Maximize Profitability by Choosing the Right Corn Hybrid

The most expensive seed is not always the best when trying to achieve profitability over yield. Dr. Matt Stockton uses data from the University of Nebraska-Lincoln’s TAPS farm management competition to illustrate why buying the wrong corn seed may be more costly than you think. Prior to working with the UNL TAPS farm management program (Testing Ag Performance Solutions), I had not fully understood the economic impact that the seed selection decision potentially has on farm profitability. Sure, I knew that paying too much for seed relative to its return results in a reduction of profit, and yes, I recognized that a certain degree of productivity is required to cover expenses and have a healthy cash flow, but it was a surprise to me to find out just how large the decision using the right seed at the right price is and that it can significantly alter profitability. When TAPS competitions started, I assumed that most competitors’ seed choices would not play as a major role in determining the economic winner as they have and that seed selections would likely result in somewhat similar yield outcomes. After examining and analyzing the 2018 TAPS results, it became evident to me that I have underestimated the impact and value of this choice. A solid-performing hybrid at the right price makes a considerable difference in both costs and returns. In the next few pages, an economic analysis of the 2018 TAPS seed decisions is presented. This comparison is made using the profit relationship, measured by the change in revenue due to the yield difference in hybrids, minus the change in costs due to planting a different hybrid.