The Huron Expositor, 1995-03-15, Page 33US D ECUIPMEN11
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Farm Progress '95. -Paps 15
Fertilizer prices take a leap after one decade
by Keith Reid
After over a decade of relatively
stable fertilizer prices, the market
has suddenly take a leap in 1995.
From September to December,
1994, price increases ranged from 9
per cent for potash to 12.5 per cent
for phosphate and 24 per cent for
nitrogen. These increases are bound
to have an affect on how farmers
use fertilizer in their operations.
Several factors have contributed
to the sudden jump in fertilizer
prices. North American production
of fertilizer, particularly nitrogen, is
down this year. There was a major
explosion in an anhydrous ammonia
plant last fall, taking it out of
production, and since anhydrous is
the starting point for all nitrogen
fertilizers, this creates a shortage in
all of the nitrogen fertilizers.
Overseas demand for fertilizer has
also increased this year, particularly
in India and China. The net result is
a significant reduction in the North
American stocks of fertilizer
placing upwards pressure on the
prices. The drop in the Canadian
dollar has also made phosphate and
nitrogen more expensive, and the
wild card is what is going to hap-
pen to the dollar between now and
spring.
Maintaining your bottom line with
these increased prices is going to
take some careful planning. Ap-
plying more fertilizer than the crop
requires is a waste of money, but
applying too little will reduce your
crop yield. 11 is especially important
this year to aim for producing the
maximum economic yield.
Nitrogen will have the largest
immediate impact on the yield of
com or cereals, so it is important
not to short the crop. If you have
been comfortable with the amount
of nitrogen fertilizer you are ap-
plying, do not cut back more than
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10 per cent, or crop yields will
suffer. IF you are not sure that your
nitrogen rates are correct, a soil
nitrate test will tell you if you are
in the right ballpark. Be sure to
give full credit to all other sources
of nitrogen, such as legumes or
manure. Make sure that you are
applying the fertilizer so that the
crop can make maximum use of it.
If you have not been soil testing
for phosphorus and potash, it will
certainly pay for you to do so this
year. There is no other way to
predict how much of these nutrients
is in the soil. Send your samples to
an OMAFRA accredited lab, to be
sure that the analytical procedures
used on your samples arc correct
Sample boxes and informatioi
sheets are available at any
OMAFRA office.
Fertilizer recommendations for
phosphate and potash are made
either on the basis of crop response,
or building up and maintaining the
soil test. Building up the soil will
have merit if you have a very low
soil test, but you will want to think
about how much you want to invest
in soil building when fertilizer
prices are high. The OMAFRA
fertilizer recommendations arc
based on crop response, and you
should not drop your fertilizer ap-
plication below these tevels. To do
so is to risk yield reductions.
Do not spend large amounts of
money on micronutrients, unless
you have seen deficiencies on the
plants in your field. Ontario resear-
chers have been able to demonstrate
profitable responses to manganese
on cereals and soybeans, and to
boron on alfalfa, but only 'when
deficiency symptoms were present.
In these trials, the parts of the field
with no symptoms showed no
response to added micronutrients.
Balancing your fertilizer budget
this year is going to be challenging.
Fertilizer will remain an important
part of your production package,
and it can be a very profitable part
if it is managed right.
(Reid is a Soil and Crop Advisor
with OMAFRA in Walkerton.)
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1995 CASE CORPORATION
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CASE 111