Three ways to Use Data to Be More Profitable

If I asked you if you had a budget, you would most likely tell me you did. If I asked you where you could skim your budget in order to save more for your child’s education, a new truck or a vacation, you most likely wouldn’t know where to start. I know I wouldn’t!

This is really no different than farming. If you don’t have it written out, in detail, with all of your expenses and projected income, would you know where to start to be able to be more profitable?

First, you have to figure out what your profitability is throughout the field.  You can do this by adding up all of your inputs on your field (flat rated & variable rated) and adding those costs appropriately. When I say appropriately, I mean making sure that variable rates are accounted for.

Next, you have your income from your crop to add to the equation. But, your yield map is variable, so your cost of production is variable. See where I’m going with this?

Using your data to create a profitability map, like this one, can identify those areas.

cost per yield map

Think about this number:  If 10% of your fields are losing money and let’s hypothetically say they are losing you an average of $2.00/bushel, that equates to some serious money loss when you scale it across your entire operation!

But, as my brother asked me once about our own family’s field when I showed him our home field’s profitability map, “That’s great, Katie, but what do you do with this map?”  Using the data and the technology that a grower has available to them, that’s when the magic happens.

 


HERE ARE THREE WAYS A GROWER CAN USE DATA TO BE MORE PROFITABLE


1. STOP TREATING ALL FIELDS THE SAME.

They don’t all produce the same, so why should they have the same yield goals?

2. DEVELOP A PLAN TO SPATIALLY MANAGE YOUR INPUTS WITHIN EACH OF YOUR FIELDS.

You don’t have to have all the latest and greatest technology. But you can use your data to help you improve your profitability within your operation. Your trusted advisor should be able to help you with this if you are unsure.

If we look at this example, these areas in red only removed off a portion of the nutrients that areas in green did.

premier crop nutrient removal rates

premiercrop_nutrientsremoved

Let’s give a hypothetical example: If we use $310 for the price of MAP and Potash, the difference in dollars removed is $5.20 and $6.30/acre, respectively.  We could use this information to make sure that our nutrient application accounts for these values in order to spend our nutrient dollars efficiently.  We’re all looking for ways to maximize every dollar and ensure that it returns us the most amount of profit.

 

3. USE YOUR DATA TO MAKE DECISIONS FOR THE NEXT CROP SEASON.

This requires you to listen to what the data is telling you. Using your data provides you the facts you need to make more profitable decisions.

We were led to believe that the Precision Ag technology could make us money or save us money. However, it’s the DATA that we use in combination with the technology that enables you to be more profitable.

Changing your outcome is only possible when you do things differently than what’s been comfortable. But, just like your own budget, knowing where to change is essential. Your trusted advisor is by your side to help you make these essential decisions and improve your overall farm profitability.

Using Data for Hybrid and Variety Seed Selection

“Part of the value of what they get in the Premier Crop program is being able to see beyond their own operations. A lot of times, hybrid and variety is the very first thing they look for.”

– Dan Frieberg

 

 

DAN FRIEBERG: I always think, from a grower’s perspective, that the first analysis that you do is your own. It’s what your own results were from that crop year. What worked and what didn’t? It’s understanding analytics by hybrid or variety across their operation. The reason that it’s really great at a grower level is that, sometimes, a hybrid or variety in data shows up having done really poorly at a grower level, but the grower knows where it was planted. They have the benefit of knowing that the reason that number did badly, or looks bad, was because I planted it on my three worst fields. It may have been that they picked the number intentionally that had more defensive characteristics because those are really difficult fields. So, I think just looking at how your numbers did on your own operation is maybe a starting place.

TONY LICHT: Maybe to build off of that, Dan, from there, once I do the analysis on my own operation, then I want to think about: “How did it do for others around me in a like environment, somewhere pretty close to me?” Because if it happened to do poorly for me, but I find out it did well for others, where did it do well for others? How can I correct that?

use data to select seed hybrid

DAN FRIEBERG: Amen. Every grower in the system has the option of whether they want to be part of seeing anonymously beyond their own operation. Today, they all want that. Part of the value of what they get in the program is being able to see beyond their own operations. A lot of times, hybrid and variety is the very first thing they look for. They want to see beyond what their own experience was.

TONY LICHT: And depending on the number of hybrids or varieties they’re planting, sometimes if it’s planted on a small amount of acres, they completely forget about it. I mean, you think about the larger-acre hybrids, and it’s like: “Oh, I forgot about those new ones I planted. How did they shake up against the rest of my line?”

RENEE HANSEN: I mean, you’re talking about expanding beyond the operation, in a sense benchmarking against other areas or like areas. Can you explain or elaborate a little bit more about how Premier Crop utilizes the hybrid and variety selection with data? What does that potentially look like? Or what is the conversation with the grower?

DAN FRIEBERG: Renee, it’s kind of unlimited sorts. Initially, a lot of people might focus on soil types. If they have dominant soil types, it might be just hybrid and variety performance on different soil types. In some markets, for example, pH can be a huge driver on soybeans. High-pH areas or low-pH areas can have a huge swing, and varieties respond differently in those environments. Those would be two examples of how people get started, but they probably don’t stop there. They look at things like planting date or harvest date. So, if you’re a large operation, what inevitably happens is you end up with some fields that you know are going to be harvested last. So, for those numbers, Renee, they might drill down on late-harvest data. They’re trying to pick numbers that they know will stand and hold the ear late into harvest because some field has got to be harvested last, and a lot of growers literally plan. They plan their harvest by the way they plan their planting. There are certain fields that are always going to get planted first. In the case of harvest, there are certain fields that are going to be taken out first. It might be the ones that are closest to the bin site. They want to get the bins. They want to get the dryer going, and so there are certain fields that will come out early. A lot of times, those fields that come out early will probably get more of a racehorse number that doesn’t have to stand. It’s the highest yield potential because they know they’re going to get it before they get very far into harvest.

profitability by hybrid or variety

TONY LICHT: As-applied fertility can also be another environment they may want to look at, as well. How did I treat this group of corn hybrids differently on as-applied nitrogen, maybe split treatment or in-season treatment, versus just “all in the fall” kind of a concept? Are there differences amongst the hybrids and varieties now? How did they react to the environment they were in, whether it be as-applied fertility or soil test fertility?

DAN FRIEBERG: What we do is just adding another source of analysis to what a grower considers. A lot of times, their decision is if something did exceptional for them, they’re probably going to plant it again, obviously. They’ll look beyond their own operation to see and make sure it wasn’t a fluke or see how it held up in other environments. One of the advantages we have is that we can tend to see the hybrid and variety performance in different growing environments in the same year, meaning that you might’ve been in a really dry area, but you can go look and see how it did in a normal area. Or you happen to be unfortunate and you got hit by the wind, and so, sometimes, you want to jump out of your area because your own data isn’t as meaningful, just because you had something that happened that didn’t make your data quite as useful.

TONY LICHT: I was just going to say that’s a great point. Case in point: the wide area this year that got hit by the derecho. Those folks don’t lose data for a year. They still have the ability to build on data, albeit from a little bit further than their real local geography. It might be from 20 miles away in an area that was not hit. It could still be considered a like-agronomic environment.

DAN FRIEBERG: There are really big dollar swings because we’re measuring the economics and the agronomics. The reason people focus on it a lot is, at the end of the year, there are just really big dollar swings on a per-acre basis. It could easily be a 100 dollar-per-acre swing in return to land and management or what we call yield efficiency. You can just see really large swings. When you start analyzing that way, from my perspective, it probably leads to having a strategy where you call more aggressively. I grew up on a livestock farm and the term “cull,” “culling the herd.” In the livestock industry, you’re just constantly eliminating the low producers. When you’re making genetic selection, you’re eliminating the bottom 20 percent or whatever. In the case of hybrid and variety selection, I think, sometimes, we need to be more aggressive about calling some of the poor performers out if we’re really focused on trying to drive the highest returns.

Yield Efficiency Score

RENEE HANSEN: You both were talking about data. Can you elaborate a little bit more on the data features that Premier Crop measures hybrid variety with?

TONY LICHT: Everybody always thinks of just yield by hybrid and variety, but there are a lot of other attributes that come along with that hybrid: relative maturity on the chemical resistance or the seed disease resistance, as far as rootworm traits, non-rootworm traits. All those things come along with it. So, the conversation goes beyond not just a yield by hybrid, but maybe there was a specific trait that really helped drive yield, or a certain plant date helped drive yield. What are the trends I can see across my farm from a given year, and then also across a series of years, as well?

DAN FRIEBERG: Over the years, you’ve lived through some of the trait issues, just where we had areas where the rootworm trait wasn’t holding up. We ended up going through several years where needing a rootworm insecticide was a big part of the strategy and a big return for growers.

