Latest / The Illinois Nutrient Loss Reduction Podcast / Episode 14 | Improving Your Bottom Line and Water Quality with MRTN
Transcript
- Episode 14 | Improving Your Bottom Line and Water Quality with MRTN 00:00:06:07 - 00:00:31:20 Todd Gleason This is the Illinois Nutrient Loss Reduction Podcast, episode 14 improving your Bottom Line and Water quality with MRTN. I'm University of Illinois Extension's Todd Gleason. Gary Schnitkey agricultural economist at the U of I, has taken a look at the advisability of lowering 2019 nitrogen application rates on corn. I asked him just exactly what that means. 00:00:31:21 - 00:00:33:07 Gary Schnitkey Yeah. So anhydrous 00:00:33:07 - 00:00:54:00 Gary Schnitkey ammonia last report we've had from Illinois production cost report was, average price in Illinois from March of $615 per ton. That's almost $100 per ton higher than last year. Obviously, that's going to increase the cost of putting nitrogen on, on on farmland this year. 00:00:54:02 - 00:00:56:03 Todd Gleason How's it compare to previous years? 00:00:56:05 - 00:01:03:25 Gary Schnitkey So this it's it's up first. The 2019 cost will be higher than the last three years. 00:01:03:27 - 00:01:13:12 Gary Schnitkey The last time we had higher prices than we do now was in 2015. And then anhydrous money was roughly $700 per ton. 00:01:13:12 - 00:01:19:27 Todd Gleason Yeah. And so that's comparison on today's prices to today's prices. Those previous. 00:01:20:00 - 00:01:21:01 Gary Schnitkey Yeah. That would be 00:01:21:01 - 00:01:24:01 Todd Gleason not a not the fall price but the March price. 00:01:24:01 - 00:01:29:07 Gary Schnitkey Yeah. The March price. We're making comparisons to March in each one of those years. 00:01:29:09 - 00:01:58:05 Todd Gleason So the MRTN which is the nitrogen or N rate calculator. And folks can look this up. Just search Google for N rate calculator. It is on the Iowa State University website. But it's good for all 12 Midwestern states. And every county in those states. So you can find your location. That and in the state of Illinois, can be used, across the state to, optimize the rate of application. 00:01:58:08 - 00:02:05:10 Todd Gleason What does it show you? And I know you use some of the economics out of it to see how things differ at different rates for farmers. 00:02:05:13 - 00:02:21:27 Gary Schnitkey Yeah. So we looked at the MRTNs and for central Illinois farms using anhydrous ammonia, the MRTN is 174 pounds of nitrogen per acre. And that's actual and not as applied. So 174 pounds of actual N per acre. 00:02:21:27 - 00:02:37:24 Gary Schnitkey That's using anhydrous ammonia. And that's the ballpark for where it usually is at in central Illinois. Prices do matter some. But mainly it's, it's, it's, it's pretty sticky there in that 170 pounds per acre. 00:02:37:25 - 00:02:46:17 Todd Gleason Yeah. And in fact, Emerson Nafziger, agronomist, retired now from the University of Illinois, says that's the number for probably the upper two thirds of the state. 00:02:46:17 - 00:02:50:05 Todd Gleason But run the numbers yourself. If you're in southern Illinois, it's going to be a little higher. 00:02:50:07 - 00:03:09:28 Gary Schnitkey Yeah. Absolutely. Right. So 174 pounds per acre. Those when they develop those MRTNs, that's supposed to be the maximum level of profit. So for maximizing our profit there any additions to that will lower returns. 00:03:10:03 - 00:03:15:11 Todd Gleason Yeah. So so to clarify because the MRTN will you say optimized level of nitrogen. 00:03:15:11 - 00:03:19:25 Todd Gleason But the optimization is for the maximum return on investment or income. 00:03:19:25 - 00:03:34:22 Gary Schnitkey Yeah. That's right. So they take into consideration where that additional pound of nitrogen where the yield break point is, is that after you begin putting more on the yield isn't there to cover the cost. 00:03:34:29 - 00:03:39:24 Todd Gleason So you did some work, put the numbers in and ran the economics on different rates. 00:03:39:24 - 00:03:40:05 Todd Gleason What did. 00:03:40:08 - 00:04:01:20 Gary Schnitkey Yeah. So let's say you're applying 50 pounds of of N, above that I used you're going to do use 28% because you're probably going to put it on in the fall. But if you're here in the spring this year, 20, if you're putting 50 pounds of additional N on your, you have $25 higher cost in nitrogen. 00:04:01:20 - 00:04:08:29 Gary Schnitkey And you you know, this the the yield probably isn't there to cover that return. 