Summer seed sales up 30 per cent due to pricing concerns

Farmers are weighing up the viability of canola crops for the season ahead with some seed prices up 30 to 40 per cent in the past four years.

Seed prices have increased 30 to 40 per cent in the past four years, with farmers counting the cost before winter sowing.

Prices have come under scrutiny as returns for canola at port drop below the benchmark of $600 a tonne and settle at $592 a tonne this week.

The decline means the crop may not be financially viable for some to plant this year, given seed costs alone equate to $100 a hectare.

However, canola is not the only seed that has increased in price, with farmers quoting values for wheat and oats at higher levels.

Rupanyup farmer and Grain Producers Australia southern director Andrew Weidemann said seed costs added to escalating inputs.

“Canola seed is expensive; we are being quoted $50 to $60 a kilogram,” he said.

Three to four years ago, the canola seed cost was closer to $35/kg to $40/kg.

He said seed costs had increased annually for quite a while.

Farmers were looking at about $430 a tonne to $440 a tonne for wheat seed for regular varieties, and some newer varieties were trending higher.

“Oats (seed) have been scarce, and there isn’t much on the market,” he said.

Mr Weidemann said there were contingency plans for canola, and people may consider sowing at a lesser rate a hectare.

Ashley Fraser of Baker Seeds at Rutherglen. Picture: Yuri Kouzmin

However, he warned that this could be detrimental regarding pest and disease pressure.

“I am also aware of growers retaining canola seed from the open-pollinated varieties,” he said.

NSW Farmers grains committee chairman and Brocklesby farmer Justin Everitt said farmers were forward planning and buying seed early.

He said it was the same premise as securing fertiliser early after the shortage of urea last year.

Mr Everitt said he purchased canola seed at $1000 for a 25kg bag last year.

“There’s a lot of people doing the numbers, particularly on how much canola they will put in,” he said.

Mr Everitt said he will grow canola, wheat, barley and lupins as part of his winter cropping rotation this year.

Baker Seed Company general manager Ashley Fraser from Rutherglen said next-generation seed varieties were in demand.

He said sales from December to January had increased 30 per cent, indicating that farmers were getting in early due to the pricing concerns.

“People are planning, and there’s some optimism and demand due to the full soil moisture profile,” he said.