Nitrogen Strategies for your Fields

“It convinces growers to spread those nitrogen pounds out over the course of the season or minimally making more than one application, and they see improved efficiency. We’re talking about less pounds of nitrogen to produce a bushel of corn, and we generally see higher yields at the same time. So, it becomes a win-win.” – Mike Manning

RENEE HANSEN: Hey, Mike, welcome to the Premier Podcast. Today, we’re going to talk about helping a grower have a nitrogen strategy. So, first, I know you’ve been on the podcast before, but can you just quickly introduce yourself and tell us what you do at Premier Crop?

MIKE MANNING: Hi, Renee. Good to catch up again. Mike Manning, Premier Crop Systems. I’m our Nebraska Account Manager and Agronomic Information Advisor. I support some of our retail partners in a few different areas and work directly with a good set of growers across the state of Nebraska.

RENEE HANSEN: Thanks for that intro, Mike. Also, I know there are a lot of people who follow you out on the Twitter world, and you’re known as who on Twitter?

MIKE MANNING: DataManning. You can find me on Twitter @DataManning.

RENEE HANSEN: Perfect. Great. Well, thanks for that introduction. So, let’s go into this nitrogen strategy and why we believe that a grower and why you believe and work with growers who should have a nitrogen strategy. Let’s just take it from the first step of planning and having a plan and a strategy when it comes to nitrogen.

MIKE MANNING: Well, you hit it right on the head. First, we have to have a plan about how we’re going to go about applying our nitrogen or what our season-long plan is for nitrogen management. The simple answer is there is no one-size-fits-all solution, especially when it comes to nitrogen management. It needs to fit into your rotation. It needs to fit into your logistics, your available labor, how you’re going to manage different cultural practices and other tools that you have at your disposal, whether that’s equipment limitations, irritation or rainfall limitations, yield potential. All these dynamics play together. One I’ve left out there would be topography and soil types. Also very important. A lot of nitrogen plans probably have fallen under that cultural practice of what a specific area has been accustomed to doing. Some examples of that might be 100% of total expected nitrogen needs applied in the fall with anhydrous ammonia or spring-applied anhydrous ammonia. I’d say, really over the last 20 years, you’ve seen more of a move towards split application of nitrogen. There’s a fair amount of research that’s come behind that’s, I would say, pretty widely accepted in the industry now that split application of nitrogen is much more common than it ever used to be.

With what I work with in Nebraska, it’s almost universal. I know that’s not the case in some of the rainfed states and different management systems and on different soil types. I wouldn’t even say growers that are limited to owning their own equipment. Even one split application, maybe anywhere from 50 to 75% of their nitrogen upfront in the spring pre-plant or early post-plant and, then, a single side-dress application. Probably, more commonly, what I see for that nitrogen delivery method is some form of upfront pre-plant. Pretty common to come back with a weed and feed pass, where we have 32 or 28% nitrogen, potentially some Thio-Sul mixed in with an early post-planter, early post-emergence application. Then, perhaps another trip back across the field with a coulter bar at about V5. In the great state of Nebraska, with our irrigation, we tend to put it on season-long. We’d like to fertilize through our pivots, generally, at about 50% of our total N needs.

RENEE HANSEN: So, Mike, you’re talking, I mean, you’re going right into application timing. How does somebody plan for their application timing? Obviously, in Nebraska, they do have the capability to do that because they are working with a pivot, but for the rest of those who don’t have some kind of irrigation system, how do you plan for those different application timings? What are you looking at to make that plan? Are you using data from the past? Can you do it year one after you use the data, or do you need to be in a system for numerous years to develop a bigger plan, a bigger strategy?

MIKE MANNING: You’ve asked some multifaceted questions there. So, let’s kind of break that down one by one. Let’s just go. Let’s say we’re making the decision to go between a single application, like we historically have, and two applications. We’re going to split some portion of our total nitrogen pounds. The best way I explain it to growers is that our corn crop has a season-long nitrogen requirement. The closer that we can supply our synthetic nitrogen to that growing crop, or to the crop as it’s growing through the course of the season, the better efficiency we’re going to have. There are definitely places in Iowa and Illinois with very high organic matter, very strong holding capacity and some very nice flat-level fields. Dan Frieberg shared it many times in the past. Well, we kind of call it our surrogate data. Why are we seeing, in the group data, these 100% nitrogen fall-applied ammonia always showing up as the highest yielding in the database? Well, we were making those applications to some of our best fields that we could go place all that nitrogen at that time, in the fall, how to be available. And there are prime acres to begin with. The acres that were receiving a split application, or had some other balance of nitrogen pounds throughout the season, were those rolling hills mixtures of sand and clay and just more marginal acres that needed to be managed with a different stroke anyway.

