I posted a couple days ago about seed pricing, and I guess it’s my hot topic right now, because I think it’s the most inflated input we buy. How do commissions work?
I know of a farmer dealer in my area who doesn’t sell a lot of seed, maybe and guessing 600-800 bags of corn and 1500 units of beans. I came across documentation that showed his commission was $50 some thousand in 2018. That amount of money is unbelievable to me for that kind of volume. Are most seed companies this lucrative? I documentation I saw was 100% accurate. For the acreage he farms himself, that makes his net seed cost zero.
There seem to be lots of reasons seed prices are where they are, and lots of those reasons could be gotten rid of.