Home / News / Business news / Pioneer adjusts soybean seed prices by seed size

Pioneer adjusts soybean seed prices by seed size

Agriculture.com Staff 08/14/2007 @ 9:59am

Pioneer Hi-Bred is introducing a new method of pricing soybean seed for the 2008 growing season. The new approach, called the Pioneer Soybean Seed Size Value Guarantee, is designed to minimize the variation in the per-acre cost of seed that results from variations in seed size.

According to Don Schafer, senior product line manager, Pioneer's goal is to keep customers focused on making the best product choice for their growing conditions.

"We do not want growers to be selecting seed and making product choices based on seed count," he says. "We want them to be making their product selections based on genetics and traits."

Historically, most soybean seed has been sold by weight without regard to seed size. There are two main problems for growers when they buy soybean seed by weight. One is that it takes a lot more seed to plant an acre with large seed than with small seed. The other is that when ordering seed based on weight without knowing the size of the seed, they don’t know how many seeds they are actually going to get.

Some companies have switched to selling strictly by seed count and letting the weight vary. Other companies still package by weight but establish the price based on the number of seeds in the bag.

With the Pioneer Soybean Seed Size Value Guarantee, Pioneer has devised what Schafer describes as a "hybrid" of those concepts. It will be used across the U.S. and Canada in areas served by Pioneer sales reps.

According to Pioneer, the new approach minimizes seed size cost variation per acre by providing a price adjustment starting at 2800 seeds per pound across all varieties and lot numbers. Growers will receive a graduated discount on varieties or lots with fewer than 2800 seeds per pound.

Here's how it works: A variety that has 2,400 seeds per pound has 14% fewer seeds than the 2,800 seeds per pound that Pioneer has set as the base. Consequently, the grower will receive a 14% discount.

No premium for small seed However, growers will not be charged more for varieties that have more than 2,800 seeds per pound.

"A grower may receive two different lot numbers of the same variety," says Schafer. "One lot number may be large-seeded and the other one may be medium- or small-seeded. The large-seeded product would receive a discount whereas the normal or small-seeded product would not receive a discount. Nor would it have a premium attached to it."

Pioneer Hi-Bred is introducing a new method of pricing soybean seed for the 2008 growing season. The new approach, called the Pioneer Soybean Seed Size Value Guarantee, is designed to minimize the variation in the per-acre cost of seed that results from variations in seed size.

CancelPost Comment
MORE FROM AGRICULTURE.COM STAFF more +

Farm and ranch risk management resources By: 07/07/2010 @ 9:10am Government resources USDA Risk Management Agency Download free insurance program and…

Major types of crop insurance policies By: 07/07/2010 @ 9:10am Crop insurance for major field crops comes in two types: yield-based coverage that pays an…

Marketing 101 - Are options the right tool… By: 07/07/2010 @ 9:10am "If you are looking for a low risk way to protect yourself against prices moving either higher or…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Cool Tools Christmas Edition: Part 2