regenerative agriculture in order to expand into related markets, in addition to its core business areas of seeds, traits, crop protection, and digital solutions. During its 2023 Innovation Summit, the company identified several areas with potential for growth, including crop fertility, biologicals, biofuels, carbon farming, precision application services, as well as digital platforms and marketplaces, all of which cater to the needs of the agricultural sector.
As a result, Bayer anticipates accessing over 100 billion euros annually from these additional markets, effectively doubling the potential market size of its Crop Science Division. Currently, the division's core portfolio alone stands at over 100 billion euros. Notably, Bayer aims to shape regenerative agriculture on more than 400 million acres by the middle of the next decade, building upon its leading agriculture input solutions.
This ambitious endeavor, coupled with the division's prominent research and development pipeline for seeds, traits, and crop protection, was showcased in New York. The company highlighted its comprehensive system solutions, uniquely positioning itself to provide holistic support and driving the long-term growth of Bayer as it pursues its ambitious plan to advance regenerative agriculture.
“A bold vision takes a bold investment. It takes all five of our innovation platforms – breeding, biotechnology, chemistry, biologicals and data science – to power this pipeline. But it is far more than these platforms alone. It is the convergence of the innovations that allows us to generate system solutions to solve our most pressing challenges,” said
Dr. Robert Reiter, Head of R&D at Bayer’s Crop Science Division.
“Farmers need the best genetics with best-in-class traits, they need data-driven planting scripts to know when and where to plant those crops. And they need lower impact small molecule crop protection paired with late-season biological solutions and precision applications to sustainably protect those crops. We have a deep and proud history of successfully converting these engines into viable, valuable products for growers.”
Bayer's research and development (R&D) pipeline encompasses a range of innovative technologies:
Designer Seeds and Next Generation Breeding Technology:
Bayer is actively advancing existing breeding methods and pioneering new tools such as gene editing to develop designer seeds for various crops, including corn, soybeans, cotton, and vegetables. Leveraging its extensive germplasm library, the company employs AI technology to enhance both yield and efficiency for farmers. By tailoring seeds to specific conditions, Bayer's precision breeding program optimizes agricultural outcomes. Additionally, the company is hybridizing staple crops like rice and wheat to enhance productivity and sustainability. The introduction of direct seeded rice has the potential to revolutionize rice production by reducing water consumption and increasing yields. Initial trials are already underway in India through the Bayer Direct Acres program.
Transformative Trait Technologies:
Bayer is expanding its industry-leading expertise into new domains, such as the Preceon Smart Corn System. This system offers reduced plant height, which delivers multiple advantages to farmers. Benefits include minimizing wind-related losses, facilitating precise utilization of crop protection products and nutrients throughout the growing season, and enabling optimized inputs, planting populations, and field placement through digital tools. The integrated system approach involves leveraging digital tools to support planting decisions, transitioning from input-based sales to providing comprehensive solutions.
The first generation of short-stature corn, developed through plant breeding, has been launched, and the next generation, expected in the mid-to-late part of this decade, utilizes plant biotechnology to broaden its application to more hybrids and acres. The recent completion of the USDA's review of the biotech short-stature corn trait indicates progress in the approval process. By combining expertise in protein optimization technology, RNAi technology, and biotechnology, Bayer can incorporate new trait technologies like short-stature corn with existing and next-generation insect-control traits (e.g., third-generation corn rootworm trait). This integration allows farmers to benefit from effective insect and weed control while using shorter-stature corn. Other noteworthy examples include Bayer's insect and herbicide tolerant soybean varieties with multiple modes of action, specifically developed for Brazil's tropical environment, addressing challenges posed by changing pest and weed resistance.
Bayer is pioneering new approaches in crop protection, focusing on sustainability and reducing environmental impact:
Sustainable Small Molecules:
The development of novel herbicides with a completely new mode of action for broadacre weed control is set to revolutionize the industry. This breakthrough, the first of its kind in over three decades, has demonstrated effective control of resistant grasses in research and is expected to be available commercially by the end of the decade. Additionally, Bayer is working on a promising broad-spectrum fungicide for cereals, corn, fruits, and vegetables, currently in phase 3 of research. Another innovative fungicide with a new mode of action, designed for horticulture, is in phase 2 of research, with potential applications in cereals and oilseed rape. Leveraging Artificial Intelligence (AI), Bayer is at the forefront of designing the next generation of crop protection, prioritizing sustainability and reducing environmental impact. These new products will enable farmers to customize and target their usage, such as utilizing PROTAC technology, co-developed with Oerth Bio, which interacts with a specific target protein while safeguarding beneficial organisms. Bayer is also optimizing the application of existing chemicals through digital and AI technologies.
