Posted By: Jim Steadman

Indigo Ag, Inc., a company dedicated to harnessing nature to help farmers sustainably feed the planet, has announced a new production offer that brings significant price premiums for cotton growers in the U.S.

Growers who contract with the company to grow Indigo Cotton will receive $0.01 to $0.05 per pound above market price based on a guaranteed minimum premium of $18 or $25 per acre at grower average production histories. The per pound premium, which varies by region and class, applies to both irrigated cotton and Indigo Rain-Fed Cotton (non-irrigated).

This offer provides a potential and substantial revenue boost for cotton growers, for whom 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. Back testing 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.

The Indigo Cotton offer illustrates 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.

“Indigo’s model – available to growers of Indigo Corn, Indigo Soybeans, Indigo Rice, Indigo Wheat and now Indigo Cotton – streamlines the supply chain from field to the consumer,” said David Perry, Indigo president and CEO. “Millions of rural livelihoods around the world rely on cotton production. With the launch of the Indigo Cotton offer, we’re one step closer to transforming a standard commodity into a specialty good – one that simultaneously strengthens farm incomes, satisfies consumers and supports environmental sustainability.”

 The basis of Indigo technology – a natural seed coating designed to enhance crop performance in water-stressed conditions – is a breakthrough innovation for environmental stewardship in farming. Since Indigo Cotton performs at its best when planted on farms utilizing rain-fed systems, it not only serves to elevate crop yields, but also reinforces water-efficient farm management practices.

“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.”

More information about Indigo and Indigo Cotton can be found online.