00:04:09:03 - 00:04:24:17 Todd Gleason Yeah. Wait so so what you just told me was if you put 50 more pounds on over the optimize level, over the 174. So if you at 124, 224. Yeah, 220 pounds, you're just going to lose 25 bucks essentially. 00:04:24:17 - 00:04:28:18 Gary Schnitkey Yeah, I think you're the cost are going to be about $25 higher. 00:04:28:21 - 00:04:48:23 Gary Schnitkey There may be a slight yield yield increase over that level. And that probably doesn't happen every year. So you're probably not going to cover those cost. And in a year like this where we're looking at negative incomes already, saving money on that one input is pretty key. 00:04:48:25 - 00:04:49:09 Todd Gleason Good stuff. 00:04:49:10 - 00:04:50:06 Todd Gleason Thank you so much. 00:04:50:07 - 00:04:50:28 Gary Schnitkey You're welcome Todd. 00:04:51:02 - 00:04:51:28 Todd Gleason That's Gary Schnitkey. 00:04:51:28 - 00:05:02:04 Todd Gleason He's an agricultural economist here on the Urbana-Champaign campus of the University of Illinois at U of I extensions. Haley Haverback is now here. Thanks, Haley, for being with us. 00:05:02:06 - 00:05:03:14 Haley Haverback Thanks for having me Todd. 00:05:03:17 - 00:05:11:18 Todd Gleason Okay, so we've been talking with Gary Schnitkey about some of the numbers that are developed by the MRTN. Emerson Nafziger here on campus 00:05:11:18 - 00:05:25:24 Todd Gleason puts all those numbers in from the state of Illinois. You have some interesting statistics on the impact. If everybody in the state were to follow this as it relates to the nutrient loss reduction strategy. Can you tell me about that? 00:05:25:26 - 00:05:35:21 Haley Haverback Yeah. So actually, the ultimate goal of the Illinois nutrient loss reduction strategy is a 45% reduction of nitrate nitrogen and phosphorus load. 00:05:35:23 - 00:06:05:04 Haley Haverback And the reduction is intended to apply equally to the eight-digit hydrologic unit codes, or HUC watersheds of the Mississippi River basin. And so this reduction will be met over time. However, there is interim milestones. And so the interim milestone for 2025 is a 25% reduction in phosphorus loads and a 15% reduction in nitrogen loads. And because of annual load variability, progress is actually measured on a five-year running average. 00:06:05:06 - 00:06:30:13 Haley Haverback So if all farmers use maximum return to nitrogen or MRTN, we would get closer to meeting our reduction goals. So to understand where we were in regards to MRTN and other nutrient loss reduction strategies, the National Agricultural Statistics Service, or NASS, designed a survey to establish a baseline set for some of the cultural practices in the actually way back in the 2011 crop season. 00:06:30:15 - 00:06:55:17 Haley Haverback So in addition, the survey was designed to measure some of the cultural practices for the 2015 cropping season as well. And, the survey was designed to measure the level of knowledge that producers have on other nutrient loss reduction strategies as well. And so the survey actually showed an increase of more than 600,000 acres between 2011 and 2015 where MRTN was used. 00:06:55:19 - 00:07:28:21 Haley Haverback And consider that there was 12.6 million acres planted to corn in Illinois in 2011 and 11.7 million acres planted to corn in Illinois in 2015. There was actually a 70% increase of corn acres, followed the MRTN method in 2011, and that grew to 81% in 2015. So the NLRS assumes that producers and most of the state apply nitrogen fertilizers rates similar to the MRTN calculated recommendation. 00:07:28:23 - 00:07:58:19 Haley Haverback However, it's likely that not all producers are following this guideline. So the analysis assumes that 10% are well above the MRTN rate. And, reducing their nitrogen rate down to the MRTN rate would result in a 10% reduction in nitrate nitrogen losses per acre. And when the applied to corn acres across the state, this would reduce our overall nitrogen nitrogen load by 2.3 million pounds per year, or 0.6% of the baseline. 00:07:58:20 - 00:08:03:25 Haley Haverback So this isn't a large reduction, but the cost is negative, meaning that producers would save money. 00:08:04:02 - 00:08:13:07 Todd Gleason Haley Haverback is with the University of Illinois extension. You've been listening to the Illinois Nutrient Loss Reduction podcast. I'm extension’s Todd Gleason.