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Copyright © 2011-12. University of Minnesota. All Rights Reserved. Conservation Tillage Workshop Heron Lake, MN March 22, 2012 David Bau Extension Educator.

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1 Copyright © 2011-12. University of Minnesota. All Rights Reserved. Conservation Tillage Workshop Heron Lake, MN March 22, 2012 David Bau Extension Educator Agricultural Business Management University of Minnesota Extension 507-372-3906

2 OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Stalk Chopping 8.00 Primary Tillage Chisel Plow 11.80 Strip Tillage 16 Row 2 9.50 Spring Tillage Field Cultivator 40‘ 8.45 Planter 12.60 Ridge Till Cultivation 10.00 Spraying 4.90 Spraying 4.90 Harvest 25.00 Total Tillage Costs 75.65 55.4063.8564.9077.20 Conservation Tillage Demonstration Project Heron Lake Watershed District 2006 Beans Copyright © 2011-12. University of Minnesota. All Rights Reserved.

3 OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Stalk Chopping 8.65 Primary Tillage Chisel Plow 12.70 Strip Tillage 10.50 Spring Tillage Field Cultivator 40‘ 9.05 Planter 13.05 Spraying 5.15 Spraying 5.15 Harvest 25.80 Total Tillage Costs 79.55 49.1566.8559.6557.80 Conservation Tillage Demonstration Project Heron Lake Watershed District 2007 Beans Copyright © 2011-12. University of Minnesota. All Rights Reserved.

4 OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Stalk Chopping 9.50 Primary Tillage Chisel Plow 13.70 Strip Tillage 12.90 Spring Tillage Field Cultivator 40‘ 10.10 Planter 14.60 Spraying 5.60 Spraying 5.60 Harvest 34.40 Total Tillage Costs 93.50 60.2079.8073.1069.70 Conservation Tillage Demonstration Project Heron Lake Watershed District 2008 Beans Copyright © 2011-12. University of Minnesota. All Rights Reserved.

5 OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Stalk Chopping 9.80 Primary Tillage Chisel Plow 13.70 Strip Tillage 13.30 Spring Tillage Field Cultivator 40‘ 10.70 Planter 14.70 Spraying 6.00 Spraying 6.00 Harvest 35.30 Total Tillage Costs 96.20 62.0082.5075.3071.80 Conservation Tillage Demonstration Project Heron Lake Watershed District 2009 Beans Copyright © 2011-12. University of Minnesota. All Rights Reserved.

6 OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow 14.20 Strip Tillage 13.80 Spring Tillage Field Cultivator 40‘ 10.85 Planter 14.70 Spraying 6.10 Spraying 6.10 Harvest 35.30 Total Tillage Costs 87.25 62.2073.0576.0062.20 Conservation Tillage Demonstration Project Heron Lake Watershed District 2010 Beans Copyright © 2011-12. University of Minnesota. All Rights Reserved.

7 OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow 13.70 Strip Tillage 16 Row 2 13.30 Spring Tillage Field Cultivator 40‘ 10.70 Planter 14.70 Spraying 6.00 Spraying 6.00 Harvest 38.15 Total Tillage Costs 89.25 64.8575.5578.1564.85 Conservation Tillage Demonstration Project Heron Lake Watershed District 2011 Beans Copyright © 2011-12. University of Minnesota. All Rights Reserved.

8 Average Input Cost 3 Estimated Costs Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Seed 31.19 Fertilizer 0.00 Herbicides 15.62 Insecticides 6.60 Crop Insurance 13.00 Marketing/ Trucking 6.00 Rent 120.00 Other 8.00 Total Input Costs 200.41 Total Cost Per Acre 276.06 255.81264.26265.31277.61 Average Yields 52.3351.6750.0047.6753.0050.33 Conservation Tillage Demonstration Project Heron Lake Watershed District 2006 Beans Copyright © 2011-12. University of Minnesota. All Rights Reserved.

9 Total Crop Expenses Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Production Costs 2006276.06 255.81264.26265.31277.61 Production Costs 2007310.02 279.62297.32290.12288.27 Production Costs 2008364.05 330.75350.35343.65340.25 Production Costs 2009372.77 338.57359.07351.87348.37 Production Costs 2010367.82 342.77353.62356.57342.77 Production Costs 2011375.84 351.44362.14364.74351.44 Average Costs 2006-2010338.14 309.50324.92321.50319.45 Conservation Tillage Demonstration Project Heron Lake Watershed District 2006-2011 Beans Copyright © 2011-12. University of Minnesota. All Rights Reserved.

