What is in this article?:
Uncertainties abound for corn and soybean production in 2013. Potential drought, crop insurance payouts, and commodity prices are just a few major unknowns. To help growers prepare for the next year, Farm Industry News put together a buyer’s forecast of interest rates and the costs of production inputs and land. Featured here is the 2013 forecast for seed.
The rest of the input forecasts may be found here:
Higher seed production costs
Those interviewed are confident that seed supplies will be adequate for 2013 demand, but acknowledge that the 2012 drought did put a wrinkle in production for the 2013 planting season.
“It’s important to understand that industry wide seed production costs are rising again this year,” says Jeff Hartz, Wyffels Hybrids director of marketing. “Producing seed in South America can be very expensive, and in some cases these production cost increases may outstrip end product costs increases to the grower.”
As producers wrap up harvest for 2012, early indications are that the investments poured into the latest genetics have paid off. While yields were not exceptional, the genetic packages did perform better than expected – and in some cases much better. “Producers are recognizing the genetic advances in seed, especially comparing this drought to the others that they have faced,” says Mick Messman, DuPont Pioneer U.S. product marketing. “This year is a really good example of showing the advancement of that investment. The feedback from our customers has been that they were pleasantly surprised with their yields given the tough growing conditions.”