How to Save Money When Buying agricultural chemicals

There are some best practices to follow if you want to make a practical ag chemical plan that works. We’ve outlined some tips and tricks for how to put together your plan and then efficiently select and buy the best chemicals for that plan—without breaking the bank.

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How To Make An Ag Chem Plan You Can Use

There is no one-size-fits-all chemical plan

Depending on your crop rotation and tillage, as well soil types, pests and diseases, each farm has specific needs to address when developing a chemical plan.

Finding the right pest management and weed control programs for your farm can seem like a daunting task, but thinking of them holistically can help you to develop a plan that will protect the yield potential you planted.

What to Put Down: Selecting the Right Chemicals for Your Chem Plan

Like all input decisions, deciding exactly what chemicals to purchase is a bit of a balancing act—figuring out what active ingredients your plan needs and when, and measuring that plan against the ease of ordering, delivery timing and cost (or in some cases, what it could cost you not to buy).

Here are a few things to consider as you start to create your chem plan:

1. Know Your Cropping Plan

Crops have diverse needs and tolerate weed, insect and and disease pressures differently. And plantback intervals vary between crops, sometimes even for the same product.

That’s why it’s important to know what you’re planting—so you don’t restrict yourself with a herbicide that has a plantback interval that may be too long to work.

2. Rotate Your Modes of Action

It would be easy to just do what’s worked before, but we all know that eventually, any pest management program can lose its effectiveness.

By making sure you’re utilizing multiple modes of action, you’ll be able to fight weeds in multiple growth stages and prevent any resistance issues that have become prevalent on farms across the country.

3. Consider Your Tillage Practices

Be sure to take tillage into account as you’re creating your chem plan. No-till, reduced till, minimum till, ridge-till and full tillage may each require a different herbicide program.

For example, are you planning to till your soil before planting? If that’s the case, then you may not need to use a burndown herbicide because any weeds will be pushed under from rotating soil.

4. Know Your Field History

Knowing what weeds, insects and diseases you dealt with in previous years can help you select the products you will need this year to combat any threats that carried over.

5. Think Long Term

Take into consideration the weeds and insects you may see in corn versus soybeans, as well as any other crop you may consider planting—a cover crop or specialty crop, for example. Don’t let a pest linger that will be a danger to the next crop in your rotation, or in planting something new down the road.

Generics versus Branded Chemicals

Whether you’re looking to buy peanut butter, pain relievers, or crop protection chemicals, a branded product from a company you know over a low-cost, no-name generic feels like the safe choice.

But what’s the real difference between generic and branded ag chemicals?

If the branded product is three times more expensive, is it also three times more effective? What does a branded chemical really add to your bottom line?

Wondering how to start comparing? Our guide to understanding branded vs. generic ag chemicals will answer your common questions, including:

• What is a generic ag chemical?

• Do generic products work as well as the equivalent branded products?

• Are generic products identical to branded products?

A generic ag chemical is manufactured and sold by a company other than the original manufacturer, but contains the same Active Ingredient(s). Generic chemicals are typically “off-patent”, meaning their original patent has expired. Thousands of farmers use generic products on hundreds of crops.

While generic products are not identical to their branded equivalents, they tend to be very similar in terms of performance. In fact, to receive an EPA registration, a generic product must have the same technical make-up as the branded version. Often generic and branded products are even manufactured by the same companies.

Generic products are not always identical, so it’s critical that farmers read their product labels to understand the differences.

When to Put it Down: Timing Your Expected Applications

Knowing your typical application types and when you traditionally have spray application windows is a significant part of developing a solid chem plan for your operation—when matters as much as where and how.

By being aware of what, when, where and how works best for your farm, you can develop a plan that helps manage all of your pest control concerns while making the fewest number of passes necessary.

The most common application windows are:

Early pre-plant

These applications are made 15-30 days before planting and are generally non-selective herbicides that burn down early weeds ahead of the planter.

This is a good time to apply herbicides with residual control. If you do not plan to till your soil, or are in a reduced-till or minimum-till system, then a burndown can help you gain control of weeds that wouldn’t be destroyed by tillage.

Pre-plant

These applications are made in the window from 15 days prior to planting up until the planting date. This is an important window if you were unable to get into your fields for an early burndown and have a need to get moving with planting.

Be careful with their herbicide choices here, as some herbicides have plantback restrictions that may prohibit them from being used so close to planting. This is also a good window for a soil-applied insecticide.

Pre-emergence

These applications are made after planting, but before plants emerge from the soil. These chemicals help manage any weeds that have popped up since pre-plant burndown applications, and can provide residual control for certain weeds until the crop has had time to get established.

