Jul 26, 2014
Home | Tools| Events| Blogs| Discussions Sign UpLogin

Seed Prices Going Up, But so Will Revenues

November 9, 2012
Corn Seed Bags
  

By Steve Leer, Purdue University

Farmers will pay significantly more for the seed they'll plant in 2013 but make up for it with higher returns on their investment, predicts a Purdue University agricultural economist.

Prices for corn seed are expected to rise 5-7%, 7-10% for soybean seed and more than 10% for wheat seed, said Alan Miller, a farm business management specialist.

That would mean a bag of corn seed would sell for between just under $200 to more than $300, depending on whether it is a conventional or biotech variety. Soybean seed would go for about $50 a bag, with wheat seed priced in the low $20s per bag.

"Seed supplies could be tight," Miller said. "This is especially a concern with soybeans, because farmers might surprise the seed industry by deciding to switch to planting more beans next spring."

He urged farmers to place their orders with seed dealers in the next few weeks.

The summer drought is contributing to the projected price increases but is not the only factor, Miller said.

"We would have expected prices to go up even if we hadn't had a drought," he said. "We've seen seed prices go up year after year for many years. There was a period of time in the early 2000s when producers were transitioning from non-genetically modified-type seed products to GMO types of seed products, which generally are more expensive.

"Then we had the rise in commodity prices. And, recently, we've had two extremely difficult seed corn producing years in a row in the Corn Belt."

Seed companies increased their planted acreage this year, hoping to make up for poorer production in 2011, Miller said. The drought ruined those plans and had an adverse effect on the crop that survived.

"No one could have planned for a drought of that magnitude," Miller said. "Seed quality could be a concern next year."

Fortunately for farmers, they should earn enough from their 2013 crops to more than make up for the costlier seed.

READ MORE
Previous 1 2 Next

See Comments

RELATED TOPICS: Seed

 

MARKETS

CROPSLIVESTOCKFINANCEENERGYMETALS
Market Data provided by Barchart.com
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions