SHORT ANSWER: Yes, proven varieties that cost from $2.25 to $2.60
per pound are generally worth the price. Cost of seed from a reputable seed dealer
reflects the cost of getting seed to the retail outlet plus a profit margin.
EXPLANATION: Seed of most varieties costs a little more than $2
per pound to produce, process, transport, and store. There are profits built into the
marketing system that vary widely among companies. These may greatly affect the final
price charged to farmers. More expensive seed is not necessarily more productive, nor will
it necessarily result in longer stand life, it depends on the variety. Higher prices may
reflect fungicide treatments and/or pre-inoculation with rhizobium bacteria. (Continued)
Expensive and cheap seed are difficult to define. It is important to
buy seed from reputable seed dealers. Producers should also know the objective
differences between varieties.
Alfalfa seed that costs less than $1 per pound is usually an old
variety, and seed quality should be examined closely. Some old varieties are good enough
for certain production situations. It is also important to know how much of the material
in the sack will germinate. Some seed lots contain an excessive amount of dirt, broken or
shriveled seed, weed seeds (sometimes noxious weeds), and other crop seed. Some seed has a
low germination.
All seed sold legally must have the purity and germination (not more
than a year old) on the tag. If seed does not have a tag with acceptable current
information, it is highly likely that the contents are not a "good buy"
at any price.
Some lots of common seed or VNS (variety not stated) may be good
buys for low input enterprises. However, the buyer must be aware that there are certain
risks involved. Assume that seed of a proven alfalfa variety costs $2.35/lb and yields 5
tons/A/year in the same tests with a seed lot that costs $0.95/lb and averages 4
tons/A/year.
Even experienced observers cannot see such a difference in the field
when the varieties are side by side. The difference of 1 ton/A certainly cannot be seen if
the varieties are grown in different fields. In such cases the main difference that can be
seen is between fields (not varieties). Table 3 illustrates how cheap seed may save
$16.25/A at planting time, but $80/A/year is loss due to poor yield. Over a 3-year period,
the proven variety earned $240/A more for the producer. Yield differences such as this
(and more) are frequently measured in standard variety tests.
Changing the estimated yield advantage to only 10% for the proven
variety and sowing the same amount of seed (18 lb./A) does not make the cheap seed
a good buy, as illustrated in Table 4. Over a 3-year period the proven variety would earn
$120/A more and the savings in seed costs would only be $25.20/A.
From these two examples, it is clear that the yield advantage of a
proven variety must be small and the seed cost differences must be large before cheap
seed is cost effective. When taking insecticide costs into account, the advantage of a
multiple-pest resistant variety becomes greater if a single application is saved each
year.
Table 3. Seed Cost and Gross Income Per Acre Per Year Comparisons for
Seed of a Proven Variety and an Unknown Variety with Different Planting Rates to
Compensate for Seed Quality. |
Seed Lot |
Seed Cost $/lb |
Sowing Rate lb/A |
Seed Cost $/A |
Yield tons/A |
Price $/ton |
Gross Income $/A |
Proven Variety |
2.35 |
15 |
35.25 |
5 |
80 |
400 |
Unknown Variety |
0.95 |
20 |
19.00 |
4 |
80 |
320 |
Difference |
1.40 |
-5 |
16.25 |
1 |
0 |
80 |
Table 4. Seed Cost and Gross Income Per Acre Per Year Comparisons for
Seed of a Proven Variety and an Unknown Variety with the Same Planting Rate. |
Seed Lot |
Seed Cost $/lb |
Sowing Rate lb/A |
Seed Cost $/A |
Yield tons/A |
Price $/ton |
Gross Income $/A |
Proven Variety |
2.35 |
18 |
42.30 |
4.5 |
80 |
360 |
Unknown Variety |
0.95 |
18 |
17.10 |
4 |
80 |
320 |
Difference |
1.40 |
0 |
16.25 |
0.5 |
0 |
40 |
|