Fight rising input costs with smart fertilizer, equipment, and tillage choices

In 2008, the old economic principle of supply and demand is certainly proving itself to be true for the agriculture industry. An increased demand for grain is good, yes. But the demand is also a contributing factor to the escalation of the key input costs associated with raising grain, like fertilizer expense.

Rising fuel costs, increased rent, and laborers asking for higher wages are also sources of concern for farmers as the 2008 planting season reaches its height.

According to Steve Johnson, an Iowa State University Extension farm management specialist, direct input costs for an acre of corn will increase anywhere from $30 to $50, and will jump $10 to $15 per acre of soybeans. Johnson also believes that fertilizer costs will be up as much as 35 percent.

Getting the most of your fertilizer investment

Six years ago, anhydrous ammonia cost about $250 per ton in the Corn Belt, and it was common for producers to over-apply slightly to ensure nitrogen was available for crops when they needed it. Today, a ton of anhydrous ammonia sets farmers back more than $700.

No one is considering over-applying.

Instead, producers are turning to advances in equipment and technology, and even some old standbys, to make sure nitrogen is used as sparingly as possible. Manure is an organic source of nitrogen that can save on fertilizer costs when fully utilized. Incorporate manure as soon as it is applied to conserve available nitrogen.

New technology like remote aerial imagery and remote sensing can enhance yield history, soil fertility, drainage, and late-spring soil test data to help determine the minimum amount of nitrogen necessary to achieve maximum yields.

Combining this new technology with an older fertilizer application practice, side-dressing, may help producers get the most out of their fertilizer dollars.

Liberal fall applications result in the loss of significant portions of the nitrogen by the spring planting season.

When the side-dressing technique is properly executed, it encourages more even corn growth and increases the potential for better yields. Nitrogen tends to leach down through the soil and away from the roots. Application after the plant has emerged puts the nutrients where crops -- corn in particular -- need it most. Placing fertilizer beside the row where roots can grow into the band allows plants to feed throughout the growing season and ensures producers get the most out of their fertilizer investment.

Side-dressing comes with a unique set of concerns. Many producers wonder whether application can be completed in the window between emergence and the time when the corn is too tall. One option to get into the field early is to apply nitrogen using a simple coulter and liquid injection system. This avoids flipping small chunks of soil onto vulnerable small plants as an applicator knife setup might.

Another strategy to reduce fertilizer costs is to analyze your crop mix. Corn and wheat need more nitrogen than soybeans. Of course, many other factors need to be considered in determining crop mixes than fertilizer cost. Using spreadsheets to break down the costs associated with different crop mixes can help track the expense and potential profits associated with various scenarios.

Mounting a toolbar equipped with an injection system a to high-clearance sprayer will also buy some time to side-dress later in the growing season.

Conservation tillage means big fuel and equipment savings

Conservation tillage producers have the luxury of a little peace of mind as fuel costs rise -- they know their operations are saving them money over conventional tillage systems.

Conservation tillage systems like strip-till and no-till do not necessarily increase yields, and so the perception has been that they do not increase profitability.

However, because they require less fuel, less equipment, and less labor to execute properly, they save money. And that is where conservation tillage gets the profitability advantage.

A typical conventional tillage system requires five passes through the field for plowing, disking, cultivating, and planting, and fertilizing or cultivating again. In an operation requiring so many trips through the field, more tractors and more tillage tools are used, adding expense in terms of equipment, part-repair, labor, and fuel. Equipment also depreciates quickly with so much use.

Producers switching to strip-tillage can save money on equipment by repurposing old toolbars and adding a few carefully chosen opening and residue-clearing attachments that will effectively prepare a seedbed.

Although purchasing these attachments is an investment, other large equipment can be sold. A farmer in the Texas Blacklands reports selling several larger tractors and plows after switching to strip-tillage.

Strip-tillage also means fewer passages through the fields. It is feasible to more than double the acreage farmed without significantly increasing fuel costs when strip-till is the primary tillage method. And fewer passes through the field mean less laborers are needed to get the crop in the ground.

A farmer in central Illinois planting 300 acres of corn will save 44 percent in fuel costs by switching from conventional tillage to notill.

No-till producers experience similar equipment, labor, and fuel savings. Only basic equipment -- a tractor, combine, and planter -- is required.

Another savings for no-till farmers comes through the availability of multipurpose equipment. Planters that can switch between 15- and 30-inch rows can be used for soybeans and corn and eliminate the need for a drill to plant soybeans. The only necessary addition may be tough residue managers.

Making the adjustment

These new economic circumstances are here to stay, at least for a while. There is no better time to try a conservation tillage method and carefully monitor the fertilizer requirements of crops. Savings resulting from changes in these areas could increase profitability against some strong odds.