40 / www.FarmProgress.com – December 2011
Dakota Farmer
Crops
How to compare fertilizer costs
K
EY to saving money on nitrogen
is knowing how much it costs per
unit, based on the formulation. Anhydrous ammonia usually costs the most
per ton, according to Paul Johnson and
Gregg Carlson, South Dakota State University plant scientists, but is usually the
cheapest per unit of N, because anhydrous
ammonia is 82% N. Urea is 46% N, and
liquid is usually 28%.
To determine the cost of N from each
source, first convert the cost per ton to
cost per pound. Calculate this by dividing
the cost per ton by 2,000, the number of
pounds in 1 ton.
Next, divide the cost per pound by
the percentage of N found in 1 pound of
the product. For anhydrous ammonia,
the figure is 82%; for urea it’s 45%, and for
liquid N it is 28%.
The complete formula for determining
the cost of 1 pound of N in fertilizer is: (cost
per ton/2,000) / percent N per pound = cost
of 1 pound of N.
3 examples
Here are three examples:
Anhydrous ammonia: If anhydrous
ammonia costs $749/ton, 1 pound of anhydrous ammonia costs 37 cents. One pound
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of actual N in anhyyts
drous ammonia costs
00) /
45 cents. ($749/2,000)
82% = $0.45
Urea: If urea costs $562/ton,1 pound of
urea costs 28 cents. One pound of actual
N in urea is 62 cents. ($562/2,000) / 45%
= $0.62
Liquid N: If the liquid N costs $$351 per
ton, 1 pound costs 17 cents and 1 pound
of actual N is 62 cents. ($351/2,000) / 28%
= $0.62
Focus on providing N, P, and K first,
Johnson recommends, and then attend
to the micronutrients. In the case of corn,
zinc is the micronutrient most commonly
needed. If the soil is zinc deficient, its application usually produces a good return
on investment.
You also want to look at the time you are
buying the products. Nine years out of 10,
fertilizer is cheaper in the fall than in the
spring. Most years the difference in cost
will cover any interest charges that may
be incurred before the product is needed,
Johnson says.
As an example, if the fall nitrogen price
is at $0.60 per pound of N, and if interest
rates are at 6% to 8% (assume 7% or
3.5% for a half year), and if you assume a
six-month difference between fall and
spring purchase, the breakeven spring
price would be $0.60+$0.60*0.035 = $0.62/
lb. of N.
Also compare application costs and
always buy from suppliers who can get
you the product when you want it and need
it, they conclude.
Source: SDSU
Horsley
named to
NDSU post
R
ICHARD Horsley has been appointed head of North Dakota
State University’s Plant Sciences Department. Horsley, the NDSU six-rowed
barley breeder since 1988, has been
serving as interim head of the plant sciences department since July 2010.
“Dr. Horsley brings a number of very
positive skills and tremendous experience to the position,” says Ken Grafton,
NDSU’s interim vice president for agriculture and university Extension, director of the North Dakota Agricultural
Experiment Station and dean of the
College of Agriculture, Food Systems,
and Natural Resources. “He will provide excellent leadership to ensure
that the department continues to move
forward.”
Horsley earned a bachelor’s degree
in agronomy from the University of
Minnesota in 1983. He received a master’s degree in agronomy from NDSU in
1985 and a doctorate in crop and weed
sciences (plant breeding) from NDSU
in 1988.
Horsley will continue to oversee the
barley breeding program during his
term as head of the department.