The field crop seed market in California

Field crop seeds, also called sowing seeds, are embryonic plants covered and protected by an outer layer. They are used to cultivate crops and represent a significant input for farmers.

The field crop seed industry has contributed to the extraordinary growth in crop yields over the past decades. From the development of hybrid crops to the introduction of high-yielding varieties and the emergence of agricultural biotechnology; the seed industry has shaped the agricultural landscape in the U.S.

The global field crop seed market is concentrated around a handful of players due to the high level of investment in research and development and the advantages of pooling them. The three largest players: Bayer Seeds, Corteva Agriscience and Syngenta account for more than half of the global market.

California is an agriculture powerhouse and the leading U.S state in terms of cash farm receipts. More than 400 crops and commodities are harvested in California, including wheat, corn, soybeans, and cotton, among others. As each region has a specific climate, crops and production practices, a tailor-made approach is necessary to enter the California market.

After “feed purchased”, seed is the second largest expense of farm origin for the California agriculture industry. The state is thus positioned as one of the leading producers and consumers of seeds in the United States.

To support major investments in research and development (R&D), firms have been looking for greater scale and, as a result, M&A activity has been particularly strong in the sector. Innovation has also been carried out by the public sector, resources from the USDA and the presence of UC Davis in California, contribute to innovation in the state.

The industry is also adapting to new trends, with the emergence of e-commerce platforms like Farmers Business Network (FBN) and the supply of seeds adapted to organic farming. California is home to a large share of the organic production in the United States.