Fluid Fertilizers … 2008 and Beyond

1. Fluid Fertilizers … 2008 and Beyond Dale Leikam Fluid Fertilizer Foundation Dale.Leikam@sbcglobal.net Paul Fixen International Plant Nutrition Institute pfixen@ipni.net Second Brazilian Symposium on Fluid Fertilizers July 7-9, 2008 Piracicaba, Brazil

2. Summary comments • “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” • “Fluid fertilizer inputs have experienced substantial growth as agriculture evolved into an increasingly efficient industry.” • “Fluids now make up nearly 40% of fertilizer consumed in the USA.” “High residue cropping systems have offered both opportunities and challenges to fluid use.” “Site-specific technologies and management offer many opportunities for fluids.” “Crop production systems are undergoing exciting changes. Those changes hold many more opportunities than challenges for fluids.” Fluid Fertilizer Symposium, Piracicaba September 13, 1993

3. Nearly 15 years later, much has changed … yet in many ways much remains the same. Science Technology

4. Major changes impacting crop production & nutrient management • Greatly increased input costs and crop prices • Global food crisis and urgent need for higher yields • Climate change • Crop demand, soil supply, nutrient losses, etc. (Brouder & Volenec, 2008) • Genetic changes: • Protection from multiple pests • Drought stress tolerance; nutrient use efficiency? • Net effect on optimum nutrient rates? • Crop production for specific end-use (nutrient effects?) • Biofuel crops – nutrient needs, cycling • Advances in fertilizer sources, nutrient sensing & application technology

5. Implication of changes to nutrient management approaches • Future management decisions may need to be more measurement based rather than historical • Past performance in a region may not reflect future performance … • your future may be more like someone else’s past than your own past.

6. $0.10/kg corn & $0.60/kg Nvs$0.20 corn & $1.20 N • Price ratio the same … optimum rate the same • But the economic penalty for over or under estimating need or for nutrient loss is much greater with today’s higher prices • Greater value and economic justification for: • Precision input application, enhanced efficiency products • Guidance systems • Soil testing and plant analysis, soil or plant imaging • On-farm strip trials, omission plots • Other forms of decision support • Research and education on all of the above

7. Investing in determination of right source, rate, time and place for inputs helps manage the much higher riskof today’s market … decision support tools Variable Rate Applicator with GreenSeeker • Next issue of Better Crops will focus on fertilizer economics • Portuguese translation of selected articles

8. Potential negative consequences of increased value of agriculture • Cassman and Liska (2007) • Potential for higher food prices to increase malnutrition • Pressure to increase yields without ecologically sound practices • Pressure to expand production into marginal or natural lands • Extent these are realized will be greatly influenced by the rate at which crop yields are increased

9. World wheat plus coarse grains, 1978-2008 Ending stocks USDA-FAS, 5/2008

10. Food prices & supply Encroachment on natural lands Nitrates in water Hypoxic zones GHG emissions Air quality We’re under the magnifying glass … like never before • “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greater

11. Summary comments • “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greater • “Fluid fertilizer inputs have experienced substantial growth as agriculture evolved into an increasingly efficient industry.” • “Fluids now make up nearly 40% of fertilizer consumed in the USA.”

12. World N consumption (1974-2006). Data source: IFA, 2007.

13. World N solutions market share (1974-2006). Excludes dir. appl. anhydrous ammonia

14. World distribution of N solution consumption (2004-2006). Germany France 4.3 million tonnes USA Excludes dir. appl. anhydrous ammonia

15. Change in N solution market share for leading solution consuming countries across 15 years. 03/04 4% 04/05 6% 05/06 19% Excludes dir. appl. anhydrous ammonia Data source: IFA, 2007.

16. Solution market share increases • Argentina (Melgar, 2007) – Reasons given in survey of 400 farmers, 30 distributors and 30 crop advisers • Ease of use, speed of application, application precision • Larger farms more likely to use fluids than smaller farms • 90% of solution fertilizer is applied post-emergence for corn; 70% for wheat • Perception of lower N volatilization • Germany (Kuecke, 2007) • Yield response from fluid injection that is similar to or higher than conventional surface application • Reduced nitrate leaching and ammonia volatilization

17. USA fertilizer consumption by class. Data source: Commercial Fertilizers, AAPFCO & TFI

18. USA fertilizer market share by class. *Excludes dir. appl. anhydrous ammonia Data source: Commercial Fertilizers, AAPFCO & TFI

19. USA N fertilizer consumption by product. Data source: Commercial Fertilizers, AAPFCO & TFI

20. USA N fertilizer market share. Data source: Commercial Fertilizers, AAPFCO & TFI

21. USA retail N fertilizer prices (1965-2008). Spring prices Data source: USDA-NASS, 2008.

22. USA P fertilizer consumption by product. Data source: Commercial Fertilizers, AAPFCO & TFI

23. USA P fertilizer market share. Data source: Commercial Fertilizers, AAPFCO & TFI

24. USA retail P fertilizer prices (1965-2008). Spring prices Data source: USDA-NASS, 2008.

25. Summary comments • “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greater • “Fluid fertilizer inputs have experienced substantial growth in some countries as agriculture evolved into an increasingly efficient industry.” • “Fluids now make up nearly 40% (38.5) of fertilizer consumed in the US.”

