Farmers - maximize value of agricultural using high end seed?

Farmers - maximize value of agricultural using high end seed?

Real Estate Agent · Gandeeville, WV · Member since 2017 · 40 posts · 17 votes

I have heard of farmers trying to maximize the value of their land by using high end Monsanto seeds. Considering how low agricultural land can be valued, what other methods of increasing land value can be used?

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Ashippun, WI · Member since 2017 · 17 posts · 7 votes
8y

Good soils, soil health, proper drainage, climate, etc. would be contributing factors to high value land for agricultural use. Some of these factors are easier to change than others!

I would not consider the choice of seed type to be a significant factor in determining land value, although a history of high yields could certainly help, and there are better/worse choices when it comes to pairing a piece of land with a seed variety if your goal is high yield. A good steward of the land knows how to profit from it sustainably by maintaining soil health and nutrient balance, and healthy and productive land is valuable. 

Monsanto is one example of a handful of modern seed suppliers using the latest seed/trait technologies towards higher yielding crops. Aside from the buzz and controversy, farmers generally find their products to be favorable and profitable in modern agricultural systems.

Corn and soybeans (the two major cash-crops, at least in my area) have to be replanted every year, regardless of seed supplier. 

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  • Real Estate Agent · Gandeeville, WV · Member since 2017 · 40 posts · 17 votes
    8y

    What is the best impact for the smallest amount of capital used? How much of the crop's value end value is diminished by purchasing quality seed?

  • Investor · New York, NY · Member since 2017 · 111 posts · 49 votes
    8y

    Wow, not much interest garnered on this topic! I would assume that good seed pedigree will enhance the value of your farmland, but unfortunately, much of the expensive monsanto seed is only good for one season. You can't re-propagate the plants. Correct me if I'm wrong in that please! Quality plants sourced from high quality, reproducable seed should do the trick. 

  • Ashippun, WI · Member since 2017 · 17 posts · 7 votes
    8y

    Good soils, soil health, proper drainage, climate, etc. would be contributing factors to high value land for agricultural use. Some of these factors are easier to change than others!

    I would not consider the choice of seed type to be a significant factor in determining land value, although a history of high yields could certainly help, and there are better/worse choices when it comes to pairing a piece of land with a seed variety if your goal is high yield. A good steward of the land knows how to profit from it sustainably by maintaining soil health and nutrient balance, and healthy and productive land is valuable. 

    Monsanto is one example of a handful of modern seed suppliers using the latest seed/trait technologies towards higher yielding crops. Aside from the buzz and controversy, farmers generally find their products to be favorable and profitable in modern agricultural systems.

    Corn and soybeans (the two major cash-crops, at least in my area) have to be replanted every year, regardless of seed supplier. 

  • San Diego, CA · Member since 2017 · 78 posts · 42 votes
    8y

    Kevin Zwieg has said it perfectly. The seed pedigree is less important than the quality of the land in general for farming purposes and land value. I wonder how much seed capital you would need in order to start this kind of business?

  • Investor · New York, NY · Member since 2017 · 111 posts · 49 votes
    8y

    @Hank Wu I believe if you are to farm profitably in this day and age, you would need a couple million to start at least. Very difficult to farm in the volumes necessary. You will most certainly not get your investment back. 

  • Bellevue, ID · Member since 2017 · 116 posts · 33 votes
    8y

    I am not so sure about agricultural land for REI. Unless you are buying a medium sized piece for appreciation over time near an urban zone. You will need to have it rezoned in 20 years, but the value will have skyrocketed!

  • Suva, Fiji · Member since 2017 · 52 posts · 23 votes
    8y

    With designer seed that only germinates for one season, it's very hard to imagine much value being added over time. 

  • Waco, TX · Member since 2018 · 30 posts · 14 votes
    6y

    I don't think seed pedigree matters. So long as the top soil is reasonably fresh with proven viability the value should be there. You have to be able to show investors or buyers that the land is productive. 

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