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Regional US Seed Industry

Delivered January 3, 2020. Contributor: Megan B.

Goals

To understand the seed market in the eastern Corn Belt and Delmarva areas of the US.

Early Findings

  • The seed industry is continuously consolidating. Now only 4 companies control around 60% of the global seed market.
  • In the US, it's even more consolidated. 85% of the corn seed market is controlled by 4 companies.
  • With this, US farmers are reporting they feel their bargaining power is significantly less and seed prices have increased over the past 5 years.
  • World consumption of biofuels is increasing, so the seed industry needs to respond in turn.
  • Farm sizes are increasing, while crop rotations are getting shorter, also leading to an overall demand increase.
  •  Organic and non-GMO seeds are a fast growing segment, as US consumers increase there demand of these products.
  •  BASF recently acquired the seed business of Bayer and is expected to quickly become a major player.
  •  Soybeans, especially organic, are especially increasing. Prices are going up, as well as crop yields, prompting producers to want to plant more.
  •  Corn also continues to rise steadily, as more corn is being used for feed and biofuels. Sorghum is also predicted to grow.
  • As sustainable agriculture is growing, seed coating technologies are an important segment to the overall seed industry.

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