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In South Dakota, seed demand meets high grain prices

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Brookings, South Dakota
December 4, 2007

With wheat prices reaching record levels this year, many producers are thinking of increasing wheat acres for next year, and some seed dealers have already sold out of their inventories.

Manager Neal Foster of the South Dakota Crop Improvement Association said high prices and possible seed shortages mean that certified seed producers, retailers, and grain producers need to communicate with each other in the next few months.

The cost of buying certified seed is higher than that of market grain because the seed producer needs to recoup some of the extra investment spent meeting rigorous requirements for seed, Foster said.

He added that some certified seed producers are worried that the high price of seed will encourage the use of “cheap” seed. This seed is normally illegal bin-run or “brown bag” seed.

Almost every new variety of winter and spring wheat has Plant Variety Protection (PVP) with Title V. This means that a variety can only be sold for seed by variety name as a class of certified seed. PVP promotes the development of new and better varieties. These varieties contain better disease resistance and higher yield potential than the varieties that they replace, thus giving the grain producer a higher return.

Buyers are protected from brown-bagging/illegal seed by proof of certification in the form of a certification label (blue tag seed) or a bulk sales certificate issued by an official seed certification agency such as the South Dakota Crop Improvement Association or the North Dakota State Seed Department.

Foster said there are several points that all grain producers should keep in mind when planning for next year’s crop.

— Seed from production seed fields typically outperforms bin-run seed. Numerous studies have been conducted over the years in different states; these studies on average indicate that there is a 2-bushel yield advantage in using certified seed.

— Years with unusual circumstances such as natural disasters (too much or too little precipitation), high grain prices, changes in government programs or any combination of these can lead to very tight inventories. With tight inventories the best performing varieties will sell out first. These varieties are selected for higher yields, enhanced insect and disease resistance, better lodging resistance under high management conditions, and other characteristics that in the past have been unrealized.

— All grain and seed producers should be aware of their states’ seed laws, especially when seed is in short supply or high demand. The term “common” seed cannot be used on varieties that have been issued a PVP certificate.

The South Dakota Crop Improvement Association encourages seed producers and certified seed sales facilities to contact their customers soon to determine their planting intentions and seed requirements for the up coming season. Grains producers are also encouraged to contact their local seed supplier to determine availability of desired varieties. Early contact will help fill this year’s demand and plan for next year’s.

“Seed is the most important input a producer has control over and it is often the most overlooked when planning for production,” Foster said. “All of the genetic potential of a variety has been determined before the seed is planted for grain production. This potential captures years of selection and evaluation invested by plant breeders of public and private entities. Forgoing quality seed for grain production sacrifices the grain producer’s investment in all other inputs.”

 

 

 

 

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