27 May 2008

3 minute read

Europe

Depending on stocking rates the higher cost of fertilizer in 2008 could increase production costs by up to €50 per hectare on beef farms, or up to €100 per hectare on dairy farms. This increase is the equivalent of 0.75 cent per litre of milk or 16 cent per kilogram of beef live weight.

Teagasc environment specialist Tim Hyde said: "Even though production costs have increased grass remains the cheapest form of feed on dairying and drystock farms, and nitrogen remains the main driver of yields. On tillage farms, even at current fertilizer prices and based on expected grain prices, applications are justified economically."

Changes in the price of fertilizer have implications for usage and the management of other valuable nutrient sources such as slurry on farms. These changes have refocused attention on the benefits of clover as a source of nitrogen. In monetary terms a thousand gallons of slurry is now worth €25, while clover can fix nitrogen to a value of €120 per hectare.

Among the factors to be considered when responding to the change in fertilizer prices are the enterprise type and the level of efficiency. On farms fertilizer, particularly nitrogen, drives farm output, and used efficiently also drives profit. Nitrogen is the main determinant of high yields and artificial fertilizer sources should only be reduced below crop requirement if it can be replaced by alternatives such as clover swards and organic manures.

Teagasc nutrition specialist, Siobhan Kavanagh said: "while the increased cost of fertilizer will add €10 per head to feed costs associated with a winter finished animal on good grass silage plus concentrates an intensive feeding system based on concentrates would only become more competitive, if concentrate prices dropped by €80 per tonne."

In relation to tillage crops, nitrogen fertilizer prices would need to rise, or grain prices drop significantly, before current nitrogen application rates would not be justified economically. Teagasc soil and plant nutrition specialist Mark Plunkett said: "Despite dramatic increases in prices fertilizer applications remain a cost effective input for profitable crops. With current fertilizer nitrogen prices and the projected price of grain the economic optimum for cereal crops has not changed and is similar to that of 2007."

Teagasc has demonstrated a number of strategies to reduce the quantities of artificial fertilizer needed on farms including spring application of slurry, introducing white clover into swards and having six or more grazing divisions per group of animals. The best response from phosphorus and potassium fertilizers are achieved when applications are targeted to the demands of the crop. Regular soil analysis is the most cost effective tool to determine the soils nutrient status and ensure a return from applied nutrients. Applications that exceed crop demand are an unnecessary expense.

Soil acidity has a major influence on the ability of the soil to release crop nutrients. It has a particularly large influence on the release of nitrogen from soil organic matter. This can be overcome by ensuring the correct lime status of the soil. Teagasc research has shown that where acidic grassland soils were limed it resulted in the release of an extra 60 kilograms of nitrogen per hectare each year. The release of soil nitrogen is of particular relevance at today’s high nitrogen prices. Research has also shown that the application of lime to acidic soils can significantly increase the availability of phosphorus and potassium fertilizers.

All farmers must follow a fertilizer plan to ensure they do not exceed the limits set down in current regulations. Teagasc environment specialist, Tim Hyde said; "Teagasc advisors have assisted almost 30,000 clients with their fertilizer plans in 2008, helping them to comply with the regulations and mitigate against rising fertilizer costs. On the other hand, farmers who apply excessive fertilizers, risk having a penalty applied to their single farm payment," he warned.

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