The term “irrational exuberance” is certainly in vogue these days – describing everything from Christmas spending to stock market performance.  I have even heard the term used to demonstrate the excitement surrounding expansion of the ethanol industry.

But for this guest article, I have modified the term slightly, while altering its meaning significantly.  For this article, please consider the term “rational” exuberance.

Webster’s third definition of rational includes the words “sensible” and “judicious” (while the third definition of irrational mentions the word absurd).  The same dictionary defines exuberant as “characterized by high spirits, enthusiasm, and vitality.”

Given these definitions, the difference between rational exuberance and its “irrational” counterpart would be the presence of sensible information for judicious decision-making, versus absurd nonsense influenced by emotion or fear.

Without a doubt, the exciting changes underway in the seed business would qualify as exuberance.  What changes am I referring to?  The constant development and deployment of new traits, the rapid evolution of new hybrids, and new opportunities to market to established and niche segments of agriculture.

But is my exuberance for seed producers based on sensible information and judicious, or rather absurd assumptions of what the future may hold?  While time will be the ultimate judge, there are several reasons for optimism.

While new traits and genetics are available to most in the industry, independently-owned regional seed companies combine these new opportunities with tried and true leadership in their market areas, a high level of customer service, and tremendous seed quality, among other unique benefits.

But opportunities are rarely without challenges – new genetic and trait combinations have increased product costs to never seen before levels, while reducing the lifecycle for existing hybrids to a degree not before experienced in agriculture.  The combination of high costs and short product lifecycles creates a tremendous concern regarding inventory management and the related costs of product obsolescence.

With the help of other industry partners, the Independent Professional Seedsmen Association (IPSA) is launching development of a new range of training programs.  These programs will focus on important business-management functions, including forecasting, inventory management, finance, and business planning.  Seed company members were recently asked to help IPSA identify the greatest areas of need for assistance, and to help provide benchmark information to initiate this program.

The results of this data collection process will be announced at the 18th Annual Conference, Jan. 16-18, 2007 in St. Louis.  More details on this conference can by found at our website (www.ipsaweb.com).  A great response to early-bird registrations, a sold-out trade show, and a record number of concurrent educational sessions suggest this is a not-to-miss event for seed producers.

I certainly appreciate this opportunity to provide an observation regarding the seed industry.  The need for access to a competitive platform of genetic and trait combinations has never been greater for independently-owned seed companies – but neither has the need for good information to make rational business decisions.  IPSA is anxious to be part of developing these new educational programs for our members and the industry.