The Rural Voice, 1983-04, Page 12Photo Courtesy
Clinton News -Record
Twelve Steps to Higher Profits
by Mervyn Erb, Farm Centre Manager, Agrico Fertilizers, Brucefield
Even in tough times, top growers do
better than average producers --- and
drastically better than those in the
bottom third.
Why? Surprisingly, it's often not by
doing a lot of different things, but by
doing all the little things better. That
holds true for the Prairies, Western
Ontario or the eastern counties.
There's nothing really new in this 12
step program. Buy by thinking carefully
about each area and doing a little better
job, it could change your profit picture
considerably.
(1) PLAN TO DO BETTER THAN AVER-
AGE. That might sound obvious. or
even silly, but it isn't. Football coaches
start with a definite game plan; growers
should too. Average yields, average
cost of production and average market
prices won't make you much money on
any crop. You have to figure out how to
beat these averages if you plan to make
much money on any crop this year.
Farm management records show
there's not much difference between
production costs for the high return
one-third of farmers and the low one-
third. Slightly higher costs for high
yields will be far offset by extra gross,
which reduces per bushel cost.
SEED GRAIN
Custom Cleaning, Mixing and Bagging
Quality seed available at
very competitive prices.
Early booking and pick-up
Discounts on seed purchases
Dealer Inquiries Invited
A. Mac Armstrong
R.R. 2, Teeswater
392-6721
PG. 10 THE RURAL VOICE, APRIL 1983
Many factors involve management
decisions, not input cost decisions.
Study possible ways to beat those
averages in each category.
(2) FARM ONE LESS FIELD. That's
probably the best suggestion on the
whole list. The philosophy of always
farming more land has worked for a
long time. But in the last few years, it
has seldom paid as well as cutting back
acres and doing a better job managing
what's left. That could be a real key for
many farmers in tough economic times,
especially if the operating loan has
been reduced.
It works two ways. First, farmers will
usually cut back the most marginal
acres, which automatically improves
their yield averages. Second, it gives
them more time to manage the remain-
ing acres better.
(3) ADD ALL THE FERTILIZER called
for in a soil test --- but no more. The
possibility of cutting fertilizer rates in
these tough times is often a more
emotional topic the." an agronomic one.
Bear in mind your fixed costs aren't
going to change one dollar, whether
you grow 90 bushels of corn or 135
bushels. Sure, your variable costs may
rise, possibly more seed per acre, more
fertilizer, higher drying costs because
of more bushels. However, the income
from the higher yield far outstrips the
added input costs.
Through setting up crop budgets,
determine what your costs per acre are
and set your yield goal for the number
of bushels you need at a contracted
price or an anticipated fall price.
Growers who have high soil P and K
levels may be able to coast for a year,
however, watch your crop nutrient re-
moval rates. It takes several years to
build levels up, but only one year to
tear them down.
Dollars spent on fertilizer won't give
maximum return if there are other
yield -limiting factors that haven't been
eliminated. If you haven't fertilized
enough to get P and K to at least
medium levels, you are automatically
limiting yields and profits --- regardless
of what else you do.
(4) TRY TO ELIMINATE one tillage trip.
Yes, you need a good seed bed, but not
at the expense of your soil structure.
There's still too much tillage done
because of tradition or because the
neighbour is in the field, rather than for
any sound agronomic reason. Elimin-
ating the extra trip cuts fuel and labour
costs; reduces compaction, which cuts
yields more than most farmers think,
and gains more timely planting.
(5) STRIVE HARDER for more timely
planting. Here at Brucefield, I believe
our good corn yields in the past years
are in part attributable to early planting
and heat unit distribution.
Most of the growers I know are