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How Livestock Farmers can Benefit from High Fertilizer Prices

By Chryseis Modderman and Melissa Wilson

Livestock owners have long known the great value of their manure. With current soaring commercial fertilizer prices, some crop farmers are seeking to buy manure from their livestock owner neighbors. Luckily, livestock and crop farmers teaming up can prove to be mutually beneficial.

The most obvious benefit is that livestock owners can earn some cash for the manure they were planning to apply anyway, and the crop farmer gets the nutrient and soil health benefits of manure while paying less than they would for commercial fertilizer.

More application acres can help free up on-farm manure storage, giving you a bit more freedom to delay applications in the event of a wet spring. You might also cut transportation costs if the new field is closer to the barn than the land for which that manure was originally planned. Plus, if your partnership continues, you may be able to write their land into your manure management plan (check out your local manure planning rules for more information).

Create a plan

So how do you even start a relationship like this? A Minnesota corn and soybean farmer who has been buying a neighbor’s turkey litter for nearly two decades recommends just asking who you know.

“You just got to reach out, you know? I’d heard turkey litter was real good [stuff], and I’ve known this turkey farmer his whole life, so it wasn’t a big thing to say ‘Hey, what do you say we do this?’” 

Manure-sharing relationships have been started through Facebook Marketplace, Craigslist and other sales websites. But if you’re going to do this online, make sure to look up your local rules about nutrient source sales so you aren’t accidentally subject to fertilizer labeling rules. It might be simpler to seek out a willing person to work with and then work out the details one-on-one.

When creating a manure plan with another farmer, Jeff Bauman, an ag nutrient consultant with Anez Consulting, Inc., recommends putting it on paper.

“A written agreement is almost always best so that there are no misunderstandings or things that are forgotten,” he said.

Bauman advises writing out the price, field location, tons or gallons per acre, and total weight delivered to the field before the transaction date in your agreement. Others may take a more laid-back approach, with a simple verbal agreement.

Whichever method you choose, communication is key to make sure you both stay on the same page.

Set a price

So, how much should you charge or pay for manure? Unfortunately, there’s not a simple answer and prices often fluctuate depending on fertilizer prices.

The only real guideline is that both parties need to feel they are benefitting and getting value out of the arrangement. This can be subjective and depends on several factors, such as

  • whether the manure can be applied by the manure owner or if a commercial manure hauler needs to be hired;
  • if the buyer is willing to place a monetary value on the micronutrients and soil health benefits in addition to the NPK value; and
  • the haggling skills of each party, etc.

Check out our manure value calculator as a starting point. Keep in mind that if a farmer is new to manure, it’s very likely they don’t own the machinery necessary for applying it, so make sure application and transportation costs are factored in.

For high-ammonium manures, like poultry and swine, Bauman suggests basing the price on the manure’s first year available nitrogen content and the average price of urea and anhydrous fertilizer plus transportation and spreading fees. For lower-ammonium manure, like dairy, he suggests using crop nutrient removal rates to estimate price.

“It still comes to less than the cost of commercial fertilizer, plus you get the advantage of the micronutrients and other benefits,” Bauman said.

Know your local regulations

When manure is applied to land owned by someone else, it’s considered “transferred manure,” which has its own set of rules and requirements. These vary based on location and whether you’re crossing county or state lines.

In some cases, the applicator must be a certified manure handler, which might be an extra hassle for you if you don’t already hold that certification. Often, you will need to provide certain records about the manure, such as a nutrient analysis.

More details on transferred manure can be found in your local manure rules or by talking to your local permitting agency.

Spread the knowledge

Many crop farmers don’t understand the nuances of manure nutrient availability, so, while certainly not required, it’s a good idea to share some of your manure know-how with them.

Let them know that not all nutrients are created equal when it comes to manure. Some are bound to organic particles and will release slowly over the first and even the second growing seasons after application. Other nutrients are plant-available right away and behave similarly to commercial fertilizers after application.

Point out that not all the “total N” reported on the manure nutrient analysis will be usable by the plant in the first year and that nitrogen availability of manure varies by livestock species and how the manure is applied.

In Minnesota, we expect other nutrients to be more predictable than nitrogen and estimate that 80% of the total phosphorus and 90% of the total potassium measured in the manure will be available to the crop. You’ll want to look up the manure nutrient availability recommendations from the land grant university for your region, though.

The manure buyer should also know that they need to take a nitrogen credit for manure applied the previous year. Your state should have resources that estimate N availability for both the current and following year.

Keep an open mind

Please note that transferring your manure to a crop farmer is not a standardized process and your experiences may vary. There’s no poop commodity driving prices, and the forces of supply and demand are murky and vary widely by location. Still, this can still be a lucrative and rewarding opportunity to spread the wealth (the wealth being, of course, poop).

Source : umn.edu

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