BMP CHALLENGE: Understanding the Mechanics Information provided by: Brian Brandt Director Agricultural Conservation Innovation Center

Mechanics Eligibility and Requirements Owner/operators must be NRCS EQIP-eligible not exceeding the $450,000 Payment Limitation (during term of Farm Bill) not exceeding the Adjusted Gross Income provision (<2.5 million per year) complying with the Highly Erodible Land (HEL) and Wetlands Conservation provisions. Grow corn for grain or silage sweet corn, popcorn, wildlife plots ineligible Certified crop advisor must certify BMP, set out check strip and oversee yield assessment Fall N applications are not eligible for enrollment

Mechanics Application process Information required: Farmer contact information Field information: Location Yield history Soil test results (if covering P and K) Yield goal BMP information (recommended and applied rates) Reduced tillage practice Certified advisor contact information Certification and certification number

Mechanics Check-strips – General Information When: Prior to fertilizer application or tillage. Who: Certified crop advisor (CCA, NAICC or Agflex approval) must set out check strip. Where: Representative location within one or more fields in the management unit. What: 40’ to 80’ wide (depending on equipment width) and running the length of the field. Check strip information: N, P and K rates or conventional tillage practice Location Markings Aerial photo

Mechanics Check-strips – Crop Advisor Information 43° 03.45' N, 89° 30.833' W Determine the productive capability. Aerial maps, soil survey maps, personal observation, soil tests, drainage maps, etc. Locate check strip and adjacent BMP strips. Productive capability of the check strip and the adjacent BMP strips should be equal to and representative of the enrolled field. Identify the actual location of the check strip. Use GPS coordinates or a measurement from an identifiable landmark (field corner, boundary marker, etc.). 232.5’ W

Mechanics Check-strips – Variations Contour strips: Narrow contour strips - choose one contour strip, one half of strip BMP, one half of strip is check strip Wide contour strips - one check strip at least 40’ wide in a representative contour with adjacent BMP strips

Mechanics Yield Assessment When: After crop maturity (black layer) Who: Certified Crop Advisor Where: Check strips and adjacent BMP strips How: Weigh wagon, portable scale, stationary scale, yield monitor Check Strip BMP Strips

Mechanics Yield Assessment Determine yield measurement needs Weigh wagon, etc. Locate the check strip and adjacent BMP strips. If field not harvested, compare the appearance of the check and BMP strips with the field. Note plant height, color, lodging, weed populations, etc. These may indicate differential management. Document any differences. If none, proceed. Harvest the check strip and weigh. Harvest one (or both) adjacent BMP strip(s) and weigh. Adjust for moisture and convert weight to bushels per acre.

Mechanics Net Returns Calculate gross returns for check strip and BMP strips using RMA-APH corn price ($2.20 in 2006, $3.50 In 2007) Subtract fertilizer or tillage costs from gross returns to calculate net returns If net returns to BMP are negative, farmer receives guarantee payment equal to the difference If net returns to BMP are positive, farmer contributes 1/3 of savings back to BMP Challenge program

Mechanics Net Returns - Example Conventional BMP Total Nutrients (lbs N/acre) 140 92 Fertilizer Cost (N=$0.37/lb) $51.80 $34.04 Planning Cost $0 Savings (per acre) +$17.76/acre, 48 lbs N Reduced Yield (bu/acre) 164 169 Value ($3.50/bu) $574.00 $591.50 Yield Gain/Loss +$17.50/acre Guaranty Payment $— Fertilizer Savings Yield Gain Contributions Farmer contribution $5.88 per acre (1/3 of $17.76) Farmer Net Return $29.38 per acre ($17.76 + $17.50 - $5.88) Net Return (27 acres) +$793.26

Mechanics Net Returns - Example Conventional BMP Total Nutrients (lbs N/acre) 189 133 Fertilizer Cost (N=$0.37/lb) $66.22 $50.17 Planning Cost $0 Savings $16.05/acre, 56 lbs N Yield (bu/acres) 156.5 146.4 Value ($3.50/bu) $547.75 $512.40 Yield Gain/Loss -$35.35/acre Guaranty payment $19.30/acre ($35.35 – $16.05) Total payment (35 acres) $675.50 Guarantees Fertilizer Savings Farmer contribution $0 Net Return $547.75/acre