Bayer's commitment to agricultural innovation aims to equip farmers with the tools, technologies, and options necessary for the future of regenerative agriculture. Precision-bred seed products will significantly enhance genetic gain in terms of yield potential, complemented by game-changing traits that facilitate no-till farming and improve soil health. In addition, Bayer's portfolio includes innovative small molecules and biological solutions that protect biodiversity, offer low to no-residue solutions, and utilize digital tools and technologies to verify soil improvements. By combining these advancements, Bayer is actively shaping the future of regenerative agriculture.
Bayer is poised to venture into new accessible markets closely related to its core offerings, including:
Crop Fertility and Biological Breakthroughs:
By leveraging biologically based nitrogen-fixation technologies, Bayer aims to help farmers achieve higher yields with reduced inputs, resulting in lower emissions and costs, particularly in crops like corn and wheat. The company's early-stage technology shows great promise in promoting biodiversity and soil health by reducing the reliance on synthetic nitrogen. Additionally, Bayer sees opportunities in using late-season applications of biological-based crop protection to control insects and diseases, which can lead to reduced residues in fruit and vegetable production—a desirable attribute for consumers. With its market leadership in biologicals, such as Serenade, and through open innovation partnerships with Gingko Bioworks, Kimitec, M2i, and AlphaBio, Bayer is well-positioned in this critical and rapidly growing space. The company aims to achieve more than 1.5 billion euros in sales by 2035.
Biofuels:
Bayer, as the majority share owner of CoverCress, recognizes the importance of cover crops in promoting sustainable farming practices and soil health. CoverCress, a cover crop specifically designed for biofuel production, offers additional revenue streams by selling it to biofuel manufacturers. The oil derived from CoverCress has a lower carbon intensity score and can be transformed into renewable fuels without competing with food crops, as it is planted between seasons. The market potential for this sustainable crop is significant and holds promise for further growth.
Digital Value Chain:
Bayer acknowledges the advancements in precision agriculture and digital farming technology that enable farmers to maximize productivity and sustainability. Climate FieldView, a vital decision tool, has garnered subscriptions covering over 220 million crop acres globally. Apart from providing real-time agronomic insights, the platform serves as a digital hub offering tailored solutions like the Preceon Smart Corn System, which combines Bayer's new short-stature corn hybrids with personalized digital recommendations aligned with customers' fields and performance objectives. Beyond farm-level applications, FieldView plays a crucial role in creating value chain solutions. It acts as a comprehensive record system for customers' climate-smart farming practices and powers Bayer's global carbon programs, including the US-based ForGround platform. Recently, Bayer unveiled Bayer AgPowered Services, a cloud-based enterprise solution powered by Microsoft Azure Data Manager for Agriculture. This suite of advanced digital capabilities and robust infrastructure accelerates innovation in the food and agriculture industries. By leveraging these cloud offerings, stakeholders across the farming and food value chains can enhance customer value, increase transparency for consumers, and provide greater opportunities for farmers.
Bayer is at the forefront of providing solutions and platforms that assist farmers in actively participating in carbon farming. The company recognizes the importance of implementing practices that remove carbon from the atmosphere and reduce emissions. Utilizing herbicide tolerant traits to enable no-till farming, coupled with the incorporation of cover crops, contributes to enhancing soil health, mitigating soil erosion, and minimizing carbon emissions. Additionally, Bayer's Carbon Initiative presents a valuable opportunity for farmers to access new revenue streams by connecting them with the global carbon markets.
Rodrigo Santos emphasized Bayer's strong positioning in the regenerative agriculture sector, attributing it to the company's emphasis on digital transformation, unwavering commitment to innovation, and robust partnerships. The overarching goal is to drive a transformative shift in agriculture towards increased productivity, sustainability, and a net positive impact on the environment.
As a result, Bayer anticipates accessing over 100 billion euros annually from these additional markets, effectively doubling the potential market size of its Crop Science Division. Currently, the division's core portfolio alone stands at over 100 billion euros. Notably, Bayer aims to shape regenerative agriculture on more than 400 million acres by the middle of the next decade, building upon its leading agriculture input solutions.
This ambitious endeavor, coupled with the division's prominent research and development pipeline for seeds, traits, and crop protection, was showcased in New York. The company highlighted its comprehensive system solutions, uniquely positioning itself to provide holistic support and driving the long-term growth of Bayer as it pursues its ambitious plan to advance regenerative agriculture.
