Costs of crop inputs (particularly fertilizer, fuel, and pesticides) have increased sharply over the past 6 months and have set up a more challenging path to profitability for the 2022 crop season.
This segment will focus on fertilizer cost increase and ideas for managing costs without overly penalizing yield goals.
Crop input prices have spiked going into fall and will require input budgets to be finely tuned. Commodity prices are also much higher for next fall vs. prices that was seen last fall for 2021 fall. This will help offset the higher input costs.
When selling grain, growers look at CBOT futures. The data for corn and soybeans for 2021 and 2022 are in the table below.
[1] Corn December 21 future
[2] Corn December 22 future
[3] Soybean November 21 future
[4] Soybean November 22 future
The difference between the price of CBOT futures and the local cash price is called “basis.” When the CBOT futures price is above the local cash price, the basis is “negative.” Conversely, when the local cash price is above the CBOT futures price, the basis is positive. The assumption here is that the local cash price is lower than the CBOT futures price by $0.30/bushel.
Input prices historically have not caused many swings in what is planted in the US. However, the 2022 season could be an anomaly based on forecasted returns and input availability.
Nitrogen fertilizer prices are the main fluctuating factor of production cost separating corn from soybeans; soybeans do not require nitrogen fertilizer and corn yield is highly dependent on nitrogen fertilizer. The spread this season, for a 200 pound per acre N application on corn, increases corn costs by ~$80-100 per acre compared to last fall.
Nitrogen fertilizer prices are all up compared to 2020 data. The image below shows the relationship between corn prices, anhydrous ammonia, and natural gas prices.
When looking at the actual prices of various N, P, and K fertilizers in the table below, almost all have more than doubled since 2020.
There are no easy ways around reducing N applications for corn. In the Midwest, much work has been done around a concept called “Maximum Return to Nitrogen” (MRTN) that optimizes the amount of nitrogen related to the expected yield. It helps to make a more informed decision about the amount of nitrogen to apply, but nitrogen still needs to be used to get a reasonable yield. More information can be found on the MRTN website.
Agronomic input prices have been going up since 2020 and expected to increase even more for 2022. Learn ways to optimize fertilizer input.
Now let’s consider data from fall 2020 vs. fall 2021. Utilizing CBOT CZ future prices of corn and today’s prices based on nitrogen per lb. for anhydrous ammonia, the firm commodity markets seen today for fall 2022, have corn prices at $5.00 per bushel (vs. $4.00 per bushel in fall 2020). This will help keep N fertilizer amounts in perspective.
To get the same economic return in 2022 vs. this past season, N rates only need to be reduced by about 14%. There will be many other factors to consider as decisions are made for the 2022 planting season. For now, the use of tools like the MRTN model can help growers make the most informed decisions in these complicated input cost environments.
Possible solutions for managing high N costs:
P and K fertility are often looked at as something that can be skimped on to reduce input costs in any year. “Mining” the soil bank of P and K and reducing overall levels of fertility can be done in fields with adequate to high soil test levels. Still, it is not a wise long-term solution to deplete soil fertility levels and later be in a position where yields suffer from lack of fertility. Then, a multi-year build-up program is required to re-establish the productivity of the field.
Possible solutions managing for higher P and K costs:
Meet with a trusted advisor and consider using products that help make soil nutrients more available to crops in the 2022 season. Many bio-stimulants and other products have data to support their effectiveness in assisting plants to be more efficient with nutrient uptake.
If glyphosate and/or glufosinate is unavailable, what post-emerge options would be used along with the approved herbicide for your soybean herbicide trait(s) being grown in 2022?
Consider using adjuvants to ensure that the applied liquid nutrient reaches its intended target. They can improve deposition, spreading, uptake on foliage, and improve soil wetting. There are specific adjuvants that can improve the efficiency of soil- and foliar-applied nutrients, helping to make the most of each fertilizer application.
Planning for the 2022 crop season is not an easy task. Evaluating crop nutrient needs vs. what is already available in the soil vs. what can be applied, will help determine the best economic return and allow for crop budgets to be spent wisely.
Surfactants, water conditioners, stickers, deposition aids, and other adjuvants positively influence application by optimizing tank mixes to create the best possible application and reduce callbacks in the process. Read on for specific products and how they maximize results for the end-user.
Exacto is pleased to announce the appointment of Malin Westfall as Chief Commercial Officer. Exacto, LLC (“Exacto”), a full-service innovation partner in the agricultural, turf, and ornamental horticulture markets, is pleased to announce the appointment of Malin Westfall as Chief Commercial Officer, effective immediately.
“We are pleased to announce a strategic partnership with S2G and Skyline Global Partners,” says Wally Beecroft CEO of Exacto®, LLC. “This will enable us to accelerate our innovation capability, geographic expansion, and expand our offerings, all in the service of our customers.”
“We are pleased to announce a strategic partnership with S2G and Skyline Global Partners,” says Wally Beecroft CEO of Exacto®, LLC. “This will enable us to accelerate our innovation capability, geographic expansion, and expand our offerings, all in the service of our customers.”
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While athletes almost always prefer natural grass fields, artificial turf is a widely used playing surface due to the perception that it is easier to maintain. There’s been a recent push to shift artificial surfaces back to natural grass as big-name players sustain season-ending injuries and organizations prioritize playing surface conditions when selecting hosts for tournaments.
Surfactants are widely used across the world – in fact, you probably use surfactants every day in soaps, detergents, toothpaste, cosmetics, and countless other applications. Surfactants are just as important in agriculture and turf and understanding how and when to use the right surfactant can make or break a successful application.
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