Unlock Insights to Your Farming Operation

“Data is valuable, but data in the hands of the right people with the right context is really, really valuable.” – T.J. Masker

 

RENEE HANSEN: You are listening to the Premier Podcast, where everything agronomic is economic. Today, we are talking with T.J. Masker, Senior Product Manager at Tractor Zoom, headquartered in Urbandale, Iowa. They are focused on helping bring price transparency to farm equipment and valuations for farmers, bankers, equipment dealers and insurance companies. T.J. has a lot of experience and knowledge in the precision ag space, and today, I asked him questions on how to unlock new insights to your farming operation using precision ag. Hey, T.J., welcome to the Premier Podcast. Just wanted to talk to you a little bit about unlocking some of the new insights to a farming operation, and I know you have a lot of experience. So, can you tell us a little bit about your background?

T.J. MASKER: Yeah, I grew up on a small family farm in southwest Iowa and did the traditional thing. Went to Iowa State, got an ag business degree, but for the last, well, about 11 years of my career, I’ve been working directly with farmers, helping them manage and understand their data better. So, whether that be agronomic data like soil tests, machine data that we get around like fuel usage or, in my current role helping farmers really value farm equipment, as that’s becoming the second highest cost on the balance sheet. What we’re really trying to understand is how we can make better decisions from that data. But the common theme is that ever since I went to Iowa State and graduated college, I’ve been passionate about helping farmers with data to make better decisions.

RENEE HANSEN: Yeah, you’ve had a lot of experience with data since you’ve been working in the field. So, can you tell me that? What is your experience with other precision ag systems, and what makes data so important?

T.J. MASKER: Yeah, I remember this, probably, like it was yesterday. I was covering a territory in south-central Iowa for one of the major seed brands. And I had farmers who kept asking me, like: ‘What can we do with this data? How do we start to think about how we utilize it more?’ This was almost eight years ago, and I literally Googled, like, ‘farm data’ something or another, and it led me, ironically enough, to Premier Crop and filled out the ‘contact us’ button. Then, I think it was Tony or Ben or somebody who reached out to me about: ‘Hey, we’d love to talk to you, understand where you’re coming from.’ And that ultimately led me to working with Premier Crop about seven-and-a-half years ago and doing direct advising with farmers in central Iowa. And many of those farms that I worked with back in the day, I’m still really close with today as I’m trying to solve new and unique problems, but I think, at that time, I had zero experience with precision ag. So, I had to learn how to set up the monitors, what Ag Leader SMS was, what software was to make better decisions. It was also my job to go out and recruit farms and help their operation. So, I think, over that time, I had to learn a tremendous amount about precision ag, what it was capable of. But, ultimately, I think for me, what it came down to is there’s so much value in this data and what we can get out of it if we’re measuring things correctly. And I think one of the things I experienced, even with the farms that have been collecting data for 15 years, was that, man, if we get this data structured in a way, it’s going to allow us to unlock so much potential. And whether that be if you’re using Climate FieldView or using John Deere Ops Center or using Granular, where I was at. It doesn’t matter unless the data is structured in a way that you can get the results out of it. And that, to me, was always the biggest ‘light bulb moment’ for a lot of the farmers.

RENEE HANSEN: Yeah, so since you’ve had the experience working with multiple different systems, what makes a specific platform better than another?

T.J. MASKER: When I talk to farmers about it, it’s really measuring the ROI, I think. Dan, I probably coined his phrase too, but if every agronomic decision is an economic decision, and we think about things that way, it fundamentally changes why we might do something. So, I think about systems that are able to actually provide that value to you as a farmer, and there’s not a ton of them out there. But we also need those systems that allow us to move data more easily. So, that’s why Climate, John Deere Ops Center, Ag Leader AgFiniti is another great example. Those tools help us get the data from the farm into the trusted advisor or the partner’s hands really quickly to make better decisions. That is valuable. I can tell you that there’s a reason why those tools are so heavily used because it solves a pain point. What I like to think about is: that’s one step. The next step is taking all this data and turning it into a better plan for next year. So, if I was at Granular, the way I described this problem is like: ‘I need to understand what we did and then how we did to understand what we need to do differently next year.’ So, if you focus on farmers collecting all this data on what they did, let’s get the scorecard for how they did at the end of the year. So, tools like Premier Crop. You think about all the things you can do with the query tool to answer questions from your data. Then, the real power is like: ‘All right. Using all this data, I now know with a high level of confidence going into next year that I’m going to have the best possible plan I can have.’ Mother Nature and God willing, things are going to fall into place. Well, let’s use everything we’ve learned to come up with the best possible plan, and we’ll adjust in season, right? Planting could get delayed by two weeks, so we might have to adjust seeding rates. All those things come into play, but let’s start with the best possible plan. And I think that starts with collecting and analyzing really great data throughout the previous growing season or previous seasons if you will, if you think about how many years of data a farm might have.