10 Yields Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Average Yields 200652.3351.6750.0047.6753.0050.33 Average Yields 200757.2058.6053.3056.3056.4059.70 Average Yields 200844.9045.1039.1043.0044.5045.90 Average Yields 200950.8051.2045.2049.5050.0046.10 Average Yields 201048.1049.4039.0046.9048.8044.50 Average Yields 201147.5044.3047.00NA47.7046.50 Average Yields 2006-201050.6751.1945.3248.6750.5449.31 Conservation Tillage Demonstration Project Heron Lake Watershed District 2006-2011 Beans Copyright © 2011-12. University of Minnesota. All Rights Reserved.

11 Net Farm Income Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Net Farm Income 200640.5436.5446.6924.1455.3426.89 Net Farm Income 2007137.53142.20137.24131.40151.07153.48 Net Farm Income 200840.0541.8521.1536.6556.8572.85 Net Farm Income 2009109.83113.6390.83111.18123.1389.58 Net Farm Income 2010155.02169.1581.16156.18173.88140.94 Net Farm Income 2011186.09148.23204.57NA199.55198.66 Net Farm Income 2006-2010115.99121.8193.52113.36131.20122.07 Conservation Tillage Demonstration Project Heron Lake Watershed District 2006-2011 Beans Copyright © 2011-12. University of Minnesota. All Rights Reserved.

12 2006-2010 Beans Averages Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Total Cost Per Acre338.14 309.50324.92321.50319.45 Average Yields50.6751.1945.3248.6750.5449.31 Total Revenue454.14459.95403.03438.29452.71441.52 Net Farm Income Per Acre 115.99121.8193.52113.36131.20122.07 Conservation Tillage Demonstration Project Heron Lake Watershed District 2006-2010 Beans Copyright © 2011-12. University of Minnesota. All Rights Reserved. Results Indicate: Strip and Ridge Till Tillage Systems are very economically competitive with conventional tillage!

13 Assumptions: 2006 cost for Ridge Till higher than normal on beans to establish ridge Normally would not chisel, field cultivate or Ridge Till in beans. 2006 corn yields for Ridge Till were destroyed by green snap during cultivating and therefore could not use yields for a good comparison Used Fertilizer costs for 2006 and adjusted for Strip and Ridge Till banded reduced fertilizer material. Although plot area soil tests were high P & K, applicator could not reduce rate applied by banding so banded and broadcasted were at the same pounds per acre Each year used actual cost of fertilizer used on plots. Costs were used as provided otherwise used prices in annual Farm Resource Guide Publication

14 Assumptions Continued: Equipment Costs came from Iowa State publication: Farm Custom Rates 2007 Total crop expenses were calculated using 2006 costs multiplied by 1.15 for a 15% increased costs in 2007. This process was continued each year for costs other than fertilizer and used FINBIN data in Farm Resource Guide Cash prices came from FINBIN data for average sale price on corn and soybeans sold in year. This number was used to calculate Gross Farm Income calculations

15 OperationEstimate d Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow 11.80 Strip Tillage 16 Row 9.50 Dry Fertilizer Application 3.50 Anhydrous Applicator 7.40 Spring Field Cultivator 8.45 Planter 12.60 Spraying 4.90 Spraying 4.90 Ridge Tillage Cultivation 10.00 Harvest 25.70 Total Tillage Costs 79.25 59.0067.4565.0089.25 Conservation Tillage Demonstration Project Heron Lake Watershed District 2006 Corn

16 OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow12.70 Strip Tillage 16 Row10.50 Dry Fertilizer Application3.20 Anhydrous Applicator7.90 RT Fertilizer Application7.90 Spring Field Cultivator9.05 Planter13.05 Spraying 5.15 Spraying 5.15 Ridge Tillage Cultivation10.50 Harvest 26.60 Total Tillage Costs82.80 61.0570.1068.3576.25 Conservation Tillage Demonstration Project Heron Lake Watershed District 2007 Corn

17 OperationEstimated Costs Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow13.70 Strip Tillage 16 Row12.90 Dry Fertilizer Application3.75 Anhydrous Applicator8.75 RT Fertilizer Application8.75 Spring Field Cultivator 10.10 Planter14.60 Spraying 5.60 Spraying5.60 Ridge Tillage Cultivation11.70 Harvest38.00 Total Tillage Costs100.10 76.3086.4085.4593.00 Conservation Tillage Demonstration Project Heron Lake Watershed District 2008 Corn