TONY LICHT: Absolutely. As a grower, do I need to do a double approach here? Not just the trait, but seed-applied insecticide, and where? And what can I expect from those people that have been utilizing that? What has the success rate been for them, to determine immediately, like: “Okay, well, here’s kind of a return on investment I can expect to get back out of this.”

DAN FRIEBERG: The trait thing probably also comes up as people shift in herbicide strategies. Renee, people would use the data to try to quantify differences in herbicide if they’re considering Liberty or if they’re needing to rotate strategies from any kind of a pest management or weed management strategy. That’s another piece where they drill down in data a lot, just to try to find the best performing genetics, as they’re switching strategies.

RENEE HANSEN: So, what would you say is the benefit to having all of this data to a grower who is utilizing Premier Crop Systems versus somebody who isn’t?

DAN FRIEBERG: It’s even the growers we work with, Renee. We are one part of how they make decisions in the seed world because, a lot of times, they have seed sellers who they really trust. They have long-time relationships in local communities with seed advisors. So, a lot of times, the seed advisor is there, too, and most growers will want to plant 20 percent of their acreage to something that’s new because every year there are new genetics coming out. Unless it’s been planted commercially, we don’t have any data on the new numbers. A lot of times, that’s what happens. Their local seed advisor or seed seller is positioning what they know about the new genetics from plots and what they’ve seen in small quantities as it got planted in the pre-commercial years.

TONY LICHT: A team can definitely help that grower out. We’ve always said that agronomy is local. So, that local knowledge with that seed advisor, combined with a lot of data points from a given area, can just help amplify the value proposition for the grower in getting the right seed on the right acres.

RENEE HANSEN: Yeah, and since we have a lot of data in our system, we clearly have seen. Over the years, with all of the data in our system, have you seen trends? And what are they?

TONY LICHT: There have definitely been trends in certain geographies of a stronger yield correlation by later maturing hybrid. But within that, there are all these “gotchas,” where there are a few early-season hybrids that perform within those environments very, very well — whether it be later maturing hybrids going further north or earlier maturing hybrids going south. So, definitely looking at not just a multi-year, but looking within and across those different years individually, trying to pull out those trends of what hybrids can be moved around either north to south to accommodate diversifying a grower’s portfolio.

DAN FRIEBERG: In the early years, you could literally see in the data. Sometimes, when companies had trouble with trait insertion, the non-traited versus the traited, you could actually see a yield decrease. I mean, companies are getting way better at that. I don’t think it’s as big an issue as it might’ve been in the early years.

TONY LICHT: When new traits come to the market, growers will definitely want to ask the question: “How do the new traits compare to my existing operation? Or how much more do they bring to the table for me?”

DAN FRIEBERG: Growers drill down on that really quick because what tends to happen is new traits come at a price. Usually, the company is wanting a premium for them. They’re trying to weigh that. Is that extra seed investment worth it? Am I actually getting a higher return?

RENEE HANSEN: Can you talk a little bit about yield efficiency — and Dan, you did elaborate on it a little bit — and how developing and making a selection for your hybrid or variety, how that can attribute to your yield efficiency score?

DAN FRIEBERG: Yield efficiency is just the dollar-per-acre return to land and management, meaning, after you’ve paid for the seed and nutrients and crop protection and field operations, what’s left. From a seed perspective, Renee, it comes down to: “What was the price point? How much did I have to pay for the seed?” And then, probably, the next piece is: “How could I manage the seed?” There are some numbers that just have a lot of flex, meaning they’ll flex ear size as based on population. So, in a highly variable field, that might be a great strategy, just something that will really change. In other words, you can plant at a lower population, and if it’s a good year, you won’t take a yield hit. Versus a fixed-ear number, they’re really responsive to populations. It’s just even a bigger factor. Some numbers just require more. In order to produce at the top end, in general, you need more. You need more plants, but some numbers seem to be able to flex more than others. So, that goes into yield efficiency because if you can plant a number at a lower rate and still achieve the same yield, you could potentially add 10 or 15 dollars an acre in return.

TONY LICHT: To build off of just reallocating your rate around the field, as planters become more sophisticated, we can reallocate which hybrids go on which part of the field, assigning hybrids to zones or soil types and at different rates, as well. We’ve got a different cost point of the hybrid and a different rate to maximize the ROI.

DAN FRIEBERG: We have a lot of growers in the system that are doing multi-hybrid or multi-variety planting. Do you think that’ll continue to grow? Where do you see the trend on it?

TONY LICHT: We continue to be in a discovery phase with that, of trying to figure out the best placement of hybrids, the different rates of hybrids, like those treatment blocks behind you in your background, Dan. ELBs accelerating the learning of rate and also placement of hybrids helps us versus single-rate testing year over year. We definitely continue to try and find the bottom of the soybean population, but the issue with that is, all of a sudden, it becomes an unemotional decision. That’s at times looking at data points in January, February, March, but all of a sudden, sometimes, it becomes a little bit of an emotional decision in season. If I feel confident in the data in January that I can drill down a seeding-rate population to 120 or 110 or 100 thousand, and, all of a sudden, I might get cold feet in April. If it happens to be a really great spring, and we can get out and plant early and do everything we want to do early, all of a sudden, it may be an uncomfortable situation of: “Boy, I don’t know if I have enough. I don’t know if I have enough information on planting this lower rate this early. Maybe for safekeeping, I should just turn the population back up just a little bit.” So, it’s trying to balance the emotional decision versus the data decision back in the couple previous months to really drive and find the bottom of where we can go on populations. It’s just the same way in corn, in soybeans and corn. As far as wheat, how much we want to sow. I think everybody kind of knows where the optimal rates are, but where are the extreme rates, the highs and the lows that really maximize that yield efficiency?

seed yield efficiency

DAN FRIEBERG: I get copied in on a lot of the trial results. I’ve seen some 80,000 seed drops on soybeans that just did exceptional, and they were learning blocks or replicated trials. It really gets your attention because if you start trimming 50,000 seeds, and you get a higher yield, it really drives the dollars really fast.

TONY LICHT: Seed treatments and soybeans have really, really helped us drill down, I think, our populations, as well. We’re better protecting that seed to ensure that every one of them matters more to get up and out of the ground in a timely fashion.

RENEE HANSEN: Yeah, ultimately, driving up that yield efficiency score, helping growers profit more. Thank you guys for joining us today. So great to see you, so great to have you, and we’ll be back again. Thanks for listening to the Premier Podcast, where everything agronomic is economic.

What Can You Do With Your Farm Data?

“We know there are dollars left on the table on every acre, it’s just a matter of finding it with your farm data.” – Lance Meyer, Kansas

LANCE MEYER: Hi, guys. My name is Lance Meyer. I’m an advisor here in eastern Kansas, actually located in the little town of Wellsville, just southwest of Kansas City. I’ve been with Premier Crop for about a year and a half now, and I work with growers kind of all over Kansas. I’m mainly focused here in east-central Kansas, but I get out west and up north a little bit, so kind of all over.

RENEE HANSEN: Yeah, and Lance, where did you go to school?

LANCE MEYER: Of course, K-State. I mean, is there any other school? I think I’m the only K-State grad with Premier Crop right now, so it makes me feel pretty good. I went to K-State, did ag technology there, minored in agronomy and ag business. With Premier Crop, now I’m doing what I love and pretty much exactly what I went to school for. It’s going great.

RENEE HANSEN:  Today, we’re talking with Lance about the “why” behind your field map and how data and agronomic data can really help you move forward and help you be more profitable in the years to come. So, Lance, I’m just going to ask you some questions. Just tell me a little bit about what you have seen within the last year and a half while at Premier Crop, or even when you were in school, noticing different spots in the field through data. Can you explain that a little bit more?

LANCE MEYER: Well, first of all, it’s great that people are recognizing that there are these spots in the field. In precision ag, at Premier Crop, we call that variability, and that’s ultimately our main goal. It’s to manage that variability, and Premier Crop has a bunch of different tools. Some examples that a grower might see differences in soil fertility: that could be organic matter, pH or just your soil-supplied nutrients. That’s really different all over Kansas. That’s one great thing about Kansas. You get kind of the whole diverse picture. So, in eastern Kansas, we could deal with some pretty acidic soils, and then, as you move farther west, you get into some really high-pH environments. So, there are a lot of different things there that are going on. Another thing here in Kansas: as you move farther west, you have historically high potassium in the soil. That’s a couple of things we deal with in Kansas, some other examples: weather also plays a big factor. We have a lot of irrigation out west. There’s some surface water irrigation here in eastern Kansas. Then, you also get into those very drouthy environments out west and a lot of dry-land farming. That can play a big factor in it. Some other things: different genetics are used in hybrids, that sort of thing. Stuff that works here in eastern Kansas is not going to work in western Kansas, in most cases. There are some big differences also in crop protection products. Different hybrids respond to different fungicides. We noticed a lot about that this year, that some hybrids respond greatly to fungicides, and then some not so much. There’s a lot of variability across the state, and that’s one thing that I’m here to help manage and make the best decision for the grower.

farm data map layers

RENEE HANSEN:  We say, within Premier Crop, that agronomy is local, but farmers say it too because we have this vast information of data within our system. Ranging from Canada, down south to Oklahoma, East to Ohio, all the way to Colorado. And it’s so important that looking at data locally, specifically in Kansas, is so significantly different. What would be the importance for a grower to start using their data when working with you?

