fertilizer price effect on optimum corn n rate recommendations

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ISU Agronomy Extension Fertilizer Price Effect on Optimum Corn N Rate Recommendations John Sawyer Department of Agronomy Iowa State University

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Fertilizer Price Effect on Optimum Corn N Rate Recommendations. John Sawyer Department of Agronomy Iowa State University. Historic Nitrogen and Corn Grain Prices. Historic Nitrogen:Corn Price Ratios. Exploring a Regional Approach to N Rate Guidelines. - PowerPoint PPT Presentation

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Page 1: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Fertilizer Price Effect on Optimum Corn N Rate Recommendations

John Sawyer

Department of Agronomy

Iowa State University

Page 2: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Historic Nitrogen and Corn Grain Prices

Iowa Corn Grain Price (annual)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1960 1970 1980 1990 2000

Year

Co

rn P

rice

, $/

bu

Corn Grain Price

U.S. Average Ammonia N Price (April)

0.00

0.05

0.10

0.15

0.20

0.25

0.30

1960 1970 1980 1990 2000

Year

Am

mo

nia

N P

rice

, $/

lb N

Ammonia N Price

Page 3: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Historic Nitrogen:Corn Price RatiosU.S. Average Ammonia N Price - Iowa Corn Grain Price

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

1960 1970 1980 1990 2000

Year

Pri

ce R

atio

, $/l

b N

:$/b

u

N:Corn Price Ratio

Page 4: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Exploring a Regional Approach to N Rate Guidelines

Diverse N rate recommendation systems across states

Lack of optimum N rate relationship with corn yield

Concerns about N rates with corn yields at record levels

Historically high N fertilizer prices

Page 5: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Corn Yields and N Rates

0

50

100

150

200

250

0 100 200 300Optimum Yield, bu/acre

Op

tim

um

N R

ate,

lb

N/a

cre

Six State SC - 389 Trials

0.10 Price Ratio$0.22/lb N:$2.20/bu

0

50

100

150

200

250

0 100 200 300Optimum Yield, bu/acre

Op

tim

um

N R

ate,

lb

N/a

cre

Six State SC - 389 Trials

0.10 Price Ratio$0.22/lb N:$2.20/bu

Page 6: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Methods for Analyzing N Response Data43 Corn Following Soybean Sites in Iowa ($0.22/lb N:$2.20/bu)

43 Sites 35 Responsive Sites

Method N Rate

Net Return N Rate

Net Return

lb N/acre $/acre lb N/acre $/acre

Mean of EONRs 79 49 97 67

EONR - Mean Yield 104 53 108 69

Maximum RTN 105 51 113 68

Discrete MP 108 51 111 68

Site Optimum 79 60 97 73

Measured Yield† 174 40 177 58

Yield History† 140 47 140 65† 1.2 lb N/bu factor, 50 lb soybean rotation “credit”

Page 7: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Maximum Return To N (MRTN) Database Driven Approach

Previously described by Nafziger, Sawyer, and Hoeft (2004) Accumulate corn N response data from

many recent trials Determine economic response and most

profitable N rates directly from trials in N response database

Data → N Rate Guidelines

Page 8: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

N Response Trial Database

3 to 4 replications 5 to 7 N rates Non-irrigated High and very high yield potential soils Experiment station or producer field Corn following Soybean (SC)

and Corn following Corn (CC) Grain yield measured for each N rate N Response curve fit to each trial

Page 9: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

698 Trials> 95% since 1990> 60% since 2000

Page 10: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Six-State Database

Corn–Corn Soybean–Corn State Total Responsive Total Responsive IL 93 82 185 172 IA 60 56 136 121 MI 1 1 9 9 MN 73 68 55 50 OH 5 4 8 7 WI 39 33 34 30 All 271* 244 427* 389* 65 Non-responsive sites, 60% had manure history

Total of 698 trials

Page 11: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Calculation of MRTN 1st - Compile database from corn yield N

response trials for desired rotationExample of a Few Site N Response Trials with SC

50

100

150

200

250

0 50 100 150 200

N Rate, lb N/acre

Co

rn Y

ield

, b

u/a

cre

Clay 03

Boone-SN 02

Harrison 03

Johnson 03

Page 12: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Calculation of MRTN

2nd – For each trial in database calculate Return To N (RTN) using the a, b, c and plateau values from each response curve For every 1 lb N/acre from 0 through 240

lb N/acre calculate the yield increase over the yield obtained with zero lb N/acre

RTN = yield increase times price of corn minus the cost of N

Page 13: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Calculation of MRTNClay 2001 Site -- SC

40

60

80

100

120

140

160

180

200

0 40 80 120 160 200

Nitrogen Rate, lb N/acre

Co

rn Y

ield

, bu

/acr

e

Grain Yield

Response

EONR = 138 lb N/acre

Yield = 117.7 + 0.8219N - 0.00263N2

a b c

Yield Plateau

Clay 2001 Site -- SC

40

60

80

100

120

140

160

180

200

0 40 80 120 160 200

Nitrogen Rate, lb N/acre

Co

rn Y

ield

, bu

/acr

e

Grain Yield

Response

EONR = 138 lb N/acre

Yield = 117.7 + 0.8219N - 0.00263N2

a b c

Yield Plateau

Clay 2001 Site -- SC

0

20

40

60

80

100

120

140

160

0 50 100 150 200 250N Rate, lb N/acre

$/ac

re

Yield Return to NNet Return to NFertilizer Cost

Page 14: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Calculation of MRTN

3rd - Find the N rate with the greatest average return to N, this is the MRTN and N rate at the MRTN

