Managing High Nitrogen Prices

By George Rehm, University of Minnesota Extension Soil Scientist

The big increase in price of nitrogen fertilizers is a “hot” topic right now. Prices change daily and we cannot predict what the spring price might be. It is a good bet that the price of N as anhydrous ammonia to the farmer will be in the range of 27 cents to 30 cents per pound of N. So, what do we recommend?

1) Take proper N credits for previous legume crops in the rotation and manure applied.

2) Use realistic expected yields. Nitrogen rates are based on expected yields. This is not the year to raise expectations. As planting time gets closer, take not of subsoil moisture and long-range weather forecasts, and adjust yield expectations accordingly.

3) A serious evaluation of planned N rates. In the past years, some growers have been in the habit of adding some extra N as an insurance policy against some N loss. This extra N also is thought to help if weather conditions are conductive to higher than expected yields. So, a serious evaluation is suggested. Use the University of Minnesota recommendations as a base.

4) Use the soil nitrate test. The soil nitrate test this spring can show how much soil nitrogen is available so you can adjust nitrogen rates accordingly.

5) Shift dollars. Rather than automatically cut back on N use if prices go higher, take a closer look at money designated for phosphate, potash, sulfur, and micronutrients. Sulfur is only needed on sandy soils regardless of the results of some soil tests. Broadcast applications of fertilizer are not economical if sol test levels are in the medium and high ranges. Give serious consideration to the application of some fertilizer dribbled on the seed. This placement is a good substitute for the traditional starter placement. In other words, shift dollars planned for other nutrients to the purchase of an adequate rate of nitrogen. Crop producers get more return from money spent on nitrogen than any other nutrient.

6) Cut rates? This is an option, but probably not a good one. If a grower has no choice but to cut N rates, a reduction of 10-15% is suggested, using Extension recommendations as a base to work from. The economics of this decision will depend on the commodity price and the in-season price of nitrogen.

7) Crop switch. There has been some speculation that growers will switch to more soybeans or some other legume crop. This may be true for some growers who have the equipment and market for another crop that can be used in the rotation.

More N Management Tips From David Franzen,
NDSU Extension Soils Specialist:

A) When composite soil tests are high, producers tend not to believe them and use “insurance rates” of N anyway. By sampling 10 cores each on hilltops, slopes and depressions, growers can see if the high soil tests are consistent and have more confidence in the soil test results. The need for “insurance rates” of N goes away.

B) Some crops require aggressive rates of N, while other are better off with more conservative rates. Corn requires aggressive rates to ensure that it can take advantage of higher yield environments some years have to offer. Wheat and durum require aggressive rates to ensure higher protein premiums. However, oil seed crops, sugarbeets, malting barley and flax do fine or have better quality when more conservative rates of N are used. Lower N means higher oil %, greater % sugar in beets and lower protein in malting barley. These are crops where a 20% cut in N rates would probably be beneficial.

C) Recent research has shown that we can adjust N rates down following non-legume crops such as potatoes, sugarbeets and sunflower. I would feel comfortable reducing N on crops in the spring following potatoes that left an N credit of 20-30 lb N/acre, sunflower of 20 lb/acre and sugarbeets on yellow-green fall foliage of 15-20 lbN/acre.

D) Check out the N contribution of DAP (18-46-0) and pricing combinations to allow a decrease in N from high cost sources to a combination containing a higher proportion of DAP.

E) Possible N-fixing legumes to seed would include soybeans, lentils, garbanzo beans and field peas.

Farm Fuel Use Tips
By Vern Hofman, NDSU Extension Ag Engineer

Typically, fuel use to produce a crop from planting to harvest runs about 3 to 5 gallons/acre (gpa) for most crops in our area. This is for most intensive (tillage) farming operations as well as no-till. Those doing a lot of tillage would be on the high side of that range. No-till may be on the lower end of that range, but it won’t be much under.

It takes about 0.6 gpa to pull a drill across a field whether it is a no-till disc drill or an air seeder. It takes about 0.3 gpa for a spray operation, and if a producer makes 2 trips, that adds up to 0.6 gpa. It takes another 1.1 gpa to harvest a crop. We also need to add in a little for hauling the crop and other incidental trips around the farm. This adds up to almost 3 gpa doing no-till. For those that do tillage the fuel use goes up fairly fast.

Following is the break down in fuel use for farming operations in ND, determined by a farm fuel use survey that our department did a few years ago:

Chisel plowing 0.8 gpa
Field cultivator 0.6 gpa
Heavy tandem disc 0.9 gpa
Spraying 0.3 gpa
NH3 Application 0.6 gpa
Harrow 0.2 gpa
Planter 0.3 gpa
Drill 0.5 gpa
Swathing 0.3 gpa
Combining 1.1 gpa
Combination Operations:
Cultivate-Plant 0.6 gpa
Cultivate-Drill 0.8 gpa

Some fuel savings can be realized when a producer combines operations, as compared to making separate trips across a field such as cultivating and seeding with a grain drill. A lot of producers are already doing combination seeding with the use of air seeders. These numbers are averages and some variation will occur with various farmers. Usually the difference will be due to operating depth and speed of operation.

I don’t think the cost of fuel has risen as much as the fertilizer cost, which is a good thing. When you look at the total cost of the fuel bill in relation to all the other costs, it is still a fairly small part of the total cost of farming. That said, however, if fuel cost 90 cents per gallon a year ago and it cost $1.20 now, with a 4 gpa fuel use, it will cost another $1.20 per acre more to produce a crop. Multiply this times a 1,000-acre farm ($1,200), and that starts adding up to some real money.

I would suggest that producers study their farming operations thoroughly and determine if a tillage operation is an absolute necessity, or if can it be eliminated. Alternatively, can they combine two jobs and make one pass over the field instead of two? This can make for some tough decisions that a producer has to make. We know that some fuel will be needed to plant and harvest a crop, but can some of the tillage operations be eliminated?

On a tractor, consider radial tires that can be operated at lower pressures. Running radials at pressures below 10 psi will reduce slippage and pull equipment more efficiently across the field. However, one must use caution to be sure that dropping tire pressure doesn’t exceed the load carrying capacity of the tire as it goes down at lower pressure. This means that a larger tire is needed. This concept is best applied when a farmer is in the market for a new tractor when he can select the tire and pressure that will carry the load.

Also, make sure equipment is in top operating condition. Consider having it looked at by a dealer in the off-season to be sure it is operating as efficiently as possible. Many dealers provide this service which can be an excellent investment. Tractors are becoming more complex, and often a dealer serviceman is needed to tell if a tractor is operating as efficiently as possible.