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Quarterly Seed Production Market Update – January 2026

As we close the book on 2025, it’s clear that the year brought both significant challenges and exciting opportunities for the forage and turf seed industry. Turfgrass markets faced sustained price pressure from excess inventory, straining growers and seed companies alike. However, reduced acreage in key growing regions has led to a smaller 2025 crop, tightening supply and sparking renewed optimism across the sector. By contrast, forage seed markets continued to perform well, with stable demand and firm prices across nearly all species. This momentum is expected to carry into the coming year.

Crop Update #

In Western Canada, the early part of the growing season was very dry, and promising crops began to wither as harvest approached. Fortunately, rain arrived just in time for many areas, resulting in good crops. That was followed by an extended fall season with ample rain, which helped many new establishments recover from early drought stress. As a result, our current stands are in excellent condition going into winter, setting up for a strong crop next year.

Market Conditions #

Distributor inventories remain low, and demand for next year has been steady. While global trade conditions remain unpredictable, Canadian producers have largely avoided any tariff impact to date. In fact, Chinese tariffs on U.S. imports have improved Canada’s competitiveness. 

Perennial Ryegrass #

The perennial ryegrass market has begun to turn the corner, with prices for top-performing varieties seeing some price recovery from recent lows. Supplies of lower-quality and variety-not-stated (VNS) seed remain ample and will limit upside potential in the near term, but demand has been steady and inventories are coming down. Pricing is expected to remain steady, and the potential for further gains makes the outlook for next season promising.

Tall Fescue #

Tall fescue continues to carry the largest inventories of the primary turf species, specifically significant volumes of lower quality varieties or variety not stated (VNS) seed. Inventories have started to correct, and prices for lower-quality inventory have stabilized. There is strong demand for top-performing tall fescue varieties, with a small price premium over lower-quality inventory.  Demand for high-quality tall fescue varieties is expected to remain strong, supporting higher plantings of in-demand varieties in 2026.  

Alfalfa Update #

Alfalfa supplies remain tight becauseexport demand has been strong following disappointing yields in key production areas in Europe. High export demand has narrowed the price spread between common and certified seed this season. This will likely be short-lived as common seed values are expected to fall back to normal ranges next year when European production returns to typical levels. The Western Canadian alfalfa crop came in slightly below average, but prices are at historically high levels, providing growers with solid returns.

Red Fescue #

Dry conditions continue to persist in the Peace River region, which is concerning for next season’s red fescue crop. Red fescue values have recently seen modest increases, following those of other species. Western Canadian production is limited, but sufficient supplies of substitutes will keep prices at a level similar to other turf species.    

Timothy Update #

Timothy production was down significantly due to dry conditions in Alberta’s Peace River region and Manitoba’s Interlake region last year. This has impacted the availability of some in-demand certified varieties; however, carry-over inventory of common seed is ample. Timothy prices remain steady with strong demand for new plantings of certified varieties for domestic and international markets.   

Looking Ahead #

While 2025 may be a low-water mark for turfgrass prices in recent years, forage and turf seed production still delivered good profitability for growers, helping diversify risk amid high input costs and low commodity prices.

As the industry enters 2026 with improved inventory positions and steady demand, growers are well-positioned to capitalize on forage and turf seed production this coming season.

If you are interested in learning more about how forage and turf seed production could fit on your farm, reach out to a BrettYoung Seed Production Specialist to learn more.

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