18 OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow13.70 Strip Tillage 16 Row13.30 Dry Fertilizer Application4.10 Anhydrous Applicator9.50 RT Fertilizer Application9.50 Spring Field Cultivator 10.70 Planter14.70 Spraying6.00 Spraying6.00 Ridge Tillage Cultivation11.50 Harvest 39.60 Total Tillage Costs104.30 79.9090.6089.1096.80 Conservation Tillage Demonstration Project Heron Lake Watershed District 2009 Corn

19 OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow 14.20 Strip Tillage 16 Row 13.80 Dry Fertilizer Application 4.15 Anhydrous Applicator 9.75 RT Fertilizer Application 9.75 Spring Field Cultivator 10.85 Planter 14.70 Spraying 6.10 Spraying 6.10 Ridge Tillage Cultivation 12.45 Harvest 39.80 Total Tillage Costs 105.65 80.6091.4590.2598.65 Conservation Tillage Demonstration Project Heron Lake Watershed District 2010 Corn

20 OperationEstimated Costs Chisel Plow Chisel Plow 2 No-Till One Pass Strip Till Ridge Till Primary Tillage Chisel Plow13.70 Strip Tillage 16 Row13.30 Dry Fertilizer Application4.05 Anhydrous Applicator10.30 RT Fertilizer Application10.30 Spring Field Cultivator11.45 Planter15.70 Spraying 6.05 Spraying 6.05 Ridge Tillage Cultivation13.35 Harvest 40.80 Total Tillage Costs108.10 82.9594.4092.20102.55 Conservation Tillage Demonstration Project Heron Lake Watershed District 2011 Corn

21 Average Input Cost 2006 Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Fertilizer-Actual costs 200670.3080.1870.30 63.5570.30 Seed70.33 Herbicides14.92 Crop Insurance13.00 Marketing/ Trucking6.00 Rent120.00 Other12.00 Total Misc Input Costs236.25 Total Cost Per Acre385.80395.68365.55374.00364.80395.80 Average Yields188.28179.33171.33171.67178.78NA Total Revenue Yield x $2.90546.01520.06496.86497.84518.46NA Conservation Tillage Demonstration Project Heron Lake Watershed District 2006 Corn

22 Annual Fertilizer Cost Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Fertilizer-Actual costs 200670.3080.1870.30 63.5570.30 Fertilizer-Actual costs 200734.4743.8934.47 Fertilizer-Actual costs 200872.5682.3572.56 Fertilizer-Actual costs 2009100.48107.47100.48 Fertilizer-Actual costs 2010112.88132.88112.88 Fertilizer-Actual costs 2011214.00238.8214.00 Conservation Tillage Demonstration Project Heron Lake Watershed District 2006 Corn

23 Total Crop Expenses Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Production Costs 2006385.80395.68365.55374.00364.80395.80 Production Costs 2007388.96398.38367.21376.26374.51382.41 Production Costs 2008491.60501.39467.80477.90476.95484.50 Production Costs 2009556.79563.78532.39543.09541.59549.29 Production Costs 2010565.82585.82540.77551.62550.42558.82 Production Costs 2011676.48701.28651.33662.78660.58670.93 Average Costs 2006-2010500.79512.34477.04487.22485.87493.75 Conservation Tillage Demonstration Project Heron Lake Watershed District 2006-2011 Corn Copyright © 2011-12. University of Minnesota. All Rights Reserved.

24 Yields Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Average Yields 2006188.28179.33171.33171.67178.78NA Average Yields 2007157.30163.90144.00151.70150.60153.90 Average Yields 2008175.20197.30176.60179.10169.60193.80 Average Yields 2009154.70157.50131.80149.00165.50154.30 Average Yields 2010176.10175.90164.00174.30163.10154.10 Average Yields 2011182.20194.50155.70NA177.00182.20 Average Yields 2007-2010165.83173.65154.10163.53162.20164.03 Conservation Tillage Demonstration Project Heron Lake Watershed District 2006-2011 Corn Copyright © 2011-12. University of Minnesota. All Rights Reserved.

25 Net Farm Income Chisel Plow Chisel Plow 2 No-TillOne Pass Strip Till Ridge Till Net Farm Income 2006160.21124.38131.31123.84153.66NA Net Farm Income 2007189.91204.77162.71182.00179.70183.94 Net Farm Income 2008189.93266.11219.18218.80182.80269.38 Net Farm Income 200921.7925.27-39.4614.1777.3827.79 Net Farm Income 2010258.33237.39226.75264.11212.89162.37 Net Farm Income 2011347.49391.82223.71NA334.17353.04 Net Farm Income 2007-2010164.99183.39142.30169.77163.19160.87 Conservation Tillage Demonstration Project Heron Lake Watershed District 2006-2011 Corn Copyright © 2011-12. University of Minnesota. All Rights Reserved.