Probably one of the biggest things I see, as it convinces growers to spread those nitrogen pounds out over the course of the season or minimally making more than one application, they see improved efficiency. And by improved efficiency, talking about pounds of nitrogen to produce a bushel of corn, and we generally see higher yields at the same time. So, it becomes a win-win. To what I think was one of your second questions: how many years of data do we need to have, or how do we arrive at our total nitrogen requirement? Again, we can kind of break that apart in a couple of different pieces. For somebody that is making a single application, I would say just take a couple of fields and plant a split application. Again, how does that fit into your labor and logistics workflow? For growers that own their own equipment with the sprayer, it’s pretty easy to convert. Not too much more difficult to incorporate a weed and feed side-dress nitrogen going on with your post herbicide. For guys that hire it out, that hire their spraying out, it might make sense for them to acquire a coulter bar and go make an application in season. Or at least go rent one and try it. Take a handful of fields and just try it for a couple of years. Now, if you have 6% organic matter on perfectly flat earth, you’ll probably completely disagree with me. If you farm anything other than that, I would put my money on split applications just about every time.

RENEE HANSEN: The split application is really becoming more popular. You mentioned that in the beginning of this podcast, that you’ve definitely seen the trend move the line more towards split applications. So, you did mention this also about nitrogen efficiency based off of the field. So, can you talk about why having a plan, a nitrogen strategy, how that makes you more efficient with your nitrogen to gain more yield?

MIKE MANNING: Combination of factors. I’d say, bottom line, it does. A split application helps us be more efficient, but if we’re measuring the results off of our farm, we can actually see what those real efficiency values are. With Premier Crop, we talk about zone management a lot, managing fields by zones. Zone management makes sense. Just for my standard disclaimer on that, we’re not talking about zone soil sampling. We still have a grid soil sample underneath of that. One of our favorite methods for arriving at Management Zones is principally looking at historic yield data. For the most part, the best area of the field has always been the best area of the field. The poorest area of the field has always been the poorest area of the field. Using other pieces of spatial data to maybe augment that, whether that’s grid sample data, EC, EM data, soil survey maps, where applicable. We can use that to help augment and guide zones.

So, now we think of our traditional Premier Crop ABC management zone approach. We start seeing efficiencies. You start breaking that out year over year, especially in those corn years. If I see consistent efficiency of, say, 0.75-0.8 pounds of synthetic nitrogen per bushel produced in my A zone, maybe 0.9 or 1.0 in my B zone and maybe anywhere from 1 to 1.2 pounds of nitrogen in my C zone, I see that consistency. We can confirm our zones. A, we know our zones are behaving how we believe they ought to be behaving. B, we’ve dialed in management, probably with a variable-rate seeding approach, as well. And C, now we can start incorporating these nitrogen efficiencies that we’re observing within the field. That becomes, well, A becomes an efficiency driver. And, all of a sudden, let me do some quick math. If I’m producing 280 bushels in my A zone, but my efficiency is at 0.7 pounds of nitrogen, I really only needed 196-200 pounds of synthetic nitrogen in that A zone. In that C zone, that’s at 1.1, and it’s producing 225. I probably needed 240-250 pounds of nitrogen in that C zone. At the end of the day, it’s spatial management. As things change in the field, we’re adapting our management to it and, then, marrying economics and efficiency back to it. Now, it also ties right into sustainability. We’re being a lot more — we’re just being smarter with how we’re applying fertilizers on our fields.

RENEE HANSEN: Mike, that was going to be my next question to you, and I think you already answered it. When it comes to nitrogen and efficiency, it couples the economics, so profitability for the farm and sustainability to the land.

MIKE MANNING: Absolutely. It’s agronomics, economics and the sustainability piece. Agronomically, we’re producing good bushels. Economically, we’re doing it very efficiently. Sustainability-wise, we are being good stewards of the land and being good stewards of our fertilizer resources.

RENEE HANSEN: Lastly, can you talk a little bit about what Premier Crop is doing with what we call Enhanced Learning Blocks and possibly what you can do with a nitrogen strategy?

MIKE MANNING: Sure. So, Enhanced Learning Blocks, I’m pretty passionate about Enhanced Learning Blocks. I’ve been using them widely since 2016. I haven’t done a ton with nitrogen, but there’s certainly an opportunity to do that. So, an Enhanced Learning Block we’re taking builds off the traditional Learning Block concept.

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Let’s take a two or three-acre block in a known area of the field, and let’s change our rate. Let’s go up or down. Well, enhanced learning blocks enabled us to introduce both randomization and replication. So, instead of testing a single rate in a two or three-acre block, let’s test three or four different rates and then replicate it five times. So, now, in the case of nitrogen, if I was, say, on a side-dress application, I was coming in with 30 gallons of 32%. Let’s pull up 28.005. So, if I was at 30 gallons there, I’m looking at about 90 pounds of nitrogen. Within that enhanced learning block, maybe it’s about four acres in size now. Let’s test rates at 20 gallons, 25, 30 and 35. Or 25, 30, 35 and 40. This system — we build it into the prescription system — enables that application to execute in the field. Then, we can have statistically valid nitrogen response results to review at the end of the season, and that becomes very powerful. What is the right rate? Obviously, one trial one year from one field is not going to answer the question for your entire farm, but it starts you down that path of learning. In many cases where I use Enhanced Learning Blocks with my growers, we have multiple blocks where you have anywhere from one to five blocks per field, and we replicate that on just about every field they farm. So, they’re building a research quality data set off of their own farm with their precision equipment. I’ll leave it at that. Nitrogen management and how nitrogen behaves in the soil, in the environment, and how it performs agriculturally, agronomically for us, is probably one of the most complex aspects of agronomy. Again, just to reiterate, there is no one-size-fits-all solution, but it is about tailoring and optimizing things that best suit your farm.