LANCE MEYER: Like I talked about, there’s so much variability. Even across the state, but even in each county. Working with growers in eastern Kansas versus western Kansas, I mean, agronomy is completely different, and that’s really what I love about Premier Crop. You don’t have to be an expert on anything because we are using the data, and it’s pretty much screaming at us, telling us what we need to do. The Premier Crop software is really a big part of that, along with our industry agronomy experience. But the farm data really gives us the analytics and the insights, telling us what we need to be doing for each grower.

RENEE HANSEN: Yeah, so you talked a little bit about the software Premier Crop and, coupled with what you are able to offer, what tools does Premier Crop have to help a grower learn and why?

LANCE MEYER: For the businessman farmer of today, the guy that really enjoys using his data but might not necessarily have the time to do it. The operations that we work with are CEOs of their farm operation. Our advisors work with the grower to collect the farm data, manage the data, organize the data and make sense of the data, letting the farmer farm as they want to, without any time invested. We take care of everything, from variable-rate recommendations, cost tracking, to delivering the analysis in an easy way that the grower can understand, because we all know that looking at data can be pretty overwhelming and hard to make sense of. So, that’s a big piece of what we do, delivering farm data in a way that it’s easy to understand for the grower.

RENEE HANSEN: Yeah, I feel like some of the growers that I talk to in the field, just even around here in our area, even some of my friends that we’ve reached out to, I feel like they just don’t know where to get started. That is the hardest point, to just make that leap to get started with data. What would you say is the first thing? How easy can it be?  We take care of it, but what are some of the first steps that they need?

LANCE MEYER: Managing farm data is actually, really, pretty simple. The baseline of everything that we do is tied back to a yield file or that yield map. So, that’s essentially the only thing that we need to get started, that one or two years of historical yield data. I don’t know the stats on that or whatnot, but I think there are some 80% of growers out there that are capable of collecting yield data or are collecting yield data. They just don’t actually know it. I would think that the number’s actually higher than that, given the amount of people that I talk to and the conversations I have with people. You just have to have some yield data to get started. There are also other layers that are great. Having soil data will give us more insights, but the baseline is just yield data, and that’s the majority of growers out there.

RENEE HANSEN: And it can be so overwhelming because there are so many different layers of data, from soil sample data, yield data, planting data, as-applied data, and adding that all up yourself, the brainpower can be exhausting.

LANCE MEYER: You’re exactly right, and that’s our ultimate goal, to help take that lift off your shoulders. I tell growers all the time: “I’m sure the first thing they want to do after they get in from a long day is sit down at their computer and manage all this stuff.” And they’re like: “Yeah, no. That’s not what I want to be doing.” That’s just another little piece of the pie, I guess, the value that Premier Crop ultimately brings.

RENEE HANSEN: Especially when it’s “go time,” when it’s planting or harvest time. There’s probably something they need to be working on, rather than messing around with data.

LANCE MEYER: Yep, and helping with the monitor and all the technical stuff like that is big, too. Growers tell me all the time. When you get a problem in the monitor, and you’re sitting in the field for one or two minutes trying to fix something, that seems like an eternity for a grower sitting there, wanting to get going. I mean, that’s ultimately what they love doing, running the equipment. So, having a little bit of a setback due to the technical stuff can be a big deal.

RENEE HANSEN: When it’s “go time,” it is a race against the clock, no matter what is going on.

LANCE MEYER: That’s right. It doesn’t matter where you are. That’s everybody out there.

yieldmonitor

RENEE HANSEN: Another thing with the tools that Premier Crop is offering we’ve been talking a lot about yield efficiency. Lance, I want you to talk a little bit about yield efficiency. What does success look like when looking at all of these maps from historical yield, ultimately leading to yield efficiency?

LANCE MEYER: With the yield efficiency piece, here at Premier Crop, I mean, we’re essentially redefining the success metric for today’s farmer. For so long, we’ve been focused on yield, but now we bring this concept of yield efficiency that a lot of people might not understand, but we’re helping people get there. Yield efficiency is, essentially, the amount of money in return from your crop that you have to pay land and management costs at the end of the day. So, obviously, yield is the number-one driver of yield efficiency. As long as we can drive higher yields while still lowering our break-even cost per bushel, we’re becoming more profitable, and profitability, for me, is success with my growers. These maps that Premier Crop gives us, they’re really our report card for the season, and that’s how I like to describe it with my growers. As long as we’re lowering that break-even cost per bushel and driving higher yields, like I just mentioned, I call it a successful season, whether it’s $10 an acre or $100 an acre farm profitability. We know that there are dollars left on the table on every acre, so it’s just a matter of finding it with your farm data. Like I said, if it’s a smaller amount or larger amount, I consider that success with my growers.


Yield efficiency score showing profitability


RENEE HANSEN: Do you have a specific example? Do you have a great success story that you saw this year?

LANCE MEYER: There’s actually one big takeaway that really stands out from 2020 and also in 2019. And that’s on the fertilizer side, and managing our fertilizer investment. Make sure that we’re taking into account our crop removals when we’re making fertilizer recommendations. It’s a simple concept, but it’s hard to get across. Every year we grow a crop on a piece of land, we’re taking off nutrients in the grain. The soil supplied nutrients through that crop, and we remove that off from the amount the plant took up. As we stated above, our main goal is to manage our variability in yield. Within that variability in yield, we’re taking off different amounts of nutrients in different parts of the field. If we’re applying our fertilizer the next season to account for the field average and crop removal, we’re ultimately under-applying in a lot of the field and over-applying on a lot of the field, also. This is actually a conversation I had with a soil sampling company, SoilView, Craig Struve, yesterday. He had a slide from Colorado State that says: “95% of the time, you’re going to be over-applying or under-applying fertilizer on your removal if you’re just applying that field average.” That’s why at Premier Crop, using the actual yield file, is exactly what we’ve taken off the field to replace it the next season. We use this equation so we’re not mining down these better areas of the field and then over-applying in the worst areas of our fields. That’s one big example, I guess. That could be, like I said, $50 to $100 an acre right there. That’s one big thing that I found for this season, anyway. Like we said, a lot of growers can do this with their variable-rate technology they have, but they just might not necessarily understand it or believe it pays at this point.

RENEE HANSEN: Thank you so much Lance. Thanks for listening to the Premier Podcast, where everything agronomic is economic. Please subscribe, rate and review this podcast so we can continue to provide the best precision ag and analytic results for you. And to learn more about Premier Crop, visit our blog at premiercrop.com.

Why You Need a Farm Plan

It takes a great deal of effort to plan appropriately for the upcoming crop season. It isn’t easy to be successful, and it definitely takes some time. There’s an old saying that says, “You plan your work, and then you work your plan.”

TO BE SUCCESSFUL, IT’S ALL ABOUT GETTING ORGANIZED AHEAD OF TIME. 

One of the big benefits of being a great planner is directly related to buying opportunities. This sets you up to determine when to buy certain products during the year. The plan is not just what’s going to happen agronomically to set you up for the next crop year but, also to factor your budget, and your cash flow for those buying opportunities.

When I work directly with farmers, I always ask the same question: do you plan before you buy, or do you buy before you plan? An overwhelming number of growers say they buy first. There’s this pressure of getting in early and taking advantage of the early program discounts. They speak for and commit to a product, and then do some detailed planning with the products after they’ve purchased them. Some people think crop protection is an area that is difficult to plan. I don’t believe that’s true. It’s really easy to develop a crop protection plan. You need to do some evaluation of what worked and where you have escapes. 80-90% of your crop protection could be planned a year ahead of time because you know what weeds escaped. You can plan to tackle them next year, as you go into crop rotations.

Weed resistance doesn’t happen overnight, so growers can get a feel for that fairly quickly. We went through a decade where we didn’t have weed resistance, which made crop protection planning much easier than it is now. We only had to think about how many ounces of glyphosate we were going to use. It’s really changed since then, but most of it can still be planned. Having a great plan lets you take advantage of prepay opportunities, or the right pricing opportunities.

How do you prepare to plan? What data is relevant, as you think about planning your next crop year? What’s the relevant amount of data that I need to start planning?

