By Scout Nelson
According to the FINBIN database, which collates financial data from numerous Minnesota farms, there is a notable discrepancy in fertilizer costs between the state's most and least profitable farms.
This pattern has persisted for several years, highlighting a potential area of overspending among less profitable agricultural operations.
Starting in 2016, a detailed review of fertilizer expenses on corn acres revealed that the top 20% most profitable farms spent significantly less on fertilizer per acre than the bottom 20% least profitable farms.
For example, in 2016, the most profitable farms spent an average of $138 per acre on fertilizer, while the least profitable spent $177 per acre, marking a 28% difference.
This trend continued through the years, with the least profitable farms consistently spending 15-30% more on fertilizer annually compared to their more successful counterparts.
The most recent data from 2023 showed the most profitable farms spent $217 per acre, whereas the least profitable spent $289 per acre, a 33% difference.
The consistent over-expenditure on fertilizer among the least profitable farms raises questions about their management strategies.
Factors contributing to this trend may include applying excessively high nitrogen rates, poor timing in fertilizer application, and unnecessary use of premium fertilizers or soil amendments that do not yield corresponding benefits.
Efficient nitrogen management, as guided by the University of Minnesota's research, suggests that there is no linear relationship between increased nitrogen rates and yield, indicating that higher spending does not necessarily equate to better crop performance.
Practices such as split-applying nitrogen or using enhanced efficiency products should be carefully evaluated for actual benefits versus added costs.
Considering this data, it is crucial for farmers to reconsider their fertilizer strategies and potentially reduce unnecessary expenditures. Adopting scientifically backed practices and making informed decisions based on reliable research and technology could lead to better financial outcomes and more sustainable farming practices.
Photo Credit -gettyimages-fotokostic
Categories: Minnesota, Crops