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RENEE HANSEN: Yeah, I think you said something in there, like competence, where a grower just really needs to have that competence within the data. They’re collecting so much of it anyway. So, getting a grower started, it seems really overwhelming sometimes, just to get started with data because of the systems that you mentioned. They have Climate. They’re using John Deere Ops. Then, to add another system to their whole platform can seem really overwhelming.

T.J. MASKER: What’s funny is I’ve done customer discovery the last seven-plus years in my different product roles, and if you talk to every farmer, they’ll tell you they just want one system to manage everything. And the reality is that’s not possible. I think what we need to do as an industry to be better is to make things connected more easily, and you’re starting to see that. And the easier we can make it to connect different parts of the puzzle to the key people that need it, that is where you really drive value for the farmer. Because if you think about all the trusted people that the farmer is working for, you’ve got agronomists. You’ve got an equipment dealer. You’ve got a seed rep. You’ve got a banker. You’ve got probably a commodity broker advisor, potentially. So, you start to see all of these people that are helping the farmer with all the information that they have. It becomes really powerful if you can connect all those dots, and I think, for a while, we as an ag industry or a tech industry didn’t do a good job of this. I think everyone was trying to build a complete way to solve every problem. And now you’re starting to see that change quite a bit, and I believe it’s for the better because the more connected these things are, and the less you can alleviate a lot of the pain of getting data from one spot to another, the better off everyone’s going to be.

RENEE HANSEN: In one of our previous podcasts, we talked about how you need to connect all the pieces of the puzzle, and it sounds exactly what you’re talking about. You just need to connect everything together. It’s one big puzzle, and when you finally get it together, it starts to work like it’s more of a system. Growers have all this information. They have these systems. They have monitors. They have the tractors, like you said, that they’re heavily invested in. So, why would they invest in a service that helps them manage their data, that helps them make better decisions? Why should they do that?

T.J. MASKER: Yeah, I think this is really important, and I think understanding who you’re partnering with is really important too, from a farmer perspective. So, I think you’re going to see a lot of the bigger ag companies continue to invest in this space for good reason, right? They know there’s a tremendous amount of value in this data. What I also think is extremely valuable is what that independent advisor can mean to your farm. For example, I was out at one of the farms I used to work with on Friday, and we talked a lot about this. If you think about 7-8 years ago, where they were at, they were trying to manage it in house. They were writing their own fertilizer recommendations. They were collecting all their data. And now, fundamentally, they’re approaching things differently, and every year they’re trying to chip away at this thing. So, a great example is when I started working with them 7½-8 years ago. We talked a lot about: ‘Wow, you guys can grow really great soybeans. What if we grew more soybeans, for example?’ It was funny to talk with them on Friday. And as they approach planting season this year, they’re going to start one planter on corn and one planter on soybeans at the same time because the data has shown them that if they get in earlier on soybeans and get those soybeans in, there is X-yield gain from that. And that wouldn’t have been the case seven-and-a-half years ago. What data allows us to do is to test little things, and the way I always approached it with farmers was like: ‘Give it three years.’ We have the data that tells us that this decision is likely to produce a positive outcome. If we try it, we can’t just try it for one year. We have to commit to trying it for three because odds are, over those three years, we’re going to see that return. So, I think that’s where the power of having a system or a service to manage that is critically important. And I think you’re starting to see a few others come up in this space, as well, because they probably realize a little bit of the model of that trusted advisor is the most powerful model. And it’s because, fundamentally — again, I think Dan will probably laugh — but agronomy is local. What works for the Des Moines Lobe might not work as well where I’m from in southwest Iowa. It might not work as well for my buddy that farms in eastern Iowa. Data’s valuable, but data in the hands of the right people with the right context is really, really valuable. I think a lot of farmers are frustrated with managing that data. So, how do you find somebody that can help you and kind of provide that ROI? And, at the end of the day, they have to prove their worth, right? Fundamentally, they have to prove their worth, but I think they’d be surprised what they would see from partnering with somebody like that.

