Issue 20
March
1999
Before cutting input costs, consider "Four A's" of crop productivity

By Dr. Jochum Wiersma, U of M Small Grains Specialist


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Prairie Grains is the official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain Growers Association,
South Dakota Wheat, Inc., and the Minnesota Barley Growers Association.

In the book "Wheat Health Management," authors James Cook and Roger Veseth discuss the "four A’s" of wheat productivity. These four A’s stand for absolute yield, attainable yield, affordable yield and actual yield. The authors explain each of these levels as follows:
The absolute yield is what’s possible with no limiting factors except the genetic potential of the crop. It is the theoretical maximum yield of wheat.
The attainable yield is the yield possible in any given environment, year, and area. It is limited by the climate, weather, depth of soil, and other factors that we cannot manage.
The affordable yield of wheat is limited by available water, growing degree days, temperature extremes, the intensity of sunshine, and day length.
The actual yield is what’s harvested in any given field. It is the outcome of the ability of the crop to respond or take advantage of the growing conditions counter-balanced by weeds, insects, diseases, soil compaction, frost, or other production hazards. The actual yield may also be called the allowed yield. As in, yield allowed by production competitors and other but manageable problems or limitations in the field, offset by the price paid to achieve that yield.

I encourage you to consider allowed yield before scaling back crop inputs too much for the coming growing season.

When evaluating the need for inputs, it makes the most sense to have the actual yield approach the allowable yield, such that each additional amount of the input will at least pay for itself. The allowable yield is the yield level at which we control those factors we can exercise control over. Since each input comes with its own cost, you have to evaluate the return of the input before trying to achieve the allowable yield.
If the additional yield as a result of the input pays for the input itself, it is worth the additional input. But how do you decide? First, although we are working in a biological system, assume each decision as an independent factor.

For several of the factors, we have very good to reasonably well-defined decision guides: Soil testing and setting a reasonable yield goal (a.k.a. the allowable yield) will allow you to calculate your fertilizer needs to within the pound. For wild oats (and soon for foxtail), we have thresholds available which will allow you to determine whether that input will have a return. We have a foliar fungicide decision guide for leaf diseases including Septoria, tanspot, powdery mildew and rusts. There are degree-day based thresholds for aphids and orange wheat blossom midge that help track population peaks. Even for Fusarium Head Blight or scab, we have some very good environmental indicators that will help us in the decision-making process.
One underlying theme should resonate through very clearly – if you want to control input costs, you will have to scout the crop. Only then can you make sound, economic decisions.
But why, you may ask, do I still strive to reach the allowable yield? Very simple: you have your fixed and variable costs per acre, and each additional bushel produced will reduce the fixed portion of your cost per bushel (you divide the total cost per acre over the total number of bushels produced) and thus lowering your cost per bushel produced. Subsequently, that allows you to be the more competitive in the marketplace.

With the current prices for wheat, everyone including your banker, screams to reduce your input cost. Why? In lean times like these everyone gets cautious and wants to minimize financial exposure. But are you really reducing your risks by cutting out inputs that pay for themselves? Actually, you are in a sense increasing your risks, because you forfeit your opportunity to control a biological risk that will move your actual yield away from the allowable yield, and increase your cost per bushel produced.

We are by human nature averse to risk. Farmers are no different. Indeed, it takes a strong stomach to invest in input expenditures in lean times like these to ultimately reduce your risk. Skimp if you must, but don’t drop back so much that your crop yield and quality will suffer because of it.

After this rather theoretical discussion about allowable yields, costs, and risks, following are some ways to reduce your input cost (without affecting your allowable yield).

1. Re-negotiate rent.
2. Use bin-run seed if you must, but clean it and check for germination and vigor.
3. If we have an early spring, wait an additional 2-3 days and kill the first flush of wild oats with your seedbed preparation (soil temperatures have to get above 40°F).
4. If we have an early spring, consider harrowing your wheat rather than using a grass herbicide.
5. Eliminate a seed treatment when you have a good seedbed, soil temperatures have warmed up sufficiently and weather forecasts indicate that a rapid germination can be expected
.

From the Wheat Research File

Agronomic Response of Spring Wheat with ACA Seed Application

Wheat seed vigor, plant performance, and economic return can be improved with seed applications of Agricultural Crop Additive (ACA), an ammonia zinc acetate product originally developed by Amoco Oil Co., Chicago, to be used as an additive to anhydrous ammonia that currently is a product of United Agri Products.

LeRoy Spilde, associate plant sciences professor at North Dakota State University, evaluated the effect of ACA in 1994-96 on seed germination, plant emergence, plant growth rate, grain yield and grain test weight under laboratory and field conditions when applied to seed.

Germination percentage and seedling growth rate increased significantly in the lab tests. Field trial results indicated that spring ACA seed treatments were all higher than the untreated check for grain yield and test weight. Net return with 1.7 and 3.4 fl oz/bu rates was significantly higher than the check. Similarly, data indicated that the economic return would favor a 1.7 fl oz/bu rate — about one-half the recommended rate for soil application.

Spilde says more research is needed to study minimum rates for optimum response, the effect on additional crops, different environmental conditions, and the potential for tank-mixing ACA with other products.

See the complete research report on the web: www.ag.ndsu.nodak. edu/ndagres/fall98/ar21198a.htm

Copyright Prairie
Grains Magazine
March 1999