“We are envisioning an even broader role in agriculture. With the most powerful innovation engine in the industry and leading market positions, Bayer is uniquely set to provide the solutions that farmers need in light of food security and climate change,” said Rodrigo Santos, President of Bayer’s Crop Science Division and Member of the Board of Bayer AG.
“We define regenerative agriculture as increasing food production, farm incomes and resilience in a changing climate while renewing nature. Our portfolio will deliver future innovations with regenerative agriculture at the core, and we will explore new market opportunities to further allow farmers to combine productivity, profitability, and sustainability benefits.”
Bayer has announced its intention to leverage the opportunities presented by the transition to regenerative agriculture in order to expand into related markets, in addition to its core business areas of seeds, traits, crop protection, and digital solutions. During its 2023 Innovation Summit, the company identified several areas with potential for growth, including crop fertility, biologicals, biofuels, carbon farming, precision application services, as well as digital platforms and marketplaces, all of which cater to the needs of the agricultural sector.
As a result, Bayer anticipates accessing over 100 billion euros annually from these additional markets, effectively doubling the potential market size of its Crop Science Division. Currently, the division's core portfolio alone stands at over 100 billion euros. Notably, Bayer aims to shape regenerative agriculture on more than 400 million acres by the middle of the next decade, building upon its leading agriculture input solutions.
This ambitious endeavor, coupled with the division's prominent research and development pipeline for seeds, traits, and crop protection, was showcased in New York. The company highlighted its comprehensive system solutions, uniquely positioning itself to provide holistic support and driving the long-term growth of Bayer as it pursues its ambitious plan to advance regenerative agriculture.
“A bold vision takes a bold investment. It takes all five of our innovation platforms – breeding, biotechnology, chemistry, biologicals and data science – to power this pipeline. But it is far more than these platforms alone. It is the convergence of the innovations that allows us to generate system solutions to solve our most pressing challenges,” said
Dr. Robert Reiter, Head of R&D at Bayer’s Crop Science Division.
“Farmers need the best genetics with best-in-class traits, they need data-driven planting scripts to know when and where to plant those crops. And they need lower impact small molecule crop protection paired with late-season biological solutions and precision applications to sustainably protect those crops. We have a deep and proud history of successfully converting these engines into viable, valuable products for growers.”
Bayer's research and development (R&D) pipeline encompasses a range of innovative technologies:
Designer Seeds and Next Generation Breeding Technology:
Bayer is actively advancing existing breeding methods and pioneering new tools such as gene editing to develop designer seeds for various crops, including corn, soybeans, cotton, and vegetables. Leveraging its extensive germplasm library, the company employs AI technology to enhance both yield and efficiency for farmers. By tailoring seeds to specific conditions, Bayer's precision breeding program optimizes agricultural outcomes. Additionally, the company is hybridizing staple crops like rice and wheat to enhance productivity and sustainability. The introduction of direct seeded rice has the potential to revolutionize rice production by reducing water consumption and increasing yields. Initial trials are already underway in India through the Bayer Direct Acres program.
Transformative Trait Technologies:
Bayer is expanding its industry-leading expertise into new domains, such as the Preceon Smart Corn System. This system offers reduced plant height, which delivers multiple advantages to farmers. Benefits include minimizing wind-related losses, facilitating precise utilization of crop protection products and nutrients throughout the growing season, and enabling optimized inputs, planting populations, and field placement through digital tools. The integrated system approach involves leveraging digital tools to support planting decisions, transitioning from input-based sales to providing comprehensive solutions.
The first generation of short-stature corn, developed through plant breeding, has been launched, and the next generation, expected in the mid-to-late part of this decade, utilizes plant biotechnology to broaden its application to more hybrids and acres. The recent completion of the USDA's review of the biotech short-stature corn trait indicates progress in the approval process. By combining expertise in protein optimization technology, RNAi technology, and biotechnology, Bayer can incorporate new trait technologies like short-stature corn with existing and next-generation insect-control traits (e.g., third-generation corn rootworm trait). This integration allows farmers to benefit from effective insect and weed control while using shorter-stature corn. Other noteworthy examples include Bayer's insect and herbicide tolerant soybean varieties with multiple modes of action, specifically developed for Brazil's tropical environment, addressing challenges posed by changing pest and weed resistance.
