October 6, 2008
Rising production costs may slow growth of corn with multiple stack traits
Growth in planting triple and quad stack corn hybrids may level out in 2009, according to one seed company official.
It is particularly true if ECB and corn rootworm threaten corn in their area. However, farmers who plant insect-resistant hybrids in area where corn rootworm and/or ECB threats are low may eye the technology fee of added traits more carefully.
Howison told those attending a Syngenta media summit in Kissimmee, Florida that the adoption curve of triple stacks starting to flatten out in 2009 can be seen. A year ago, there would have been an unprecedented demand. Farm commodities when prices were peaking were looked into. Farmers were also prepared to invest in anything to get more yield on their farm.
Howison says, the change is due to farmers becoming much more astute in investment decisions around technology, fertility, traits, crop protection and they are looking at significant cost increases across the board. Meanwhile, recent plunging grain markets threaten to slice margins for 2009.
He said, farmers are seen to be making a much more conscious effort before deciding what technology to invest on. The availability of trait stacks may actually exceed on-farm need, not demand. Farmers will continue to demand new technology, but where they do not need a specific trait on their farm, it is a question whether they'll use it as a form of insurance or for standby.
There are customers who say no to rootworm (resistant trait) on their farm and they do not think that is a problematic issue on their farm. They may however want to spray just glyphosate. Having single and double trait products to help farmers manage (insect trait) refuges over the next three to five years will be critical, he pointed out.
Farmers who save on technology fees by foregoing an insect trait not needed on their farm would be penny wise and pound foolish if they plant old genetics with limited yield potential.
In Syngenta's case, Howison says Syngenta's seed companies,Golden Harvest, NK Brand, and Garst will have double or single stacks available in new elite genetics.
