Illinois farmer Dave Ebert intends to drive nearly five hours early next year to buy thousands of pounds of a specialized, high-yield corn seed he needs to sow a bumper crop this spring. Dealers near his farm in Gilman are already sold out.
In Iowa, the top corn-producing state, Bret Davis - a farmer who also sells Monsanto's DEKALB brand - says he has not been able to get his hands on enough corn seed for his customers or himself. He'll rely on a mix of existing varieties in sowing his 1,600 acres, lacking the new, high-quality seeds. "I can't plant it myself if I can't sell it to somebody else," he said.
Across the Midwest, farmers are coping with the tightest market in over a decade for top-quality corn seeds after a heat blast this past summer damaged the more fragile seed crops. Seed firms like Monsanto and LG Seeds, which makes the LG2620VT3 coveted by Ebert, are turning to South America for extra supplies. Imports surged ten-fold in October to the highest for that month in at least 13 years. The trend is an early red flag for the spring crop, a crucial harvest for replenishing grain bins after years of razor-thin inventories that drove prices to record highs.
While a seasonal wave of additional imports this spring is almost certain to satisfy demand, an increased reliance on older and less productive seeds is a risk. Older varieties sometimes produce lower yields and lack the traits that best allow corn to withstand pressure from harsh weather, disease and insects. Ebert, who also sells seeds, says the high-quality hybrids he planted this year produced 180 bushels to 230 bushels of corn an acre, compared to 160 bushels to 174 bushels an acre for lower-quality seed he planted.
"Newer genetics typically yield slightly more," says Darren Hefty, co-owner of Hefty Seed. He has struggled to obtain new varieties of seed from Monsanto, DuPont's Pioneer Hi-Bred and other brands for his 33 store locations across the Midwest. "Maybe it's a couple of bushels." While farmers don't expect the squeeze to prevent them planting acres, any suggestion that the crop may not have every advantage could buoy Chicago corn prices that have fallen to their lowest in more than a year at around $6 a bushel.
The fear is that it may already be too late. "If farmers order now," says 23-year-old Ebert, "they're probably going to get some second-rate seed." The seed squeeze can be traced back to hot, dry weather that hit the Midwest as corn plants were in a critical period of development in July and August.
Corn grown for seed is particularly sensitive to harsh conditions because of its genetics, reducing seed supplies even though farmers harvested a historically large corn crop. "Where the seed areas are, they just had a really poor crop," Davis said. Much of Monsanto's DEKALB seed is produced in Illinois and Iowa, where hot, dry weather hurt output, he said.
Seed supplies are tight even though US farmers harvested their fourth largest corn crop ever this fall.
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