In our case, we manage fields based on different productivity opportunities within the field. We create specific zones where you can be more aggressive or less aggressive. It’s important to have some kind of a spatial soil sample where you’re capturing pH changes and organic matter changes. Nutrient changes throughout the field are a significant piece of soil tests. A certain percent of the acres are getting re-sampled every year, so that information is constantly being updated.

grower in soybean field

One of the myths many growers believe is that planning is a single event. But this is not what we’ve seen from farmers who are effective planners. It is truly a multistep process. The best way to explain it is to use an example.

When you talk about planning with farmers, one thing they’ll say is: “It’s all weather dependent, and I can’t plan. Nobody can predict the weather, and I can’t plan because I don’t know what the weather is going to be.”

I’ve found that people can generally plan around weather. Think of it in terms of nitrogen management. With nitrogen management, there are a lot of weather components involved, but many growers plan their nitrogen program to have handoffs during the year. Timeliness of field operations is a large part of this. Growers in heavier soils want to do some nitrogen application early because it takes the workload off. They’ll do some nitrogen around planting time in order to have something immediately available to the young plant. At different places, you’re handing the crop off to different types of nitrogen applications.

2020 was a great mineralization spring where everything warmed up. We had adequate moisture and everything took off. Most likely there was planned side dress that didn’t happen because it wasn’t needed. As a grower, you need to avoid being reactive. There’s a certain mentality around: “I’m going to take a picture of the field through an image, and identify through the image the areas that need something.”

By the time the crop tells you it needs something, it’s too late. You’ve already lost yield. If an image tells you that the crop is denitrified, it’s not that you shouldn’t address those denitrified areas, but you’ve already lost yield. Our goal is to never let the plant have a bad day. That’s what high yields are all about. From start to finish, you want to execute a plan where the plant never has a bad day. That’s how you maximize yield and yield efficiency.

For me, success rides in the details. As part of that detail, we need to get out of the mindset of treating entire fields as though they’re the same. There is so much variability within fields. If we’re going to drive higher return to land and management and a higher dollar return, we need to focus on where and how much we invest, how we treat parts of fields differently, and how we treat fields differently from one another. They’re not all the same. Managing that variability is where the big dollar returns come in. We have single decisions that are high dollar-an-acre net swings for growers.

yield efficiency by management zone

 

YOU CAN’T MAKE “COMPLEX” SIMPLE, BUT YOU SURE CAN MAKE IT EASIER. 

Growers feel more in control when they have a plan. When you feel more in control, you have more peace of mind. Right now, I think we can all agree that the world seems pretty out of control. Last year we found out how much our food production system is a “just-in-time” delivery system. There’s a lot of “just-in-time” everything, and that’s all detailed planning and logistics. It’s an amazing system, but right now, having a better plan in really tight financial times just gives you more control and more peace of mind. It’s amazing how over the years I’ve witnessed growers plan seed around the destination of the grain. They plan what to plant based on where the grain is going to end up. They have fields they know are going to be the last to be harvested, so they are picking hybrids that have terrific standability and retention, and can stand until very late in the fall. They have fields that are coming out early to fill the grain dryer, or they’re chasing an early ethanol bid on some fields. Everything is planned for details that are typically very “plannable”, but it all comes down to thinking ahead. We have growers who plan manure applications two or three years ahead of time. They’ll contract with a turkey litter company very early on. They know that every few years they’re going to get access to a certain amount of litter or manure, so they plan that far in advance. It’s impressive how these growers plan rotations around this. The ability to manage details and use data to drive confident decision making is a skill that takes great attention. Our planning tools allow you to see an overall summary to give you a high level snapshot of your seed, nutrients, crop protection and operations.

Many growers are sitting on a bunch of historic yield data. At Premier Crop, we can put that to use immediately. Many growers haven’t made decisions off of what they have, so they like the idea of being able to take advantage of the data they’ve been collecting for so long. We generally grab the current planting data and applied fertility data right away because we’re focused on getting a benchmark year started immediately. That way we can establish a baseline year and judge and mark ourselves by how much we improve yields and yield efficiency. It’s never too late to get started putting your data to use. Making use of what you already have is a great starting point.

Get in touch with a Premier Crop Advisor here to get started making data driven decisions today.

Measuring Success With On-Farm Planning

As a grower, you’ve most likely asked yourself, “How do I improve my operation’s performance?” Defining success is an important first step towards improving performance on your operation. However, the definition of success has evolved over time.

In general, growers understand that in order to drive higher profitability, they need to drive higher yields. Higher yields are key because row-crop farming is a high fixed-cost business. Before you plant a crop, most of your machinery investment is locked in. Land cost, whether you own it or rent it, is by far the biggest fixed cost. Whether you produce 100-bushel corn or 200-bushel corn, or 50-bushel wheat or 80-bushel wheat, it doesn’t matter. You’re still left with many fixed costs. Producing more bushels is the only way to drive your cost down. Because of this, yield has become the surrogate for profitability.

We know better, though. We know that all yield isn’t created equal. Farming isn’t all about yield, it’s about how efficiently we produce it. It’s how many dollars we’re able to return to land and management.

I was speaking with a friend who is a professor in agriculture. He told me, “Real-world agronomy isn’t rocket science. It’s way more complex than rocket science.” His point is, we put someone on the moon with what would be the equivalent of a PC, or a laptop now. Real-world agronomy is super complex because it’s this interaction of all kinds of different biological factors, including the weather, soils, fertility, seeds, and genetics.

The reason we make the agronomic decisions we do is because we understand there’s an economic impact to them. We argue that agronomic-economic complexity is very spatial, meaning it’s changing within fields. There are parts of fields that are begging to be managed at a higher level, while there are some parts of fields telling us we need to quit wasting money there.

We have this division happening between different ag technology start-ups. We have precision ag, which is more agronomy focused, and we have farm management information systems, which are arguably more economic focused. Growers are having to choose between 1. Am I going to focus on subfield agronomy? Or 2. Am I going to focus on field-level economics? Of course, our answer is that you don’t have to choose. That’s what we’re about; combining those pieces together. Our solution is not one or the other, it’s both.

At Premier Crop, we’ve been doing this a long time, and I’m convinced the reason every grower doesn’t do what we do is because of the precision aspect. No one else has shown the grower year after year that this type of management pays. If we advocate or advise the grower to spend more money in the best part of the field, at the end of the year, we’re not having a “trust me” it works conversation. We’re providing the dollars-and-cents analysis to show that they saw a higher return. A lot of times, they’re spending 30 to 50 dollars an acre more on inputs in the best part of the field, but also generating an additional 80-dollar return to land and management beyond that input spend.

GROWER YIELD EFFICIENCY ($/AC) VS GROUP

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There is no doubt we need to continue to push higher yields. The times right now demand that growers scrutinize every dollar spent to get a higher return. It’s imperative that we be keen on how we spend every input and every input dollar to get that higher return. You may cut costs in some parts of fields, but we can’t always promise that you’re not going to spend whatever you save. Sometimes you’re going to spend extra in the best part of the field. The point is, we have the ability to prove and deliver a report card on every field that says it paid better than if we had flat-rated it and pretended it was all the same.

breakevencostperbushel

We talk about having 400 layers of data at a subfield level, and people just think we’re crazy for handling the complexity of all those data layers. There are so many things that change within fields, though, so what matters varies within different parts of the field. In our case, we have a lot of spatial soil sampling. Instead of just doing one sample that represents the entire field, we’re capturing differences such as organic matter, pH, and fertility. There could be a couple dozen layers captured that way. We capture as-applied fertility, which is more complex than people think because there are growers who would apply nitrogen in five different ways. We capture rate, source and cost, so those are all sortable data layers that can be analyzed. We have around 15 layers from the planting file:  population, density, seeds, and hybrid and variety are just a few. There are hundreds of layers that aren’t necessarily captured on a monitor, but they still really matter. Manure is a great example of this. There are still many manure applications that have a huge impact, both agronomically and economically, and they’re not always captured on a monitor. There’s also input capturing the real cost associated with all this. It’s quite a bit of detail, but do this because it’s the most meaningful.

Things you measure tend to improve. So, if you don’t measure it, does it have any chance of improving? It goes back to being intentional and having a goal. That’s what we do with growers we’re working with. Every year, there’s a goal-setting discussion about how we are going to measure success. Some growers want to drive yield efficiency. They want to drive higher returns, so that they can hire some help and their family life can improve. They can have more time with the family because they’re able to afford hired labor. Others want to expand their operation. Everybody’s got slightly different goals, but usually, it comes down to the fact that they’re business people, and they want to generate more returns or hold their operating capital in check.

The reality is, the definition of success is different for everyone, but profitability matters. Having a business, whether it’s farming or anything else, everybody’s trying to make some money. Measuring the right parts to drive operational growth and profitable growth is so important.

Get in touch with a Premier Crop Advisor here to get started making data driven decisions today.

Three Steps to Combine Farm Agronomics and Economics

We often use the phrase, “Everything agronomic is economic.” What does that really mean?

