“On its surface, efficient market approaches seem to drip with pessimism, but they contain a powerful directive for farmers: since efforts to improve revenue through better marketing will meet with limited success over time for most producers, those who survive for the long term will be those with the lowest cost of production. In other words, a good marketing program starts with a good program for managing and controlling cost of production.”- Carl Zulauf, McCormick Professor of Agriculture Marketing and Policy, OSU Department of Agricultural, Environmental and Development Economics. The following are some tips for saving $$$$$’s per soybean acre:
- Use Lower Seeding Rates where conditions allow. Research shows that seeding rates may be lowered in many field settings. In 7” rows use the following rules of thumb:
Light colored soils, plants reach knee high to 20” – 225,000 seeds per acre
Medium soils expected plant height of approximately 30” – 175,000 seeds per acre
Dark soils with 40” or higher plant height – 150 – 125,000 seeds per acre
* Similar seed savings can be achieved in 10” and 15” row systems:
Seed savings of 10% per acre = Savings of $3.60 per acre. (Roundup Ready System) - Consider Roundup Ready System to decrease herbicide expense.
Net Savings of $11 per acre. (Herbicide Program Savings offsets higher seed costs by $11 per acre. No-till system.) - Consider Generic Crop Chemicals (No-till Roundup Ready System.)
Herbicide savings of $2.10/acre (10% cost savings)
Insecticide savings of $0.70/acre (10% cost savings) - Consider Bulk Fuel Purchasing (5000 gallon minimum)
Diesel cost savings of $0.25 per gallon or $0.85 per acre (Conservation Tillage System). Consider Soy-Diesel which is about the same price as regular diesel. Soy-diesel is also good for your engine, the environment and the price of soybeans. - Use Innoculants wisely in your production system. Every dollar invested in Innoculants gives you an Average Minimum Return of $2.00 per acre over time.
- Use Seed Treatments wisely in your Soybean production system.
Every dollar invested in Seed Treatment means an Average Minimum Return of $1.50 per acre over time. - Consider Bulk Fertilizer Purchase
Save 10% on fertilizer purchases or $3.20 per acre. - Consider Light Bar/Guidance System Investment – GPS light bar and auto guidance systems can increase net revenues above variable and technology costs by up to $30 per acre. These systems increase overall operating speed and reduce fatigue, allowing up to 10% more acres covered. And they reduce application overlap and skip errors by 5% to 10% over traditional methods. This also directly relates to savings in fuel, labor, and machinery depreciation. Precise driving also means better controlled traffic, reducing compaction for higher yields. This means a potential income increase up to $15/acre.
- Early Purchase Discounts. Consult variety performance test data – there may be as much as a 5-10 bu difference in yield among soybean variety entries. Select soybean varieties with resistance to diseases)
Savings of 8% on seed purchases or $2.88 per acre.(Roundup Ready System) - Decrease Tillage Where Appropriate
Savings of $11.91 per acre. (No-till versus Conservation till. Combined Machinery Investment, Fuel and Lube, Repairs, and Labor Savings. Net Savings of $3.91 per acre after accounting for increased herbicide expense with no-till production.) - Use correct tire inflation pressure on tractors and combines.
Fuel savings of up to 8% or $0.37 per acre. (No-till system.) - Consider Group Risk Insurance (GRP) if Your Farm Fits This Program
Savings of $4.50 per acre. (GRP versus Crop Revenue Coverage (CRC). - Access and utilize the OSU Sustainable Ag Team Website at http://sustainableag.osu.edu/
- Subscribe and Follow Recommendations of the Crop Observation and Recommendation Newsletter (C.O.R.N.) at: http://corn.osu.edu/
- Subscribe to the NEW Ohio Ag Manager (OAM) at: http://ohioagmanager.osu.edu/
The following are some tips for saving $$$$$’s per corn acre:
- Use seed with enhanced traits wisely and only in appropriate settings.
a. Research shows that Bt Corn Borer Corn is not “economical” in most Ohio fields as Corn Borer populations are usually minimal. Save $5 per acre. In Ohio, Bt Corn is most effective when used in replant or late planting situations.
b. Research finds “first year corn” does not require protection from rootworm. Therefore Bt Rootworm corn in most fields is not needed. Save $20 per acre.
c. Glyphosate-resistant corn may be needed only where severe weed pressure and/or perennial weeds limit production capabilities. Save $10 per acre. - Adjust Seeding Rates on a Field-by-Field Basis (Use higher seeding rates if planting in early April and/or No-Till to achieve target populations.)
a. Lower seeding rates on fields that average 120 bu/acre or less. 20,000 – 22,000 plants/acre will be adequate in most of these fields. Save $6 per acre on a percentage of your corn acres. - Take Advantage of Rotational Benefits
a. Less nitrogen cost due to soybean N credit. (Average 30 lbs. N savings.)
N Savings of $8 per acre.
b. Better weed control and fewer difficult-to-control weeds. Herbicide Savings of $1.20 per acre (5% cost savings) (Conservation Tillage System). - Consider Generic Crop Chemicals
a. Herbicide savings of $2.40 per acre (10% cost savings)(Conservation Tillage System). - Consider Bulk Fuel Purchasing (5000 gallon minimum)
a. Diesel cost savings $0.25 per gallon or $1.07 per acre (Conservation Tillage System) - Consider Bulk Fertilizer Purchase
a. Save $4.10 per acre or 10% on fertilizer purchases. - Consider Anhydrous Ammonia as Nitrogen Source vs. UAN (28%).
a. N savings of $16 per acre. ($0.26/lb.vs $0.36/lb. on 160 lbs. N/acre. - Consider Side-Dress Nitrogen Application to Save on N-Serv.
a. Savings of $7 per acre. - Consider Light Bar/Guidance System Investment – GPS light bar and auto guidance systems can increase net revenues above variable and technology costs by up to $30 per acre. These systems increase overall operating speed and reduce fatigue, allowing up to 10% more acres covered. And they reduce application overlap and skip errors by 5% to 10% over traditional methods. This also directly relates to savings in fuel, labor, and machinery depreciation. Precise driving also means better controlled traffic, reducing compaction for higher yields. This means a potential income increase up to $15/acre.
- Take advantage of early purchase discounts on seed corn. But first, consult variety performance test data, there may be as much as a 40-50 bu difference in yield among corn hybrid entries. Select corn hybrids with resistance to major foliar blights. Savings of 8% on seed purchases or $3 per acre.
- Use correct tire inflation pressure on tractors and combines.
Fuel savings of up to 8% or $0.63 per acre (Conservation Tillage System). - Decrease Tillage Where Appropriate
Save $16 per acre. (No-till versus Conservation till. Combined Machinery Investment, Fuel and Lube, Repairs, and Labor Savings. Net Savings of $7 per acre after accounting for increased herbicide expense with no-till production.) - Consider Group Risk Insurance (GRP) if Your Farm Fits This Program
Save $7 per acre. (GRP versus Crop Revenue Coverage (CRC)). - Access and utilize the OSU Sustainable Ag Team Website at http://sustainableag.osu.edu/
- Subscribe and Follow Recommendations of the Crop Observation and Recommendation Newsletter (C.O.R.N.) at: http://corn.osu.edu/
- Subscribe to the NEW Ohio Ag Manager (OAM) at: http://ohioagmanager.osu.edu/