Manure as a Commodity: Manure Value vs. Commercial Fertilizer David Fischer Dane County UWEX Crops and Soils Agent MALWEG, Fen Oak 1/6/2011.

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Presentation transcript:

Manure as a Commodity: Manure Value vs. Commercial Fertilizer David Fischer Dane County UWEX Crops and Soils Agent MALWEG, Fen Oak 1/6/2011

Some Assumptions Nutrient Value – Laboski Oct 10 survey –N = $0.47/lb –P = $0.50/lb –K = $0.40/lb Crop needs Corn on Corn bu target – –Optimum soil test levels Manure app cost $6.00/1000 gal Fertilizer app cost $8.00/acre

Manure as a Cost Center Technology does not currently exist to make money on manure Producers must aim at best to break even with what commercial fert would cost Grain operators do not consider intangibles of added OM, rather weed seed, soil compaction, and erosion concerns

Grain Operator Fertilizer Costs Target good grain producer Dane Co 180 bu/A ave yield, optimum soil test levels Acording to UW Recs needs Corn on Corn – –Total product cost $133 –App cost $16 –Per acre cost could reach $149 Maximum grain producers would pay for manure

Manure Nutrient Values Assuming incorporated values –1000 gals has value of $ $6.00 application cost To recover full nutrient value and app cost must charge at least $19.60/1000 gal Corn requires 165 lbs N/A or 16,500 gals liquid dairy manure – total manure and application value is $323.40

The $$$ of N, P, and K in 4000 gals of liquid dairy manure Price per unit of N, P, K $25 (0.30, 0.28, 0.12) $46 (0.49, 0.36, 0.30) $85 (0.79, 0.95, 0.73) $54 (0.47, 0.50, 0.40)

Receiving Field Eligibility Intangible Factors –Image with neighbors –Residents along traffic route Hauling issues –Traffic –Road requirements –distance

Receiving Field Eligibility 590 standards –Does field have NM plan? –Has field received other fertilizer already? SWQMA Winter spreading Slopes and tillage Conservation plan

Can it work? Manure at the N rate applies excess P and K What about a Corn/Soybean rotation? Only need 140 lbs N/A or 14,000 gal –Result in no excess P –174 lbs/A excess K Soybeans 50 bu/A need –Results in needing 40 lbs P – if added via manure 104 lbs K/A excess 80 lbs N/A excess

Pricing Manure If manure is applied to corn and soybean ground at P levels - $148 excess fertilizer value will be applied every two years –Would grain farmers pay for fertilizer not realized within 2 year time frame – possibly but only at current values

Manure could not feasibly be sold as a 1 year nutrient supply Application cost $6.00 per 1000 gallons is probably rock bottom price - if hauling exceeds about 3 miles this number will dramatically change – who assumes this cost

Annual basis application manure exceeds commercial fertilizer value by $250+/acre with excess nutrients and hauling costs Nutrient value only –Commercial $133/A –Manure $324/A Application costs –Commercial $16/A –Manure at least $100/A

These numbers use book values for manure, but it becomes apparent that paying for the application becomes the sticking point Grain operators do not feel obligated to pay extra for manure

Bottom Line Manure is valuable –$14/1000 gallons Manure is expensive to haul –$100+/acre for corn needs Producers with adequate land have greater value to properly apply manure Producers with high P lands may be able to sell manure, but may pay more to have that manure applied –Must be sold as a multi-year source of nutrients –Value will exceed hauling costs