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Background and Objectives:
Imagine that if
every time a farmer used a crop input, whether it was better seed,
more fertilizer, or more pesticide, they could add the yield
increases that are claimed by the researcher, extension specialist
or marketer that is promoting the product. If that were true,
nearly every farmer would be able to grow a canola crop of at least
100 bushels per acre. In reality, of course, although the costs of
those inputs stack up end-to-end, the yield increases do not and
farmers are well justified in not using every input that appears to
make a profit in research trials.
One of the biggest
reasons why the results of typical research trials do not translate
directly into increased profits and huge overall yields for farmers is
that traditional agronomic research, extension and promotional
information usually focuses on one input or management practice at a
time. Research trials are rarely set up to measure the interactions
among inputs. In typical, single input experiments we measure the
impact of adding one input under conditions where all other inputs are
applied at a constant, optimum level. For example, most nitrogen
fertilizer responses are evaluated under conditions where the supply
of other nutrients such as P and S are ample, a high yielding variety
is planted for all treatments and no expense is spared to protect the
crop against diseases, insects and weeds. At the end of such an
experiment, the researcher may show a very attractive rate of return
on investment in the N fertilizer, which ignores the yield benefit and
input costs that should be credited to the other crop inputs and
management practices that set the stage for a large N response.
To learn more about
how to translate typical research trials into real life cropping
systems, we examined the individual and combined effects of various
levels of fertilization, crop protection and genetic yield potential
on canola yield, quality and profitability.
Results and Discussion:
As shown in Table
1, the rate of return to low, medium and high input cropping systems
varies substantially with growing conditions. At the Brandon
Research Centre in 2001, yield potential was excellent and intensive
application of crop inputs resulted in a yield increase of 40
bushels per acre and a substantial improvement in economic margin.
For 2002 and 2003, where yields were limited by adverse growing
conditions, the agronomic response was modest and economic response
was generally negative.
Table 1. Yield and
economic returns from low, medium, and high crop input packages for
Brandon site in 2001, 2002 and 2003 (canola priced @ $7/bu)
|
Year |
|
Yield (bu/ac) |
Revenue ($/ac) |
Cost ($/ac) |
Margin ($/ac) |
Environmental Factors Affecting Grain Yield and Economics |
|
2001 |
Low Inputs |
6.1 |
$42 |
$75 |
-$33 |
Good growing season conditions |
|
Medium Inputs |
25.5 |
$178 |
$191 |
-$13 |
|
High Inputs |
46.5 |
$326 |
$269 |
$57 |
|
2002 |
Low Inputs |
0.2 |
$1 |
$75 |
-$74 |
Very dry conditions in spring. Germination was poor and weed
pressure extremely high. |
|
Medium Inputs |
6.7 |
$47 |
$161 |
-$115 |
|
High Inputs |
24.3 |
$170 |
$247 |
-$77 |
|
2003 |
Low Inputs |
6.6 |
$46 |
$75 |
-$29 |
Good growing conditions in May and June, followed by hot, dry
weather in July and August that reduced yields. |
|
Medium Inputs |
18.6 |
$111 |
$170 |
-$60 |
|
High Inputs |
23.4 |
$164 |
$236 |
-$73 |
|
Average for All Years |
Low Inputs |
4.3 |
$30 |
$75 |
-$45 |
|
|
Medium Inputs |
16.9 |
$112 |
$174 |
-$62 |
|
|
High Inputs |
31.4 |
$220 |
$251 |
-$31 |
|
The difference between the yield and economic responses for individual
crop inputs and the overall response to those inputs as part of a
whole cropping system was substantial (Table 2). The individual yield
responses to improved genetics, aggressive fertilization, and
application of a complete set of herbicides, insecticides and
fungicides were large. Each of the individual inputs appeared to
increase in profitability; the responses to variety and fertilizer
seemed especially profitable. However, when all the inputs were
applied together, the overall yield was significantly less than what
might have been expected from adding together the individual yield
responses. And, of greater concern, the difference between the
theoretical and actual margins for the high input cropping system was
very large, resulting in little improvement to the profit margin,
compared to the low input system.
Table 2. Average
benefit of canola crop inputs when yield responses to those inputs are
added individually or as a part of a complete cropping system at
Brandon in 2001, 2002 and 2003 (canola priced at $7/bu)
|
Yield Source or Response |
Yield (bu/ac) |
Revenue ($/ac) |
Cost* ($/ac) |
Margin ($/ac) |
|
Base Yield (med.
genetics, no fertilizer or pesticide) |
4.3 |
$30 |
$75 |
-$45 |
|
Variety Response
(with all other inputs at high levels)** |
4.9 |
$34 |
$0 |
$35 |
|
Pesticide
Response (with all other inputs at high levels) |
14.3 |
$100 |
$95 |
$5 |
|
Fertilizer
Response (with all other inputs at high levels) |
18.8 |
$132 |
$74 |
$58 |
|
“Theoretical”
Yield If All Inputs Were Additive*** |
42.3 |
$296 |
$245 |
$52 |
|
“Real” Measured
Yield With All Inputs at High Levels |
31.4 |
$220 |
$251 |
-$31 |
* Costs
for base yield include preseeding glyphosate, seed, machinery, fuel,
repairs and other basic costs.
** The
higher expense for the high yielding canola variety was offset by
planting at a lower seeding rate than for the medium yielding variety
and using less seed treatment.
*** The
benefit of the lower seed treatment costs for the high yielding canola
variety is included twice in the theoretical addition of input costs,
underestimating those total input costs, compared to reality.
So, as farmers
consider whether to apply more fertilizer to their crop or spray for
various pests, they should consider the overall yield potential for
the crop and the overall crop input package that they can afford.
And as many farmers already suspect, the expected yield benefits
and economic profits generated by typical research trials do not add
up end-to-end; the benefits and costs for the whole management
system should be considered as a package.
Acknowledgements:
This three-year
research project was supported by canola producers in Manitoba and
Saskatchewan, plus Manitoba Agriculture’s Covering New Ground
Program, the Potash and Phosphate Institute and the Canada-Manitoba
Agri-Food Research and Development Initiative.
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