Editor and Author – Barry Ward, Leader Production Business Management, Ohio State University Extension, Department of Agricultural, Environmental and Development Economics; Contributing Authors – Jim Beuerlein, Mark Loux, Nathan Watermeir, Anne Dorrance, Dennis Mills; Reviewer – Stan Ernst
“Those (farmers) 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
1. 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”, 15” and 30” row systems. Seed savings of 10% per acre = Savings of $3.69 per acre. (Roundup Ready System)
2. 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.)
3. Consider Generic Crop Chemicals
Herbicide savings of $2.11/acre (10% cost savings) (No-till Roundup Ready System.)
4. Consider Bulk Fuel Purchasing (5000 gallon minimum)
Diesel cost savings of $0.20 per gallon or $0.63 per acre (No-Till 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.
5. 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.
6. 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.
7. Consider Bulk Fertilizer Purchase
Save 5% on fertilizer purchases or $1.41 per acre.
8. 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.
9. Take Advantage of Early Purchase Discounts on Soybean Seed.
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 $2.93 per acre.(Roundup Ready System)
10. Decrease Tillage Where Appropriate Net Savings of $3.91 per acre
(No-till versus Conservation till. Combined Machinery Investment, Fuel and Lube, Repairs, and Labor Savings. Other Assumptions: Increased herbicide expense with no-till production and yields are equal in the 2 production systems.)
11. Use Correct Tire Inflation Pressure on Tractors and Combines.
Fuel savings of up to 8% or $0.56 per acre. (No-till system.)
12. Consider Group Risk Insurance (GRP) if Your Farm Fits This Program
Savings of $4.50 per acre. (GRP versus Crop Revenue Coverage (CRC).
13. Access and utilize the OSU Sustainable Ag Team Website at http://sustainableag.osu.edu/
14. Subscribe and Follow Recommendations of the Crop Observation and Recommendation Newsletter (C.O.R.N.) at: http://corn.osu.edu/
15. Subscribe to the NEW Ohio Ag Manager (OAM) at: http://ohioagmanager.osu.edu/