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RSS By: Chris Barron

Chris BarronHave a margins question? Through this blog, you will gain insight into improving your bottom line, as a margins expert answers questions and provides farm business advice.

 

Fertilizer Price Calculator

Aug 14, 2011

 

Fertilizer Calculator
As producers consider fertility in today's world of “high tech” we consider nothing less than a precision application, rate, and placement. Conversely, many of us settle on understanding fertilizer price as a “cost per ton.” For example, we understand that potash may cost us $598 /ton and the cost of phosphorus is at $681/ton. Generally we discuss fertilizer in terms of price per ton rather than price per acre or per bushel. Many producers sit down once to calculate this tonnage on a cost per acre, based for an average application rate. Once we have an idea on the cost per acre, on average, we tend to use that number for all of our fields.
In order to manage margins with more accuracy, converting “ton prices” and fertilizer rates over to a cost per acre should be easy and convenient. Here is an example of a simple fertilizer calculator. This tool can be useful to evaluate and instantly calculate different application scenarios.
  Fertilizer Calculator                  
  Price/ton Rate P & K Price / Ac.     Price/ton Rate P & K Price / Ac.  
Potash $598.00 120 $59.80   Potash $598.00 120 $59.80  
Map $681.00 52 $34.05   DAP $671.00 52 $37.93  
    Total Per / Ac. $93.85       Total Per / Ac. $97.73  
    Available N 11       Available N  20  
Potash 0-0-60 Spring N Value $5.16       Spring N Value $9.55  
MAP 11-52-0                
DAP 18-46-0       Enter Plan Here      
             P 52      
   Fill in the Tan Boxes          K 120      
                   
                   
                   
           
By thinking of fertilizer costs in terms of price per acre (based on a rate of application) you can improve individual farm unit decisions. Margin goals from one farm to another can be very different. Just as each farm requires unique fertilizer management each farm also requires unique margin management.
This tool also includes an anhydrous nitrogen calculator which serves a similar purpose. If you're interested in receiving this tool just send me a request and I'd be happy to forward it to you.
 
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