It depends who you are. While seed treating isn’t for everyone, it is highly beneficial for several categories of individuals and businesses, including:
If you fall into one of these categories, owning your own seed treater likely makes sense. First off, you’ll gain ultimate control of your planting process. You can treat seed on your own time, right when you need it. And you’ll avoid any risks associated with buying pre-treated seed. Plus, by treating yourself, you’ll reap all the profits—you’re cutting out the middleman and all the costs that go with him.
Now let’s talk about ROI.
If you’re a smaller operation, the most economical/practical treater would be a box-to-box treater like the AT500.
Ballparking here, but if you treat a total of 3,000 units of beans, you’ll likely save/make enough to pay off the treater that very same year.
On larger treater units, like the LPV drum treater, it could take up to 5,000 units until you start seeing a positive ROI. And once your treater is paid off, you’ll treat yourself to all the profits each year thereafter.
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For dealers, opportunities flourish with your own treater. First, your customers will view you as a full-service dealer. That means more products and services for them to choose from… and more ways you can boost profits. Instead of selling only naked seed, you can sell seed treatment and other chemistry, like inoculants, biologicals, nematicide and more.
With a more robust suite of services, you’ll build stronger relationships with your customers too. This could lead to more business down the road. Maybe one year a customer plants soybeans. But the next, they plant corn. Who are they going to look to for corn seed treatment options? (Hint: It’s you.)
Seed companies who employ seed dealers can also benefit from seed treaters. If a farmer has a good experience with their dealer, that equates to a good experience with your company as a whole. You gain more exposure, more brand awareness, and more opportunities to grow your business.
Plus, with the freedom to sell other products and services through downstream treating, your dealers will be motivated to build more relationships and increase their sales. That means more money for them, and for you.
LARGER GROWERS (1000+ ACRES)
Weather, commodity prices, and a variety of other factors play into your seed-buying decisions throughout the year. By purchasing pre-treated seed, you could be stuck with it regardless if you plant it or not.
If you’re a grower with a larger operation, owning a treater gives you boundless freedom during planting season. Instead of paying to get your seed treated, you can do it yourself and reap all the benefits. Best of all, treated seed means stronger plants… which means higher yields… which means more dollars in your pocket. It doesn’t cost to get a seed treater—it pays.
And should a circumstance arise where you can’t plant your seed, you have a better chance of returning it to the seed company by leaving it untreated.
If you only have 600 or 700 acres, purchasing your own treater may not be warranted. But if your neighbor also has several hundred acres, it might be worth looking into.
Want to learn more? Contact Unified Ag Solutions and let’s talk shop.