RENEE HANSEN: Yeah, definitely. Like what you said, there is definitely a shift that you’re starting to see with farmers, that they are wanting to see more of their data and utilize more of their data, where in the past, there was a lot of resistance and maybe because the market was too flooded. So, what would you tell a farmer who has resistance to working with a precision ag service?

T.J. MASKER: Once, I think I called on a farm for three straight months that was resistant to this, and it wasn’t because they didn’t see the value. It was that this was a piece of their operation that was so important to them that they’d been trying to figure out. And I think one of the things is when you have a group that’s been around for, let’s say, 15-20 years, there’s a lot of value in that versus I might be a little bit more skeptical of somebody that’s only been around a year or two because there’s that track record there. So, what I would think about looking at is who has a track record? Do they have farmers that are willing to talk to them about why they decided to partner with this person? Because, at the end of the day, we know there’s value in the data, but maybe there’s an opportunity for a farmer to share their story with another farmer that’s a little bit resistant and tell them: ‘Hey, I was exactly where you were at seven years ago, and now the way we do things seven years later is fundamentally different.’ So, I would just be open to having that conversation with others that are finding success in this area and help them along in their journey.

RENEE HANSEN: Well, sometimes, you get in a pattern where you are very comfortable with what you’ve been doing the past years, and you’ve been successful. You’ve been profitable, but there comes a point where there’s a tipping point where your margins are starting to get a lot thinner, and a grower needs to maybe change some practices. And that data can tell you exactly what practices to change.

T.J. MASKER: Yeah, it definitely can. I mean, all these things come flooding back to my head, but you think about some of the marginal areas of your farm that just don’t produce much. We did the math 5-6 years ago, and it said: ‘Hey, if we don’t apply dry fertilizer on these spots, we can save an average of $5 an acre across all the acres.’ And the reason why we weren’t going to apply there is: one, we didn’t expect the return, and two, guess what? When we analyzed the soil test results by those areas, they were, a lot of times, the highest soil test values, which, if you back away from it, makes a ton of sense. Because if you’re applying the same rate of fertilizer across the field, and the good parts are taking off more, you’re going to see these lower-yielding spots, for example, have higher soil tests. So, you start to tell that story, and all of a sudden, you’re like: ‘Wow, just by doing that one thing, I’ve saved $5 an acre across all my acres.’ I don’t know what fertilizer prices are at today. Normally, I’d have a better pulse on it, but it might be higher. It might be $6-$7. I don’t know. But you start to approach things from that standpoint and manage each field like it’s its own kind of factory. I know there’s that analogy out there, but it really does make sense when you start to look at it at that level.

RENEE HANSEN: And a lot of companies are talking about data science and machine learning, and they’re trendy words. I don’t want farmers to get afraid of companies starting to use this because if they are resistant to using precision ag, they’re going to think: ‘Oh, well, now they’re just turning this into something that’s more automated.’ So, what do you think companies mean, and what should a farmer know about data science and machine learning within the precision ag space?

T.J. MASKER: Yeah, so companies are investing a lot of money into data science, and it’s an ability to take a lot of the data we have and try to learn really quickly. Versus a traditional method would be: ‘I’m going to evaluate this year’s crop. Then, I’m going to go around and, then, implement three practices that I learned from this year’s crop.’ Versus: ‘Hey, could we speed this up through data science and machine learning and try to learn from 15 crops and apply that knowledge to one year?’ What I will tell you is that most farms that I’ve worked with, and I still believe this to be the case today, is that they want to learn from the data on their own farm, but that also means that they can leverage data science on their own farm. So, the way I would think about it is to think about trials that you’re running. How are you setting them up? Because that truly is data science in its very, very simplistic form, but that’s what it is. We’re trying to test and validate things and use the data. Another trend, like with machine learning, is you’re going to hear more and more about ‘combine automation,’ which is real. I think I was listening to a podcast the other week about how they go out to a farm and demonstrate this to a farmer. Because most people would say: ‘Hey, I know I can adjust the settings on my combine better than any computer can.’ So, one of the things they do is they completely purposely set the settings wrong on the combine for one pass, push the button and watch it adjust. And they watch the farmers’ eyes light up with how quickly and how accurate those adjustments are, and I’ll tell you the tech side of things. As I’ve been talking to farmers specifically about equipment, the tech side of things is tying more and more into that equipment-buying decision. So, what technology are you using? Who’s the provider, whether it be John Deere or Case, or what’s the system that’s going to manage it? And they’re starting to talk more about making decisions for new combines based on automation, which is machine learning which taught that. I think you saw some announcements from John Deere in the last two weeks with the See & Spray technology with the acquisition of Blue River. So, this stuff is going to keep coming, and it’s going to come pretty fast. But at the end of the day, it’s just like a trial on the farm, where seeing is believing. And I think once you see this technology in the hands of different people, you’re going to see people adopt it at different rates, but I’m pretty bullish on the ‘combine automation’ stuff just because of what I’ve seen and what it can do. And I know, from direct feedback from 50-plus farmers over the last four weeks, that is something that they’re looking at.

