Manure as a Commodity: Manure Value vs. Commercial Fertilizer

David FischerDane County UWEX Crops and Soils Agent

MALWEG, Fen Oak 1/6/2011

Some Assumptions • Nutrient Value – Laboski Oct 10 survey

– N = $0.47/lb– P = $0.50/lb– K = $0.40/lb

• Crop needs Corn on Corn 171-190 bu target– 165-70-50– Optimum soil test levels

• Manure app cost $6.00/1000 gal• Fertilizer app cost $8.00/acre

Manure as a Cost Center

• Technology does not currently exist to make money on manure

• Producers must aim at best to break even with what commercial fert would cost

• Grain operators do not consider intangibles of added OM, rather weed seed, soil compaction, and erosion concerns

Grain Operator Fertilizer Costs

• Target good grain producer Dane Co 180 bu/A ave yield, optimum soil test levels

• Acording to UW Recs needs Corn on Corn– 165-70-50– Total product cost $133– App cost $16– Per acre cost could reach $149

• Maximum grain producers would pay for manure

Manure Nutrient Values

• Assuming incorporated values 10-5-16– 1000 gals has value of $13.60 + $6.00

application cost• To recover full nutrient value and app cost must

charge at least $19.60/1000 gal

• Corn requires 165 lbs N/A or 16,500 gals liquid dairy manure – total manure and application value is $323.40

The $$$ of N, P, and K in 4000 gals of liquid dairy manure

Price per unit of N, P, K1997 - $25 (0.30, 0.28, 0.12)2007 - $46 (0.49, 0.36, 0.30)2008 - $85 (0.79, 0.95, 0.73)2010 - $54 (0.47, 0.50, 0.40)

Receiving Field Eligibility

• Intangible Factors– Image with neighbors– Residents along traffic route

• Hauling issues– Traffic– Road requirements– distance

Receiving Field Eligibility

• 590 standards– Does field have NM plan?– Has field received other fertilizer already?

• SWQMA• Winter spreading• Slopes and tillage• Conservation plan

Can it work?

• Manure at the N rate applies excess P and K• What about a Corn/Soybean rotation?• Only need 140 lbs N/A or 14,000 gal

– Result in no excess P– 174 lbs/A excess K

• Soybeans 50 bu/A need 0-40-70– Results in needing 40 lbs P – if added via manure

• 104 lbs K/A excess• 80 lbs N/A excess

Pricing Manure

• If manure is applied to corn and soybean ground at P levels - $148 excess fertilizer value will be applied every two years– Would grain farmers pay for fertilizer not

realized within 2 year time frame – possibly but only at current values

• Manure could not feasibly be sold as a 1 year nutrient supply

• Application cost $6.00 per 1000 gallons is probably rock bottom price - if hauling exceeds about 3 miles this number will dramatically change – who assumes this cost

• Annual basis application manure exceeds commercial fertilizer value by $250+/acre with excess nutrients and hauling costs

• Nutrient value only – Commercial $133/A– Manure $324/A

• Application costs– Commercial $16/A– Manure at least $100/A

• These numbers use book values for manure, but it becomes apparent that paying for the application becomes the sticking point

• Grain operators do not feel obligated to pay extra for manure

Bottom Line• Manure is valuable

– $14/1000 gallons• Manure is expensive to haul

– $100+/acre for corn needs• Producers with adequate land have greater value to

properly apply manure• Producers with high P lands may be able to sell manure,

but may pay more to have that manure applied– Must be sold as a multi-year source of nutrients– Value will exceed hauling costs