First, let’s first define agronomics and economics. What is agronomics? That’s everything that we do in the field related to making good management decisions. It’s deciding how much fertilizer to apply and where to put it, planting rates, crop protection, tillage systems and how to incorporate all of this into the farm. Those all go into how we grow our crop. On the economics side, we’re talking about all of the money involved in farming. Farming is a business, and just like any other business, you need to make sure you have cash flow so you have the opportunity to farm again next year, and the year after that. So, how do we focus on agronomics and economics? We do that by analyzing growers’ data. We use that knowledge to help them make decisions on their farm.

Knowing what you’ve done on the farm in the last five, 10, or 20 years can provide valuable knowledge as you plan into the future. However, if you never take that data and don’t use it to make decisions, it’s not doing you any good. It’s important to invest time into collecting your farm data. We work with growers to analyze their collected field data. We add costs to the layers of data including product cost, operations cost, management cost if they have any land-specific cost, and tie that to the yield file so we can see what is making agronomic and economic sense on the farm.

It’s fairly easy to tell where there are higher yields, but it’s a lot harder to know if that yield increase also caused an increase in the pocket book. Did the decision pay for itself? Did you produce enough bushels to offset the cost of production? Every pass across the field matters agronomically, but it also has a cost associated with it. We give you three steps to help combine your farm agronomics and economics below.

1. PLANTING

When you’re preparing to plant, your seed has the highest yield potential it’s ever going to have. Everything we do at Premier Crop is aligned with protecting yield potential, and planting population is a big aspect of this. If you overcrowd the plants, you’re going to make them compete for resources, which will end up reducing your yields. On the flip side, if you have too low of a population, then you’re reducing your yield potential by not having enough in the first place. You can’t produce more bushels of corn if you never plant the seed to begin with.

Combining agronomics and economics is about finding the right rate for the right part of the field, which we accomplish with management zones. A management zone is not just a seeding rate like it is with many other precision ag companies. We manage the field and the operation off of the zones. We break fields into high-producing areas, which are A zones, average-producing areas, which are B zones, and lower-producing areas, which are C zones. The B zones are the types of areas that do pretty well year in and year out, but they don’t have the capability to be the highest producing areas of the field. Our C zones could look like a wet spot, an area shaded by trees, or a family of deer could live nearby and eat it all the time. We manage nearly everything based on these zones.

premiercroppbreakevencostperbushel

In the A zones, our high-producing areas, we push planting populations. We plant more seeds in these areas because these parts of the fields have the capability to produce more bushels. In the C zones, we’re going to pull back our population because we know those spots just simply don’t have the yield potential. By labeling it as a C zone and understanding that it is not going to produce as well, we can manage risk by lowering the planting population. This practice will save money on seed costs in this part of the field because by lowering the population, we have reduced seed cost, which helps the bottom line. However, if we can get part of the field from a C zone to a B zone, or from a B zone to an A zone with fertilizer or any management practice, we will go after that to increase our return to land and management, what we call yield efficiency.

2. FERTILIZER

When variable-rate technologies first came out, the discussion was: “It’s going to save you money and reduce your fertilizer usage.” We found that’s not always the case, though. Instead, grower’s are making better decisions with their planting or fertilizer dollars. They are putting those dollars in the areas of the field where it’s needed and where they can get a return on their investment. We are driving farming towards thinking more on the economic side of the business.

In general with farming, if you’re doing a straight rate across the field, you’re essentially treating every acre the same. We know that every acre is not the same because when you’re harvesting, even if you don’t use a yield monitor, you can see variation in the amount of loads you’re taking off. You can tell how good or bad the corn is as you’re driving across the field. So, why would you treat your inputs the same if you’re not taking the same amount off of it at the end of the day? That’s why it’s so important to tie the economics to planting, and fertilizer. That is where the real benefit lies.

Even if you are locked in on your planting populations, placing different checks in a field through different years allows you to gather historical data and be able to check and say: “In this year, if we’re looking at a cold, wet spring, this is the best population to go with.” Even if we don’t use that specific data in the next year, we are still collecting it for future years.

It is also important to factor in your planting population when you’re determining your nitrogen rates. We often use the example: If you invite more plants to dinner, you have to have enough food to feed them. We could apply a straight rate, but we’re going to be overfeeding the poor-production areas and underfeeding the high-production areas. So, if you have a higher population in the A zones, you need to account for the added food they’re going to need. We can also push the nitrogen rates a little higher in the A zones because we have the capability to produce more bushels, not just because of the higher population but just because the ground is better. By pushing that, you’re taking a little bit more risk, but it’s a smart risk.

3. ANALYTICS

To get started looking at a grower’s analytics, we first pull yield monitor data. Then we look at everything the grower has done throughout the year, whether it’s fertilizer, lime, planting, nutrients, or crop protection products. We dig in and see what the economic benefit was. When planting, did we build small test plots into the planting maps for our growers called Learning Blocks. We then use the information from our all of our data within a management zone to see if we have the right rate. Learning Blocks not only show us what produces the highest yield, but it also shows which population provides the greatest return on investment. Once the prescription is in a grower’s monitor, they can just focus on farming. It’s very little thinking on a grower’s part because we’re constantly constantly checking our work.  It is important that we prove what we’re doing is the best option possible.

premiercropgrowerseedingtrials

The analytics is where the magic happens. Not many companies look at what happened after harvest. Premier Crop uses our platform to make informed decisions based on what the growers data is proving through on-farm trials, Learning Blocks and Enhanced Learning Blocks to provide statical confidence to help the grower see their profit.


Not every operation has the same goals and not everyone sets out to produce the max amount of bushels. It’s a “do it and check” process. We go out and do something, we check our work, and then we make corrections for the next year. As a grower, you’re always busy. You are going from one thing to the next, and there’s always something to do. Going through the data can be a tedious task that leaves you feeling like your time would’ve been better spent elsewhere. The benefit of working with a Premier Crop Advisor is that we retrieve the data, clean it up, and enter it into the system. A grower just needs to hit “record” when they’re running through the field.

Want to learn how you can work with an Agronomic Advisor to start making agronomic decisions based on your economics? Contact us to schedule a demo today.

Learn more about the farm profitability.

Big Data With Local Context

Big data is a phrase that has integrated this world of technology across industries. It’s about capturing relevant data from a huge number of sources, and translating it into something that people can use. Big data provides actionable insights to solve problems at scale and at speed. In this world of ag, we have billions of dollars of venture capital funding pouring into agriculture through technology builds. Big data has been at the center of that.

There are several ways big data can be advantageous to agriculture. It depends on your goals. What do you want to accomplish with the data? Obviously, big data is enabled by computing power. We have much more capacity because of server farms and cloud computing. These let us collect more and crunch through more data.

In ag, the topic of big data is relatively recent. Before yield monitors, we made many decisions in ag based on what I would call small data, which was a lot of replicated trials. A replication in a trial might be 25-feet-long, replicated three times, and becomes an observation. So now with yield monitors and all the other devices, we’re able to collect data at a high resolution. In a hundred-acre field, we would divide that field into 4,000 unique observations that are geo-referenced, tied with a lat, long, yield value and hundreds of layers of data underneath.

There’s a ton of data being collected today in ag from many different sources. Much of it is public. It seems like there are newer companies trying to take advantage of public data and the complexity of sourcing it and putting it together into some usable format. Public data is not drilled down to a level where I think it’s all that helpful. If you’re a company selling an analytics package to a grain trading company, you don’t need it refined. With that type of data, you’re trying to understand global yield trends and how it will move the supply chain. So a lot of the public sources aren’t as valuable to a grower as they are to other stakeholders.

MYTHS OF BIG DATA

Let’s talk about some of the myths out there on big data. We often hear the words “weather modeling,” but what we’re talking about is predicting the future. It might be future weather or future performance.

All models are based on assumptions. It’s about understanding specific geographies within fields, and how they’re similar to geographies in other fields. It’s almost like the more data you get, the more it lets you break it apart into more meaningful insights. The power of what we have in ag is that you have different growing environments every year. As a company, we get to observe different growing environments within the same year. So, Nebraska or Minnesota can have a dramatically different growing environment than Indiana and Ohio. For example, you could see how a hybrid or variety performs in the same year in dramatically different growing environments because you’re seeing it across these big geographies. It’s highly dependent on believing in the idea that agronomy is local, that agronomy and geography have a really close relationship with each other. It relates to the idea of big data, and aggregating it across multiple different agronomic environments. So how do we give it enough credibility that people can make decisions?

Over the years, the ability to aggregate data geographically has been a big deal. The ultimate power of all this is at a subfield level because that’s where you drive change. Every farmer who works with us wants to see beyond their own operation. They want to see agronomic practices, trends and rates.

