Certified Wheat Seed vs. Saved Seed: Is It Worth the Cost?

The cost of Certified Seed Wheat vs. Saved Seed

For wheat producers, seed is one of the easiest inputs to scrutinize when commodity prices are tight, and weather conditions are less than ideal. Saving seed wheat from the previous crop can seem like an easy way to reduce planting costs instead of buying certified seed.

But the question is not “Which seed costs less per bushel?” It is “Which seed provides the best return per acre?”

What do you get for the price of Certified Seed? Known genetics, varietal purity, tested germination, seed quality, reduced contamination risk and, in many cases, access to newer varieties with improved yield potential and disease resistance. Compared with the actual cost of saved seed, the price difference can be much smaller or nonexistent.

What Makes Certified Wheat Seed Different?

Certified seed must pass field inspection and seed-quality testing designed to verify varietal identity, purity and quality. Certified wheat seed is seed that meets standards for varietal purity and also offers advantages in cleanliness, seed size, germination, vigor, and disease management.

Those characteristics matter because the seed planted in the fall establishes the foundation for the entire crop.

A producer buying certified seed knows:

• What variety is being planted.

• That the seed lot has been inspected and tested.

• The germination percentage.

• The level of pure seed and inert material.

• That weed and other crop seed contamination is restricted.

• That the seed is generally more uniform in size and quality.

• That the variety’s genetic characteristics are more dependable.

The associated costs of Saved Seed

Farm-saved seed can involve:

• The opportunity cost of grain that could have been sold.

• Cleaning and conditioning.

• Seed treatment.

• Storage.

• Handling.

• Labor.

• Seed testing.

• Losses during cleaning.

• Higher planting rates needed because of lower germination or seed quality.

• Potentially higher weed, disease, or stand-establishment costs.

Nebraska Extension makes this point directly: the apparent price difference between certified and bin-run seed can be misleading because saved seed has costs that are often overlooked.

Kansas State University has also cautioned producers that if wheat has been stressed during grain fill, saved seed should be professionally tested for germination and conditioned for quality.

In other words, the comparison should be certified seed versus the true cost of prepared farm-saved seed, not certified seed versus free grain coming out of the bin.

A Simple Cost Comparison

Consider a hypothetical wheat operation planting 1 bushel of seed per acre.

Suppose:

Cost Certified Seed Saved Seed

Seed value/purchase price $13.00 $6.00 (harvest cash price)

Cleaning/conditioning Included $1.00

Seed treatment Included or added $0.50

Storage Included in seed price $0.15

Handling/labor Minimal $0.35

Testing Included in certification $0.15

Estimated seed cost/bushel $13.00 $8.15

 

Under this example, saved seed appears to save $4.85 per bushel. That sounds attractive. But now consider yield.

If certified seed produces only 1 additional bushel per acre and wheat is worth $7.00 per bushel, the additional revenue is $7.00 per acre.

The calculation becomes:

$7.00 additional revenue − $4.85 additional seed cost = $2.15 additional return per acre

At 2 additional bushels per acre: $14.00 additional revenue − $4.85 seed-cost difference = $9.15 additional return per acre

This illustrates why looking only at seed price can lead to the wrong conclusion.

The exact numbers will vary by operation, seed price, seeding rate, wheat price and yield response. Producers should substitute their own numbers rather than treating this example as a current market budget.

Historical Research Shows Why Yield Matters

University of Nebraska research provides a useful illustration.

Nebraska Extension reported historical comparisons in which certified wheat produced yield advantages over bin-run wheat. One study cited a 3-bushel-per-acre advantage, while another reported advantages of 3.5 bushels per acre in one year and 1.2 bushels per acre in another.

The important economic lesson is that the break-even yield increase required to justify certified seed can be relatively small.

If certified seed costs an additional $5 per acre and wheat is worth $7 per bushel, the certified seed only needs to generate:

$5 ÷ $7 = 0.7 bushels per acre

to recover the additional seed cost.

At $6 wheat, the required yield advantage falls to only:

$5 ÷ $6 = 0.8 bushels per acre

That is why the economics should focus on cost per acre and expected return, rather than simply price per bushel of seed.

Seed Quality Can Affect More Than Yield

The economic benefit of certified seed isn’t limited to genetic yield potential.

Seed quality affects emergence and stand establishment.

Poor-quality seed can have low germination, damaged kernels, poor vigor or contamination. That seed may emerge more slowly and less uniformly, producing weaker seedlings and fewer tillers.

That matters because a poor stand can create additional management problems.

A producer may have to deal with:

• Reduced forage production – lower beef gain in a dual-purpose system

• More variable emergence.

• Reduced plant populations.

• Increased competition from weeds.

• Additional seeding-rate requirements.

• Greater winterkill risk in poorly established stands.

• Greater disease concerns.

• Potential replant decisions.

K-State has specifically recommended planting the highest-quality seed possible because poor seed can create problems that carry into the following season.

Genetics Have Economic Value

One of the biggest advantages of certified seed is access to improved genetics.

