Does the price you pay for seed reflect your loyalty to the brand you purchased it from? What if newer customers of the brand you buy were getting greater discounts for being a new customer?
Farmers who purchase corn seed from a new brand for the first time can typically receive higher discount rates than for repeat purchasing from current suppliers.
Based on our analysis in the Corn Seed Discounts Report, new seed brand customers on average typically receive an average of 2.5 percentage points more in discounts off of the list price than returning customers, despite buying in smaller volumes.
So as you consider which seed brand to buy from, it may be beneficial to explore a new customer discount or incentive, especially if that brand is frequently relabeling seed genetics also offered by other brands.
Does More Expensive Seed Mean Higher Yields?
Our analysis also found that higher yielding seeds were associated with higher list prices. While the trend that list price follows yield is very clear, there is a lot of noise around that trend. What we mean by “noise” in this instance is that, often, varieties with the same average list price can have average yields that differ by 20 to 30 bushels per acre.
So more expensive seed does not always mean it will be higher yielding. But, it is generally true that the more expensive the seed, the greater the discount farmers typically receive.
The Bottom Line: Find the Best Price Net of Discounts
A bag of corn seed listed as being the more expensive of two varieties might in fact be less expensive, if it comes with a bigger discount. Similarly, a discount program that appears to offer superior deals might actually cost you more money, if the prices listed by that retailer are set high enough. What ultimately matters the most for farmers’ economics, is the final price net of discounts.
So it is important for farmers to have both transparent information on discounts and final net prices paid in their region.
In the Corn Discounts Report, we also explore:
- Which brands discount corn seed the most?
- If you bought more seed, would you ultimately pay less?
- How much do corn seed discounts vary by state?
We have been analyzing aggregated seed invoice data contributed anonymously by farmer members for more than four years to explore patterns and trends in seed pricing. Non-members can download a sample of the report here.
“F2F Genetics Network" branded seed products and other seed products are offered by FBN Inputs, LLC and are available only in states where FBN Inputs, LLC is licensed.
Legend is a registered trademark of Legend Seeds. FS is a registered trademark of Growmark, Inc. Agrigold, Great Lakes, LG Seeds, Producers Hybrids, and Wensman are registered trademarks of Agreliant Genetics LLC or their respective owners. Dekalb and Channel are registered trademarks of the Monsanto Company. Pioneer, Mycogen and Pfister are registered trademarks of DowDuPont, Pioneer or their respective owners. Enogen and Golden Harvest are registered trademarks of a Syngenta Group company. Dyna-Gro is a registered trademark of Crop Production Services, Inc. Croplan is a registered trademarks of WinField Solutions, LLC. Wyffels is a registered trademark of Wyffels Hybrids. Beck’s is a trademark of Beck’s Hybrids. Dekalb and VT Double PRO are registered trademarks of Monsanto Technology LLC.