Buying seed 2022
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Jodi:
Joining me today is Todd Pester. He is Nutrien's Corn and Soybean Crop Lead for North America. And Todd, thanks for your time today. We appreciate it. First of all, let's talk money, which is always at the top of a producer's checklist when planning for the next planting season and crop prices have increased. So does that also mean the cost of seed is going up for 2022?
Todd:
Yes. We have enjoyed some increase in commodity prices the last year, which has been welcomed after several years of down markets. That does not always correlate to increased seed costs the following year. However, in this case with everything that we've experienced with the pandemic, there's been a lot of supply chain disruptions, and that has affected the seed industry as well. So you can expect that the costs that have been incurred just to even produce that seed crop, whether it's fertilizer or chemistry over the top, and all of those things add to the cost of the seed supply. So I think this year in particular, growers can expect to pay more for see than they have in the past.
Jodi:
Is there a percent in mind that you have of how much more they'll be paying or is it going to vary quite a bit?
Todd:
So what we've heard from the market with early intentions on pricing, that that price could be anywhere from 5 to 15% above where they were the previous year. So it could be substantial.
Jodi:
Yeah, that will definitely put a dent in the farmers' pockets for that. Do you have any recommendations in how they should go about making their purchases, given the price increases that are coming?
Todd:
I would suggest that they work with their seed seller to identify as many discounts as possible. If that's early ordering discounts or maybe it's a volume discount that they could qualify for, early payments sometimes, or even a cash payment discount are quite common. And another thing to consider is bundling across different crops. If you're buying a soybean also consider a corn purchase, many seed sellers will offer discounts for doing that. And then work with your local retailer potentially as well. Sometimes they can offer other inputs and services that could be bundled together with the seed purchase. That could be a nice opportunity to save some money.
Jodi:
There are so many seed companies and there are so many varieties with so many trades. So let's talk about some of the ways a farmer can wade through the decision-making process. Let's start with determining your crop rotation. Corn and corn, rotating corn and soybeans, or should you plant something else like wheat or sorghum? So what should go into that decision?
Todd:
Yeah, every farmer's situation is unique, right? Based on the ground that they're farming and the options and the economics of their farm. As always they're looking at the harvest potential of each crop that's coming off this year, how those products are performing and what they might be wanting to plant next year. So growers should be watching commodity prices and trying to project the best that they can what will be the best value and return per acre for them in the coming year. And also the weed pressures and other types of, you know, situations they may have in their farm will be important to understand what crop, first of all, sometimes even in insect pressure again, continuous corn is a popular option in a lot of the corn producing regions, we have seen that corn rootworm pressure increasing this year.
Todd:
And so if they want to stay in continuous corn we'd be asking them to consider an insecticide to go with it potentially in addition to insect resistance traits. If they are employing soybean rotation, for example, that's a good way to break up that cycle of the rootworm pest. But then the second important thing is probably weed management. And again, a lot of different trade options as you've mentioned. In soybean in particular, it's gotten quite complex the last few years. More complex than it's been. And so growers have a lot of great options out there. And I think their local seed seller can help them walk through that, right? Whether it's trait or genetics, that's the most interest to help manage those weeds. And then additionally, the agronomics of those products is really important. Disease tolerance and standability, and obviously yield performance.
Jodi:
Do you find people going into wheat or sorghum rotations more often to kind of break up some of those disease pressures and so forth?
Todd:
Yeah. Depending on the region they are, if those are crops that are commonly grown in your region, can be quite profitable as well. It's nice to see the weak commodity prices being really strong right now. And sorghum is doing really well too. So certainly great options to break up the rotation of the crop and break up the wheat cycles in a lot of locations, particularly for winter wheat, if you can go in and keep some cover over that crop over the winter and get off running quickly in the spring can certainly help with weed management.
Jodi:
Talking about hybrids and varieties, tons of those out there as well. So how does a producer research what's going to be the best for them?