When a farmer starts working with us, they usually want to see the biggest data set possible, meaning they want to see data from a large geography. However, we believe that local data is king in agriculture. The bigger, richer data set from a local perspective is more powerful because there are more things that are relevant and stay the same. We almost went through a decade where it seemed like the whole seed industry on corn was going to fixed-year numbers. The only way you could drive yield was to drive population. No matter what size of database, we saw a trend. We were marching up 400 or 500 seeds per acre for a decade because that’s what it took in order to drive yields.

Now, we’ve gone through almost a decade where it seems like there’s more flex in numbers. We’re producing much higher yields at lower populations. However, when we were going through that match up in population, growers started looking at row width. We had this phenomenon where everybody was chasing 20-inch corn or even narrower corn. The plants were on top of each other, and needed to be more spaced out. In the data, 20-inch corn was a South Dakota and southern Minnesota phenomenon. That’s where we were seeing the most 20-inch corn. We had people outside of that area that wanted to drill down. They wanted to see data outside of their area because they were trying to make a decision about switching to a narrower row of corn. This was a way to space out the plants as they continue to drive the population.

Since we’re capturing data off the planter, as it goes across the field, we’ve been able to calculate planting speed. One of the very early signs was we had a report that showed the faster they planted the corn, the better and higher the yield. That’s an example where faster planting speed was correlated to higher yields, but when you actually interviewed the grower and talked to the grower about what happened in that field, parts of the field worked up rough. And so, they slowed down because they were trying to maintain seed-soil contact. As they went into those areas that worked up rough, they slowed the tractor down and slowed the planter down. In the part of the field that worked up great, they planted at normal speed or higher speed and, sure enough, that was where the higher yields were. The rougher areas worked up rough, so the real correlation was to field conditions of planting, but it showed up as planting speeds. So, it was an example where you can have correlation, but it doesn’t necessarily mean causation.

One of the many myths people believe about big data is that if you haven’t got involved already, you’re probably too late.

Many growers are sitting on data and no one has helped them put it to use. There are growers who quit caring about yield data because they haven’t been able to use it. One of our successes is that we grab that historic yield data and try to use it to capture the variability within fields. You can go from zero to big data really quick in farming. You can start at any time and begin creating value right away.

How Yield Efficiency Can Impact Your Operation

“It’s just putting data to work for you. You can drill down on which fields, and which parts of fields are most profitable, and which aren’t. I think the more you help growers know their costs, the better managers they are.” – Dan Frieberg

DAN FRIEBERG: When we talk about yield efficiency, to me, it comes down to us being willing to track the economics of the decisions that we’re influencing with the grower and tie it out economically for the grower. In a lot of people’s minds, yield has theoretically represented higher profits, but we also know that’s not necessarily the case. Sometimes higher yields come at so much higher costs that they aren’t more profitable. In general, that hasn’t been that wrong. If we can produce higher yields many times, it is more profitable because you’re spreading more units of production over the same fixed cost, and one of the big fixed costs is land cost. Whether you produce 100 bushel of something or 200 bushel of something, unless you have a flex lease, a lot of times your land cost doesn’t change. There are rental agreements where the land owner is sharing both in the upside and the downside associated with higher yields and all that. So, yield efficiency, for us, is the dollar-per-acre return to land and management, and the reason we define it that way is because we don’t influence what somebody pays for land. We don’t influence their land cost.

Don’t get me wrong. They can use data. They can use the analytics we provide to make land rent decisions, to make land purchase decisions. So, they always have. They use analytics to help them decide what to rent and what to buy and all that. On a yearly basis, we’re not impacting land cost, and management cost is another one where we probably don’t have as big an influence. So, there’s a lot rolled into management. For a lot of operations, it includes family living and health insurance and a whole bunch of other things that are really a key part of the operation but not something that we advise on. But we do advise on nutrients. We spend a lot of time helping growers manage their nutrient investment. We help them a lot with the seed investment, both what they choose to buy and where they plant it and at what rates. And we also help on crop protection decisions. Then, the fourth one is operations. We don’t advise on operations. We don’t get into what equipment they should buy. There are a lot of data analytics tied to operations. We can analyze no-till versus conventional till, and we can break down and analyze differences in cost associated with different tillage types. Yield efficiency, for us, is just about how do we drive higher return to land and management? We do that through how we advise growers, how we advise them to spend nutrients, seed and crop protection dollars.

RENEE HANSEN: So, why is that becoming so much more important now than it was 10 years ago?

DAN FRIEBERG: It has always been important.

RENEE HANSEN: But are margins getting tighter than they were 10 years ago?

DAN FRIEBERG: Not today. They just blew. Margins are record high. I mean, people’s optimism at the farm gate has bounced way back. We’ve had this dramatic uptick, so margins are stretching back out. So, opportunities for people to make money, but Renee, it doesn’t matter. In good times and bad, this message resonates. It makes sense no matter what. Spending your money wisely just makes sense. Are growers more aggressive when the commodity prices are high? Some of them are. Some of them are way more aggressive. Will more growers take a chance on fungicides because of high commodity prices? Absolutely. Commodity prices have increased more than fungicide prices. When commodity prices are high, it takes less bushels to pay for the fungicide. So, more growers will probably take a shot at fungicides this year than in past years.

RENEE HANSEN: We also talk about, sometimes, growers wanting to grow their operation. Tell me more about that.

DAN FRIEBERG: It’s really natural. It’s just the competitiveness of agriculture. There are a lot of growers who are adding to their operation. They’re wanting to add. It’s all about spreading yourself and your employees and your equipment over more acres. If you can add another thousand acres and still farm in a timely fashion, it makes it more economical. Combines are really expensive, so being able to spread that combine over another thousand acres drives your per-acre costs down, which is the same with your labor. There is additional labor cost to farm another thousand acres. But even labor — employees come with a benefit package. You have to pay benefits. There are a bunch of employee costs that, if you can spread it over another thousand acres, it helps pay the bills and helps you be more profitable.

RENEE HANSEN: So, can you explain the metric that we’re using? We’re using a gauge or a metric, or we’re giving a yield efficiency score. We’re using that per operation, and we’re also doing it per field because we can do it spatially. So, can you just tell me more about each of those?

DAN FRIEBERG: Sure. So, the gauge you’re referring to is what we call the Yield Efficiency Score. Really, it’s a fairly simple formula. It’s just a benchmark selling price that every user gets to set. We’re not benchmarking who sold the best, so it’s a benchmark selling price times your yield. So, Premier Crop, part of our analytics program is we’re using the yield file. So, we’re receiving all this yield data. It’s benchmark selling price times yield minus your investment in nutrients, seed, crop protection products and field operation. What’s left is return to land and management. How many dollars per acre do you have left to pay for your land cost and your management costs? So, what you referred to is part of what we’re able to do. Let growers benchmark themselves, their yield efficiency score versus other growers in their area anonymously. Growers like that. It’s just another way to make sure you’re on track or just see how you’re doing compared to others. So, that comparison, people like. They like to be able to anonymously compare with really quality data. That attention to getting the data right is really a big deal and having good quality data. So, that’s a big piece of it, but then the other part you referred to is being able to take it down to a field level. It’s not just benchmarking outside your operation. How do you compare to others? It’s within your operation. If you’re farming 50 fields, just being able to rank order those 50 fields from a yield efficiency standpoint, return to land and management, that’s a significant piece of analysis.

Renee, as soon as growers see those scores, trust me, they do the math so fast on land costs. They know exactly what their land cost is for each field. It’s not something they have to go look for. Then, the last one that you talked about is being able to do it spatially within a field, which means we can do it by management zone within a field. Which is really, by far, the most important to me because what we consistently do for our customers is we spend more in certain parts of the field. We know there are a lot of times, if you’re following our recommendations, it could be a $50-or-$80-an-acre higher input spend. In some parts of the field, we’re spending significantly more on nutrients, and we’re increasing the seed population. So, we could easily spend more in part of the field, and the reason it’s so important to be able to track yield efficiency spatially within the field is so that, at the end of the year, we can prove to the grower that extra $50 an acre in the best part of the field generated more, far more, than the $50 of additional input costs. For me, this is, just this yield efficiency thing, is what we should have done. 10 years ago, yeah, we probably should have pushed harder to do it then because I think growers always respond to anything if you can prove that something pays for a grower. They’ll respond to that. For a lot of new growers — we’re really blessed with a lot of growers who have been with us for decades, and the reason they have is we’ve convinced them over the years that it pays. They wouldn’t keep buying our service if they weren’t sure it was paying. But for a lot of new growers, this ability to tie economics and just have a report card every year that shows: where we spent more, we made more, or where we spent less, we made more. Throughout the entire field, being able to document that what we spent made them more in either higher input investment or lower input investment. Really, growers respond to profitability, but there are so many people who talk about it, and they have no way to prove it. Everybody that drives up the driveway talks that way, but they can’t prove it. They can’t. That’s kind of the magic of what we do. This is the grower’s data. We’re using all the grower’s data, and we’re proving it.

