b'CUT COSTS, NOT YIELDCutting costs without reducing productivity is key to managing through lean timesBy Darren BondManitoba AgricultureW hat a difference a year makes. Producersnowfacefalling grainpricesandstubbornly high input costs, placing them into a difficult cost-price squeeze situation. While this has happened in the past, and producers face this scenario quite frequently in their farming careers, this time is different due to the sheer scale of the cost to farm. Costsassociatedwithseed,fertilizer, equipment and land have never been higher. How does a farm cut costs to maintain profit-ability, but not cut too much or in the wrong places and make a lack of profitability prob-lem worse? This truly is the million-dollar question on most farms.GROW PROFITABLE CROPSFocusing on profitable crops sounds like a solution too easy to take seriously. But there is a simple and important truth behind it. Staying away from crops that generate thePHOTO: DENNIS LANGE, MANITOBA AGRICULTUREleast profit and growing crops that project to generate the most profit is a good way to increase profitability on the farm.will allow producers to gain environmen- respect to nitrogen, producers who can use To do this effectively, costs of productiontally beneficial results and save money inurea, anhydrous or liquid (right source) can must be known. This doesnt need to be over- the process.identifyandutilizethecheapestsourceto ly difficult, and using Manitoba AgriculturesSoil testing (right rate) eliminates much ofreduce costs without reducing rates. Crop Costs of Production Guide is an easythe guesswork from crop nutrient plans thatUse of Manitoba Agricultures Fertilizer way to accomplish this task. Of course, bene- feed the crop to its full potential. Farms can- EfficiencyCalculatorandworkingwitha ficial crop rotation practices and a producersnot afford to over-apply fertilizer that resultstrustedagronomicadvisorcanassistwith experience with the challenges and benefitsin little to no yield gain. Under-applying fer- meeting the crops agronomic needs while of growing different crops must be front oftilizer costs more in yield loss than it saves,maintaining profitability.mind, but simply knowing which crops lookmaking this unattractive as well. profitable is a big step to ensuring profit- Applying the right amount for a reason- UNDERSTANDING LAND COSTSability. able yield expectation is the best course ofLandcostshavebecomesignificantline action in a high fertilizer cost environment.items for farms in the last several years. If a FERTILIZER EFFICIENCY Takingadvantageofbanding(rightplace)producer is not willing to be the top bidder Fertilizercostsremainhighcomparedtowhileapplyinginspring(righttime)canfor a land purchase or rental, they simply grain prices, so its tempting to cut fertilizerleverage fertilizers characteristics to make itwont be farming that land. ratestosavemoney.However,thiscouldmore available to the crop with less environ- Understanding how a potential land pur-come at the expense of crop yields. Cuttingmental loss, allowing producers to slightlychase affects the farms overall profitability fertilizer rates by 20 per cent could save $20cut fertilizer rates without sacrificing cropand cash flow requires thought and consid-to $30 per acre, but this only represents a fewyields.eration. For example, to buy an extra 160 bushels per acre, depending on the crop.This is especially effective with phospho- acres of land at $5,000 per acre and finance Beforecuttingfertilizerrates,produc- rus. Placing phosphorus at seed-safe rates in90 per cent of it at five per cent over 25 years ersshouldlooktoafewotheroptions.the seed row can reduce the amount applied Utilizing 4R Nutrient Stewardship practicesby half as compared to broadcasting. WithMoreCUT COSTSon page 1110SEED MANITOBA 2025SEEDMB.CA'