26. Summary comments “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greater “Fluid fertilizer inputs have experienced substantial growth in some countries as agriculture evolved into an increasingly efficient industry.” “Fluids now make up nearly 40% (38.5) of fertilizer consumed in the US.” “High residue cropping systems have offered both opportunities and challenges to fluid use.” “Site-specific technologies and management offer many opportunities for fluids.”

27. Nutrients in high residue systems • Increased need for starter fertilizer bands and N early in the season. • Concern over stratification of P and K near the soil surface. • Concern over volatilization of unincorporated urea containing fertilizers. • Developments in knowledge and technology • Apparent mobility of surface banded P in soils • RTK technology • Nutrient source technology

28. Surface banding of starters near the row has been surprisingly effective. Equipment for placing starter 5 cm to side of row (Kovar, 2007). cm 3 weeks 0 3 cm 15 19 weeks 0 8 cm Profile distribution of available P after surface application of liquid P fertilizer. 15

29. Fluid fertilizer performance compared to granular fertilizers for wheat on highly calcareous soils in Australia. Fluid response over granular products thought to be due to greater mobility of the fluid forms in these highly calcareous soils. Holloway et al., 2008.

30. RTK Automatic Guidance(Real Time Kinematic) Auto steer adoption by custom applicators in US: 4% in 2004 37% in 2008

31. RTK Guided Strip Tillage and N application Source: Norm Larson, Elburn Co-op, IL

32. RTK Row Position Effects on Corn Yield Response to Pre-Plant UAN Rates at Wanatah, IN, 2006 225 kg N at 12.5 cm versus 0 cm Vyn, 2007.

33. Sensors for N Management

34. Nutrient source technology • Increased fertilizer value justifies greater investment in sources and additives with the promise of reducing the potential for nutrient loss or improving nutrient availability. • Several new products on the market in both granular and fluid forms. • Effectiveness varies with site-specific weather and soil factors • Require evaluation under relevant conditions • Be aware of long-term soil fertility impacts

35. Summary comments “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greater “Fluid fertilizer inputs have experienced substantial growth in some countries as agriculture evolved into an increasingly efficient industry.” “Fluids now make up nearly 40% (38.5) of fertilizer consumed in the US.” “High residue cropping systems have offered both opportunities and challenges to fluid use.” Some of the challenges have lessened. “Site-specific technologies and management offer many opportunities for fluids.” OK

36. Summary comments “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greater “Fluid fertilizer inputs have experienced substantial growth in some countries as agriculture evolved into an increasingly efficient industry.” “Fluids now make up nearly 40% (38.5) of fertilizer consumed in the US.” “High residue cropping systems have offered both opportunities and challenges to fluid use.” Some of the challenges have lessened. “Site-specific technologies and management offer many opportunities for fluids.” OK “Crop production systems are undergoing exciting changes. Those changes hold many more opportunities than challenges for fluids.”

37. The changes in cropping systems discussed earlier … • To meet global demand, must produce exponential yield increases unlike the smaller linear increases of the last 40 years. This will require more than new genetics. • To remain profitable, must efficiently utilize nutrient inputs, water, seed and energy without jeopardizing the potential for yield improvement. • Be managed for minimal negative, or even positive, environmental impact. Rate Source Place Time Nutrient best management practices focused on application of the right source at the right rate, time, and place will be essential components of these cropping systems. Fluids offer opportunity for timing and convenience in placement.

38. Summary comments - 1993 “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greater “Fluid fertilizer inputs have experienced substantial growth in some countriesas agriculture evolved into an increasingly efficient industry.” “Fluids now make up nearly 40% (38.5) of fertilizer consumed in the US.” “High residue cropping systems have offered both opportunities and challenges to fluid use.” Some of the challenges have lessened. “Site-specific technologies and management offer many opportunities for fluids.” OK “Crop production systems are undergoing exciting changes. Those changes hold many more opportunities than challenges for fluids.” OK The challenges of the next 15 years appear to hold significant opportunities for efficient and effective management of fluid fertilizers.

39. IPNI Members

40. See the following for more information IPNI: www.ipni.net IPNI (Brazil): www.ipni.net/brazil Fluid Fertilizer Foundation: http://www.fluidfertilizer.com