Post-emergence

The post-emergence window includes anything that goes on once the crop is up and running. It is important to be aware of what the label specifies as the timing window, as this will help you get the most out of your in-season applications.

A fungicide application is often usually made during this time (around VT-R1 growth stage in corn and R3-R4 growth stage in soybeans), and if insect pressure is a concern, many farmers will add an insecticide to their spray applications during this window.

Harvest aids:This window is used to take down any late-season weeds that may make the crop more difficult to harvest.

Selecting the Right Chemicals for Your Operation

Premix versus Tank Mix

Ag chemical products can come premixed or can be combined in a tank mix. Finding the right product mixes for your operation is important because mix type may help you to determine how much time and effort you want to spend prior to spraying.

For premixes, the ratio of chemicals is prepared for the highest volume of use in a particular region. But for different climates and soil types, the optimal volume is not necessarily the highest volume, so be sure to read your labels and know the rates you want to apply. Also, when using a premix, the best application timing window for multiple products is usually determined by the combination ingredient ratios in the mix, which are developed by the manufacturer. However, this suggested timing may not always match up precisely with the ideal application timing for your farm, if you were to use the products included in the premix individually. So keep timing in mind when choosing a premix versus tank mix.

Tank mixes provide more freedom to customize your mix. However, it becomes essential to have a thorough understanding of guidelines and labels for each product you plan to apply. Tank mixes require the ability to combine and handle the products properly, which is important to ensure uniform coverage and effective control. Improper mixing can be costly, particularly if the spray tank becomes clogged or damaged.

How Much Chemical Do I Need?

Figuring out how much chemical you need depends on the number of acres you plan to spray, what equipment you’ll be using and how many applications you’ll be making.

All product labels will carry recommended application rates for each crop, timeframe and targeted pest.

Need to Know on Chemical Rates

The rate of chemical to apply to your crop is always included on the product’s label. The recommended rate is often based on the amount of active ingredient in the product, its intended use and the expected reaction to expect from plants based on the size of the area to be sprayed.

Rates can also be described in pounds or volume of product per acre, depending on whether it is a liquid, granular or powdered substance.

Watchouts for Equipment

The equipment you use and how well it is calibrated will also play in to how much chemical you’ll need. While the proportions in your mixes will remain the same, you’ll have to consider if you’re measuring for a small backpack sprayer, a large boom sprayer or anything in between. The size of your tank impacts how much product you need to have on hand in any given application.

Know Your Storage Needs

The EPA has guidelines placed around the best practices for the storage of many agricultural chemicals, so making so you have the right space to store and protect your chemical investment is something to think about before you take receipt of it.

Many pesticides come in a variety of formulations (dry or liquid), and an assortment of package sizes, from jugs and drums to larger totes and bulk tanks. With so many choices, be sure to know the space you have for what you’re going to buy — but know that you don’t always need to take receipt of chemicals on-farm at the moment you buy. You can often have them delivered with in several days of anticipated use.

Trialing a New Chemical: Try a Strip Trial First

On-farm field trials can help you gain valuable information about how well another chem application or different seed varieties may work on your fields without investing in it across the entire crop in the first year. The basis of an on-farm field trial is determining how a product/method/technology stacks up against another (or the absence) in the same field.

Contact us to discuss your requirements of Industrial chemical suppliers. Our experienced sales team can help you identify the options that best suit your needs.

Strip trials are just what they sound like—sections, or strips of a field, planted to different hybrids for comparison, or strips of a field treated differently to compare best management practices. The comparison among strips helps a farmer to determine which hybrid or practice would be most profitable and effective on all, or most, of their farms.

When Should I Buy the Ag Chem for My Plan?

Are you planning to use many of the same chemistries that performed well for you this year? If so, you are probably not the only farmer who wants to get their hands on them.

Chemical Prices and Timing

Herbicides and insecticides can account for as much as 15 percent of your variable cost of production.2 Every dollar matters—small price variations can add up to have a big impact.

Purchasing your crop protection and chemicals in the fall can offer you two main advantages:

Better Prices in the Fall

This time of year, many products are often on sale to clear inventory for next year’s products. If they’re the ones you plan to use next year, you could save money and reduce your cost of production by taking advantage of lower prices in the fall. It’s not uncommon for the price of common chemistries used in grain production to increase each year.

Some have predicted that input prices could go up 3-6 percent on many crop chemical inputs. Buying ag chemicals in the fall can be a smart move where price is concerned.

Greater Certainty for the Spring

If certain chemistries worked for you, chances are that other farmers may have had the same success, and the demand for those products may rise. Supply can become tight for popular products, but you can purchase now to avoid this possibility.

