Economically Raising Nitrogen Use Efficiency By: Paul Hodgen.

Slides:



Advertisements
Similar presentations
Perfect Competition 12.
Advertisements

Effect of Long-term Cattle Manure Application on Soil Test Phosphorus, Organic Carbon and Winter Wheat Grain Yield Natasha Macnack, Peter Omara, Lawrence.
Jacob P. Vossenkemper Department of Plant and Soil Sciences Oklahoma State University.
LECTURE IV PRODUCTION PRINCIPLES. Production Principles  The Production Principles to be discussed include:  Production Function  Law of Diminishing.
Livestock Manure Management – The Basics on Why and How Coordinating Manure Utilization Plans With Crop Rotations Jon Stika, Area Agronomist USDA-NRCS,
Glasgow Area Chamber of Commerce And Agriculture New Trends in Agriculture Glasgow, MT January, 12, 2011.
Cost & Return Analysis Farm & Ranch Business Management Chapter #5 Farm & Ranch Business Management Chapter #5.
Who Wants to be an Economist? Part II Disclaimer: questions in the exam will not have this kind of multiple choice format. The type of exercises in the.
1  The Role and Purpose of Firms (Producers)  Economic profit vs accounting profit.  Long-run and short-run production.  The law of diminishing marginal.
Supply & Costs of Production
The Nitrogen Requirement and Use Efficiency of Sweet Sorghum Produced in Central Oklahoma. D. Brian Arnall, Chad B. Godsey, Danielle Bellmer, Ray Huhnke.
Dealer Experience in Nitrogen Sensing Danny Peeper Wheeler Brothers Grain.
Managing Manure for Crop Production when Feeding DDGS Kyle Jensen ISU Extension Field Specialist-Crops.
How Prices and Costs Affect IPM Paul D. Mitchell and Eileen Cullen Assistant Professors Ag and Applied Econ Entomology University of Wisconsin-Madison.
Supply Decisions Chapter 5 Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.McGraw-Hill/Irwin.
Presented By: Scott Clark SOIL 4213
Economics of Precision Agriculture, What Technologies are Being Adopted and Why Danny Dallas Soil 4213.
Trends in World Food Supply
Ulster Grassland Society 54 th Annual Conference 29 th January 2013 Ian McCluggage.
Economic Profit, Production and Economies of Scale.
Spatial Variability in Precision Agriculture What is it? What is it? – Precision n. The quality or state of being precise. Used or intended for precise.
Small Grain Water Use Montana Small Grain Guide. Water - Nitrogen Relationship u Studies show that without adequate Nitrogen, wheat & barley yields increase.
1 Eco 201 Spring 2009 Lecture 4.2b Cost Functions Long-run Cost Curve.
Group questions about fertilizers. 1) A fertilizer is any material that is used to supply a plant with one or more ____________. 2) What 3 fertilizers.
Use of Alternative Concepts for Determining Preplant and Mid-Season N rates.
5.4. Costs, revenues, and profitsQuestion 1 Price of wheat4$ / bushel Price of nitrogen0.1$ / lb Fixed costs50$ / acre Other variable costs60$ / acre Review:
Reverse N lookup, sensor based N rates using Weather improved INSEY Nicole Remondet Rationale Weather is an aspect of agricultural sciences that cannot.
Chapter 5 - Supply. Section One – What is Supply I.An Introduction to Supply i. Supply is the amount of a product that would be offered for sale at all.
Nutrient elements are classified according to the quantities they required for plant development. Micronutrients are required in much lower concentrations.
How Will Farmers Respond to High Fuel and Fertilizer Prices? Damona Doye Regents Professor and Extension Economist Oklahoma State University.
Effect of micronutrient fertilizer on winter wheat yield
Need for Soil Testing? By Drew Mosburg Soil
Nitrogen Use Efficiency as Influenced by Crop Response Index. G.V. Johnson, W.R. Raun, R.W. Mullen, R.L. Westerman and B.B. Tucker Department of Plant.
Nutrient Management: Ways to Save Money, From Simple to High Tech Brian Arnall Precision Nutrient Management Plant and Soil Sciences Department Oklahoma.
NFOA for Wheat and Corn. Yield Potential Definitions INSEYIn Season Estimated Yield = NDVI (Feekes 4 to 6)/days from planting to sensing (days.
Micronutrients Gordon Johnson, Bill Raun, Hailin Zhang Department of Plant and Soil Sciences Oklahoma State University Gordon Johnson, Bill Raun, Hailin.
The Magruder Plots A Century of Wheat Research in Oklahoma A.C. Magruder Horace J. Harper Robert L. Westerman Oklahoma State University.
Economics of Crop Production. The Three Components of Profit Crop Yield Production Cost Selling Price Received.
Economics of Variable Applied Nitrogen Fertilizer By Brad W Collier.
Chapter 4 SUPPLY. How are the roles of producers and consumers different? Brainstorm 2 examples of decisions made by producers and consumers.
Chapter 8: Production with Two Inputs or Outputs Agricultural Production Economics: Two Inputs or Two Outputs.
OSU Soil Fertility Crop absorption of immobile nutrients (P and K). Absorption is from just a thin cylinder of soil around each root.
Cost/Return Analysis of Precision Agriculture on Oklahoma Farms Aaron Witt April 25, 2001.
Chapter 13: Costs of Production. The Supply and Demand In Economy, Supply and Demand Basically runs all market activity. In Economy, Supply and Demand.
Chapter Fifteen: Production Costs.
Fertility Strategies for Lean Times
Variable Rate Nitrogen
Grid Soil sampling.
Unit 2: Economic Principles in Agribusiness Lesson: EP1
Nutrient Management: Ways to Save Money, From Simple to High Tech
FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY
Chapter 5: Supply.
Spatial Variability in Precision Agriculture
Agronomic management and how we improve production
Sensing Resolution in Corn
Precision Nutrient Management: Grid-Sampling Basis
Meat Production on Ranches
EVOLUTION OF NITROGEN REFERENCE STRIPS
G. V. Johnson and W. R. Raun Dept. Plant & Soil Sciences
E.V. Lukina, K.W. Freeman,K.J. Wynn, W.E. Thomason, G.V. Johnson,
CHAPTER 6 OUTLINE 6.1 The Technology of Production 6.2 Production with One Variable Input (Labor) 6.3 Production with Two Variable Inputs 6.4 Returns to.
OK Wheat Many farms graze cattle on wheat from fall until the end of February or beginning of March.
History of Predicting Yield Potential
CHAPTER 6 OUTLINE 6.1 The Technology of Production 6.2 Production with One Variable Input (Labor) 6.3 Production with Two Variable Inputs 6.4 Returns to.
Late-Season Prediction of Wheat Grain Yield and Protein
Conventional N Management for Oklahoma
Farm & Ranch Business Management
CHAPTER 6 OUTLINE 6.1 The Technology of Production 6.2 Production with One Variable Input (Labor) 6.3 Production with Two Variable Inputs 6.4 Returns to.
PRODUCTION PRINCIPLES
CHAPTER 6 OUTLINE 6.1 The Technology of Production 6.2 Production with One Variable Input (Labor) 6.3 Production with Two Variable Inputs 6.4 Returns to.
Presentation transcript:

Economically Raising Nitrogen Use Efficiency By: Paul Hodgen

So What did we learn :

A few things we did learn NUE is currently 33% for Cereal Grains. Proven that Variability is at a very small scale in the field. Current Precision Ag technology does not address Variability at this level during the growing season.

What is the Current Topic about Precision Ag. Technology?

Does the cost of this Technology Pay? Is the applicator a fixed cost or variable cost? Fixed. What does basic Accounting Say about determining feasibility of a process? Figure out if the return covers the Variable Cost. Never use Fixed costs to decide to produce or not too.

Problem with this The Producer will never have enough acres to justify the fixed cost. Coop’s do!! Do we actually know what the return is for the Fertilizer dollar spent? Yes!!

What is the Current Return for 40 bu/acre Yield Goal of Winter Wheat? If Anhydrous Ammonia cost $400/ton. That is 0.25 cents per lb of actual Nitrogen. 40 bushel wheat calls for 80 lbs of Nitrogen. That is $19.50/acre for Nitrogen. If only 33 % gets used, then that means our return on Nitrogen is $6.50/acre for winter wheat.

Basically What does this mean? Bad business on the Producers part. Great Business for the Fertilizer Industry.

So what can be done to increase this. Currently Oklahoma State is trying to bring technology to the Oklahoma wheat producer that will address the variability at the 1 meter squared level, in the growing season. But does this mean that our profit margin per acre will increase?

NO it does not

So why does this Technology not raise Profit margin? Nitrogen is a mobile in the soil and in the plant. This means that the Economic law of Diminishing Returns is applied. What is this Law? Basically it states that the amount of unit output increases at a decreasing for each additional unit of input.

How does that translate into anything? We can predict the yield for winter wheat at Feekes 5, and will apply a prescribed rate of Fertilizer for that 1 m 2 field element size. But does the crop use that Fertilizer then? Not necessarily so!!

Crop Response Long term research at Oklahoma State and at Nebraska, have shown that after 30 years the check (No Nitrogen) yield 80% of the maximum Nitrogen rate. Magruder Plots after over 100 years of no Nitrogen wheat still produces an average of 16.1 bushel/acre while the NPK plus lime averaged 33. This means that some of the Nitrogen was not utilized by the crop!

Mineralization Climate conditions that favored mineralization of the Organic Material The soil supplied the nutrients. Can we predict what the response index will be at Harvest at Feekes 5? OSU is working on that very problem.

So How will Knowing the Response Index help? Means that for the first time producers will have a reliable method to determine the economic return on fertilizer. Then the producer can apply fertilizer only where he can maximize profit margins. What does this mean for yields?

Yield effects Using a response index might lower yield per acre, because there is not enough of a return. The fertilizer will not pay for it’s self. Could raise yield, apply fertilizer where the crop will respond, Maximize the good areas, and limit loss on the poor areas.

The bottom line Either way, the profit margin will increase. This is the bottom line, producers will only use methods that increase profit margins. Otherwise, it is bad business. Production Agriculture must be treated as a business and nothing else. It is an Industry. It is time that we (the Agriculture Industry) start acting like it.

Questions? Yes, Dr. Raun?