RENEE HANSEN: Yeah, it’s pretty incredible, the advancements that they’re making within the technology, just with the tractors, the combines. But, then, also kind of going back to that data, too, and data science, where if a grower is anywhat interested in their data, having to layer all of that in a spreadsheet of Excel and having your brain trying to figure it out, it’s just too difficult. Let the computer do the mathematics for you. I mean, that’s the whole purpose of the data science. It’s learning through your data. So, I’m just kind of reiterating what you were saying, T.J. You’ve shared a couple of stories. You shared that you talked with 50 farmers within the last four weeks. What are some of the most successful stories that you have from a farmer using precision ag?

T.J. MASKER: Yeah, I remember this was kind of the fun one and like the best case study that I have. It was that we started working on a problem, and the same thing applies to product management if I’m trying to solve a problem for a farmer. But it’s like: ‘What’s the goal here?’ And it’s like: ‘The goal was to increase soybean yields for this specific farm.’ They couldn’t get above 45 bushels. So, we started to break down the problem and study the group data that we had, to say, okay, well, we haven’t ‘limed’ in five years. Maybe that’s something we could do. Another thing that the farm hadn’t done in five years was try a different seed brand or variety. So, that’s another thing we could do. Another thing they typically did was only fertilized ahead of the corn crop. Okay. So, let’s split up that application. So, we literally picked a field and said: ‘We’re going to kitchen sink it, and we’re going to try everything we can. And we’re going to make sure we have trials set up within the field.’ I think we ended up hitting 75 or 80 bushels per acre, which was almost double what their average was. Now, granted, Mother Nature cooperated and rained when it needed to rain. But the point was we were able to say fungicide meant ‘this.’ A different variety meant ‘this.’ Using lime, dry fertilizer on this part of the field meant ‘this.’ And we literally laddered it up to that number. To me, we can spend a lot of money on inputs and resources, but doing that, and actually just calling it the ‘kitchen sink’ but having our checks in place, fundamentally changed how that farmer grew soybeans moving forward. And we were able to increase the average over a lot of acres, 15 bushels. But if we didn’t identify what the core issue was and start to think about how we strategically implement different tests, we would have never gotten there. And I laugh because the same thing exists in product development, where you’re trying to build things for farmers. It’s like: ‘What’s the problem we’re trying to solve? How do we prove value, and how do we incrementally get there?’ So, whether it’s agronomy or software development or building the next widget for a John Deere tractor, it’s all the same when you break it down. It’s how you solve problems and measure it to make improvements.

RENEE HANSEN: Well, that’s a great success story, and the fact that, just in one year, how much they can learn and then take it to the rest of their operation over the next 3-5-10 years. And the profit that you’re getting out of that service is tremendous. I mean, it’s definitely worth the cost of the service.

T.J. MASKER: Absolutely.

RENEE HANSEN: You mentioned a little bit about where precision ag is going in the future, but where do you think precision ag is in the software space? So, we talked a little bit about automation with tractors and combines, but what about in the software space? Where do you think precision ag is going?

