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Conventional (non-GMO) seed planting is on the rise, even as grain price premiums fade away. Tight margins and profit-making opportunities are driving the trend. Scott Apple started his transition to conventional corn when commodity prices were still at an all-time high, and he didn't do it to capture premiums. His 1,900 acres are all planted to conventional seed and sold into local markets. "It was a cost reduction decision," recalls Apple, who farms near Bowling Green, Ohio. "I didn't need the traits. Rootworm isn't a significant problem, and other insects aren't usually a problem. If they are, there are plenty of options to clean them up." When he was planting traited seed, Apple appreciated Roundup Ready soybeans and planted Liberty Link corn when it was available without the Roundup Ready trait. He avoided Roundup Ready corn due to concern that resistant weeds would develop with year after year of use. "Since my neighbors didn't share my concern, we got them [resistant weeds] anyway," he says, explaining why he no longer plants Roundup Ready soybeans either. "With resistant weeds, why pay the tech fee if the herbicide doesn't work?" Apple isn't alone in asking that question, reports Scott Odle, president, Spectrum Premium Non-GMO Seed Corn. Sales increased in 2015 over 2014, and all indications are for a bump again this year. He is seeing more competition in the non-trait corn seed business, which he feels is a good sign. He notes that it adds to the sector's credibility that non-GMO seeds are a viable alternative. PPO stewardship is key to fight Group 14 herbicide resistance "Guys are pushing the pencil," he says. "They can buy triple stacks for $260-290, double stacks in the $210s and straight Roundup Ready in the $180s. We're at $158-168 with discounts. If they can get by with a low dose of Capture or something and not worry about corn borer for now, maybe they can make $30 an acre when others are losing money." Odle, an early adopter of traited-seed on the 4,000 acres he farms in west central Indiana, is not anti-GMO. Like Apple, it is a matter of economics. Unlike Apple, Odle captured premiums for his corn and beans in the past, shipping containers of non-GMO grain to the West Coast and elsewhere. Whether he will in the near future is questionable, according to Morrie Bryant, senior marketing manager, DuPont Pioneer. Market premiums [for non-GMO grain] dropped by 50 percent or more in 2015 and have not recovered. Bryant stays in constant touch with both grain merchants and end users to ensure the company has adequate seed to meet future demand.
