Minding Ag's Business
Marcia Zarley Taylor DTN Executive Editor

Friday 08/03/12

Who Pays List Price for Seed?
Just as you suspected, bulk discounts reign in the hybrid seed corn business. Often these bulk purchasers squeeze $25/acre better buys and sometimes more than $100/acre advantage over their smaller or part-time peers, an analysis of hundreds of actual 2011-crop farm records by the Brighton, Ill.[Read Full Blog Post]
Posted at 5:18PM CDT 08/03/12 by Marcia Zarley Taylor | Post a Comment
Comments (1)
Marcia - I think how you manage your seed relationships has a great deal to do with price. Some producers like to order from several brands, while others want to plant a portfolio of varieties from a favorite company. Volume is quite important in the price matrix, and if you split up your order among several brands, your price per unit is certainly going to go up. Perhaps these larger farmers with cost advantages are more loyal to one brand, or use the "winner take all" approach.
Posted by Ben Riensche at 5:00PM CDT 08/04/12
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