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News Release
PLANTING BIN-RUN SEED IS RISKY ECONOMICALLY, LEGALLY
12/16/1998 Eagan, Minn. - In light of today's poor market prices, soybean growers may be tempted tosave some of their 1998 soybean crop for 1999 planting. Or, they may consider buying "brown-bag" seed (grower-saved seed sold to another grower) for next year's crop. These options are extremely risky, from both a financial and legal perspective.
"Growers may save some money on soybean seed in the short run," Dave Voss, Mycogen Seeds soybean product manager, states. "But in the long run, they will experience reduced soybean yields and miss out on the value-added services and quality guarantee that seed companies provide."
Weighing the costs and benefits
According to Voss, a 60-pound-per-acre planting rate requires 120 50-pound units of professionally produced seed to plant 100 acres. At a $16 price per unit after discounts, the seed bill totals $1,920, or $19.20 per acre.
On the other hand, when planting bin-run seed, other costs and hassles enter the equation: a conservative charge for cleaning of $1 per bushel; a 10 percent cleanout for which the producer normally isn't compensated; and about a 1.5 bushel-per-acre yield loss. Research trials consistently show reduced yields of 1 to 2 bushels per acre when bin-run seed is used.
Under these conditions, grower-saved seed costs $15.99 per acre, assuming a $5.50 per bushel market value for grain. Total savings: $3.21 per acre.
"At first, these savings may look convincing," Voss says. "But the long-term ramifications should discourage growers from planting bin-run soybean seed."
According to Jim Beuerlein, a soybean Extension specialist at The Ohio State University, farmers are gambling with their potential yields when planting bin-run seed.
"Unless farmers make a special effort at harvest to prevent damaging the grain, they'll end up with inferior seed for next year's crop. Bin-run seed may or may not be pure," he states.
One of the most obvious reasons to purchase bagged seed is the replant option offered by seed companies, Voss says.
"Generally, seed companies will provide seed at 50 percent of the original cost if a grower needs to replant a crop," he says. "Planting bin-run or brown-bag seed doesn't come with this sort of guarantee."
Ed Oplinger, University of Wisconsin-Extension soybean agronomist, points out several other advantages: Certified seed is high in germination, free of seedborne disease organisms, void of cracks and other mechanical damage, and free of other crop and weed seeds, he says.
"Purchased seed is planted, prepared and harvested as seed - not grain," Oplinger explains. "Production of good quality soybean seed is the business of seed producers."
According to Voss, as farmers adopt a more business-like approach, more soybean growers are planting purchased seed. One market research study shows 82.8 percent of the soybean seed planted in 1998 was purchased seed. This figure is 5.3 percent higher than in 1996. In Iowa, the number one corn-growing state, almost 90 percent of the soybean seed planted was purchased seed.
"This is good news for the entire industry," Voss states. "It's in all our best interests to plant purchased seed. If growers save and replant seed, companies have less incentive to invest in future technologies, which in the end, improve soybean growers' bottom lines."
Read the fine print
If economic factors aren't enough of an incentive to plant purchased seed, legal issues should clearly reinforce the decision. The Plant Variety Protection Act, as amended in 1994, prohibits the sale or transfer of any PVPA-protected variety introduced since April 4, 1994. It also strictly limits the amount of seed a producer may save for planting. In addition, both buyer and seller can be held liable for violations involving brown-bag seed transactions.
Even stricter patent laws regulate use of genetically engineered seed, such as Roundup Ready(1) varieties. These varieties are typically purchased with a label license restricting use to only the production of a single crop of grain. The use or sale of the crop produced from such seed for planting seed purposes is a violation of the label license. And, even if the producer didn't sign a license agreement or order/invoice statement, unauthorized use of a crop may constitute a patent infringement.
Violating PVPA and patent laws can warrant stiff fines. Offenders can be liable for triple damages plus legal costs. And, these damages can extend to the total crop produced from the unauthorized seed.
So, if a producer illegally saves enough Roundup Ready seed to plant 100 acres, which yields 4,000 bushels, the variety owner could potentially recover damages based on three times or more the value of the total 4,000 harvested bushels, plus all legal costs.
Voss states, "Growers need to realize that the Plant Variety Protection Act and patent positions are being enforced. Violators have been caught and forced to pay substantial fines."
Monsanto has won several cases against soybean growers who illegally traded pirated seed. Both the person who provided the seed, as well as those who obtained the seed, must now make all of their soybean production records available to Monsanto for the next five years.
Considering the total number of soybean growers nationwide, the percentage of seed piracy cases is very small. However, Monsanto has examined more than 475 seed piracy claims in 21 states so far. Most violators have been ordered to pay five-figure fines.
Even though Monsanto has become more aggressive in seeking out violators, many have been reported by others, including neighbors, seed processors and grain elevator operators. It is important for any grower thinking about planting bin-run seed or selling brown-bag seed to realize there are severe financial and legal penalties.
Despite the current low soybean prices, experts agree soybean growers shouldn't save bin-run seed for their 1999 crop. Farmers face the risk of cutting yields by planting inferior seed. They also miss out on services and guarantees offered by seed companies. Additionally, growers will pay steep fines if caught planting patent-protected seeds, such as Roundup Ready varieties.
For more information about Mycogen Seeds and its products, contact your local Mycogen Seeds dealer or call (800) 380-7282. Mycogen brand corn, soybean, sunflower, alfalfa and sorghum seeds are marketed through a North American distribution system of sales representatives and distributors. Mycogen is an acknowledged leader in developing technology-based products to control agricultural pests and improve food and fiber production.
(1)Roundup Ready is a trademark of Monsanto Company.
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