T.J. MASKER: I think it’s going to continue to get ‘smarter,’ which is kind of an annoying tagline, but it’s going to get smarter about how much you’re applying what rate on what date. A lot of this, we’re getting so good at understanding the impact, and we have enough data to understand it. I also think I’m pretty confident — we saw it in a past experience. I see it in the current one. The value of the mobile device and whatever you have with you is going to continue to dominate this space from a software perspective. You think about: ‘I can pull up Climate or the Ops Center on my phone and have an answer really quickly. I want to show my landlord how the field yielded in a second.’ Farmers are going to continue, in my opinion, to demand that the tools they’re using be accessible from anywhere. And so, precision ag, yes, there’s the technology in the cab. Yes, that’s important. But I would argue that this device — the phone, the tablet — probably more so the phone than anything is going to continue to be such a critical piece. It’s how farmers run their business, and they expect to have things on their phone. So, I would think if I’m working with a provider, that is going to be one of my number-one needs, and it’s also going to drive a lot of engagement for that farm, as well, which is critical for any tool you’re trying to use because a farmer’s going to get value out of a lot of things. But having that answer really handy with them whenever they need it is very, very valuable.

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RENEE HANSEN: Yeah, getting your data any time, anywhere, I think, is kind of a little tagline that we use, even with one of our mobile apps that we have within Premier Crop. But I think I agree with you that farmers want it. They want to pull it up, and they want to see it. They need to show it, whether that be the banker or the landlord themselves. So, they’re looking at the field, getting ready to plant, getting ready to harvest. All of the above.

T.J. MASKER: Yeah, and it has to be easy to use, which is such a challenge, right? Because if you talk to the 50 farmers that I’ve talked to, you’re trying to pull out the nuggets that are similar between all of them, but there are always unique use cases. But I think as long as you’re solving for the 90%, you’re going to be well on your way to help the farm make better decisions, which is ultimately everything that we’re about and trying to do.

RENEE HANSEN: Great. Well, thanks, T.J. Thanks so much for joining us today. Really enjoyed all of your knowledge and your experience and sharing on the Premier Podcast.

T.J. MASKER: Awesome. Thank you.

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 farm profitability.

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

5 Surprising Things About Ag Technology

Do you remember the 90s? I was an elementary student, probably about 7 when my parents bought our first computer. I remember listening to the dial up tone to get on the internet and play the math video games that my mom had found. I also remember the incessant pop ups that also came with 90s internet. Sometimes, that’s how I feel about precision ag these days. There are a lot of pop ups that are flashy and use all the right buzz words wanting you to ‘pick me, pick me, pick me.’ However, there are several things about precision ag that these companies often leave out of their messaging that can be surprising. 5 of those things that can often surprise people are:

  1. There are no magic algorithms
  2. Achieving higher yields isn’t the best way to measure success
  3. You don’t need to be a data scientist or technology expert to use your data and equipment to its full ability
  4. Hiring an advisor you trust will help you become a more efficient and profitable farmer
  5. You’ve never learned it all

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THERE ARE NO MAGIC ALGORITHMS

There is no such thing as a perfect magic algorithm. Finding the right product placement, rate, or timing is a constant trialing and evaluation cycle. It doesn’t have to be a headache of a process, though. A lot of our machines have rate control capability and trials that can be loaded right into the controller. At Premier Crop, we can automate these trials through what we call Enhanced Learning Blocks. These are randomized and replicated trials that will tell your machine to change rate, turn off, turn on, switch product, and whatever we want to test. Combining the data from the trial itself with weather data, soil samples, and applied fertility, we can start to gather what kind of agronomic environment this trial could be replicated on. They can also be aggregated to allow us to create response curves for products so we don’t question what that perfect rate might be.

ACHIEVING HIGHER YIELDS ISN’T THE BEST WAY TO MEASURE SUCCESS

As we gain better knowledge of product placement, rates, and timing, it is important to ask how we know when we have found success. Higher yield? That’s what many precision ag companies want us to believe. We can circle and map and see if it got us higher yield, but that’s only half of the picture. Agronomics are always important, but our decisions must also be advantageous to our pocketbook.

For example, let’s say this year I ran a potash trial on my field. In this trial, I had 3 different rates across an area of my field that has 280 ppm soil test K values. The rates we ran were 150 units of K, 200 units of K, and 250 units of K. That translates to 250 lbs of potash, 333 lbs of potash, and 417 lbs of potash, respectively. Our yield responses were then 225 bu, 248 bu, and 251 bu, respectively.

We continued to see an increase in each application, but do they all make sense economically for us? Let’s say that potash is $400/ton, application is $8/ac, and we sell our corn for $5/bu. Which is the best rate in these economic conditions? When we increased our potash from 250 to 333, we gained an additional revenue of +$90.33/ac. However, continuing to go from 333 lbs to 417 lbs, only increased our yield by an additional 3 bushels, we actually lost -$9.67/ac. Yield is only part of the picture, we need to take economics into account, too, especially as we move into a fall with extremely high fertilizer prices. Being confident in the input decisions we make eliminates the emotion that comes with seeing prices rise so fast.

