Young farmer couple looking at a laptop on pick-up truck hood while working on a farm
Agriculture
About Us
Facts and Figures

Agriculture

Facts and Figures – BASF in Agriculture
How We Make A Difference

In the Agricultural Solutions segment, we aim to further strengthen our market position as an integrated provider of seeds and traits, crop protection products, digital tools and sustainability offerings. Our BASF in Agriculture Business Strategy 2035 outlines our plans for future growth, driven by our vision that pumps life into our business.

Indications and sectors for our different crop systems

Key facts

  • Headquarters: Limburgerhof, Germany (1,600 employees)
  • Research centers: Limburgerhof (Germany), Triangle Park (North Carolina, USA), Thane & Mumbai (India)
  • Testing stations: USA, Brazil, Spain, Germany, India, Philippines
  • Number of molecules tested per year: 200,000 (resulting in 1 product)
  • Average expenses for developing a final product: about €250 million and more than 10 years
Farmer in the field with soil in hand

Our BASF in Agriculture Business Strategy 2035

Our BASF in Agriculture Business Strategy 2035 outlines our plans for future growth, driven by our vision and mission that pump life into our business. Our goal is to make our customers more successful and to improve their experiences with us every day. Our innovative, integrated portfolio of products, services and solutions is designed to deliver the best possible outcomes for their respective crop systems, globally. We will continue to advance sustainable solutions under a new framework covering climate, nature and society. In addition, we will continuously improve our efficiency and effectiveness by optimizing our ways of working and using technology as an enabler. All of this will boost our business performance and open up new business opportunities. At the same time, we will shape and direct our ‘one team’ spirit towards a winning culture that embraces accountability, speed, and an improvement mindset.

Connectors

We have defined three connectors to guide the successful implementation of our BASF in Agriculture Business Strategy 2035. These are Customers, Innovation and People.

Strategy 2035 infographic
Customers

Customers

We want to become the most customer-centric agricultural pure-play company. It’s therefore our customers’ needs and feedback that determine our direction. By working together, we help them improve day-to-day practices, increase productivity, manage uncertainty, and sustainably improve their operations. While continuously listening to our customers’ views, we focus on how best to support them and work quickly, efficiently and collaboratively to help them achieve their goals. Every day, we strive to make it easier for farmers, growers, and our channel partners to do business with us.

With our crop systems approach at the heart of the strategy, we offer an innovative, integrated portfolio of products, services and solutions including new business models that are designed to deliver the best possible outcomes, globally. Further scaling new business models and lead in digital and sustainability, such as our carbon farming program, to benefit our customers, value chain partners and the environment. We focus on optimizing farmers’ yields and profitability by connecting seeds and traits, crop protection products, digital tools and sustainability offerings, while anticipating customer needs and staying ahead of trends. Our customers will benefit from our state-of-the-art operations and reliable supply chain set-up to help them grow more and sustainably better-quality crops.

Innovation

Innovation

Innovation demands focus – this holds true for new products and solutions as well as new business model innovations. We want to maintain a leading position in crop protection through commitment to innovation and regulatory excellence and to become one of the top three players in the seeds and traits market by launching new solutions and seizing further growth opportunities.

We invest responsibly and efficiently, focusing on farmers’ needs in our four crop systems and 15 drive countries, and leverage our technologies and competencies where they can make the greatest difference for the biggest challenges farmers are facing. We maintain our track record of leading in our focus areas: by investing 9 to 10 percent of revenue in research and development, including new technologies, to fuel our pipeline of integrated solutions, and further leverage and seize opportunities in artificial intelligence and data. We value diligence and take a long-term view to remain a committed and reliable innovation partner that steadily delivers on our promises, despite market ups and downs.

People

People

Our people are at the heart of everything, dedicated to delivering value for our customers every day. Our strategy will be brought to life by the engagement of our people – all of us. By focusing on enabling our people today and in the future, we will ensure we have the talent and skills needed to succeed. We want to become the employer of choice in the agricultural industry. This is why we foster a Winning Culture and a BASF ag experience rooted in our CORE values, Winning Behaviors, and key moments that matter in the employee journey. Living as one team, we will enable the connections we need to be successful.

FAQs

What changes with the introduction of the new business strategy compared to the “Way Forward” strategy 2019? What remains?

