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Completed in 1956, Foundation Seed is the source for pure genetics of varieties developed by the Agricultural Experiment Station crop-breeding teams. The primary purpose of Foundation Seed is to increase new varieties as quickly as possible, working closely with the plant breeders at SDSU and neighboring foundation seed organizations.

As little as a few pounds up to 10 bushels of seed (breeder seed) are turned over to Foundation Seed from the crop breeder. In two to three years. this amount could be 500 to 15,000 bushels, depending on growing conditions and the crop involved.

Seed is then distributed to seed companies and farmer seedsmen throughout the state based on a set of criteria approved by the South Dakota Crop Improvement Association. This seed is then grown by these producers and sold to farmers or traded with other seedsmen as registered seed. The registered seed is then planted, and the seed harvested as certified seed. This "limited generation system" of breeder, foundation, registered and certified seed is followed by neighboring states and promotes interstate sales of seed.