DENNISON, Minn. (DTN) -- Seed companies always want customers to start ordering the next season's seed as early as possible and often sweeten the pot with special pricing or other incentives. But given the expected demand for corn acres, and weather that's likely reduced seed corn yields, seed sellers are pressing customers more than ever.

"It is early yet to tell, but we could see supplies of some hybrids get tight if things continue as they have been," Vern Hawkins, co-president of Syngenta's North American operations, said at a corporate field day at the Stanton research station south of Minneapolis.

"This market is calling for more corn acres in 2012. At the same time, we have all these weather events that, while we don't know how much they've reduced supplies, will affect them. So it all depends on which hybrids customers want and how much production of those particular hybrids have been reduced. We're engaging both our retail sales and farmer customers to commit as early as possible so we know what we have and what we'll be tight on."

The July "dome of doom" heat wave pushed up day and night temperatures across the Corn Belt, but the influence of that heat on corn yields in general is yet unknown. What is known is that when grain corn yields may have been nicked, seed production fields in that area have the potential to have taken a hefty gouge due to the lower vigor of seed plants vs. hybrids.

To compound that problem, the straight-line winds that swept through Iowa, Wisconsin and Illinois earlier in the season struck the core of the hybrid seed production area. While most grain production fields recovered, damage to seed fields could be worse due to the critical timing needed for pollination.

"We have time for winter production, of course," Hawkins said. "But it's important to know what growers want in order to schedule that production, so we'll be out there trying to get customers to let us know their intentions as early as possible." Hawkins said his company is considering expanding early-order incentives to get farmers' attention.

Chris Garvey, general manager for Mycogen Seeds, echoed Hawkins' comments about conditions and expectations. "Like all seed companies, we spread our seed production over many locations to mitigate risk as much as possible. But in a year such as this, with widespread hot conditions for so long, you still suffer losses. We don't know how much that has hurt {yields} yet, we'll know more late in August and September," Garvey told DTN in a phone interview. "All of us in the industry are facing similar issues."

"One of our worries is the need to change a mindset that's been there the past few years where there has been plenty of seed late in the sales season," said Jeff Hartz, director of marketing for Wyffels Hybrids. "While the industry doesn't know what's all left in inventory from 2010 sales, it's doubtful things will be like the past few seasons. If you want to ensure you get the seed you want, you need to get in early." Hartz said he doesn't expect tighter supplies of new hybrids vs. familiar numbers. "This weather has hit most of us across the lineup."

While Syngenta's seed corn pricing was still being set, Hawkins said, prices per unit of hybrid seed would likely be higher this year. "Growers know this, I think, but with commodity corn prices up, the price we have to pay farmers to get seed corn production on their fields goes up as well. That added production cost affects retail seed price."

Hartz agreed. "I'm sure we're all going to do what we can to hold the line on prices, but there's no doubt that production costs are up."

Greg D. Horstmeier can be reached at greg.horstmeier@telventdtn.com

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