Since the launch of the “Way Forward” strategy in 2019, we have successfully implemented or started various programs and initiatives to further strengthen and develop our business and culture, such as the “Fast Forward” program and Differentiated Steering. In addition, we have introduced our new vision and mission.

Compared to the “Way Forward” strategy 2019, various changes have been or will be implemented:
 

What is new:

  • We steer our business based on crop system strategies, which define the needs for further development in our indications (or strategic business units).
  • We have defined three connectors to guide the successful implementation of our strategy (Customers, Innovation, People). These will replace the previous seven levers of the “Way Forward” strategy. We will shape and direct our ‘one team’ spirit towards a Winning Culture that embraces accountability, speed, and an improvement mindset.
  • We will steer our investments towards the creation of a more balanced portfolio with an increased seeds and traits share while protecting our leading margin position in crop protection and claiming leadership in digital farming as well as new sustainability business models (e.g., Global Carbon Farming Program).
  • We will increase R&D intensity at the upper level of 9-10 percent of net sales to fund transformation / additional scale in seeds & traits while maintaining a strong crop protection pipeline.
  • We strongly focus on 15 drive countries.
  • We further leverage new technologies and seize opportunities in artificial intelligence and data.
  • We implement Differentiated Steering to become a stand-alone company within BASF Group and an attractive pure-play company in the agricultural industry and to unlock additional value via a potential partial IPO.
     

What remains:

  • We aim to deliver a great customer experience by organizing ourselves and steering our strategic target picture along crop systems.
  • This enables us to create integrated, value-adding solutions via connecting our portfolio.
  • We continue cost control with fix cost improvement measures and a SG&A (Selling, General and Administrative Expenses) targeting of 18-19 percent of net sales.

How does the new strategy connect to “Differentiated Steering” and the IPO readiness plans?

The consistent implementation of Differentiated Steering remains our highest priority for the coming years. We are on track to establish our own company structure, transform our processes, and implement a dedicated, industry-specific SAP system by 2027. This major milestone will significantly enhance our competitive edge against peers.

In addition, we are targeting IPO readiness, which is a prerequisite for pursuing a potential partial IPO. Many of the initiatives we have undertaken and will continue to pursue over the next three years are part of Differentiated Steering. However, we also need to take further steps to achieve IPO readiness, such as establishing a corporate structure suitable for publicly listed companies. This will provide greater clarity about BASF Agricultural Solutions’ overall objectives to all relevant stakeholders, including the capital market.

Consequently, the new business strategy will support the implementation of Differentiated Steering and further drive our path to IPO readiness.

How does the new strategy address sustainability? Sustainability is not among the “connectors” – is it not important anymore?

Sustainability remains a core element that drives everything we do and is fully integrated into every aspect of our business and operations. It is not just a goal; it is the foundation of our actions. It is part of our mission. Our approach is about meeting society’s essential needs, helping farmers succeed in the face of climate change, and addressing economic and social challenges. By doing this, we create value for our customers, the environment, and society through our products, solutions, and services, while ensuring the long-term success of our business. This includes our Global Carbon Farming Program and ongoing work to reduce emissions at our sites.

We will continue to advance sustainability by actively preparing a new, impact-driven framework, covering climate, nature and society. We will set ambitious targets that will be shared in the context of our IPO readiness.

Although sustainability isn’t among the connectors, it is more critical than ever. Sustainability is an overarching value that connects everything we do and it is considered an integral part of the new business strategy. It shapes our efforts and guides how we approach the future of agriculture. By incorporating sustainability into the key areas of our business, we ensure it plays a role in our decisions, strategies, and partnerships, while helping to unlock new opportunities for growth

Can you share some short-, mid- and long-term milestones that you anticipate until 2035?

Our strategy aims to create a new, highly differentiated and customer-centric pure-play agricultural company. Through continuously implementing our new business strategy, we will balance financial attractiveness for a potential partial IPO with long-term business development. On this journey, we anticipate following milestones:

Short-term

By the end of 2027

  • Implement Differentiated Steering
  • Deliver financial targets
  • Achieve IPO readiness
Mid-term

By 2029/30

  • Market launch of groundbreaking innovations
  • Extensive use of data for decision-making
  • Artificial intelligence fully integrated in key processes

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