As a seed dealer and farmer, Gail Witt has a good perspective on how growers make their seed buying decisions.
"Selecting seed has become a more complicated process—especially for corn hybrids—because of all the available trait packages and seed treatment options. And in today's high-risk, high-return environment, it's crucial you make the right decision when selecting your genetics and agronomic package," says the Missouri Valley, Iowa, farmer.
But as germplasm and transgenics become more intertwined, which is more important? Do you select seed based on yield or traits?
"Yield is still the driver when selecting seed; it prompts all other seed buying decisions," stresses Tracy Mader, Syngenta Agrisure marketing manager.
Monsanto's John Jansen agrees. "Most conversations between the farmer and seed dealer start with the genetic package. From there, growers look at the trait options that will help protect the crop's yield potential," says the company's corn trait marketing lead.
Risk protection. Nevertheless, traits are playing an increasingly larger role in seed buying decisions. "Growers are looking at transgenic traits as a risk-management tool," explains Jim Lafrenz, a Pioneer Hi-Bred account manager in east-central Iowa.
"They want a package of genetics that best fits their growing environments and technologies that minimize weed and insect pressures so that every bag of seed they plant realizes its genetic potential."
Stephen Smith, national sales leader for Mycogen Seeds, says many farmers view traits as insurance policies. "Pest pressures can vary significantly from year to year, but most growers are willing to spend the money for a trait that protects corn from rootworms, for example, just to have peace of mind."
Witt calculates the level of risk protection he needs when selecting seed. Since moving away from continuous corn, buying hybrids with rootworm tolerance is no longer a priority.
"But nearly 80% of our corn acres has the Herculex Bt trait. It's crucial in our area because of the extensive damage corn borer and western bean cutworm can do to yield and grain quality," says the Pioneer seed dealer, who farms with his brother Duane and nephews Jeremy and Johnny in western Iowa.
About one-third of their corn acres is not planted to herbicide-tolerant hybrids. "Depending on commodity prices, this gives us the flexibility to come back the following year with corn again on these acres," explains Witt. "But this time the hybrids will be stacked with Roundup Ready and Herculex XTRA to control volunteer corn, European corn borer and corn rootworm."
For soybeans, Witt says yield is not always the deciding factor. "We base our variety selection criteria on our harvest capacity. We don't want all the soybeans to mature at the same time and get too dry in the field, leading to high shatter losses and lower marketable weights. So we select for different maturities with good yield potential to spread out harvest."
Evaluating seed. As seed choices increase, growers are turning to a variety of resources to gather information and make intelligent decisions. "There is a lot of thirst for knowledge by farmers to help them evaluate seed," notes Syngenta's Mader.
Much of that knowledge, he says, comes from seed dealers. (See sidebar) Not only are they well-versed in their company's product portfolio, but they are more tuned in to local growing environments to make hybrid and variety recommendations that best fit certain conditions.
"It can be an overwhelming process to try to understand all the different traits, trait packages and seed treatment options," explains Smith. "A seed dealer can be an invaluable adviser to help with a farmer's decision-making process."
Yield monitors also play a huge role. "The yield monitor has become a powerful tool for evaluating hybrid and variety performance," says Lafrenz. "It provides instant feedback on not only the productivity of each field but also on performance variations of genetics and trait technologies within a field. "By studying yield maps, growers can sit down with their dealers and fine-tune seed recommendations."
Return on investment. Growers must also determine if these advanced genetic and biotech offerings are worth the higher price tag. Monsanto announced a 35% increase in retail corn seed prices for 2009. That means elite corn hybrids with multiple trait stacks and a seed treatment will top $300 a bag. "Growers understand that seed is their most important choice, and that we're bringing increased value to them," says Jensen.
He adds Monsanto is implementing a more precise seed pricing plan to better reflect the total value created from their trait technology. He explains that their pricing philosophy is based on three factors: 1) replacement value—for example, a Bt trait replaces a soil insecticide; 2) indirect benefits, such as not having to stop the planter to fill insecticide boxes; and 3) most importantly, yield gain.
Value from these new traits has been a boon for the entire seed industry. Steve Hawkins, managing director for Context Network, a seed industry consultant group, estimates the U.S. field crop seed market could double in sales to $17 billion by 2020.
"Most of the increase will come from traits rather than germplasm," says Hawkins. "If commodity prices stay at current levels or higher, that only enhances the value of seed traits for farmers because they help protect yield and add consistency to the performance of the crop."
Lafrenz stresses growers must evaluate that performance every year. They need to account for many new advances in both genetics and technology trait combinations and then decide if the seed package fits the needs of their operation. "They will have to look at field history for pests and weeds, environmental factors, crop mix/rotation, soil conditions, fertility levels, tillage system and more."
Regardless, selecting the right seed is more important than ever. "There's so much more at stake with high input costs and high commodity prices," says Lafrenz. "Whatever process you use to make your decision, it boils down to being confident when you fill the planter that you're using the best seed product to maximize productivity per acre."