Todd:
Yeah. Great question. Lots of resources available to help a grower work through those decisions each year. I think the best information is that if they have had those products on their farm in the past, to review of that performance, what worked well, what didn't based on the yield and the environmental situation that it experienced. Beyond that there's lots of information online to go in. And most seed companies this time of year are launching their new varieties and hybrids and with the genetics and traits that are going to be available. And so there's lots of folks who would be interested to talk with growers to help them and work through that situation. In addition, obviously a lot of folks will talk to their neighbors, right? Did they experience something that worked well on their farm? And so I would just encourage them to seek information. There's lots of it available and certainly reach out to your local seed seller because they're very knowledgeable as well and help them make that selection.
Jodi:
Do you see new hybrids and new varieties come out every year? Is this something that's just going gangbusters or are we starting to slow down a little bit on that?
Todd:
Yeah. Most of the genetic suppliers that are producing these new hybrids and varieties are working as hard as they can to constantly increase genetic gain each year and also desirable agronomic traits, right. Against standability and disease tolerance and even some specialty markets, right? There's always improvements every year. And so that's always the challenge, right. When is it time to switch to that new one, right? What benefits does it bring versus... Sometimes there's some added costs that comes with that latest product as well. And so those are the things that each grower needs to weigh for their farm.
Jodi:
So do those things add to the cost of a bag of seed? Is that worth the money? I mean, can you choose the traits that you want, all these stacked traits? I mean like a hamburger hold the onion type of thing.
Todd:
Yeah. If you're talking about traits, obviously there is some limitations, right? Based on what the supplier has developed. Sometimes they'll stack traits in combination and you just can't pick and choose to take some of those and leave others. What is available, though, is lots of different options in combinations already across multiple different suppliers. And the grower just needs again to weigh the requirements on their farm. What pests are they facing? What's their weed management situation and which traits are going to work most effectively to help them maximize their harvest and their profitability? Growers have a lot of options when it's time to make product decisions for 2022 and it can be overwhelming. What brings a lot of seed companies to the forefront is the ability to offer those grower services and solutions all year, every year, no matter what the situation is or what the season is going to bring. So I think the goal for most seed sellers is to make sure we keep growers' needs in mind, right? To help them be successful and profitable.
Jodi:
As far as genetics and weed control options, how do they affect the yield potential?
Todd:
I think it's important to remember that with every new product or offering, you need to be sticking to the principles of growing high quality soybeans and to remember the growers' operational goals with profitability and yield potential. There's different seed recommendation tools that are available that can help make that decision. But right now there's more choices than ever when it comes to picking the right soybean herbicide tolerance systems. So growers really need to understand their weed pressures and that they have the right soybean seed trait system that's going to offer the best weed control for their fields.
Todd:
Some of the traits that come to mind readily are the Roundup Ready 2 Yield system, which contains a gene with resistance to glyphosate. And we have LibertyLink with tolerance to glufosinate. Roundup Ready 2 Yield Extend. Three primary modes of action right now. Glyphosate, glufosinate, and dicamba. So lots of different trait providers and options for that. Some of the other ones are like the group 27 herbicides is also available. And one of the newer entrances to 40 tolerance. So each supplier will offer a range of combinations of those products. Most commonly now there is that three- way stack though of traits that provides really broad tolerance to groups of herbicides and provides a great weed control.
Jodi:
What is a three- way stack?
Todd:
When a supplier takes a herbicide tolerance trait for, in this case, three different modes of action. So I'd mentioned glyphosate, glufosinate, and dicamba, or 2 4-D, for example. So if you were stacking three of those together, right, a farmer could apply each of those three herbicides over the top and still have good crop safety while achieving excellent weed control.
Jodi:
What do you see seed companies doing here as far as weed resistance to what's in the seed itself versus what they spray? Do you see more of an emphasis on the seed itself or more of an emphasis on what's sprayed after it's already planted?
Todd:
Yeah, you need both, right. If you think about a biotech approach to herbicide tolerance and that herbicide tolerance trait, we only have so many effective modes of action currently that are available. So those new chemistries aren't being invented every year either. So it's a bit limited in some cases in terms of what's available, but I think suppliers have done an excellent job of finding those opportunities to match up a herbicide that's very effective against broad spectrums of weeds. And then bringing in that trait into the soybean variety in this case that provides crop safety to that herbicide, providing a pretty simple and effective weed management system for the grower. I think beyond that, once they get that trait platform integrated into the germplasm, it gets back to the game of increasing genetic gain and agronomic traits in each successive generation once the trait platform's been established.
