Copyright © University of Minnesota. All Rights Reserved. Conservation Tillage Workshop Heron Lake, MN March 22, 2012 David Bau Extension Educator Agricultural Business Management University of Minnesota Extension

OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Stalk Chopping 8.00 Primary Tillage Chisel Plow Strip Tillage 16 Row Spring Tillage Field Cultivator 40‘ 8.45 Planter Ridge Till Cultivation Spraying 4.90 Spraying 4.90 Harvest Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2006 Beans Copyright © University of Minnesota. All Rights Reserved.

OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Stalk Chopping 8.65 Primary Tillage Chisel Plow Strip Tillage Spring Tillage Field Cultivator 40‘ 9.05 Planter Spraying 5.15 Spraying 5.15 Harvest Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2007 Beans Copyright © University of Minnesota. All Rights Reserved.

OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Stalk Chopping 9.50 Primary Tillage Chisel Plow Strip Tillage Spring Tillage Field Cultivator 40‘ Planter Spraying 5.60 Spraying 5.60 Harvest Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2008 Beans Copyright © University of Minnesota. All Rights Reserved.

OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Stalk Chopping 9.80 Primary Tillage Chisel Plow Strip Tillage Spring Tillage Field Cultivator 40‘ Planter Spraying 6.00 Spraying 6.00 Harvest Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2009 Beans Copyright © University of Minnesota. All Rights Reserved.

OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow Strip Tillage Spring Tillage Field Cultivator 40‘ Planter Spraying 6.10 Spraying 6.10 Harvest Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2010 Beans Copyright © University of Minnesota. All Rights Reserved.

OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow Strip Tillage 16 Row Spring Tillage Field Cultivator 40‘ Planter Spraying 6.00 Spraying 6.00 Harvest Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2011 Beans Copyright © University of Minnesota. All Rights Reserved.

Average Input Cost 3 Estimated Costs Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Seed Fertilizer 0.00 Herbicides Insecticides 6.60 Crop Insurance Marketing/ Trucking 6.00 Rent Other 8.00 Total Input Costs Total Cost Per Acre Average Yields Conservation Tillage Demonstration Project Heron Lake Watershed District 2006 Beans Copyright © University of Minnesota. All Rights Reserved.

Total Crop Expenses Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Production Costs Production Costs Production Costs Production Costs Production Costs Production Costs Average Costs Conservation Tillage Demonstration Project Heron Lake Watershed District Beans Copyright © University of Minnesota. All Rights Reserved.

Yields Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Average Yields Average Yields Average Yields Average Yields Average Yields Average Yields NA Average Yields Conservation Tillage Demonstration Project Heron Lake Watershed District Beans Copyright © University of Minnesota. All Rights Reserved.

Net Farm Income Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Net Farm Income Net Farm Income Net Farm Income Net Farm Income Net Farm Income Net Farm Income NA Net Farm Income Conservation Tillage Demonstration Project Heron Lake Watershed District Beans Copyright © University of Minnesota. All Rights Reserved.

Beans Averages Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Total Cost Per Acre Average Yields Total Revenue Net Farm Income Per Acre Conservation Tillage Demonstration Project Heron Lake Watershed District Beans Copyright © University of Minnesota. All Rights Reserved. Results Indicate: Strip and Ridge Till Tillage Systems are very economically competitive with conventional tillage!

Assumptions: 2006 cost for Ridge Till higher than normal on beans to establish ridge Normally would not chisel, field cultivate or Ridge Till in beans corn yields for Ridge Till were destroyed by green snap during cultivating and therefore could not use yields for a good comparison Used Fertilizer costs for 2006 and adjusted for Strip and Ridge Till banded reduced fertilizer material. Although plot area soil tests were high P & K, applicator could not reduce rate applied by banding so banded and broadcasted were at the same pounds per acre Each year used actual cost of fertilizer used on plots. Costs were used as provided otherwise used prices in annual Farm Resource Guide Publication

Assumptions Continued: Equipment Costs came from Iowa State publication: Farm Custom Rates 2007 Total crop expenses were calculated using 2006 costs multiplied by 1.15 for a 15% increased costs in This process was continued each year for costs other than fertilizer and used FINBIN data in Farm Resource Guide Cash prices came from FINBIN data for average sale price on corn and soybeans sold in year. This number was used to calculate Gross Farm Income calculations

OperationEstimate d Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow Strip Tillage 16 Row 9.50 Dry Fertilizer Application 3.50 Anhydrous Applicator 7.40 Spring Field Cultivator 8.45 Planter Spraying 4.90 Spraying 4.90 Ridge Tillage Cultivation Harvest Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2006 Corn

OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow12.70 Strip Tillage 16 Row10.50 Dry Fertilizer Application3.20 Anhydrous Applicator7.90 RT Fertilizer Application7.90 Spring Field Cultivator9.05 Planter13.05 Spraying 5.15 Spraying 5.15 Ridge Tillage Cultivation10.50 Harvest Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2007 Corn

