Increases in nitrogen costs, new technologies and local and regional water quality issues are leading farmers to look for innovative strategies to improve financial returns and stewardship. Using a side-by-side approach, the BMP CHALLENGE now allows corn farmers in 13 states to test reduced tillage and nutrient application rates against their current practices. Crop advisors help farmers set up check-strips and determine the correct nutrient application rates or reduced tillage systems for their fields.
At harvest, the farmer and crop advisor assess yield and calculate fertilizer or tillage savings. If the farmer’s net income declines (yield shortfall minus fertilizer or tillage savings), the CHALLENGE compensates the farmer. Farmer incomes are protected while they gain confidence with the Best Management Practice (BMP). The CHALLENGE is a great way to work with farmers in a watershed or conservation district, reducing inputs and providing a risk-free opportunity for farmers to see how BMPs perform on their fields.
Including crop year 2006, 3,227 acres in 74 fields have been enrolled in the nutrient BMP CHALLENGE program. Participating farmers have been able to reduce nitrogen application rates approximately 23 percent or 41 pounds per acre. Although the average yield was almost 6 bushels per acre less for reduced rates of nitrogen, that loss of yield was offset by more than $12 in fertilizer savings. In addition, farmers who experienced a yield reduction large enough to cause a loss in net returns received a guarantee payment to make up the difference.
On average, at a corn price of $2.20, farmer net returns at the reduced rate of nitrogen were virtually equal to the higher nitrogen rates—returns differed by only five cents per acre. Of course with the recent increase in corn prices, the net returns calculation accommodates slightly higher N application rates—but only about 15 pounds, vs. the 40 additional pounds. participating farmers had been applying.
The BMP CHALLENGE is a collaborative effort of American Farmland Trust, Agflex, Agren and IPM Institute of North America with project team and advisory group members from multiple states representing public agencies, watershed management organizations and crop consulting firms.
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