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YOU DON’T NEED TO BE A DATA SCIENTIST OR TECHNOLOGY EXPERT TO USE YOUR DATA AND EQUIPMENT TO ITS FULL ABILITY

That was a lot of math we worked through in the last point for only one input decision. But, with the right technology and advisor working alongside you, you don’t need to be a math, tech, or data guru to make these decisions every single day. It’s important for you and your advisor to sit down and decide what your goals are moving into the next crop year. From there, determine what you could trial for the coming year. Question whether or not you can still push your fertility and see a return. Or consider backing down your seed in lower productivity areas without sacrificing yield. Perhaps you want to know if that starter rate you’ve been using is doing your crop any good.

HIRING AN ADVISOR YOU TRUST WILL HELP YOU BECOME A MORE EFFICIENT AND PROFITABLE FARMER

Having a trusted advisor help you along the way is a huge asset to your farm operation. Agronomy is complex, but using a software that can combine agronomic factors and delve into the relationships happening in your fields through trialing, customized rec equations for different parts of your field, or visuals of your economic and agronomic data married together can take your operation to the next level. Also, having an advisor that isn’t tied to certain products can increase your level of trust, because their number one goal is to make you a better farmer. Going forward, you’re going to want to have a data partner you can rely on to provide confident, unbiased advice in order for you to achieve higher profitability.

YOU’VE NEVER LEARNED IT ALL

The last surprising thing a lot of people don’t realize when they jump into the precision ag world is that there is never going to be a time we have all the answers. I had a grower last winter ask me, “I can see the immediate benefit of doing business with you but what is my long-term gain?” That is such a great question because it allowed us time to talk about expectations. For years, our founder Dan Frieberg has talked about the rain barrel, and finding the lowest stave that may be hindering your yield. But we often forget that once we have raised that stave, another becomes the lowest. This is a continuous process that we work on with you. There is always some way to improve yield, ROI, or efficiency. We are here to help you find it. Contact us today to get started.

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Farm Analytics Show Valuable Insights

I was meeting with a grower who asked the question, ‘Is the direction of Premier Crop going from a prescription company to an analytics company?’ My answer was: ‘Premier Crop has always been about analytics. We are not only a company known for analytics, but what to do with the information that is received within the data, in those analytics.

I could kill you with paperwork. But really, it’s about the reports and insights that I can take to be able to help growers make better decisions. The report I’m walking through today is our Management Zone Report. This report is almost like a report card for a grower because it showcases the cost per acre in each of the management zones. In this report, you’ll see that we’ve invested more dollars per acre for nutrients and seed. The chemical costs, operations costs, management and land are going to be flat rates, or they’re equal across each of these zones. When we get down to the very bottom of this report, we can see that we’ve invested $48 more in our A zone, our best parts of the field, than in our C zone. When we look at that break-even cost per bushel, or the amount it costs us to produce a bushel of corn, it’s $0.86 cents less in our A zone compared to our C zone, even though we spent more money to produce it. It’s amazing to actually be able to use this report to illustrate to a grower that variable rate does pay.

Let’s do the math on this report. If we’re yielding 200.2 bu/ac bushels in the A zone, and I’m using a selling price of $4.50 for corn, that would bring us to $900.90 of revenue per acre. If we take out our cost per acre of $717.57, that’s going to be $183.33 profit in that A zone versus our C zone yielding 150.9 bu/acre and revenue of $679.05, which is $9.64 revenue per acre. That’s $173.69 more per acre in your A zone.

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Now, we an produce reports and pretty graphs, but it’s so much more than that. I’ve always laughed and thought: What other business takes a look at a pretty map or graph and says, “That’s really neat!” and puts it in a 3-ring notebook in their office without doing anything about it? This is where the agronomic advisor should come in, take that data and ask, “What can I do with this?”

Another part of this Management Zone report shows the soil test attributes, applied, and removed nutrients in each of these zones. As an advisor, I can very quickly look and see what the average applied nutrients were in these zones and the actual nutrients that were removed within these zones. With so many inputs (P, K, Seed, etc.) being variable rated, it helps me to get the complete picture and help growers make sense of what happened in their fields and how we can improve next year.