Jodi:
Todd, farmers will often form a bond with their seed company representatives, but should they be looking around to find the exact seed and service they need? Especially in this time of there's so many options out there. What is your recommendation?
Todd:
Yeah, I agree. There's a lot of options that the grower can have in terms of the seed company. It's important to find one that you value as a trusted advisor, right? That you feel comfortable that they're very knowledgeable about what is available and that they're offering you the best possible service and support throughout the season as well. Growers perceive that very highly and cost is a portion of that. But I think it's important to understand first and foremost, it's about getting that right product on your acre that's going to lead to success and profitability for the farm. If you're not happy with your current provider, you should always be looking around. All of us need to be doing that as consumers, right. Looking for the right value, as well as service and support. If you have a relationship that's been successful, there's no need necessarily to disrupt that by going somewhere else.
Jodi:
Say you do want to switch providers. How do you go about breaking up with your seed representative? That's got to be tough for a lot of people. I mean, you build relationships over the years, especially in small towns and so forth.
Todd:
Yeah. That's a great point. And there's a lot of social dynamics to this purchase as well. And it's one of the largest purchase a grower will make in any given season, is their seed. And so it is a difficult situation. Hopefully that current seed seller has been providing them the best products available at a very competitive price. But there's always new opportunities that come along every year. And so again, it's important to shop around. If you do find an opportunity where you think that's better, I think go ahead and pursue that, but then take it back to your current seller as well saying, here's what I'm understanding about this opportunity and the pricing and what they have to offer, and give them a chance to maybe match an offer that’s competitive, or to have a conversation about why they believe it's better or not better. And then if there really is a better opportunity than you owe it to yourself as a grower, right, to do as best for your operation.
Jodi:
And hopefully that seller will understand and still be able to have a beer down at the local bar later on in the week. So do most seed companies offer discounts for early orders? And can those orders be changed after this year's harvest?
Todd:
Yes. It's very common for seed companies to offer an early order discount and even an early payment discount. And so be sure you're asking your seed supplier for those opportunities. And we know every growing season is different, so growers while you may have liked the product this year, maybe it didn't quite perform as well as you'd expected, or maybe you saw a new one that's come up this year and performance was even better than had been advertised. And so seed companies understand that very well and they want to make sure that they get the right product on your farm. So most of them are very flexible to help you either substitute that product, or increase or decrease your order based on your needs for the farm.
Jodi:
Todd, is there anything else that you would like to mention about advice for farmers buying seed for the next planting season?
Todd:
We talked a lot about herbicide tolerance systems today, but there's also a lot of cultural practices that can help effectively manage weeds, including soil residual and post emergence herbicide programs that have multiple effective sites of action. There's also a variety of cultural practices, for example, higher seeding rates, narrow row spacings, the effective use of cover crops and potentially even tillage, right? In some situations where you have hard to control weeds that need to be managed. I think it's important to work with your seed seller because they're very informed about all of those opportunities as well, and they can really help you figure out what soybean traits system and practices work best on your individual farm.
Jodi:
I just thought of one other question that I could ask you. How are seed bags labeled? What does a farmer see on the seed bag?
Todd:
Growers really need to pay attention to that seed bag because there's more information all the time. Sometimes people will print information on the bags, but more often they're now using that seed tag to provide critical information. First of all, the name of the hybrid or variety that you're planting. And then secondly, probably the most important thing is the herbicide tolerance trait system that's in that bag of seed. So when you plant it you know what's available to be sprayed over the top. Other information is required and some states require different things based on their seed labeling laws, but typically the germination of that seed, the seed size. And also then more importantly is the seed treatment that's been applied. So they know what types of disease and insects, pests maybe also controlled using the seed treatment.
Jodi:
Excellent. Good idea to check each bag before you dump it in the planters. So you make sure you're getting what you paid for.
Todd:
Exactly.