RENEE HANSEN: Yeah, so tell me about using all the grower’s data. You say others are saying that they use profitability. So, what are we doing to prove it? You kind of gave a list of the seed, the nutrients, operations, crop protection, but can you go dive a little deeper?

DAN FRIEBERG: Sure. So, when we talk about all the grower’s data, it starts with just naming the field and getting a field boundary. Once you get the field boundary, you can go get the soil’s data, and now you can get LIDAR data, which is elevation data. So, you can kind of have an idea of how water moves within the field, but then we just keep adding to it. Soil sample information is a big part of it, whether it’s zone or grid sample. A lot of our customers are grid samples, which means we’re measuring organic matter and pH and soil test nutrient levels within the field in small increments, like couple-acre blocks. So, we’re measuring all those layers of data, and then, when the planter makes a pass across the field, we’re grabbing planting date. We have row spacing and population and the hybrid and variety that got planted. And that hybrid and variety is not just the company and the number, but it’s also the trait package. We’re able to sort SmartStax versus VT PRO versus some other traits. So, it’s trait packages, and then, when it comes to nutrients, we’re grabbing the soil sample data. We’re getting what’s in the soil. But then, for us, it’s about what we add, whether we’re making the addition of nutrients through manure, or whether it’s with commercial fertilizer. So, we’re tracking the rate of the nutrient, the cost of the nutrient, the timing of the nutrient, if it’s fall versus spring versus side dress. We can track all those details. If the nutrient had an additive, we’re tracking that, and then you step into crop protection. Now, because of weed resistance, crop protection is, again, becoming much more complicated than it was for a decade when it was just how many ounces of Roundup people were using. Now, it’s a lot more. There are a lot more products being used. It could be 40 different combinations of additives and crop protection products. Each time, it’s the product, the rate, the source, timing, costs, so just terrific detail. Tillage, field operations, how many passes, what the passes were. Just try to incorporate as much detail as we can about what’s happening within the field so that we can do the best possible job of managing all those inputs.

RENEE HANSEN: So, how do we compare this anonymously with another grower, apples to apples? Because you just listed a ton of data layers, a ton of cost information, and let’s say somebody else doesn’t have all that information in the system. How can you compare that apples to apples and get a benchmarking yield efficiency score?

DAN FRIEBERG: We can walk people through this really quick. Renee, there are a lot of growers who have data. They just don’t — it’s scattered. I mean, they have data in the Ops Center. They have it in Climate. They have it in some retailer’s software. I mean, it could be a retailer’s software. It could be on their own. I mean, it’s all over the place. Sometimes it’s not in a digital format. Sometimes it’s written down. It’s just all over the place. But a lot of growers have data, and part of it is how we pass down farm equipment. Every time somebody buys a new piece of equipment, they trade. So, it’s like existing farming operations. They trade, and as they trade, somebody else trades. And when they trade, they trade the technology with it.  They’re not stripping the monitors out of the cab each time they trade. A lot of times, they’re not. So, that technology is being passed down, meaning there are a whole bunch of growers who don’t operate new farm equipment, and they have the technology in the cab. There are just a lot of growers who have the capability. They have the capability of collecting data and capturing data, and they have a lot of variable-rate capability of which a lot of them aren’t using.

RENEE HANSEN: Yeah, I was just going to ask you that too. Can you elaborate? The growers have so much that they can do with their data. Do you feel that they don’t even know what they’re capable of getting and gaining with the technology they already have?

DAN FRIEBERG: I think, a lot of times, with a lot of people — a lot of growers and a lot of people — it’s finding somebody you trust. If the person you trust for advice doesn’t talk to you about this or doesn’t have a solution, you might not ever pursue it. You might not pursue it on your own because, in your circle, nobody’s championing why you should be using the technology in the cab or your data to make better decisions.

RENEE HANSEN: Well, if somebody doesn’t mention it to you, you don’t know what you don’t know.

DAN FRIEBERG: Yeah, you don’t. You literally don’t. So, I think that’s part of what happens. Another place I wanted to go, Renee, was people talk — I mean, when I talk about everybody that drives down the farmer’s driveway has a profitability message, a lot of times, they say return on investment. They wrap everything. So, the number of times people say ROI or return, it becomes a buzzword that nobody backs up. Nobody has. When they talk about backing up their ROI, they pull out some plot book. It’s some trial that happened someplace else. I think it’s one thing that we just really do a lot. You can’t really tell somebody the ROI unless you do an experiment in the field, and that’s really what we do all the time. We just do experiment after experiment, in volumes, in growers fields. It’s all in pursuit of having better recommendations. So, the reason we do experiments is so we can calculate ROI. It’s so that we do know whether that input paid or not. If I go out to a grower and I talk to them about nitrogen rate, and their total N rate is 200 pounds of actual N, and I think that they’re over-applying, the best possible way for me to have that discussion is just to suggest that we put a lower-rate experiment in their field. It doesn’t have to be a lot of acres, but if that works, then the grower saves money and gets higher yields or same yield. That’s a starting place and a discussion.

Same with everything. Every input decision can become an experiment. So, to me, the best way to get an ROI is to simply do a trial. And we’re not talking about — when I got in the business, a trial meant flags. It meant field flags, and it meant a ‘weigh wagon.’ That’s how you did trials. You just spent all your — like I spent all fall running around with a ‘weigh wagon.’ Literally, just day and night, running around with a ‘weigh wagon’ because that’s the only way you could do a field trial. And now, everybody’s got the ability to measure. The monitor in the cab is measuring. So, a little bit of help on calibration, making sure you’re calibrated, and you’re off and running. We can use the technology to execute field trials, and it’s just so much easier than it was years ago. And it really just opens the door. It opens the door to back up the ROI message over and over again. It doesn’t have to be results from somewhere else. We say growers love local data, and you can’t get more local than my fields. That’s who we are. It’s not: ‘How did it do somewhere? How did it do for your neighbor?’ It’s: ‘How did it do for you?’ And doing trials is a big piece of what we do.

RENEE HANSEN: Yeah, and you’re talking about the buzzword of ROI, and I feel like Premier Crop has coined the buzzword of yield efficiency. I’m starting to see yield deficiency pop up in other places, people talking more and more about yield efficiency rather than using ROI. And why is yield efficiency a more important message than ROI?

DAN FRIEBERG: So, for me, they can be really similar. I mean, they can be part of the same discussion. So, for me, yield efficiency is just combining economics and agronomics, and it’s at every level. It’s sub-field, in a trial. It’s management zones, in a field. It’s this field compared to another field. Across your whole operation, how do my fields compare? Then, it’s being able to go beyond your own operation to: ‘How do I compare to peers in my neighborhood or my region?’ A lot of times, when I think of ROI, I tend to think of it as — so, yield efficiency is this all encompassing bucket of nutrients and seed and crop protection and field operations. But, for me, ROI is more about individual components that make up those buckets. If I’m a grower, it’s like: ‘What’s my ROI if I put 50 pounds of Y-DROP nitrogen on?’ So, later nitrogen. What’s my ROI if I do a fungicide? What’s my ROI if I do a biological? All those things, all those decisions roll up into yield efficiency because they’re all input costs. And, hopefully, they impact yield. So, all those things roll up into yield efficiency. But when I think of ROI, I’m thinking of individual decisions. I mean, decisions I’m making about input components of what goes into yield efficiency.

RENEE HANSEN: Well, and I think it’s important to note, also, it doesn’t have to be with a variable-rate application of anything. You can still get a yield efficiency score with flat rate.

DAN FRIEBERG: Sure. As we onboard new growers, that’s a big deal, just to capture where they are. Before you started doing anything, what was your yield efficiency?

RENEE HANSEN: Yeah, so if somebody is coming on board and is not doing any variable-rate nutrients or seed, they can still get a yield efficiency score in a benchmarking setting.

DAN FRIEBERG: Yep. Renee, earlier on, I just remembered what it was I wanted to talk about. Earlier on, you kind of said or you asked something like: ‘Why don’t more growers, or why do I think more growers don’t do this or think like this?’ I think that a lot of growers have the attitude of: ‘Been there, done that. Got the T-shirt.’ They think they tried it. Somebody pitched them an idea. Somebody told them about precision ag or whatever buzzword they used at the time. Somebody told them how this was. Somebody created this expectation, and then whoever that was didn’t deliver.

RENEE HANSEN: There’s no follow through.

