Can F2F Genetics Network™ Seed Boost Your ROI? The Data Says Yes
When F2F Genetics Network™ launched in 2018, we worked alongside farmers to build a new seed line rooted in transparency and a commitment to delivering quality genetics and uncompromising yields at a fair price.
With margins as tight as they are in the current farm economy, we knew we had to develop genetics a model that focused on return on investment (ROI) for your operation. And, as always, we wanted to put power back into your hands by being transparent both on seed price and how it actually performed.
F2F Genetics Network seed was planted on nearly 1,000 farms last year, and we now have sufficient harvest data to deliver the real-world results you need to evaluate what genetics to plant on your operation next year.
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How does a seed’s net revenue impact your farm operation?
Before we dive into the results, let’s take a moment to understand how seed ROI works in order to give you a clear picture of on-farm performance.
A familiar view of seed ROI goes like this: Get the highest possible yield, and do it buying seed at the best price you can negotiate.
But is it really that simple?
No, not at all. That’s because seed isn’t necessarily priced to value. Seed companies are highly incentivized to promote their latest, greatest genetics and traits because they’re able to charge a premium price for those packages.
And while they might produce (and protect) strong yield numbers, that overall yield may not offset the higher costs to deliver the best return at the end of the day.
To gain a better understanding of a seed’s ROI, you need to use this equation on your operation:
Net Revenue = Yield x Price - Cost
Higher yield doesn’t always mean higher profit. The key is not just looking at the checks that roll in after harvest, but making sure your input costs—especially what you’re paying for seed—don’t outpace your farm income.
Let’s look at a few examples:
Seed A Net Revenue
200 bu/A x $3.50/bu - $100/A = $600/A
Seed B Net Revenue
190 bu/A x $3.50/bu - $40/A = $625/A
Because the cost of Seed B was substantially lower than Seed A, it was able to deliver a substantially higher per-acre profit—even with a lower overall yield.
So how did F2F Genetics Network™ seed perform in 2019?
With this perspective in mind, it’s imperative that we go beyond simply talking about yield as a performance metric—something you may be quite used to seeing from your seed providers—to examine the real impact F2F Genetics Network seed can make on your bottom line.
And we also want to make sure we are completely transparent with the data we’re sharing. We can’t handpick the best performance numbers and omit the rest or selectively compare our numbers with more modest data from other brands to exaggerate our results.
You need full transparency to get a clear picture of how F2F Genetics Network seed fared in 2019. That’s why we compared our results to top performers from Dekalb® and Pioneer®—two of the brands most commonly planted across the FBN network—to show you how our seed stacked up.
Here are a few key takeaways from 2019:
F2F Genetics Network seed delivered higher net revenue 72% of the time*
For farms where F2F Genetics Network seed was planted and we have received harvest data, our seed outperformed competitors on net revenue nearly three-fourths of the time.
In the seed industry, this sort of winning percentage is rare. But keep in mind that our farmer-driven, breeder-direct network is built around delivering quality genetics at a fair price to give you an opportunity to maximize your profit potential.
It’s also important for us to point out that F2F Genetics Network seed didn’t win all the time and in all circumstances. That only underscores the importance of using data-driven tools like FBN Seed Finder to select the genetics that are going to work best for the soil and conditions that are unique to your farm and fields.
F2F Genetics Network seed averaged approximately $30 more per acre in net revenue*
When taking a closer look at performance on a seed-by-seed basis, we again observed F2F Genetics Network seed outperforming competitors in terms of net revenue.
See how F2F Genetics Network seed can impact your ROI
If you’re still evaluating which seeds to plant for the 2020 growing season, take a closer look at the impact F2F Genetics Network can make on your bottom line. Watch our 2019 performance data webinar, use our conventional corn ROI calculator or chat with our team to find the right genetics for your operation.
* Numbers shared here are derived from data submitted by F2F Genetics Network growers. F2F Genetics Network seed past performance is no guarantee of future performance.
Pioneer® is a registered trademark of Pioneer. DeKalb® is a registered trademark of Bayer Group.
The sprout logo, "FBN" and "Farmers Business Network" are registered service marks of Farmer's Business Network, Inc. “F2F Genetics Network” is a trademark of Farmer’s Business Network, Inc. “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. Terms & Conditions are subject to change at any time and without notice. See sales order form for additional terms and conditions.All sales are subject to entrance into a Master Distribution Agreement, where applicable, and the terms and conditions set forth therein.