The terms Precision Ag, GPS, or New Technology can sometimes be scary to producers, especially if they have dabbled in this area previously only to experience breakdowns, delays, or just plain confusion on how to operate the equipment. Producers shouldn’t feel alone in their concerns, as sometimes the most intelligent and experienced technicians get stumped figuring out why all this “precision” sometimes doesn’t work the way it’s supposed to. Even though I haven’t found a perfect system that works seamlessly for every application, I have seen through my work as an agronomist that the customers who utilize technology are often the customers that see the best returns from their crop inputs. In fact, the reason I turned my focus toward Precision Ag sales and support was because I realized the greatest value for my customers was in using new technology to better manage their farm operations.

So how does using this technology create profit? Simply put, technology helps us place the right crop inputs at the right spot, at the right quantity, and at the right time. In conventional farming, operators generally over-apply inputs 75% of the time and under-apply 25% of the time. By using information obtained by soil sampling, yield monitoring, GPS mapping, and running specialized crop sensors, we can much more accurately determine a field’s needs on an acre by acre basis. As we become more accurate with deciding how much inputs we need for each particular GPS location, we will inevitably reduce costs and increase yield.

Let’s look at one example. In conventional farming, a producer puts a flat rate of 9-23-30 fertilizer at 200 pounds per acre for a cost of $45 per acre. If soil fertility levels show that he’s over applying an average of 10% on 75% of the acres, and under-applying an average of 10% on 25% of his acres, on a 1000 acres that producer would have spent $2250 over what was needed. In the areas that were under-applied and deficient that producer could very likely see a 20% yield drag, which at $3.00 corn on fields that average 170 bushel, this yield loss would be $25,500. The extra cost to implement grid sampling and variable rate spreading (vs flat rate) on 1000 acres would be $11,000, which would be a gross return of $16,750 the first year, or $16.75 per acre. The following years he would potentially benefit by $25.75 per acre.

The above scenario just covers one input. If you apply similar figures to seed, nitrogen, chemicals, and tillage, a producer can see very significant gains in both savings and increased yield. Several state universities have calculators to help producers determine the returns on using precision ag based on the size of their operation and their current management style. We at WS AG Center can help with your Precision Ag needs, whether it’s helping with aftermarket hardware, or managing data, or making prescription maps, or custom applying variable rate recommendations. We have the experience and capabilities to help you successfully implement Precision Ag in your production.

As the 2015 growing season comes to a close and we look forward to the 2016 season, we need to look at some of the issues facing today’s crop producers. For the record, the ethanol industry is alive and well with almost half of our corn production going to produce ethanol. To use an old saying, its demise so far has been greatly exaggerated and is responsible for nearly 4 of every 10 bushels of corn being used each year. Even with lower gas prices, which means more people are traveling to take advantage of the lowest prices since 2008, which translates to more gas consumption. Ethanol has maintained a narrow trading range and the inventory has gone from burdensome levels to manageable levels. Also, the US exported more ethanol this year than in the past with exports around 6% over last year. It should be noted that production of ethanol started the 2015 crop year strong and it doesn’t look like it’s going to change much as we start 2016.

The bottom line is that us in southwest Wisconsin, have to feel blessed because of our above average crop production. Even selling at lower commodity prices, it’s profitable because of the high yields we’ve attained. So in moving forward, we need to remember a key factor we can control (if the weather cooperates) is that we need a high level of production which also translates into maximizing the yield potential of each acre farmed, therefore making it profitable. We can’t cut back on crop inputs because we are taking such large yields off each acre, but we need to make the right input decisions to maximize profitability. With large yields comes nutrient depletion. Which is turn needs to be replenished to maximize future potential. We at WS Ag Center have the agronomy and precision team to help you maximize your crop production goals. Feel free to contact us for a successful and profitable 2016 production and marketing season. We also want to wish each of you a blessed and Merry Christmas and hope to see you at this years Annual Holiday Banquet on December 16th.

We understand at WS Ag Center that having convenient and reliable financing is one of the most important pieces of the puzzle for your farming operation. Our agronomist can work with your fixed cost per acre. With our new technology department we will make sure your every detail is addressed. If you are looking for maintenance or future growth, we are here for you. WS Ag Center offers a variety of financial plans with competitive interest rates, flexible payment capabilities and can partner with other companies that offer low interest arrangements. We look forward to helping your farm and family with your financial needs.