Once you have the products in hand, you will not be panicking or searching for the products, if and when they become scarce. It is a good feeling to know the inputs you need are going to be there whenever you want to apply them.

Buying products that you are certain that you will use this fall or the next crop year can help you to eliminate any potential for waste, and addresses your planned chemical needs upfront.

There is often little transparency into industry practices around chemical pricing.

With historically low commodity prices, even small differences in chemical prices can make or break a season. Based on our research and the experience of many FBN members, one of the biggest barriers to controlling costs is the variability and lack of transparency around ag chemical prices.

You can see extreme price differences on the same products, even when brands and geographies are the same, and even for staple products:

• Price differences exist across the ag chemical industry, from widely used products like Roundup PowerMAX® to more specialty products.

• Price differences occur even within states for identical products. Farmers within 15 miles from one another can pay widely varying prices.

• Even as prices decrease for many chemicals, price variation continues to exist.

You should have control over your chemical purchasing and greater transparency to make better decisions about where to find fair prices. Though the USDA does regular surveys on the amount that farmers spend on chemicals on average, very little is known about the real prices individual farmers pay.

We believe that farmers should have access to fair and competitive input markets, and that increasing price transparency is a vital step towards that goal.

The Easiest Way to Purchase Ag Chemicals

FBN Direct® lets you buy the critical inputs that you need to grow your crops. It’s lower cost, easy and convenient online ordering with seamless direct-to-farm delivery. Delivery is quick and convenient so you have the critical inputs you need, when you need them. We work directly with manufacturers and suppliers to procure high quality inputs at a fair price for you.

Online Ordering from the Palm of Your Hand

Chemicals and seed are delivered when and where you want. Direct-to farm ordering is simple, so you can spend time running your business. Shop for inputs and place your order right from your recliner. Or from the palm of your hand on the FBN App. It’s the hassle-free way to buy chemicals and seed, backed by price transparency.

Sources

1. Siekman, Darrel & Lowell, Sandell. “Comparing Generics vs Name Brand Pesticides”. University of Nebraska: Cropwatch Extension. 10/27/. Available here: http://cropwatch.unl.edu/archive/-/asset_publisher/VHeSpfv0Agju/content/

2. United States Department of Agriculture - Economic Research Service. Dips in Farm Sector Profitability Expected into (http://www.ers.usda.gov/topics/farmeconomy/farm-sector-income-finances/highlights-from-the-farm-income-forecast.aspx)

3. Iowa State University: Estimated Costs of Crop Production in Iowa - (https://www.extension.iastate.edu/agdm/crops/pdf/a1-20.pdf)

4. Herbicide Application Timing - When to Apply What (https://agcommnetwork.com/herbicide-application-timing-when-to-apply-what)

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Roundup PowerMAX® is a registered trademark of Bayer CropScience or their respective owners.

FBN Direct products and services and other products distributed by FBN Direct are offered by FBN Inputs, LLC and are available only in states where FBN Inputs, LLC is licensed and where those products are registered for sale or use, if applicable. If applicable, please check with your local extension service to ensure registration status. Nothing contained on this page, including the prices listed should be construed as an offer for sale, or a sale of products. All products and prices are subject to change at any time and without notice. Terms and conditions apply.

ALWAYS READ AND FOLLOW LABEL DIRECTIONS. It is a violation of federal and state law to use any pesticide product other than in accordance with its label. The distribution, sale and use of an unregistered pesticide is a violation of federal and/or state law and is strictly prohibited. We do not guarantee the accuracy of any information provided on this page or which is provided by us in any form. It is your responsibility to confirm prior to purchase and use that a product is labeled for your specific purposes, including, but not limited to, your target crop or pest and its compatibility with other products in a tank mix and that the usage of a product is otherwise consistent with federal, state and local laws. We reserve the right to restrict sales on a geographic basis in our sole discretion. You must have a valid applicator license to use restricted use pesticides. Please consult your state department of agriculture for complete rules and regulations on the use of restricted use pesticides, as some products require specific record-keeping requirements.

SUMMARY

Running a farming business requires commitment and passion, but passion doesn’t necessarily translate into profitability. If your agribusiness is having trouble turning a profit, it might be time to look at cutting some of your farming costs. This article suggests short and long-term solutions that can make this possible.

Whether you choose to conserve by making the most of existing resources, opt to increase workflow efficiencies across farming processes, or make better decisions by using smart data, it makes sense to be prudent with finances given the unpredictability of this year.

One suggestion that may help you weather tough times is to use data wisely when deciding where cuts can be made across your enterprise. With advances in agricultural technologies, you can now trace the metrics of your farm and its overall performance. By tracking crops and chemical balances in soil against the costs of inputs, you can use data to your advantage to make smarter decisions.

