Corn seed shortage not felt locally
Published Thursday, April 5, 2007
The ethanol-driven 2007 corn planting, projected to be the largest since 1946, is straining seed supplies across the nation, though local producers were able to get their needs filled.
“I’d say a good 99-percent were (able to fill their orders)” New Horizons seed manager Paul Dubbels said. “Anybody that’s serious about growing corn already has their seed lined up.”
Fueled by the skyrocketing demand for the grain in the ethanol industry, this year’s 88.5 million-acre crop represents a one-year, 13-percent jump, prompting two of the biggest seed suppliers, Monsanto and Pioneer Hi-Bred, to caution buyers regarding limited supplies.
Graphic Provided
Click to enlarge.
Minnesota Corn Utilization (2006)
Corn Production: 1.13 billion bushels
• Export 57%
• Feed Use 17%
• Ethanol Use 15%
• Other Processing 3%
• Residual Use 8%
MN Corn Utilization (2008 Projection*)
Corn Production: 1.31 billion bushels
• Export 45%
• Ethanol Use 27%
• Feed Use 15%
• Other Processing 3%
• Residual Use 10%
*Source: USDA
Though local producers already have seed, there is evidence that some supplies, primarily the quick-maturing varieties, have dried up.
“We’ve been lucky,” Dubbels said, noting that while another supplier was experiencing short supplies earlier, New Horizons had been able to “fill in with our 85-day maturities. Most of that seed sold out early in the season.”
Still, that does not pose a threat to Otter Tail County crops, he said, noting that seed class is used primarily in more northern areas. “Here, we use the 90-95 day corn (seed).”
The increased value of corn as a commodity has not yet sparked an increase in corn seed prices.
“The price of seed is driven by market price,” he said, “but it is set by the commodity prices of the prior year. Next year (seed prices) will be higher.”
Purdue University agricultural economist Chris Hurt projects 2007 corn prices to challenge the 1995 record of $3.24 a bushel.
“It is very early to be projecting prices for 2007, in that so many events, including harmful weather and international events, can affect those prices very strongly,” he said. “But right now I’m using corn prices in the $3.40 per bushel range for the ‘07 crop. For the 2006 crop year, the USDA is using $2.60 a bushel, so I think talking about $3 or maybe higher than $3 a bushel corn is not out of the question for 2007.”
If prices do respond as he predicts, corn seed prices could see a 30-percent jump, possibly higher, in 2008.
Comments
The Daily Journal is happy to host community conversations about news and life in Fergus Falls and the surrounding area. As hosts, we expect guests will show respect for each other. That means we don't threaten or defame each other, and we keep conversations free of personal attacks. Witty is great. Abusive is not. If you think a post violates these standards, don't escalate the situation. Instead, flag the comment to alert us. We'll take action if necessary. It's not hard. This should be a place where people want to read and contribute -- a place for spirited exchanges of opinion. So those who persist with racist, defamatory or abusive postings risk losing the privilege to post at all.Post a comment
(Requires free registration.)