The seed industry has changed dramatically in the years since we have been farming and is following a trend of placing bulk facilities closest to the customer. Seed prices have risen as much as 70% over the years. In many cases a customer can reduce the amount of seed planted per acre and purchase a seed treatment to get better stands. In other words, we are asking our customers to buy less seed per acre and apply a seed treatment. We could not do that without the ability to treat and we needed the building to be able to apply treatments.
We realized that Alliance Agra, LLC had out grown warehouse space and that seed treatment for corn, soybeans and wheat was becoming a crucial service that we needed to provide. In conjunction with Pioneer, we began to build a warehouse in the spring of 2008. We also installed a 5 bin PROBULK system with a USC 2000 seed treater. Through this system, we are able to treat multiple products tailored to our customers needs (fungicides, insecticides or inoculants, plus dry micronutrients).