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Prillcoted seed contains highly concentrated rhizobia and nutrients which, due to their strategic placement surrounding the seed, have a multiplier effect in the soil. Also the viability of the rhizobia is greatly prolonged by the coating and is, therefore, much more effective than present methods used. The coating also improves the water relationships of the seed in the soil, and further aids germination particularly under stress conditions. The coating also protects the seed from diseases, insects and birds.