Return to N at various N rates (lb/acre)Site

71.05

107.01

77.09

85.78

106.56

140

72.0372.4472.9872.5972.0069.24Average

79.2981.3182.3782.3781.3179.203

87.9889.3282.9476.5670.1863.802

108.76110.96113.16115.10115.43113.961

107.25

130

104.96

$/acre

110

102.43

100

106.5798.9894.6092

1209080

Return to N at various N rates (lb/acre)Site

71.05

107.01

77.09

85.78

106.56

140

72.0372.4472.9872.5972.0069.24Average

79.2981.3182.3782.3781.3179.203

87.9889.3282.9476.5670.1863.802

108.76110.96113.16115.10115.43113.961

107.25

130

104.96

$/acre

110

102.43

100

106.5798.9894.6092

1209080

MRTN

Page 15: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Calculation of MRTN

4th - Find the N rates with returns to N within $1.00/acre of MRTN This provides a range of most profitable N rates

Return to N at various N rates (lb/acre)Site

71.05

107.01

77.09

85.78

106.56

140

72.0372.4472.9872.5972.0069.24Average

79.2981.3182.3782.3781.3179.203

87.9889.3282.9476.5670.1863.802

108.76110.96113.16115.10115.43113.961

107.25

130

104.96

$/acre

110

102.43

100

106.5798.9894.6092

1209080

Return to N at various N rates (lb/acre)Site

71.05

107.01

77.09

85.78

106.56

140

72.0372.4472.9872.5972.0069.24Average

79.2981.3182.3782.3781.3179.203

87.9889.3282.9476.5670.1863.802

108.76110.96113.16115.10115.43113.961

107.25

130

104.96

$/acre

110

102.43

100

106.5798.9894.6092

1209080

MRTN

LOW HIGH

Page 16: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Can Examine Different Fertilizer N and Corn Prices

Corn held at $2.20/bu Fertilizer N prices at $0.11, $0.22,

$0.33, and $0.44/lb N Gives N price:corn price ratios of

0.05, 0.10, 0.15, and 0.20

Page 17: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Effect of Price Ratio on Net ReturnIowa - SC

0

20

40

60

80

100

120

140

160

0 50 100 150 200 250

N Rate, lb N/acre

Ret

urn

to

N,

$/ac

re

0.050.100.150.20 HIGH

MRTNLOW

$2.20/bu

$0.11/lb N

$0.22

$0.33

$0.44

Page 18: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Effect of Price Ratio on Net ReturnIowa - CC

0

20

40

60

80

100

120

140

160

0 50 100 150 200 250

N Rate, lb N/acre

Ret

urn

to

N,

$/ac

re

0.050.100.150.20

Page 19: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Potential Iowa N Rate Guidelines Based On MRTN Approach

Previous Crop

Price Ratio

Soybean Corn

LOW† MRTN HIGH† LOW† MRTN HIGH†

$/lb:$/bu - - - - - - - - - - - - - lb N/acre - - - - - - - - - - - - -

0.05 125 145 170 180 200 230

0.10 105 125 145 155 175 195

0.15 90 110 125 140 155 170

0.20 80 95 110 125 140 155

† LOW and HIGH rates approximate the most profitable range for $1.00/acre below and above the MRTN for each price ratio.

Page 20: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Effect of Price Ratio on Expected Corn Yield

Iowa - CC

0

20

40

60

80

100

0 50 100 150 200 250

N Rate, lb N/acre

Per

cen

t o

f M

axim

um

Yie

ld 0.050.100.150.20

IA - SC

0

20

40

60

80

100

0 50 100 150 200 250

N Rate, lb N/acre

Per

cen

t o

f M

axim

um

Yie

ld 0.050.100.150.20

Page 21: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

MRTN Rates and N Risk Management

Although you may want to be 100% certain of N sufficiency, being that certain is not most profitable The risk with lower N rates is decreased

profitability due to lost yield The risk with higher N rates is decreased

profitability and environmental concerns due to unneeded N

Most profitable N rate range helps “protect” these risks

Page 22: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Corn Nitrogen Rate Calculatorhttp://extension.agron.iastate.edu/soilfertility/nrate.aspx

Resources

Regional publication

Web based MRTN calculation tool

Concepts and Rationale for Regional Nitrogen Rate Guidelines for Corn

Page 23: Fertilizer Price Effect on Optimum Corn N Rate Recommendations

ISU Agronomy Extension

Regional Effort: Participating States and University Personnel:John Sawyer, Iowa State UniversityEmerson Nafziger, University of IllinoisGyles Randall, University of MinnesotaGeorge Rehm, University of MinnesotaLarry Bundy, University of WisconsinBrad Joern, Purdue, UniversityRobert Hoeft, University of IllinoisCarrie Laboski, University of WisconsinRobert Mullen, The Ohio State UniversityRandy Killorn, Iowa State UniversitySylvie Brouder, Purdue University