A choice that is made at least annually by the crop producer is selection and purchase of hybrids or varieties for planting. In any particular year, a corn grower may have dozens of hybrids available for purchase from one of several companies. Choosing which hybrids to plant is a complex process involving identification of superior genetics, development of a working relationships with seed suppliers, and price. The price for corn hybrids can vary by as much as 100%, which often has the producer asking if there is value in purchasing higher priced hybrids or are low cost hybrids the best buy. The following procedure is useful in comparing the value of two corn hybrids.
1. Make a table similar to the following
| Hybrid A | Hybrid B | Difference | |
| Seed cost per bag (80,000 unitsz) | |||
| Yield history or performance test results | |||
| Revenue at $x per Buy | |||
| Seed cost at y seeds per acrex |
z Hybrid seed corn is generally sold in bags containing 80,000 seeds.
y x is the price per Bu expected when the corn is sold.
x y is the seeding rate is seeds per acre (i.e. 30,000 seeds
per acre)
2. Fill in the seed cost and yield information data obtained from the seed supplier and an independent corn performance test, such as the one published yearly by the Iowa Crop Improvement Association.
3. Determine the revenue per acre by multiply the revenue per bushel x by the yield from the performance test.
4. Determine the seed cost per acre by dividing the seeding rate y by the seed units in one bag (80,000) and multiplying by the cost of one bag i.e. 30,000 seeds per acre/80,000 seeds per bag * $100 per bag = $37.50 per acre.
5. Calculate the differences in seed cost per bag, yield performance, revenue, and seed cost per acre between the two hybrids.
6. Compare the difference in revenue versus the extra seed cost per acre to determine if the higher priced hybrid results in enough additional revenue to justify its purchase.
Two seed companies have been trying to sell you on the virtues of their top performing hybrids. Company A has a hybrid that it is selling for $65 per bag that yielded an average if 150 Bu/A in the Iowa Corn Performance Test over the past two years. Company B's hot seller costs $100 per bag and yielded 160 Bu/A in the same test over the same period. Which companies hybrid is the better buy? (Assuming a selling price of $2.00 per bushel and a seeding rate of 30,000 seeds per acre)
| Hybrid A | Hybrid B | Difference | |
| Seed cost per bag (80,000 units) | $65 | $100 | $35 |
| Yield history or performance test results | 150 Bu/A | 160 Bu/A | 10 Bu/A |
| Revenue at $2.00 per Bu | $300/A | $320/A | $20/A |
| Seed cost at 30,000 seeds per acre | $24.38/A | $37.50/A | $13.12/A |
Hybrid B cost $13.12 more per acre, but provides $20 more per acre in revenue, therefore it is the better buy. In this case, the more expensive hybrid provided enough extra revenue to justify its higher cost.