RENEE HANSEN: And that’s why having a nitrogen strategy and building that with an agronomic information advisor like you, Mike, is really helpful because you have the knowledge. You see the data, and you can help the grower learn, year over year, how to best get the best profitability and sustainability on their land.

MIKE MANNING: Absolutely.

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, visit our blog at premiercrop.com/blog.

Learn more about soil health.

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

Understanding In-Season Decisions with Economics

For the most part, farmers will have made their input purchasing decisions before the soil is warm enough to begin planting.  Those in-season decisions that still remain can be some of the most challenging to make.  Not because they’re the most financially significant, but because there are so many factors present once the crop is planted (current weather, short and long-term forecast, crop condition, grain markets, fluctuating input prices, and an endless list of tasks to complete).  All of these factors can have an influence, consciously or sub-consciously, on a grower’s ability to make an effective in-season decision.

In the book, How to Decide: Simple Tools for Making Better Choices, the first chapter is titled, “Resulting: Outcomes in the Rearview Mirror May Appear Larger Than They Are.”  Resulting, or outcome bias, is when a decision is made based on the quality of a prior outcome.  This type of rationale for decision making happens frequently and can lead to poor or unintended outcomes.  Here’s an example of what a resulting-influenced decision could be for a grower.

Last year Farmer John applied a fungicide to a field and left a few check areas.  The areas that received fungicide yielded 20 bushels more per acre.  Farmer John was so happy with the result he decided to apply fungicide on all of his corn acres going forward.

Will Farmer John see a 20 bu./acre yield advantage for using fungicide again this year?  Potentially.  The point I’m trying to make is that making decisions based solely on a previous personal experience isn’t a great process, especially when you’re in up-to-your-knees with other crop production tasks.  Even if the result were to turn out positive, I think it is important to balance data with ‘gut-feeling’ and instinct when making in-season decisions (80% data, 20% gut-feeling).

Starting the growing season with a plan is the first step to managing in-season decisions.  A comprehensive crop plan should factor in all potential applications and products that may be applied to a field within the given growing season.  The ability to reference a sound agronomic database with multiple years of local and regional data will help give confidence to the decisions outlined in the plan and prevent or minimize questions like these when time is of the essence:

1. How should I best-place the hybrids I’ve already purchased?

2. What are the right seeding rates for the hybrids / varieties within each field?

3. When should I start planting?  What if there is rain in the forecast two days out?

4. Do I need to use a starter fertilizer on my manured ground?

5. Do I need to be applying sulfur with our weed & feed, pre-plant?

6. Does my corn have enough nitrogen or should I make a side-dress application?

Using historical agronomic data relative to your own fields allows you to quantify the yield impact of many different agronomic variables.  Historical data isn’t a guarantee of future performance, but it’s a crucial component of quality in-season decision making.  For example, the ability to reference historical data of yield response to applied nitrogen from wet or dry years, and anything in between, provides a guideline for current conditions.  The next step in the process is to add current economic values, input costs and grain selling price, to the data being referenced.  Here’s another example.

Farmer Tim currently has an average nitrogen rate of 150 pounds applied to his corn fields.  The weather has been hot and dry for a few weeks, but there is a chance of rain in the nearby forecast and long-term predictions are trending slightly wetter.  The corn market has been volatile, but Farmer Tim has forward contracted some bushels and the current price is well above his breakeven.

www.weather.com

Weather

https://www.tradingview.com/x/wGu8tudh/Corn Futures

Referencing local historic data, Farmer Tim and his agronomic advisor determine that there is likely an 18 bu./ac opportunity to applying an additional 30 pounds of nitrogen.  At the current cash price that equates to $60+ per acre additional profit (Assumptions: New Crop Cash Corn = $5.00/ bu.; UAN = $.50/lb.; Application charge = $12/acre).

Marginal Return on Additional Nitrogen:  (Predicted yield increase x Corn Price)  –  (30# of Nitrogen + Application Cost)

Marginal Return on Additional Nitrogen

It’s important to incorporate economics when making in-season decisions to ensure return on investment (product and application expense).  In the example above, if the data showed only a 6 bu./ac gain, much closer to breakeven, the decision becomes harder to make.  Understanding the amount of economic risk or reward associated with in-season decisions should be included in a crop plan.  Formulating your crop plan to incorporate ‘What If’ scenarios will make it easier to pull the trigger on in-season decisions.

In-season agronomic decisions are challenging and often don’t receive the attention their economic impact warrants.  It’s important to work with a trusted agronomic advisor to help generate your crop plan so you can incorporate data and economics.  Having scenarios outlined ahead of season will increase the quality of your in-season decisions, and hopefully make them easier to make. Also, consider putting in some trials with your in-season applications (on/off fungicide or different nitrogen rates) – the best data comes from your own fields.