As we’re going into the fall with these fertilizer inputs — and, actually, all inputs — being what they are, growers are going to be concerned. I’ve been telling people for the last month, my worry is that when farmers get shown these prices, they could make some emotional decisions. In fact, those emotional decisions. In fact, those emotional decisions of cutting across every acre could be cutting profitability in the areas where they could be returning the most.

So the question is: how can we take this information to make a better recommendation or a better prescription for next year’s crop.

First, we have to figure out what we actually have control over. There’s so much in the data world and there are certain things we don’t have control over. So, let’s look at the things that we can help growers with. I’m not saying to starve out any area, but instead, reallocate. What does the grower’s pocket book look like for a given field? I chuckle when growers tell me that their yield goals are the same across every field. If you treat every field the same, you can’t tell me that yield goals or, on the flip side, removals, are the same on every field. We’re talking about removals spatially, with that yield file. That’s a huge variance.

When you’re in the combine, and you’re watching the monitor, you see those high areas of the field. Well, those high areas of the field are removing a lot more nutrients than when that monitor hits those red areas on the map. That means if there’s a big difference in yield, there’s a big difference in removals.

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Using that removal file as part of a grower’s nutrient plan or recommendation is going to be really big this coming year, in addition to establishing the goal for that field moving forward for this following year. What kind of a goal are we going to have based on input prices? I sent an email to one of my growers last week, and said: ‘We really need to talk in the next 10 days. If prices are going to remain as they are, what are you thinking for fall fertilizer?’ We’re going to need to put some on, what does it look like if prices stay this way? Then, how do we pivot as we move into harvest season and that sort of thing in order to prevent those emotional decisions? Growers with a plan don’t make emotional decisions. They’re a lot more confident and a lot calmer in fall and harvest time.

I share all of this to prove to you that variable rate clearly pays. So, what if you were to flat-rate this whole field? What would this look like? I mean, you would clearly be losing your money in the C zone, more than if you’re over-applying your nutrients. There’s a clear reason that these reports show that the profitability of variable-rate pays. Using something like Premier Crop and looking at the farm analytics is highly beneficial. If you are only using yield as your measure of success, you really don’t know how much money there is out there that you’re missing out on.

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Two Reasons Your Data Will Lead to Greater Profitability

Foundations of agronomy and geography are the starting place for data-driven decisions.

I believe data-driven decisions will power change in every aspect of crop production. Your data can be a valuable business asset that leads to greater profitability. Here are two reasons your data will lead to greater profitability:

  1. Uniqueness
  2. Yield limitations
UNIQUENESS

There are some key foundational principles in using data to drive decisions in crop production that are worth reviewing. The first is centered on uniqueness. Just as we each have unique fingerprints and DNA, each part of every field is unique.

Your data is being collected with a device connected to a GPS receiver. Most of the software that reads the data files is a version of a geographic information system (GIS). The difference between this software and a database you might use for your livestock operation or some other aspect of your farming operation is the first word ­– geographic. Your data is stored and tied to a unique geographic place in the world. While there are other areas, geographically, that are very similar, none of those are exactly the same.

And since these areas are uniquely different it’s the reason a product works so well in one place, but not in another. And why an ideal rate of an input works within parts of your field, but not in another. Many times, the answer is as simple as “geography matters.” If you treat all your acres the same, you’ll lose out on efficiencies and profits. Our data has proven this time and time again.

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YIELD LIMITATIONS

The second principle is yield limitations which is best illustrated by the rain barrel. The rain barrel, with staves of varying heights, is a visual way to illustrate the real-world reality of what limits yield in any one place within a field. Nitrogen is limiting in the southeast corner of the field but not in the center. Population is limiting one place but not another.

The rain barrel concept is easy to talk about but challenging to put into practice. Our goal is to maximize return on every dollar invested. Ideally, we are adjusting every input to not only match the uniqueness of the geography but also to match the combination and limitations of the other staves in the rain barrel in each part of the field.

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The irony of our leap forward in planter technology is that, in many cases, we now have more uniformly-spaced, nutrient-deficient plants than anyone would ever have imagined. A one-time investment in upgrading planters has been easier to justify than the continuous re-investment in fertility, especially on rented acres.

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An appreciation for these two principles will lead you to collect as much geo-referenced data as possible. Your data is important an using a system like Premier Crop can help you dive deeper into understanding your yield limits in parts of your fields.

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