2022 seed prices going up
Seed selection is one of the biggest decisions that farmers make every year. Corn and soybean producers enjoyed higher prices for their commodities this year but the cost to produce it is going up too. For example, farmers will pay more for 2022 seed.
Todd Pester is the North American corn and soybean crop lead for Nutrien Ag Solutions. He says higher commodity prices don’t always correlate to an increase in seed costs. However, because of the pandemic, there have been a lot of snags in the supply chain which have also affected the seed industry.
"So, you can expect the costs that have been incurred just to even produce that seed crop, whether it’s fertilizer or chemistry over the top, all of those things add to the cost of the seed supply," says Pester. "What we’ve heard from the market with early intentions on pricing, that price could be anywhere from 5%-15% above where they were the previous year, so it could be substantial."
Some producers will pay more than that, especially those looking for the latest technology. Pester recommends working with your seed seller to identify as many discounts as possible.
"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. You know, another thing to consider is bundling across different crops. If you’re buying soybean, also consider a corn purchase. Many seed sellers will offer discounts for doing that," he says. "And then, work with your local retailer as well. Sometimes they can offer other goods and services that can be bundled together with a seed purchase. That could be a nice opportunity to save some money."