Corn Seed Discounts Report: How Does Discounting Impact the Price You Pay?
Different seed companies can offer wildly different discounting programs, which means that list prices for corn seed are not directly comparable across brands. That makes it difficult to know if you're getting a good deal on corn seed.
In the Corn Seed Discounts Report, we analyzed aggregated data (contributed anonymously by farmers in the FBN network via their seed invoice data) to look at the median discount and discount distribution of the top 20 corn brands purchased by FBN members. We found that seed brands offer different ranges in their discounts to farmers.
Discount Ranges Vary Widely by Brand
Pioneer® seed tends to be less expensive than Dekalb® seed in almost all major corn states, despite the fact that Pioneer® tends to have higher list prices.
Pioneer® tends to offer the largest discounts, with a median discount a round 28 percent and some farmers getting as much as 41 percent.
Not all Pioneer® seed is less expensive than all Dekalb® seed in every state—take Nebraska, for example, where the average Pioneer® seed price for corn is essentially the same as Dekalb® after discounts.
Even within a brand, list prices are not necessarily comparable because of the tendency of seed dealers to offer larger discounts (as a percentage of the list price) on seed with higher list prices.
Below is a graph of this relationship in a few example Dekalb® Double-PRO® varieties:
While the same trend exists for several other companies and trait packages, the effect is not so pronounced.
Here are the top five trends we discovered in our analysis of corn seed discounts.
We explore them in detail in the report:
- The five most common corn seed discount types received by FBN network members are volume discounts, early pay discounts, bundling discounts, loyalty discounts and new customer discounts.
- Different seed brands utilize discounting very differently. Some companies offer complex but hidden price discounts, while others are more transparent, though the type and degree of their discounts may vary widely from state to state.
- Type of discount and rate of discount varies even within brands. While higher yielding seed is often associated with higher lists prices, varieties with the same average list price can have average yields that differ by 20 to 30 bushels per acre.
- New customer discounts can outweigh loyalty discounts—new customers receive an average of 2.5 percentage points more in discounts off of list price than returning customers, despite new customers buying in smaller volumes.
- Final seed price net of discounts and yield are ultimately what matters. Farmers should look for a combination of high yields and low prices after discounts. FBN Seed Finder’s Price Transparency system provides farmers actionable seed price intelligence.
FBN members can access this exclusive report on corn seed discounts in the "My Reports" section of their FBN accounts.
“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.