Examination of Winter Wheat Yield Response to Seed Source

The incentive for private sector seed development is examined by looking at market forces in the seed industry. Differences in yield between private sector developed seed and bin run seed (grain from a previous harvest) were assessed to determine yield advantages of purchased seed and potential markets for seed firms. Winter wheat ( Triticum aestivum L.) yield differences between bin run and purchased seed were estimated through regression analysis on field level data. In many cases, the estimated yield differences indicate that seed firms and farmers both could gain by substituting purchased seed for bin run seed. While a seed firm can expect to sell more seed by producing a more effective variety, providing the farmer more information on seed performance, either through increased advertising or encouraging their retailers to work more closely with farmers, could also increase the use of purchased seed. Some state and federal policy changes can also provide incentives for private sector seed development, including increased extension services, increased public promotion of purchased seed, better Plant Variety Protection Act enforcement, increased funding for public research and development (R&D) that complements private R&D, tax incentives, and commodity trade enhancement.