Agronomy. Answers. Yield. Aug/Sept 2020 Mobile Article Header This is the year to book seed early!
Soybean Header Image with text

XtendFlex and Enlist are going to run out. Period. The dicamba lawsuit didn’t hit last spring until after soybean production acres were in the field, and there simply wasn’t time for the industry to ramp up. This all makes booking soybean seed early critical for 2021 planting. It’s a little unusual to stress booking beans early, but 2021 is going to be different. With the uncertainty going on in the dicamba market, whether you’re looking for the (hopefully)
soon-to-be-labeled XtendFlex or you’re planning to go with Enlist, there’s never been a more important year to put your order in very early.
Also, the highest-demand soybean traits are relatively new. That means the defensive characteristics you may require won’t be available in every variety. Ordering early is the only way to make sure you get what you need.

Corn header image with text

With corn, booking early is always a good idea. Traits are very important to a large percentage of the market, and this season we expect some shifts. With corn rootworm pressure skyrocketing in many areas this year along with an uptick in earworm damage, traits like SmartStax and Trecepta offer control beyond what insecticide is often capable of achieving.

New hybrids are always produced in smaller quantities the first year, and there are never enough of the top hybrids. This year, a major storm wiped out a large number of seed corn production fields in Central Iowa and beyond, adding to the scarcity of some key hybrids.

If you’re picky about what you’d like to plant – which you should be – it’s always smart to lock things up early while they’re available. Plus, many companies have early booking programs like our Buy a Pre, Meso is Free with Hefty Brand Corn promotion, which requires no money down. Just order now so you can get a free shot of HPPD herbicide for your corn come spring.

THE BOTTOM LINE

No matter which varieties you choose, the financials are critical. You know you intend to plant seed next year. If you can get a large discount just for paying early, why wouldn’t you take it?

IF YOU HAVE THE CASH – Banks are paying almost nothing for your savings account, so seed discounts offer a much, much better return for your money.

IF YOU NEED TO BORROW MONEY – It still pays to prepay your seed bill and take the discount. Interest rates are historically low this year, and it could be a very easy discussion with your banker to run the numbers and get a great return on investment this fall.

FOR EXAMPLE – If the seed discount is 12% APR and you can borrow for 4% APR on $100,000, that means paying in September vs. paying in April saves you 8% APR net during that time.
Running the simple math, that’s:
$100,000 X 8% ÷ 12 months X 7 months = $4,667!

Even if you are financing through a seed company’s finance program, you are still ahead to lock that up now, because the sooner the seed company gets the cash from the finance company (like Rabo, JDF, etc.), the better price you get. Yes, you may find a 0% interest offer in the spring just like you will this fall, but in almost all cases the NET COST for you will be much higher waiting until spring.

Do yourself a favor and pay now or finance now to get the lowest possible cost.