by jerry clarke
Farmers, agronomists, and researchers have spent decades of their careers identifying the needs and inputs of numerous field crops. Changes occur regularly on farms as new research, information, equipment and technology is developed. These changes and their associated costs constantly influence agricultural decisions.
Managing agricultural inputs as the growing season begins requires accurate production cost estimates, along with realistic yields and commodity prices. All of these agricultural decisions boil down to obtaining profitable commodity market prices or reducing feed production costs.
It can also be argued that many agronomic decisions have no direct input costs, such as row spacing, planting date, or maturity. For example, if you buy seeds and are ready to plant them, there are no direct input costs on planting day (unless fuel and labor costs suddenly change). The cost of planting these seeds is the same whether you plant them early or late.
However, research shows that for corn and soybeans, the later you plant them, the more likely you are to see significantly lower yields and a higher risk of potential profit loss. If corn is planted in late May, a one day delay will reduce the yield by 1.5% to 2.3%.
variable costs
Seed and soil fertility inputs can represent nearly half of the variable costs associated with crop establishment. Hybrid and cultivar selection can have a significant impact on the magnitude of profit margins. In University of Wisconsin crop performance trials, the difference in yield between the highest performing hybrid or variety and the lowest yielding is 70 bushels per acre for corn and 25 bushels per acre for soybeans.
Planting population is another factor in seed cost. For example, Wisconsin soybean recommendations target a final field population of 100,000 plants per acre to achieve 100% potential yield. A final stand of 90,000 trees per acre provides 90% of potential yield.
Meeting the nutritional needs of crops is a balancing act to produce productive and environmentally friendly crops. You should take credits for legumes and fertilizers, consider how cover crops affect those credits or the next crop, and adjust your nutrient application rates. Weather, especially precipitation and temperature, has a big impact on how much nitrogen a corn plant ultimately uses.
First, remember that soil nitrogen contributes 70% to 80% of corn yields in Wisconsin. The amount of soil nitrogen available is determined by several factors, including precipitation, temperature, organic matter, and especially soil type. Sandy soils do not retain as much soil nitrogen as medium or finer textured soils. One way to understand how much potential nitrogen is present in the soil and can contribute to yield is to get a pre-plant nitrate soil test or a pre-sidedress nitrate test. These tests help fine-tune nitrogen application rates and reduce the risk of over-application.
Production cost
To identify break-even points and profit-and-loss scenarios in grain marketing, it is important to know the per-acre and per-bushel production costs of a particular crop. UW-Madison Extension is crop corporate budget tools Helps farmers estimate production costs. Once the break-even price is determined, opportunities may exist to earn a few cents as the pre-harvest season progresses in grain marketing.
Now is a great time to review the various grain marketing agreements available to farmers. Farmers need to understand the special characteristics of each type of contract and the associated risks. Farmers also need to consider how market fluctuations affect contract outcomes and which contracts offer the best price protection with respect to market fluctuations.
of University of California Madison Farm Pulse Program It features a grain marketing curriculum that helps farmers understand these contracts.Farmers are encouraged to fill out This survey To express crop insurance and grain marketing educational needs.
Clark is the UW Extension regional agriculture educator for Chippewa, Eau Claire and Dunn counties.
