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Production and profitabilityBy John Schlageck Kansas Farm Bureau
As farmers gear up for the busy season of planting fall crops rising input costs underscore the need for maximizing yields like never before. These skyrocketing costs are also putting more pressure on growers' bottom lines, requiring them to revisit their profit picture and look even more closely at input usage. At the same time, commodity prices remain at all-time highs, which is encouraging for Kansas producers because of the increased demand for commodities from global pressures for feed, food and fuel. Still with these increases in production costs, farmers cannot afford to sacrifice yield because of weed competition in their fields. For producers to be successful this spring they must start with a clean field and control weeds early. Doing so is essential to maximize yield potential and profit at harvest. Kansas farmers know from experience that early season weed competition costs them significantly more than an investment in a seed with glyphosate and a high-performance residual herbicide program. A ready arsenal of herbicides may be a better choice for controlling early and late-season weed competition while managing resistance and maximizing yield potential. With the increase in glyphosate costs during the last year there is a real incentive to use residual herbicides to manage some of the problem weeds. While this doesn't decrease the reasons and simplicity of using glyphosate-tolerant corn or soybeans, it could increase profitability by minimizing early season weed competition. One of the major suppliers of glyphosates in this country recently announced its intention to increase its U.S. production capacity by 20-percent in time for the 2010 planting season. This company says it will increase worldwide distribution capacity by 10 percent during this same period. Availability of glyphosates in this country should be adequate during the upcoming planting season but at prices more than double 18 months ago. Looking to the future glyphosate demand and supply will determine whether prices will be rolled back, stay the same or increase next year. Today, demand for this product is being driven by growth in conservation tillage and the ever increasing price of oil which is directly tied into the manufacturing of glyphosate. Approximately 20 million new acres of corn products with glyphosate are expected to be planted this year alone, according to industry representatives. No estimates are available for the new soybean crop planting intentions. Another reason for the increased demand of this product is a flat or decrease in Chinese production. China manufactures approximately 40 percent of the world's glyphosate. It's important for Kansas farmers to realize there are options available for herbicide control. Choices of products are readily available whether it is glyphosate seed or residual herbicides. Putting all their eggs in one basket has never been the way successful growers operate. Farmers cannot rely on one herbicide or tactic for controlling weeds in this year's fall crops. To protect crop yields and take advantage of these high commodity prices, farmers must diversify so they can minimize early season weed interference. Residual weed control remains an integral part of a farmer's entire fall cropping program--especially with more glyphosate resistant weeds in fields. Controlling weeds early is going to be even more critical. The high cost of fuel, fertilizer, rent and land prices are still more than offset by record corn and soybean prices. Making the right management decisions can provide tremendous opportunities for profit. John Schlageck is a leading commentator on agriculture and rural Kansas. Born and raised on a diversified farm in northwestern Kansas, his writing reflects a lifetime of experience, knowledge and passion. 4/21/08 Date: 4/16/08
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