Friday, November 02, 2012

Corn, soybean, wheat seed prices going up again

Farmers will pay a lot more for the seed they'll put in the ground in 2013 but will likely make up for it with better prices come harvest, a Purdue University agricultural economist told Agri-Pulse this week. And it's not just the drought to blame for the cost hike, though that is certainly a contributor. Seems that seed prices have gone up annually on consistent basis for more than a decade.

"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.," said Alan Miller, a farm business management specialist. "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."

According to Miller, prices are expected to rise 5 to 7 percent for seed corn, 7 to 10 percent for seed soybeans, and more than 10 percent for wheat seed. In dollars, that means a bag of corn seed would sell for between just under $200 to more than $300. Soybean seed would go for about $50 a bag, with wheat seed priced in the low $20s per bag. And the profit picture? Should be very good, he said, but he's no weatherman.

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