Actual Seed Cost

[manager]

I was just wondering the other day when the seed cleaner told me that it is almost just as much money to clean old seed as compared to buying certified seed. Yeah, I know I've heard it all before and he does have a point but.... should we be valueing the old seed at what we would get at the elevator for it or should we value it as the amount that it cost us to grow, because there is a huge difference. If you grew wheat at 50 bu/ac and it cost you $160/ac to grow it than the grain cost $3.20/bu, not $4.50 that the CWB would pay. Does this make sense or will it all wash out in the end 'cause I'm losing the profit. Just wondering.

[lakenheath]

I have never heard of a cost formula such as that. Your seed is cost is simply:

1) Your replacement cost of the seed you are using.
2) The cleaning cost of that seed.
3) Seed treatment added to the seed.
4) Plus the rate increase needed to get the same germination that certified seed would provide (example: your seed is 80% germ and certified is 95%, then your cost would be 15% greater but still figured on replacement value, but just using a figure 15% greater).

Some may argue the you may want to factor in potential yield loss with non-cert seed. That is merely a consideration but not a and actual cost of production.

[countryguy]

The way I see it is that you always have to value what you produce on your farm at what you would recieve for it if you sold it just the same as you do when you do your assett and liability statement.