Wheat breeding programs continually work on yield, disease resistance, winter hardiness, drought tolerance, quality and other traits. Nebraska Extension reported nearly a 1% annual genetic yield gain in winter wheat over the 1959–2008 period and emphasized that newer varieties can provide access to improved genetics.

This creates an important opportunity cost for producers who continually plant the same saved seed by giving up genetic improvements available in newer varieties.

The question therefore becomes:

Don’t Forget the Legal Side

There is also an important distinction between certified seed and legally saved seed.

Not every wheat variety can simply be saved and replanted without restrictions.

While the Plant Variety Protection Act can allow farmers to save seed from protected varieties for use on their own farms, additional patent, licensing, and contractual restrictions may apply. Certain herbicide-resistant wheat technologies, including Clearfield and CoAxium, may restrict replanting saved seed.

This means producers should know the legal status of the specific variety before saving seed.

The Hidden Cost of Saved Seed

One of the strongest arguments for certified seed is convenience.

A producer using certified seed can eliminate or reduce several steps associated with preparing saved seed:

Harvest → storage → cleaning → testing → treating → handling → planting

Certified seed essentially packages much of that quality-control process into the purchase.

Saved seed requires the producer to manage those steps correctly.

When Does Certified Seed Have the Strongest Advantage?

Certified seed becomes particularly attractive when:

• A new variety has demonstrated superior local performance.

• Seed quality from the previous crop is questionable.

• Germination is low or unknown.

• The previous crop experienced significant disease.

• Weed contamination is a concern.

• The producer wants maximum varietal purity.

• Planting conditions are challenging.

• The producer is using a low seeding rate and needs reliable establishment.

• The farm does not have the equipment or labor to properly condition seed.

• The variety has restrictions on saved seed.

• The expected yield advantage is sufficient to overcome the seed-price difference.

A Better Way to Look at Seed Cost

Rather than asking:

“How much does certified seed cost compared with my saved seed?”

ask:

“How much additional profit per acre can I generate with the certified seed?”

A useful calculation is:

Certified seed premium per acre ÷ wheat price = required yield advantage

For example:

Certified Seed Premium Wheat Price Break-Even Yield Advantage

$2/ac $5/bu 0.40 bu/ac

$2/ac $6/bu 0.33 bu/ac

$2/ac $7/bu 0.29 bu/ac

$4/ac $5/bu 0.80 bu/ac

$4/ac $6/bu 0.67 bu/ac

$4/ac $7/bu 0.57 bu/ac

$6/ac $7/bu 0.86 bu/ac

This is where certified seed can become surprisingly compelling.

If a producer believes a particular certified variety can produce even one additional bushel per acre, the premium may be relatively easy to recover.

And the potential benefit isn’t necessarily limited to yield. Better stand establishment, reduced disease risk, improved test weight, or improved end-use quality can also have economic value.

The dual-purpose or grazing difference

When comparing saved vs certified seed in a grazing situation, early vigor and biomass production are key components to beef gain. High-quality seed from newer improved varieties can add to your bottom line.

• Early plant vigor

• Increased tillering

• Better response to grazing and maintaining grain yield

• Increased grazing time

• Increased stocking rate

• Lower weed pressure

All adds up to increased beef production and more grain yield if taken to harvest.

The Bottom Line

Certified wheat seed has advantages that are easy to overlook:

• Known genetics.

• Varietal purity.

• Tested germination.

• Better seed quality.

• Reduced weed contamination.

• Reduced disease risk.

• Improved stand establishment.

• Access to newer genetics.

• Reduced on-farm seed-conditioning requirements.

• Less storage and handling.

• Greater confidence in what is going into the ground.

The most important lesson is that seed cost should be evaluated on a per-acre return basis, not simply on price per bushel.

When the total cost of saved seed is calculated honestly—and even a modest yield or quality advantage is assigned to certified seed—the apparent savings can shrink quickly.

For many wheat operations, certified seed isn’t the most expensive seed.

It may be the seed with the lowest cost per bushel of wheat produced.

And ultimately, that’s the number that matters. I have heard growers tell me time after time that the most expensive seed they ever plant is free seed. Many times, planting saved seed can reduce your yield potential before it ever germinates.

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Sources and Further Reading

University of Nebraska–Lincoln: Making the Case for Certified Wheat Seed — Detailed comparison of certified and bin-run seed, including historical yield comparisons and hidden costs.

Texas A&M AgriLife Foundation Seed: Certified Seed and Brown Bagging — Certified-seed benefits, saved-seed considerations, and legal restrictions.

Kansas State University Extension: Saving Wheat Seed—Be Aware of the Regulations — Kansas-specific information on saved-seed regulations and restrictions.

Kansas State University Wheat Production Handbook — Wheat seed-quality, cleaning and certified-seed information.

Dan Dall Limagrain Cereal seeds
Dan Dall
Regional Commercial Manager, Central Plains
Dr. Marla Barnett
Senior Wheat Breeder,
Central Plains