Blogs & News

Carrot, Shield, or Both? The Ag Retailer’s Guide to Managing Growers’ Risk

outline of a hand holding a sketch of a carrot on LH side; outline of a hand holding a shield on RH side

It’s a common problem: you have exciting products that you know will benefit farmers – but your customers are reluctant to try them out. Maybe the economy is too volatile to take a chance on something new. Or they’re simply happy with what they have. No matter the reason, you – the retailer – need a strategy to consistently drive adoption.

Of course, sales conversations aren’t one size fits all. Sometimes, you can sweeten the deal with a carrot (or incentive). Other times, a sturdy shield (or assurance) can ease concerns about outsize risks. But when should you offer one over the other? And does it ever make sense to offer both? (The short answer is yes: we’ll explain why.)

In this piece, we’ve got a framework to help you choose. Here’s the rundown.

Use Carrots to Nudge Farmers On the Fence

Carrots are great for creating enthusiasm and urgency around product adoption. You probably offer some already; they typically take the form of…

  • Discounts or rebates.
  • Free samples.
  • Bundled deals.

Carrots are particularly effective when farmers already trust your recommendations and are comfortable with the brand you’re trying to sell – but simply need an extra push to commit. They’re also powerful in tough economic conditions: with a 10 percent discount, for instance, you can help farmers save on helpful products (and build goodwill in the process).

There are more use cases, too. Consider…

  • Using freebies to attract early adopters.
  • Creating a loyalty rewards program to incentivize repeat purchases.
  • Bundling products at a discount to nudge farmers toward high-value buys.

Pro tip: Make carrots time-sensitive to create urgency. A limited-time offer can encourage farmers to act quickly so they don’t miss out.

Use Shields to Put Farmers at Ease

Shields are strategic risk mitigation tools. They’re designed to ease farmers’ concerns about uncertainty and financial loss, making them ideal for high-cost, innovative, or unfamiliar products.

Shields often look like…

By selling products with shields, you can affect how farmers perceive risk and help them feel more confident in trying something new. For instance, you might offer input financing for a new seed variety to lower upfront costs. Or provide a free trial on precision ag tools so farmers can test them out with minimal risk.

One of the most powerful shields, though, is the warranty. That’s because warranties specifically target farmers’ aversion to loss. Farmers can trust they’ll be compensated if a product underperforms. What’s more, they’ll appreciate your willingness to put your money where your mouth is – and will feel more confident as a result.

To make the most of warranties, consider these three approaches:

Warranty Approach Ideal Customer Behavior Farmer Benefit Retailer Benefit
Whole-Acre Focus Buy more products from you Cash-back performance warranty Increased revenue and wallet share
Specialty Focus Try a new product Cash-back performance warranty Increased adoption of a new or specialty product
Manufacturer Focus Try a specific manufacturer’s product Cash-back performance warranty Increased adoption with potential co-funding from manufacturer

Used right, warranties and other shields won’t just mitigate perceived risk. They’ll inspire farmers to change their buying habits and take the leap on exciting innovations. (There are many other ways to inspire change, too – our latest ebook has four more you can start using today.)

Remember: Shields build long-term trust by demonstrating confidence in your products. And the more customers trust you, the more loyal they’ll become.

Double the Impact with a Combined Approach

Carrots and shields have distinct advantages – and in many cases, they complement each other like sugar and salt. You might want to offer both carrots and shields if you’re…

  • Targeting a broad audience: For example, a 20 percent discount and performance warranty on a new biofertilizer can help you reach customers of all stripes, from cautious growers to sustainability-minded innovators.
  • Entering a new or competitive market: With freebies and alternative financing, for instance, you can stand out among the competition.
  • Selling brand new innovations: Consider incentivizing adoption with a bundled discount (ideally with brands farmers already trust) – and add a warranty to provide peace of mind. 

The bottom line: By combining incentives with assurances, you can boost the value of every offer and more consistently win over farmers.

With Carrots and Shields, Everyone Wins

When it comes to managing growers’ risk, carrots and shields are essential tools for any ag retailer. Together, they create a powerful strategy for driving product adoption and building long-term relationships.

Growers Edge offers two industry-leading shields to support your efforts: Crop Plan Warranty and Input Financing. These tools empower farmers to buy your products with confidence. That means more sales in less time – and more trust in your recommendations.

Ready to learn more? Reach out to explore how Growers Edge can elevate your ag retail sales operation.

Related Articles

42% of Farmers Weren’t Profitable Last Year. How Can Retailers Weather the Storm?

More

Growers Edge Farmland Value Index: Q1 2025

More

5 Ag Trends We’re Watching in 2025

More

We will be retiring Farm Manager soon. Please contact us with any questions or concerns, and for information about our other agriculture fintech and data solutions that can help you build a more sustainable farm.

Welcome to Farm Manager

Forgot your password?


Enter your email address to be sent instructions on how to reset your password.

Back to login
×

A guide for leaders at agricultural retailers and manufacturers.

Get The eBook