OperationEstimated Costs Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow13.70 Strip Tillage 16 Row12.90 Dry Fertilizer Application3.75 Anhydrous Applicator8.75 RT Fertilizer Application8.75 Spring Field Cultivator Planter14.60 Spraying 5.60 Spraying5.60 Ridge Tillage Cultivation11.70 Harvest38.00 Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2008 Corn

OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow13.70 Strip Tillage 16 Row13.30 Dry Fertilizer Application4.10 Anhydrous Applicator9.50 RT Fertilizer Application9.50 Spring Field Cultivator Planter14.70 Spraying6.00 Spraying6.00 Ridge Tillage Cultivation11.50 Harvest Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2009 Corn

OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow Strip Tillage 16 Row Dry Fertilizer Application 4.15 Anhydrous Applicator 9.75 RT Fertilizer Application 9.75 Spring Field Cultivator Planter Spraying 6.10 Spraying 6.10 Ridge Tillage Cultivation Harvest Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2010 Corn

OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow13.70 Strip Tillage 16 Row13.30 Dry Fertilizer Application4.05 Anhydrous Applicator10.30 RT Fertilizer Application10.30 Spring Field Cultivator11.45 Planter15.70 Spraying 6.05 Spraying 6.05 Ridge Tillage Cultivation13.35 Harvest Total Tillage Costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2011 Corn

Average Input Cost 2006 Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Fertilizer-Actual costs Seed70.33 Herbicides14.92 Crop Insurance13.00 Marketing/ Trucking6.00 Rent Other12.00 Total Misc Input Costs Total Cost Per Acre Average Yields NA Total Revenue Yield x $ NA Conservation Tillage Demonstration Project Heron Lake Watershed District 2006 Corn

Annual Fertilizer Cost Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Fertilizer-Actual costs Fertilizer-Actual costs Fertilizer-Actual costs Fertilizer-Actual costs Fertilizer-Actual costs Fertilizer-Actual costs Conservation Tillage Demonstration Project Heron Lake Watershed District 2006 Corn

Total Crop Expenses Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Production Costs Production Costs Production Costs Production Costs Production Costs Production Costs Average Costs Conservation Tillage Demonstration Project Heron Lake Watershed District Corn Copyright © University of Minnesota. All Rights Reserved.

Yields Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Average Yields NA Average Yields Average Yields Average Yields Average Yields Average Yields NA Average Yields Conservation Tillage Demonstration Project Heron Lake Watershed District Corn Copyright © University of Minnesota. All Rights Reserved.

Net Farm Income Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Net Farm Income NA Net Farm Income Net Farm Income Net Farm Income Net Farm Income Net Farm Income NA Net Farm Income Conservation Tillage Demonstration Project Heron Lake Watershed District Corn Copyright © University of Minnesota. All Rights Reserved.

Corn Averages Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Total Cost Per Acre Average Yields Total Revenue Net Farm Income Per Acre Conservation Tillage Demonstration Project Heron Lake Watershed District Corn Copyright © University of Minnesota. All Rights Reserved. Results Indicate: Strip and Ridge Till Tillage Systems are very economically competitive with conventional tillage!

Corn Averages Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Total Cost Per Acre Average Yields Total Revenue Net Farm Income Per Acre Bean Averages Total Cost Per Acre Average Yields Total Revenue Net Farm Income Per Acre Combined Corn & Bean Net Conservation Tillage Demonstration Project Heron Lake Watershed District Corn and Soybeans Averages Copyright © University of Minnesota. All Rights Reserved.

Copyright © University of Minnesota. All Rights Reserved. FINBIN AVERAGES Soybean Net Farm Income Corn Net Farm Income Bean and Corn Ave $68.41$163.66$119.99$72.84$212.95$ Bean Average: $ Corn Average $ Combined Bean and Corn Average: $132.72

Results Indicate: Strip and Ridge Till Tillage Systems are very economically competitive with conventional tillage! Conservation Tillage Demonstration Project Heron Lake Watershed District Corn and Soybeans Averages Copyright © University of Minnesota. All Rights Reserved.

Reference Websites : FINBIN Data Base: Use this website to examine crop and livestock budgets for Minnesota and surrounding states. The data can be sorted by county using many different variables. Acceptable Price Worksheet: Go to the Southwest Research and Outreach website and under Farm Business Management you can find information including Acceptable Price Worksheet which you can use to determine your farm’s corn and soybean breakeven prices. Center for Farm Financial Management: Use this website to find county farmland rental information and marketing plan information provided by Ed Usset and several basis charts for cities across the state. You can also access the FINBIN data base from here. Farmland Sales: Steve Taff’s information on farmland values and sales can be found at this website. You can search this data base by Townships across Minnesota. University of Minnesota Extension Service County Offices: You can go the University of Minnesota Extension Service Home Page and link to County Offices across the state. You can find crop production information here. Annual Reports of Farm Business Management Association: At this website you can find the annual reports from the Southwest and Southeast Farm Business Management Associations Farm Resource Guide, David Bau This 114 page publication is full of Agricultural Farm Business Management information. It is available at many County Extension Offices or by ing Cost is $25 plus postage and

Questions?? 2012 Farm Resource Guide David Bau Regional Extension Educator Agricultural Business Management University of Minnesota Extension