80

70

55% 56%

63%

Percentage of Respondents

60

50

40

30

20

Large Commercial Mid-size

31% 31%

21%

10

7% 7%

6%

5%

4% 8%

2%

2% 3%

0

Made by m1e with Made by m2e after Made by p3erson Made by t4he person Made by a5purchas- little input from extensive discus- responsible after responsible with ing agent others. sions extensive little other input

discussion

Significantly different at p<.05

Figure 3: Which of the following statements best describes the way in which seed purchasing decisions are made on your farm by size*

They Don’t Shop for the Lowest Price

It’s easy to assume that producers will pick the lowest-priced seed when making their purchases. According to the survey results, that assumption would be incorrect. A low-priced product doesn’t automatically translate into a sale with this customer. Specifically, corn/soybean producers and those older than 35 are less likely to buy the lowest-priced seed (see Figure 4). High-growth producers express less interest for the lowest price, as well.

“Producers want the best price, not necessarily the lowest price,” Gray explains. “They expect to get what they pay for.”

Corn/Beans Wheat/BarleyC/oCtatnoonla

50

45

Percentage of Respondents

40

35

30

25

20

15

10

5

0

Under 35

35-44

45-64

65+

38% 33%

39% 36%

10% 18%

18% 18%

13

Strongly Neither Agree Disagree Nor Disagree

Average: (Under 35: 2.01); (35-44: 2. 17); (45-64: 2. 14); (65+46: 2. 35)

Significantly different at p<.05

Figure 4: When buying seed, I usually purchase the lowest-priced products by age*

40% 35%

27% 25%

2

6% 9%

11% 10%

4

6% 5%

5% 11%

5 Strongly Agree

They Want Stronger Relationships With Seed Companies

Producers, particularly larger ones, desire more direct relationships with seed companies in the next five years (see Figure 5). Cotton growers, those under 35 years old and those 65 and older are particularly interested in direct relationships. They also have a certain set of standards when working with seed salespeople.

“Salespeople need to be honest,” Gray says. “And, they had better be technically competent. These producers don’t want someone who just keeps calling. They want someone who calls when there’s something valuable to say.”

DECEMBER 2008

31