26 2007-2010 Corn Averages Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Total Cost Per Acre500.79512.34477.04487.22485.87493.75 Average Yields165.83173.65154.10163.53162.20164.03 Total Revenue665.78695.73619.34656.98649.06654.63 Net Farm Income Per Acre164.99183.39142.30169.77163.19160.87 Conservation Tillage Demonstration Project Heron Lake Watershed District 2007-2010 Corn Copyright © 2011-12. University of Minnesota. All Rights Reserved. Results Indicate: Strip and Ridge Till Tillage Systems are very economically competitive with conventional tillage!

27 Corn 2007-2010 Averages Chisel Plow Chisel Plow 2 No- Till One Pass Strip Till Ridge Till Total Cost Per Acre500.79512.34477.04487.22485.87493.75 Average Yields165.83173.65154.10163.53162.20164.03 Total Revenue665.78695.73619.34656.98649.06654.63 Net Farm Income Per Acre164.99183.39142.30169.77163.19160.87 Bean 2006-2010 Averages Total Cost Per Acre338.14 309.50324.92321.50319.45 Average Yields50.6751.1945.3248.6750.5449.31 Total Revenue454.14459.95403.03438.29452.71441.52 Net Farm Income Per Acre115.99121.8193.52113.36131.20122.07 Combined Corn & Bean Net 140.49152.60117.91141.57147.20141.47 Conservation Tillage Demonstration Project Heron Lake Watershed District 2007-2010 Corn and 2006-2010 Soybeans Averages Copyright © 2011-12. University of Minnesota. All Rights Reserved.

28 Copyright © 2010-12. University of Minnesota. All Rights Reserved. FINBIN AVERAGES200620072008200920102011 Soybean Net Farm Income 38.89171.17112.7590.29166.85178.03 Corn Net Farm Income 97.92156.14127.2355.39259.05277.78 Bean and Corn Ave $68.41$163.66$119.99$72.84$212.95$227.91 2006-2010 Bean Average: $115.99 2007-2010 Corn Average $149.45 Combined Bean and Corn Average: $132.72

29 Results Indicate: Strip and Ridge Till Tillage Systems are very economically competitive with conventional tillage! Conservation Tillage Demonstration Project Heron Lake Watershed District 2007-2010 Corn and 2006-2010 Soybeans Averages Copyright © 2011-12. University of Minnesota. All Rights Reserved.

30 Reference Websites : FINBIN Data Base: http://www.finbin.umn.eduhttp://www.finbin.umn.edu Use this website to examine crop and livestock budgets for Minnesota and surrounding states. The data can be sorted by county using many different variables. Acceptable Price Worksheet: http://swroc.cfans.umn.edu/SWFM/farm_mgmt.htmlhttp://swroc.cfans.umn.edu/SWFM/farm_mgmt.html Go to the Southwest Research and Outreach website and under Farm Business Management you can find information including Acceptable Price Worksheet which you can use to determine your farm’s corn and soybean breakeven prices. Center for Farm Financial Management: http://www.cffm.umn.edu/http://www.cffm.umn.edu/ Use this website to find county farmland rental information and marketing plan information provided by Ed Usset and several basis charts for cities across the state. You can also access the FINBIN data base from here. Farmland Sales: http://www.cffm.umn.edu/landeconomics/landdata/FarmLandSale/Default.htmhttp://www.cffm.umn.edu/landeconomics/landdata/FarmLandSale/Default.htm Steve Taff’s information on farmland values and sales can be found at this website. You can search this data base by Townships across Minnesota. University of Minnesota Extension Service County Offices: http://www.extension.umn.eduhttp://www.extension.umn.edu You can go the University of Minnesota Extension Service Home Page and link to County Offices across the state. You can find crop production information here. Annual Reports of Farm Business Management Association: http://www.cffm.umn.edu/publications/FarmAnnualReports.aspx http://www.cffm.umn.edu/publications/FarmAnnualReports.aspx At this website you can find the annual reports from the Southwest and Southeast Farm Business Management Associations. 2012 Farm Resource Guide, David Bau This 114 page publication is full of Agricultural Farm Business Management information. It is available at many County Extension Offices or by emailing Dave @ bauxx003@umn.edu. Cost is $25 plus postage and materials.bauxx003@umn.edu

31 Questions?? 2012 Farm Resource Guide David Bau Regional Extension Educator Agricultural Business Management University of Minnesota Extension bauxx003@umn.edu

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