NPK: Best Practices to Cut Input Costs

Alex Tiller - Saturday, June 07, 2008

When you applied your fertilizer this spring, you probably hit some sticker shock – prices are way up. I can’t help you with the high prices (my magic wand is in the shop) but I have collected some best practices for NPK application and use to help cut the bill.

Let’s hit nitrogen first. Some midwestern farmers are making good savings on their nitrogen bill by using N-Serve and greatly reducing their application of liquid nitrogen – to as low as 20 to 25 pounds per acre. N-Serve application used to be limited to anhydrous tanks, but new injection technologies make it possible to directly inject the N-Serve along with the nitrogen application, using a Sidekick to control the flow. Mapping technology allows you to target the N-Serve to the exact full or partial field where it’s needed, although many farmers just apply it across the entire acreage.

No-till farmers already know that losses of liquid nitrogen can reach 20% due to volatilization under the right conditions. These farmers have built an applicator that allows them to apply NH3 subsurface. Not only is the NH3 cheaper by twenty or thirty cents a pound, but the subsurface application greatly reduces loss to environmental conditions.

A slightly higher tech-approach is the use of ESN, a fertilizer mix that wraps urea pellets in a polymer that degrades slowly over time. The ESN polymer is more expensive than straight nitrogen by about ten cents a pound, but the savings come from the fact that you can use somewhat less of it. The polymer protects the N from leaching during the heavy spring rains, but is degraded to the point of releasing most of the nitrogen right around the time that plants are hitting their peak growth cycle. It’s like doing a side dressing in advance.

With phosphorus, oftentimes it’s a question of too much, rather than too little. Phosphorus runoff causes any number of problems with local water sources, and the last thing you need is to have environmentalists yelling at you. Fortunately it’s not too difficult to manage your phosphorus situation. The first step is to know your yield goal for your acreage. Second, calculate your P requirement to hit that yield. Third, test your soil and see what you’ve already got – the odds are pretty good that you have enough P already and don’t need to add any at all. If you are low, then apply the P in the most efficient manner possible. One efficiency booster – add zeolite to your soil. Naturally occurring P, and any that you apply, will bind to the zeolite and be released naturally in response to plant action over the course of the growing season.

If you do need to add P, then add it in the right place! Surface application, unless you’re growing perennial forage, is a huge waste, and contributes to P runoff and eutrophication. Apply P to the root zone only, either at planting time or using subsurface application. If you are using manure as a fertilizer source, be aware that adding enough N to meet your yield requirement is almost certainly going to overload your soil on P. That won’t hurt your crops, but it will make your runoff a problem for your neighbors, and you’ll need to take some extra care in managing your water.

Given the ubiquity of P in the natural environment, however, it’s more likely that you won’t need to add much if any – particularly if you preserve what you have. Soil management technique is the way to keep the P you have in the ground, instead of running out into the wastewater ditch. Any number of land management techniques can help with that – conservation tillage, conservation cover, conservation cropping sequences, delaying your seed bed preparation, adding a grass filter strip or waterway, contour farming, strip cropping, terracing, a sediment control basin, even a constructed wetland – these are good for the environment, AND good for your fertilizer budget as well.

Potassium (K) is of course a critical fertilizer, and one of the most important things to be aware of in K application is the target crop. K uptake rates vary wildly by crop – from 120 pounds an acre for soybeans, to 400 pounds an acre for alfalfa. Be aware of the K need that your particular crop has, and adjust your application accordingly. Also bear in mind that your N uptake rate is controlled by the K level in the plant – a deficiency of K can cause an effective deficiency of N, even if you’re drowning your crop in NH3. K also regulates P uptake – so be sure to get that K level right.

Like phosphorus, potassium levels in the soil are often high enough already, so soil testing is definitely worth the minor investment, especially if it saves you an application. In addition, as with phosphorus, improving your K cycling on the farm can preserve the element and prevent the need for future application. As with P, a zeolite admixture can help bind the nutrient and prevent runoff and leaching, leaving plenty of K available when the plant starts to really draw on it. However, when you do need K, there are some techniques you can use to manage the cost.

