Swine Manure: Does It Add or Subtract From Your Bottom Line

1
Swine Manure Does It Add or Subtract From Your
Bottom Line?
2
Possible Applications for the Economic Model

• Calculating the Economic Value of Manure to a
  Livestock Enterprise
• Manure Sale/Transfer Decisions
• Measuring the Economic Impact of Environmental
  Regulations

3
Things to Consider in Comparing Manure
Application Systems and Fine-tuning a System

• Amount of Manure Available, Nutrient
  Concentration, Acres Available for Nitrogen-Using
  Crop and Fertility Needs/A
• Capital and Labor Availability and Time Window
  for Applying (Weather Risk)
• Equipment and Management Required for Uniform
  Application
• Yield Impacts of Manure Application Not Directly
  Related to N, P, and K Amounts
• Phosphorus Banking for Future Years (Assuming Low
  Soil Tests)

4
(No Transcript)
5
The Economic Model

• Fertilizer replacement value
• Machinery economic costs of ownership and
  operation
• Time required
• application time
• travel and loading time (tank systems)

6
Model input parameters
7
Model input parameters (continued)
8
Model input parameters (continued)
9
Economics of Supplying Nutrient Needs of 1,000
Acres of Corn (120-50-50) With One Million
Gallons of Manure (60-50-40 per 1,000 Gallons),
Producer Perspective
10
Impact of Later Years' Crop Nutrient Needs, Yield
Effects, and Soil Test Levels on the Economics of
Supplying Crop Needs With Manure, 1,000 Acres of
Corn
11
Impact of Later Years' Crop Nutrient Needs, Yield
Effects, and Soil Test Levels on the Economics of
Supplying Crop Needs With Manure, 1,000 Acres of
Corn (continued)
12
(No Transcript)
13
Conclusions

• Manure with high nutrient concentration has more
  potential for a high fertilizer replacement
  value.
• Low rate manure is usually less profitable to
  apply than is commercial fertilizer.
• High nutrient manure is suited to low application
  rate technology.
• Low nutrient manure is suited to high rate
  application technology such as drag hose systems.
• Higher crop needs favor high nutrient manure.
• It is difficult to use manure in a cost effective
  way when crop needs are low.

14
Conclusions

• Low rate application introduces risks with
  nutrient availability and uniformity of
  application.
• Some starter may be advisable. Low-rate
  application introduces risks related to nutrient
  availability and uniformity of application. Some
  equipment may deliver manure unevenly at low
  rates, particularly at the ends of wide booms.
  Also, errors in availability estimates,
  inaccurate calibration, or environmental
  conditions that reduce nutrient availability can
  result in deficiency situations. Some commercial
  starter or pop-up fertilizer is advisable when
  manure is relied on as a major source of
  nutrients.
• Low rate application extends the non-NPK yield
  benefits to more acres if those acres are
  available.
• In an economic analysis of a particular operation
  such as applying manure, the method used to
  determine ownership costs of tractors or other
  equipment that is shared with other operations is
  critical in the analysis.

15
Conclusions

• Under conditions of high crop need and
  high-density manure, cost-effective hauling
  distances are greater than commonly believed.
• Application time is probably more constraining
  under these conditions. Low-rate application may
  result in unreasonably long time requirements for
  application, depending on how equipment is
  matched to manure volume.
• With low crop need and low-density manure,
  cost-effective hauling distance falls
  dramatically and a waste disposal mode is soon
  reached.

16
Conclusions

• The role of the custom applicator needs to be
  considered in the design of policies for
  discouraging over-application of manure.
• The path of least resistance for a custom
  applicator with a certain income goal might be to
  offer a competitive per-gallon charge and then
  apply at a high rate to maximize volume and
  revenue. Educational programs might be needed to
  identify combinations of per-gallon custom
  charges and per-acre application rates that allow
  both the producer and the custom applicator to
  prosper.

17
(No Transcript)