Nitrogen prices across the Prairies have topped $500 per tonne for urea and with these near record prices and low commodity returns comes the temptation to cut application rates.
However, cutting fertilizer rates below optimum levels will limit yields.
Spring soil testing has never been as important as it is when nutrient prices sail into the sky, said Ross McKenzie of Alberta Agriculture in Lethbridge.
“You need a starting place to estimate what your soil contains to begin with and then plan for a yield from the crop you’re planting.”
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Adrian Johnston of the Potash and Phosphate Institute in Saskatoon said when times are tightest, producers need to take the most care when planning nutrient use.
“Cutting corners at the expense of yield doesn’t pay the bills in the fall,” he said. “If you are going to reduce the amount of nitrogen you’re applying, then you need to know the effect you’re having on potential yields and quality.”
Johnston said in a year when moisture is in good supply, producers should evaluate the contribution their soil might make to the amount of nitrogen that is available to plants, especially in areas where the soil contains high levels of organic matter.
“A black soil zone like Melfort, (Sask.,) that has been managed under minimum tillage for a number of years is entirely different from a sandy soil at Shaunavon, (Sask.,)” he said.
Westco Fertilizer dealers have a predictive system that allows producers to analyze their own situation using a virtual soil test based on computerized cropping models of the Prairies.
Rigas Karamanos of Westco said the system tries to take into account the level of nitrogen that the soil might provide in a year when moisture is available during the growing season.
Johnston said under optimum conditions many soils that contain even moderate amounts of organic matter are capable of contributing nitrogen to the crop.
Standard soil testing by labs can also analyze the organic matter and make recommendations on the total package of nutrients required.
Soil tests to benchmark field nutrient conditions, followed in subsequent years with a virtual test, can be effective, Karamanos said.
Johnston said deciding on rates once the nutrient base is established becomes a management decision. High fertilizer prices affect returns on fertilizer investment.
“When canola prices are low and N is high, you need to consider the payback,” he added.
At 55 cents per pound of nitrogen and a canola price of $5 per bushel, producers in areas that tend to receive more moisture and canola yields in the range of 40 bu. per acre should consider the return on their investment.
If an ideal soil test-recommended application is 91 lb. of nitrogen, the return on investment for the fertilizer is $1 earned for every $1 spent on fertilizer. At 66 lb. of applied nitrogen, the return on investment is 1.5 times the fertilizer investment.
McKenzie said if a canola crop is expected to yield well and the producer is in a position to manage the crop to the highest level, then the investment and risk is worth it. But if any “piece of the crop production matrix isn’t there, then producers should consider cutting their risks.”
Using a Western Producer developed computer model, returns based on recommended applications of nitrogen show predicted returns above the cost of nitrogen between $40 and $65 per acre can be achieved on better grades of cereal crops, despite $500 per tonne nitrogen and wheat prices ranging from $3 to $4 at the farmgate.
“This year is one when careful choices and risk management come into play,” Johnston said.
“When fertilizer prices are lower and commodities higher, then higher fertilizer rates are an easy choice.”