Common potassium fertilizers tend to have a high salt index – don’t place them near seeds or seedlings, especially in sandy soil or with high levels of application. Instead, a band three inches to one side and two inches below your seedbed will provide plenty of K for developing plants without injuring seeds or transplants. Split application is recommended for crops with long growing cycles, because plants will uptake more K than they need if it is available, possibly reducing levels below the critical point later in the season. If you are using no-till or low-till, you will need to increase the K application because liquid K applications tend to stay near the surface; you won’t need a higher level if you’re fertilizing corn, however, as corn’s extensive shallow root system will absorb what it needs.

I’ve only hit some of the high points; there is a lot of literature and information out there to help optimize your fertilizer application this year. Good luck!

Top 10 Farm Management Resources

Alex Tiller - Friday, June 06, 2008

It always amazes me how much free information is out there to help farmers make wise decisions and run their businesses better.  State Universities, Corporate Outreach and Education Programs, Local Ag Extension Offices, and Grower Associations provide a wealth of knowledge.  Unfortunately, many farm operators and growers forget about these resources or choose not to make use of them.  –Still many other farmers only rely on one source of information instead of getting more than one opinion. 

Part of the problem is that we just get lazy and do things the way we did them last year.   Another part of the problem is that the information is spread out in various locations, and on difficult to navigate, outdated (or rarely updated) websites.

I have compiled a list of my Top 10 Farm Management Resources. This list below also includes a brief summary of the information you will find on each site. Some of these may be new to you, or perhaps this may just serve as a reminder of great agribusiness tools that you have forgotten about. –Either way, I hope it helps.

(No preference is placed on the numeric order)

1) Ag Decision Maker, By Iowa State University

http://www.extension.iastate.edu/agdm/decisionaids.html

This website provides business tools and reports that can help you make better educated decisions for your farm.  The site provides fully functional production budgets, helps you learn about what other farmers are paying for inputs, analyze leases, and more.  It also features powerful calculators for Crop Decisions, Livestock Decisions, New Business Development Decisions and Whole Farm Decisions.

2) The Monsanto Performance Website

http://www.monsantoperformance.com/ 

This site contains a wealth of information and will link you to the Monsanto “Growing Knowledge Newsletterfor your specific region. The news letter itself contains current news, production tips and more.  The website also allows you to run county-by-county yield reports, get product information, and visit the Monsanto Learning Center website.

3) DTN Agriculture Webinars

http://www.dtn.com/dtnag/news/dtnag_webinars.cfm

DTN does a great job of creating free online agriculture seminars that answer important questions for all of us.  They cover topics like Taxes for Farmers, Futures, Production Issues and more.  If you can’t attend a seminar because of a schedule conflict, you can always replay the original later. 

4) Missouri State Agriculture Risk Management Website

 http://extension.missouri.edu/seregion/Risk%20Mang..htm

This is one of those sites that doesn’t look fancy and is kind of difficult to navigate but contains lots of great information.  Topics covered are Farm Leases, Crop Insurance, Farm Building Plans, Ag Business Plans and more. 

5) MidWest Plan Service (MWPS)

http://www.mwps.org

The MidWest Plan Service (MWPS) is a publishing cooperative that publishes and peer-reviewed university agriculture research.  This is a one stop website for the latest and greatest research coming out or our Ag Extension schools and the USDA and covers all major topics including crops, soil, livestock, farm business and more. 

6) The National Agricultural Law Center by University of Arkansas

http://www.nationalaglawcenter.org/

The National Agricultural Law Center is the only agricultural law research and information facility that is independent, national and international in scope, and directly connected to the national agricultural information network. The Center has expanded the scope of its coverage to include food law as it recognizes the expanding scope of agricultural law and its convergence with food law topics. The Center is staffed by a team of law and research professors, lawyers, other specialists, and graduate assistants from the University of Arkansas School of Law Graduate Program in Agricultural Law.