Bayer is pioneering new approaches in crop protection, focusing on sustainability and reducing environmental impact:
Sustainable Small Molecules:
The development of novel herbicides with a completely new mode of action for broadacre weed control is set to revolutionize the industry. This breakthrough, the first of its kind in over three decades, has demonstrated effective control of resistant grasses in research and is expected to be available commercially by the end of the decade. Additionally, Bayer is working on a promising broad-spectrum fungicide for cereals, corn, fruits, and vegetables, currently in phase 3 of research. Another innovative fungicide with a new mode of action, designed for horticulture, is in phase 2 of research, with potential applications in cereals and oilseed rape. Leveraging Artificial Intelligence (AI), Bayer is at the forefront of designing the next generation of crop protection, prioritizing sustainability and reducing environmental impact. These new products will enable farmers to customize and target their usage, such as utilizing PROTAC technology, co-developed with Oerth Bio, which interacts with a specific target protein while safeguarding beneficial organisms. Bayer is also optimizing the application of existing chemicals through digital and AI technologies.
Bayer's commitment to agricultural innovation aims to equip farmers with the tools, technologies, and options necessary for the future of regenerative agriculture. Precision-bred seed products will significantly enhance genetic gain in terms of yield potential, complemented by game-changing traits that facilitate no-till farming and improve soil health. In addition, Bayer's portfolio includes innovative small molecules and biological solutions that protect biodiversity, offer low to no-residue solutions, and utilize digital tools and technologies to verify soil improvements. By combining these advancements, Bayer is actively shaping the future of regenerative agriculture.
Bayer is poised to venture into new accessible markets closely related to its core offerings, including:
Crop Fertility and Biological Breakthroughs:
By leveraging biologically based nitrogen-fixation technologies, Bayer aims to help farmers achieve higher yields with reduced inputs, resulting in lower emissions and costs, particularly in crops like corn and wheat. The company's early-stage technology shows great promise in promoting biodiversity and soil health by reducing the reliance on synthetic nitrogen. Additionally, Bayer sees opportunities in using late-season applications of biological-based crop protection to control insects and diseases, which can lead to reduced residues in fruit and vegetable production—a desirable attribute for consumers. With its market leadership in biologicals, such as Serenade, and through open innovation partnerships with Gingko Bioworks, Kimitec, M2i, and AlphaBio, Bayer is well-positioned in this critical and rapidly growing space. The company aims to achieve more than 1.5 billion euros in sales by 2035.
Biofuels:
Bayer, as the majority share owner of CoverCress, recognizes the importance of cover crops in promoting sustainable farming practices and soil health. CoverCress, a cover crop specifically designed for biofuel production, offers additional revenue streams by selling it to biofuel manufacturers. The oil derived from CoverCress has a lower carbon intensity score and can be transformed into renewable fuels without competing with food crops, as it is planted between seasons. The market potential for this sustainable crop is significant and holds promise for further growth.
Digital Value Chain:
Bayer acknowledges the advancements in precision agriculture and digital farming technology that enable farmers to maximize productivity and sustainability. Climate FieldView, a vital decision tool, has garnered subscriptions covering over 220 million crop acres globally. Apart from providing real-time agronomic insights, the platform serves as a digital hub offering tailored solutions like the Preceon Smart Corn System, which combines Bayer's new short-stature corn hybrids with personalized digital recommendations aligned with customers' fields and performance objectives. Beyond farm-level applications, FieldView plays a crucial role in creating value chain solutions. It acts as a comprehensive record system for customers' climate-smart farming practices and powers Bayer's global carbon programs, including the US-based ForGround platform. Recently, Bayer unveiled Bayer AgPowered Services, a cloud-based enterprise solution powered by Microsoft Azure Data Manager for Agriculture. This suite of advanced digital capabilities and robust infrastructure accelerates innovation in the food and agriculture industries. By leveraging these cloud offerings, stakeholders across the farming and food value chains can enhance customer value, increase transparency for consumers, and provide greater opportunities for farmers.
Bayer is at the forefront of providing solutions and platforms that assist farmers in actively participating in carbon farming. The company recognizes the importance of implementing practices that remove carbon from the atmosphere and reduce emissions. Utilizing herbicide tolerant traits to enable no-till farming, coupled with the incorporation of cover crops, contributes to enhancing soil health, mitigating soil erosion, and minimizing carbon emissions. Additionally, Bayer's Carbon Initiative presents a valuable opportunity for farmers to access new revenue streams by connecting them with the global carbon markets.
Rodrigo Santos emphasized Bayer's strong positioning in the regenerative agriculture sector, attributing it to the company's emphasis on digital transformation, unwavering commitment to innovation, and robust partnerships. The overarching goal is to drive a transformative shift in agriculture towards increased productivity, sustainability, and a net positive impact on the environment.
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