Advice To Save on Seed Costs

The cost of everything seems to be on the rise these days, and corn and soybean seed is no exception. Seed is the most expensive input for soybean production and the second-most expensive for corn production (trailing only fertilizer), according to the USDA Economic Research Service (USDA-ERS).

During the past 20 years, USDA-ERS data shows the cost of soybean seed has more than doubled, rising from an average of $32.30 per planted acre in 2006 to a forecast cost of $75.34 in 2026. Seed corn prices have nearly tripled during the same time frame, rising from $43.55 to $116.20.

While there isn't much farmers can do to reduce the sticker price for seed, they do have some options when it comes to controlling their total cost for this essential input.

RESET YOUR RATES

Perhaps the most obvious, yet one of the most effective, means of cutting seed costs is simply planting less. Advances in genetics, pest resistance and herbicide tolerance traits, use of seed treatments and improved planter technologies have allowed today's seeds to achieve maximum yields across a wider range of plant populations.

"Corn hybrids today do very well at high seeding rates, but they also do very well at low seeding rates," says Dan Quinn, Purdue University Extension corn specialist. "The optimum plant population has gotten much wider."

Quinn points to trials in Indiana that show minimal to no yield differences among final plant populations below 30,000 plants per acre and those above 40,000 even when evaluating different hybrid types grown within the same environment and the same management treatments. The goal for a farmer, he says, is to choose a seeding rate that produces an economical optimal yield as opposed to the maximum yield.

"There are a lot of different factors when determining that optimum seeding rate," he says. "Once you get past that yield maximum rate, you can actually have yield decreases when your hybrid seeding rate is too high."

In general, Quinn says farmers should adjust their corn seeding rates based on the productivity of the field environment. Highly productive soils can support higher corn seeding rates, whereas on less-productive soils, maximum yields can be achieved with lower seeding rates.

"And, it's the opposite in soybeans," he says. "You often can do much better with a lower soybean seeding rate on your high-production areas, but on more marginal ground, you'll want higher seeding rates to ensure a good stand."

Quinn adds that while variable-rate seeding is also a strategy for reducing seed costs, it takes a high level of variability in a field environment to see benefits, especially when today's hybrids are better at compensating.

"My advice? Back your seeding rate off in some strips. At the end of the season, look at the yield monitor data," he says. "You might not see any yield difference dropping your rate 5% to 10%, even 20%. What we've seen here in Indiana has been eye-opening."

TRAIT TRADE-OFF

Whether selling seed or a new pickup, dealers aren't doing their jobs if they don't attempt to upsell the latest and greatest options available. But, are those extra "bells and whistles" necessary?

Only if you have need for them. For example, a study published earlier this year in the journal, Science, analyzed 12 years of field trial data from 10 states and found that genetically engineered corn designed to combat rootworm pests is generally overplanted. This overuse costs farmers in two ways: first, by paying seed premiums for traits they don't necessarily need, and then by eroding the effectiveness of the technology to control the pests in the future.

"With the implementation of Bt, a lot of these pests are almost nonexistent in corn in some areas," Quinn says. "Some areas may need it, but when buying seed, you really need to ask yourself, 'What pests and diseases do I deal with?' Then, find seed with the specific traits that fit your environment."

Seed companies often pair their most elite seed genetics with stacks of traits, which pushes up the price. But, that extra yield benefit may not cover the premium charged for the technology.

"The top yielder in a test plot doesn't necessarily make it the most profitable, because you may pay extra for the package," says Jonathan LaPorte, a Michigan State University Extension farm business management educator. "That doesn't mean it's not a good option for the farm, but it kind of makes you think a little bit more about other options."

PURSUE PROFITABILITY

LaPorte helped develop a decision tool that allows farmers to identify corn, soybean or wheat seed products that provide the best opportunity to maximize production and profitability.

"Chasing yield isn't our only consideration," LaPorte says. "We're trying to get back to profitability and dollars per acre versus bushels per acre."

The tool is designed to allow comparison of up to 20 different seed hybrids or varieties using multiple variables. It also can compare multiple results of the same seed product from different test plots. This feature allows maximum use for individual test plots or comparisons of a large set of seed selection data as farmers determine which options are best.

"Farmers who've used the tool have told me that what they thought was their second, third or fourth option was just as viable or even more viable from a profitability standpoint," he says. "When you factor in how much it costs to put the top yielder in the field, that's when you figure out its true benefit."

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-- Download the Michigan State Seed Selection Cost Comparison Decision Tool at https://www.canr.msu.edu/…

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