Tillage: Crop input costs and grain prices are not aligned

The key challenge facing tillage farmers around the world right now, is the non-alignment of crop input costs and grain prices.

This is an issue referenced in the current issue of the Tillage Edge podcast by Jim McCarthy, who is currently growing 20,000ha of combinable crops in Romania.

Jim said: “We have not been able to get active nitrogen (N) prices any lower than €1.25/kg for application this spring.

“However, four years ago when grain prices were last down at current levels, we were able to source N ay 60c/kg.”

This means that he was paying double the price for N, and highlights the fact that growers need to look closely at response curves.

McCarthy cited an example of maize crops recently grown in Romania yielding up to 13½t/ha, with only moderate levels of chemical N, phosphorous and sulphur applied.

“These were all trial fields. However, the surrounding fields, not on trial, only yielded 11t/ha.

Crop input costs

A cover crop scheme is currently available in Romania. Courtesy of this measure, farmers can grow a mixture of peas, barley, linseed and other eligible crops.

“It costs roughly €7/ha to grow the cover crop. In return, the Romanian government is making available a support payment of €90/ha.

“We then plant corn on top of the cover crop that has been established. We are able to make this work courtesy of the current farm mapping system.

“This is an excellent example of the digitalisation of agriculture working for farmers in a very proactive manner.”

Liming has been an integral part of the land management systems employed by Jim McCarthy over recent years.

“Liming has changed the nature of the land completely. We are working fields with high magnesium, clay and silt levels.

“Many farmers seem to forget the basic fact that microbes mind the soil. Thereafter, the plants farm the microbes,” he said.

Source: Agriland