DAN FRIEBERG: Yeah, so there are a lot of growers who, you meet with them, and they say: ‘Tried that 15 years ago. Didn’t work here. Doesn’t work here. Maybe it works where you’re at. It doesn’t work here.’ Then, you really start asking questions about: ‘What do you mean it didn’t work?’ And what you find out is they never compared. They never looked at the relationship of yield and the prescription, whatever it was. Nobody did the basic analytics for them or the classic one. The classic one, 20 years ago, was people would say: ‘I’m going to grid-sample your field. We’re going to variable-rate apply nutrients. And all these multi-colors, from high to low, on the map, we’re going to even all those out. We’re going to build up the low areas. We’re going to pull down the high areas, and your map will all be green. We’re going to make your field uniform.’ And 12 years later, the field is no more uniform than it was to start with. And my point is that should never have been the goal. You get paid on yield efficiency. You get paid on generating more return for every dollar you invest. You don’t get paid for making your fields uniform. The reason it didn’t work, Renee, is because the high-yielding areas tend to pull down nutrients because you’re consistently removing more nutrients from those areas. And even though the equation, the variable-rate equation, was supposed to be dealing with that, it never caught up. Those high-yield areas just kept producing more and more, removing more and more, and the reason the field wasn’t more uniform at the end of four years or 12 years was just they never kept up with that additional crop removal associated with really high yields.

RENEE HANSEN: So, the way I see it, utilizing a yield efficiency score, the way that we are calculating it, can potentially help a grower to grow their operation in a multitude of ways. Not only by gaining more acres, but they can also, potentially, gain more profits with what they already have by optimizing and utilizing some variable rate to see where their yield efficiency score is. They should be able to see what fields really aren’t producing as high, so they shouldn’t be spending as much in that field, in certain parts of the field.

DAN FRIEBERG: I think the whole yield efficiency message is just, I think, it helps growers know their costs. It helps them know. I mean, it’s just putting data to work for you. Really, like you say, you can drill down on which fields are most profitable, which aren’t. You can drill down on which parts of fields are most profitable. I think the more you help growers know their costs, the better managers they are.

RENEE HANSEN: But I feel like they already know their costs. I feel like most of them are like: ‘Oh, no, I got that. I got it on a spreadsheet. I have my tally. I know exactly what I’m going to be spending on my inputs.’

DAN FRIEBERG: And you’re right. They know their costs across the whole operation, probably. I think the difference is just knowing it within field by field and within fields. So, it’s probably just the nature of being able to break it down into finer resolution. Renee, what we don’t do is take university-average cost associated with farming and divide it by their yield. This is not pretend economics. This is tracking. Like I say, we track if that part of the field is getting 10,000 more seeds than the other part. We’re tracking the cost associated with that 10,000 more seeds in the best part of the field.

RENEE HANSEN: We talk about plans, like having a plan and then pushing that to ‘actual.’ This is the ‘actual.’ I mean, we’re talking about what actually happened.

DAN FRIEBERG: Growing your operation is a tough one, Renee, because there are so many pieces to it.

RENEE HANSEN: Right.

DAN FRIEBERG: One thing that stands out to me is — it was from a winter grower meeting. And these growers were talking about how there was an area where there’s a lot of livestock also, and they were talking about how every pen of pigs or cattle that they sold, they knew the economics associated with that pen, meaning they tied it out economically. In livestock, it’s just such a part of the culture. Every unit of production gets tied out economically. So, sometimes, I’m so jealous of the livestock industry because I feel like: ‘Okay, you guys are way ahead, like we’re playing catch up.’ But that’s really what we’re trying to do. Tie out every unit of production economically. It’s not enough to know just what the total weight was. It’s converting the weight and the input cost into dollar returns. And that’s kind of what we’re focusing on.

RENEE HANSEN: Thanks for listening to the Premier Podcast, where everything agronomic is economic. Please subscribe, rate and review this podcast so we can continue to provide the best precision ag and analytic results for you. And to learn more about Premier Crop and farm efficiency, visit our blog at premiercrop.com.

farm efficiency

Get Started Using Your Farm Data

At Premier Crop, we say that agronomy is local. Farmers say it too, though, because we have such a vast amount of data within our system.

Working with Premier Crop doesn’t require a grower to be an expert on any one thing, because we’re using the data, along with our industry agronomy experience to deliver analytics and insights. We work with many business minded growers, people who really enjoy using data, but might not necessarily have the time to do it. The operations we work with are the CEOs of their farmings operations. Our advisors work with these growers to collect, manage, organize, and make sense of the data, letting the farmer farm as they want to, without any time invested.

We take care of everything, from variable-rate recommendations, cost tracking, to delivering the analysis in a way that a grower can easily understand. We all know that looking at data can be pretty overwhelming and hard to make sense of.

The baseline of everything we do is tied back to a yield file or yield map. So, one or two years of historical yield data is essentially the only thing we need to get started. There are roughly 80% of growers out there who are capable of collecting yield data, or maybe they already are collecting yield data, they just don’t know how to use it. Growers just need to have to have some yield data to get started. Another layer that’s helpful in providing more insights is soil data. However, the baseline to get started is yield data alone.

Precision ag can be overwhelming because there are so many different layers of data, from soil sample data, yield data, planting data, and as-applied data. The brainpower needed to add all of that up yourself can be exhausting.

Our ultimate goal is to help take that lift off of growers’ shoulders. The last thing many growers want to do after a long day is sit down at their computer and manage all of their data. That’s just another piece of the pie of the value that Premier Crop ultimately brings. Especially during busy seasons of the year, there are much more important tasks for them to focus on instead of messing around with data. That’s why our advisors help with the monitor and technical tasks. When it’s “go time,” it is a race against the clock, no matter what is going on.

Yield Efficiency is another tool that Premier Crop offers to help growers achieve success with their data.

By helping growers find their yield efficiency, we’re redefining the success metric for today’s farmer. For so long, growers have been solely focused on yield. Now, we have introduced the concept of yield efficiency and the conversation is shifting.

Yield efficiency is the amount of money in return from your crop that you have left over to pay land and management costs. Yield is the number-one driver of yield efficiency, but it also accounts for every other aspect of the farming operation as well. As long as we can drive higher yields while still lowering your break-even cost per bushel, we’re becoming more profitable. Profitability equals success with our growers. As long as we’re lowering that break-even cost per bushel and driving higher yields, we deem it as a successful season, whether it’s $10 an acre or $100 an acre farm profitability. We know there are dollars left on the table on every acre, so it’s just a matter of finding it with your farm data.

One big way to start improving your yield efficiency is by better managing your fertilizer investment. Make sure that you’re taking into account the crop removals when you’re making fertilizer recommendations.

Every year when you grow a crop on a piece of land, nutrients are taken off in the grain. As stated above, our main goal is to manage variability in yield. Within that variability in yield, you’re taking off different amounts of nutrients in different parts of the field. If you’re applying fertilizer the next season to account for the field average and crop removal, you’re ultimately under-applying in a lot of the field, but over-applying on a lot of the field, also.

That’s why at Premier Crop, we use the actual yield file to see exactly what we’ve taken off the field to replace it the next season. We use an equation so we’re not mining down the better areas of the field, and then over-applying in the worst areas of the fields. This practice could result in an extra $50 to $100 an acre for the grower. Many growers can do this with the variable-rate technology they have, they just need to put it to use and believe the fact that it pays off. Visit www.premiercrop.com for more information on farm efficiency.

farm efficiency

Benchmark your Farm Data

Telling your customers they’re under-performing isn’t a great business model. Encouraging them to take part in agronomic benchmarking can sometimes have that same effect. Those at the top might enjoy the satisfaction of knowing they are the stars, but how do you gently push the below average customers to step up their game?

The problem with agronomic benchmarking is that the solutions to reaching better numbers aren’t always obvious.

When seed companies tell you the genetic potential of a bag of seed corn is 500 bushel per acre and it starts going downhill once you open the bag, it’s almost implied that they’ve done their part and you are the one who is failing to perform.

Comparing your yields to those in the counties you farm in might be okay unless you farm the poorest soils in each county. Then, you might resent someone who points out the obvious – that your yields are below the average. Comparing your yields to those of others that farm the same soils in your part of the state is better, but being labeled in the bottom quartile isn’t fair if you didn’t get similar rainfall.

Even if both soils and weather are similar, what about rotations? What about the cost of production? Maybe all those higher yields came at a high production cost?

So what are the keys to meaningful agronomic benchmarking? We’d suggest these as a few of the important keys:

  1. Realistically quantify the growing environment to get closer to apple to apples comparisons.
  2. Look longer-term – look for trends over multiple years. Everyone has a great or a bad year once in a while but looking at longer-term trends are more meaningful.
  3. The more depth of data, the more value in the benchmarking. Depth will provide you with more confidence in the comparison as well as more answers.

The best benchmarking services don’t just tell you where you rank – but they tell you why. What does the data say you need to change to perform better or to keep doing to stay on top?

The key is to never stop digging for the answer to “why?” It is easy in all data analysis to have “apples to oranges” comparisons and take data at surface value, but the key to good analysis is to keep digging deeper to get fair comparisons, thus creating the most educated and profitable agronomic decisions.

Visit our blog at www.premiercrop.com for more precision ag information.

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