Summary
New corn planting technique most likely to benefit future seed and equipment sales.
Analysis
Two of the countries largest attended farm shows in 2009 featured a unique corn planting technique referred to as twin row planting. Rather than a single row of corn spaced 30 inches wide, twin row corn planting using specialty planters which have two staggered rows of corn 7.5 inches apart with the concept of less crowding of plants. With single row corn planting, maximum corn seed population is in an area of 32,000 to 35,000 seeds/plants per acre. With twin row corn planting yield test are in the making by pushing seed/plant population upwards of 40,000 to 44,000.
Allendale’s research of very preliminary yield test results from one seed company, does indicate twin row corn grain is dryer when harvested vs standard 30 inch rows which may reduce drying cost. With regards to yield, twelve of sixteen test produced higher yields for twin row vs single row by as much as 11.3% and a low of .04%. There are several of the well known seed companies such as Monsanto which will be collecting performance data from the 2009 corn harvest to help establish its future seed market direction.
Consider a typical bag of seed corn with its 80,000 kernels planted conventionally at a rate of 34,000 per acre which may yield 212.7 bushels per acre vs the same seed population planted twin row with results of 236.7 bpa or 38,000 seeds per acre planted conventionally with yields of 251.6 bpa vs twin row results of 257.4 bpa. End users Kraft Foods, ADM biofuel and others may realize potentially weaker input prices from greater grain production and middle men grain handlers and traders such Bunge, Cargill and others physically work with increased volume as well as seed giants may convince farmers to plant higher seeding rates with twin row. Rather than have one 80,000 bag of seed cover 2.34 acres when planting at a rate of 34,000 per acre, by increasing the seed rate to 38,000 per acre, the same bag of seed would only cover 2.1 acres or 12% fewer acres.
There are others agriculture sectors which may benefit from this unique planting concept, some of which include fertilizer companies as claims are made twin row planting allows for greater freedom of root systems to tap fertility as well as equipment manufactures of the specialty planters such as Great Plains Manufacturing and Monosem. And let’s not exclude with greater crop residue how farm machine companies my need to develop more efficient field equipment to incorporate residue back into the soils or allow crop residue ethanol companies to benefit from a greater supply.
Just when you thought planting seed corn and soybeans had reached the perfect mouse trap model, a complement of agriculture companies may prosper from this unique concept to increase production.Joe Victor consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
