Indigo Ag, Inc., announced on January 9 that it will offer significant price premiums to U.S. Growers who contract with the company to grow Indigo Cotton. Indigo technology is a natural seed coating designed to enhance crop performance in water-stressed conditions.
- Indigo will pay U.S. cotton growers $0.01 to $0.05 per pound above market price.
- Growers are guaranteed a minimum premium of $18 or $25 payable per acre to grow Indigo Cotton.
- The per pound premium, which varies according to region and class, applies to both irrigated cotton and dryland Indigo Rain-Fed Cotton.
This offer constitutes a substantial revenue boost for growers cultivating cotton, for which premiums typically differ by fractions of a cent. Through Indigo’s microbial technology and a higher premium, growers will benefit from higher yields and higher prices. Backtesting Indigo’s production offer since 2010 versus past cotton market prices indicates that a grower could have received 10% more revenue per pound on average.
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“Indigo Cotton has demonstrated an average yield improvement of 11% in West Texas fields, where water scarcity is prevalent,” said Barry Knight, Head of Commercial Operations, North America. “These results show that growing Indigo’s rain-fed cotton in water-stressed areas is less risky and more profitable than before. Indigo partners with growers to provide consumers with cotton that has been grown in a way that is sensitive to water use.”
The Indigo Cotton offer, similar to production models introduced in Indigo Corn, Indigo Soybeans, Indigo Rice, and Indigo Wheat in 2017, is illustrative of the company’s broader approach of tapping into rising consumer demand for sustainably sourced and identity preserved food and fiber. Indigo links producers to buyers and end-consumers who are prepared to spend more for the assurances of sustainability, quality, and nutrition. The Indigo offer in cotton goes beyond price premiums to provide season-long support in the form of customized agronomy.