Fargo, North Dakota
February 29, 2008
Source:
North
Dakota State University
In January, the
North Dakota State Seed
Department initiated a survey of North Dakota seed growers
to identify how much certified seed potentially had been sold on
the commodity markets.
"At the root of the question were high commodity prices,
particularly for durum and spring wheat, which created
attractive alternatives for seed growers to market their seed
production," says Steve Sebesta, North Dakota State Seed
Department deputy seed commissioner.
Surveys were mailed to 573 spring wheat, durum and barley seed
producers. The response rate for surveys or questionnaires
generally is not very high. However, recognizing the potential
impact of high commodity prices on seed inventories, 366, or 64
percent, of North Dakota's seed growers responded. With the high
commodity prices for durum since harvest and recently for wheat,
the department expected to see more growers disposing of their
seed production. However, only 12 growers (3.5 percent) sold
their entire seed inventory to the elevator. That means 96.5
percent of the seed growers who responded have maintained some
level of inventory of certified seed for sale.
"The critical issue is the number of bushels available for
spring planting," Sebesta says. "Overall, it appears that
approximately 16 percent of the seed was sold as commodity,
leaving approximately 84 percent of the seed inventory available
for sale as of Jan. 31. An analysis by crop is perhaps most
interesting. The remarkable increase in commodity durum prices
beginning last September created significant concern about seed
availability for the 2008 planting season. However, the data
suggest that certified durum seed producers maintained nearly 90
percent of their 2007 production for sale. The numbers were not
as strong for spring wheat or barley. Roughly 84 percent of the
seed of those two crops was being held for seed."
This is the first time that the State Seed Department has
surveyed seed growers for this kind of information, so there is
no historical perspective to know whether this year is any more
abnormal than other years in terms of seed supply.
"Given the high commodity prices, one would have to logically
make that assumption that supplies would be sold off," Sebesta
says. "However, the department has received very few calls from
farmers expressing concern that they cannot find seed for
planting."
Sebesta says the State Seed Department is aware that tight
inventories can lead to increased illegal seed transactions and
warns the public that the unauthorized sale of seed of varieties
protected by a Plant Variety Protection (PVP) certificate is
illegal. Most varieties that are available for planting are
protected by PVP Title V, which is a federal law.
PVP gives variety owners the exclusive right to determine who
has the right to produce and sell seed of their varieties. The
PVP Title V option means that seed must be sold as a class of
certified seed. Only growers who purchase eligible classes of
certified seed and complete certification through an official
seed certification agency are authorized to sell seed of PVP
Title V varieties. The State Seed Department is the state's
certification agency. Violations of PVP laws can result in fines
levied by the department of up to $5,000 per violation and, more
significantly, variety owners may seek compensation of up to
triple the damages, plus court costs and attorney fees.
"These results demonstrate that North Dakota's certified seed
producers are committed to providing their customers
high-quality seed products that improve our state's agricultural
industry," Sebesta says. "Keep in mind that these numbers only
are as good as the data provided by respondents as of Jan. 31.
Producers who have not lined up their seed for spring planting
are urged to do so very soon. Market volatility could change the
situation very quickly and they should not expect seed suppliers
to hold onto inventory indefinitely." |
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