Cutting Costs in Production
As prices have dropped over the last two months, farmers are second guessing planting intentions. They are looking to cut costs, and often times cost cutting starts at cutting seed costs. Keeping the hybrids with top yield and proven performance versus picking up a cheaper option is key to end-of-year profit. Cheap seed options can be older genetics, poor performing genetics or even discontinued genetics reaching the end of their life and viability.
It doesn’t take much to make up for inferior genetics as in perceived seed savings. Cutting $50 a bag is only saving $20 an acre, or roughly seven bushels. One cost savings that may be applicable to North Dakota farmers would be changing from a VT2 PRO to a Roundup Ready 2 trait. Keep the genetic that performs on that particular field and save the difference in trait costs. However, It may require more attention to pests throughout the growing season and an additional cost of an aerial application with insecticide. Check with your Latham® dealer on availability and your agronomist about the rising potential for future pest issues in your area.
Farmers can add fertility after the crop is established. They can also add weed control after the crop. However, there’s only once chance to place the right seed on the right acre. Seed is truly the foundation for every successful crop. Why limit net farm profitability from the onset?