7) Peer to Peer online Discussion Forums

 http://talk.newagtalk.com/category-view.asp

http://dgroups.agriculture.com/n/pfx/forum.aspx?webtag=agriculturez&nav=index

http://agweb.com/DiscussionBoard/default.asp

http://www.topix.com/forum/science/agriculture

Try asking other farmers what they are doing or search though and read existing conversations.  This will help you get some perspective outside your direct network of neighbors and friends.  Forums are powerful tools and you can use a different screen name to maintain your anonymity.

8) Local USDA Cooperative Extension System Offices

 http://www.csrees.usda.gov/Extension/

The Cooperative Extension System is a nationwide, non-credit educational network. Each U.S. state and territory has a state office at its land-grant university and a network of local or regional offices. These offices are staffed by one or more experts who provide useful, practical, and research-based information to agricultural producers, small business owners, youth, consumers, and others in rural areas and communities of all sizes.

9) Different Grower Association’s

http://alextiller.com/agribusiness_resource/List_of_Grower_Associations.pdf

There are many grower associations out there and most of them provide free research, reports, budgets, production costs, surveys and news to help you stay on top of any given subject.  I have provided a list of some Grower Associations to help you find your particular topic of interest. 

10) Agriculture Marketing Resource Center

  http://www.agmrc.org/agmrc/

The Agricultural Marketing Resource Center is an electronic, national resource for producers that are interested in value-added agriculture. You can browse commodities and products, investigate market and industry trends, study business creation and operation, read research results and locate value-added resources.

Who’s Making Hay? and What’s the Impact

Alex Tiller - Friday, May 30, 2008

Hay

By now I’m sure you’ve heard that the USDA announced that it would make 24 million acres of CRP land available for a single harvesting of hay or grazing for livestock feeding after bird nesting-season ends. The USDA has done this in the past, but only for emergencies in drought areas. This special allowance is very short and only last from the end of July through November 10. 

Ranchers have lost a great deal of pasture acreage to drought, corn, and urban development, so this is a pretty small benefit for them. The USDA estimates that the added CRP acreage would provide as much as 18 million additional tons of forage. -Sounds like a big number right? -I mean the US only produces 150 million tons of hay per year. Unfortunately when this is put in the context of total acreage currently used for pasture (roughly 800 million), and when you factor in that farmers will probably use the 24 million current acres for grazing (not hay production), the new acreage represent only a 3% increase in forage availability. 

So how does this translate corn? The potential reduction in corn demand from cattle spending more time grazing instead of eating grain is very small. Some estimates are that it will only be 15 to 25 million bushels, or 0.3% of corn used for feed.

Let’s Point some Fingers and Lay Some Blame

Alex Tiller - Wednesday, May 28, 2008

Fing Pointing

Lots of people are complaining that farmers are getting rich from selling corn for ethanol and for receiving exorbitant subsidies.  Most people haven’t taken the time to understand that it isn’t the farmer’s fault.  –They are just caught up in the mix.

“Fertilizer prices are rising faster than those of almost any other raw material used by farmers. In April, farmers paid 65% more for fertilizer than they did a year earlier, according to the U.S. Department of Agriculture. That compares with price increases of 43% for fuel, 30% for seeds and 3.8% for chemicals such as weedkillers and insecticides over the same period,”

Fertilizer Price Chart

(Chart by WSJ Online)

So why isn’t any one complaining about how much money the fertilizer companies are making?

There are a lot of people to blame out there.  Farmers are only part of the mix. Why not:

  • Blame poorly fed people who want to eat better and can now afford it.
  • Blame big oil for low inventories and high prices.
  • Blame US policy makers for becoming so dependant.
  • Blame environmentalists for pushing for renewable energy.
  • Blame fertilizer companies for taking a bigger piece of the pie.
  • Blame the consumer for wanting strawberries in the winter.
  • Blame US auto manufacturers for not designing more efficient vehicles.

            …I bet you can think of a few more.  

There seems to be a lot of blame to go around.  -Just don’t blame the farmer.  He’s the one that’s always been there, even when it was hard to make a profit. He is the one that had the sleepless nights when it didn’t rain.  He is the one trying to grow the best crop he could for you, the consumer.

(Source WSJ, Full Article: http://online.wsj.com/article/SB121184502828121269.html?mod=djemITP )