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Manure as a Commodity: Manure Value vs. Commercial Fertilizer

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 171-190 bu target

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Manure as a Commodity: Manure Value vs. Commercial Fertilizer

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

  2. 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 171-190 bu target • 165-70-50 • Optimum soil test levels • Manure app cost $6.00/1000 gal • Fertilizer app cost $8.00/acre

  3. 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

  4. 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 • 165-70-50 • Total product cost $133 • App cost $16 • Per acre cost could reach $149 • Maximum grain producers would pay for manure

  5. Manure Nutrient Values • Assuming incorporated values 10-5-16 • 1000 gals has value of $13.60 + $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

  6. The $$$ of N, P, and K in 4000 gals of liquid dairy manure Price per unit of N, P, K 1997 - $25 (0.30, 0.28, 0.12) 2007 - $46 (0.49, 0.36, 0.30) 2008 - $85 (0.79, 0.95, 0.73) 2010 - $54 (0.47, 0.50, 0.40)

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

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

  9. 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 0-40-70 • Results in needing 40 lbs P – if added via manure • 104 lbs K/A excess • 80 lbs N/A excess

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

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