INDEX

1. Data management solutions
2. Increase workflow efficiency across farming processes
3. Conserve existing resources

3 WAYS YOUR AGRICULTURAL BUSINESS CAN CUT COSTS

Running and managing an agricultural business requires planning. Farms are costly enterprises with many coordinating parts and multiple supply chains. They are also especially susceptible to unforeseen factors, like weather disturbances and pest attacks, all of which can affect profitability. Whilst you may not be able to determine a crop’s yield, you can control processes that can go a long way in helping you cut costs.

This article highlights three approaches through which a farm can reduce expenses.

1. Data Management Solutions

Agribusinesses require a lot of planning. Gone are the days when things could be done ad hoc. Even small-scale farming enterprises need to use data management solutions, technology, and digital processes to operate at a high level of professionalism. Maximizing the use of existing technologies not only optimizes processes but can also help you save money.

• Keep records for everything: Ask any business owner and they will tell you that keeping your books organized as best as you can is fundamental to the success of an enterprise. Recording all costs, like inputs purchases, equipment maintenance, farmland rents, administrative costs, etc., including relevant information like dates, suppliers, raw material costs, and consultancy fees, can help you spot large expenditures quickly. When it comes to cost-cutting you will need to review these bulky expenses to decide what you can do without and what you need to keep.
• Use a digital management system: Whilst everything can’t be predicted on a farm, planning your agribusiness on a management system can greatly control costs as it helps you keep a tab on expenses. Forget notebooks and instead use software that allows detailed record-keeping of all farm operations. Digital databases allow for a quicker review of information, as well as identify trends faster and more efficiently. Similarly, deciding in advance and tracking what areas of business you will be investing in, the crops you’ll be growing, the space allocated for each of them, and the agrochemicals and other products you’ll be needing can give you a macro picture of what your expected expenses are likely to be. By focusing on the numbers and doing a cost analysis of everything, you know where your business stands at any given time. This helps you analyze operations and see if you’re making improvements, competing, or falling behind. When you have a view of the bigger picture, you can carefully plan finances and optimally choose areas of your business that can take a cost-cutting.
• Record all relevant variables: Technology can help you when it comes to controlling costs, whether it’s by allowing easy record-keeping, or by providing reports and insights. It does of course require a commitment to using the software regularly. Using data from digital technologies like GPS, auto-irrigation systems, and sensors to tabulate seeding rates or fertilizer consumption can help you zone in on the specific needs of an area or a crop. This means you are using supplies more accurately and not wasting anything.
• Incorporate agricultural automation: Gone are the days where you can operate a farming business like your forefathers before you. As all industries innovate, agriculture has to automate to deliver a higher level of professionalism. Digitalizing agriculture through remote sensors, satellites, and UAVs automates processes for smarter precision. Not only do these practices monitor plant health, soil condition, temperature, humidity, etc., but they also generate data that can help farmers gain a better understanding of the situation on the ground to plan agricultural needs more efficiently. Sensors in irrigation lines and in the soil can identify leaks or adjust water cycles to reduce waste as well as costs.

2. Increase Workflow Efficiencies Across Farming Processes

As we have mentioned above, agricultural businesses are a sum of many moving parts. From sourcing the right kind of supplies, managing materials optimally through every stage of the crop growth cycle, to timely harvesting and supplying products to markets for sale without wastage, each stage of the agribusiness cycle is critical to success. Keeping a close eye on the big picture not only increases efficiencies but can also help reduce expenses.

Below we suggest ways how you can do this:

• Partner with a reliable supplier: Agricultural commodities and supplies have a lot of influence on the total expenditure of a farm. Partnering with a reliable and professional supplier means that you never lose time in waiting for materials. It also ensures that stocks are managed with greater care to avoid waste and unnecessary costs. Combined with regularly updated record-keeping, a professional supplier can help you map out farm activities for each crop’s productive cycle, maintain a record of undertakings, and manage supplies for maximum utility. By optimizing workflows, you ensure that there is no wastage.
• Ensure smarter pest management:
  If you are looking to cut costs you need to evaluate your farm’s chemical requirements. As farmers are very often spending too much on chemicals, pesticides, and herbicides, it pays to analyze and research generic chemical alternatives, evaluate guarantees/warranties when purchasing, and be wary of promotions that look too good to be true as they can end up causing more damage than good. Ensure that you’re getting a good deal and don’t be fooled into thinking that the more expensive mode of action is the best.

You may also want to consider some of the following pest management practices to help you reduce expenses:

• Weeds: It is advisable to choose a weed management program to fit a specific You may want to check preemptive spraying if you are trying to save costs, and only consider management of resistant varieties. You can also save money and supplies by switching from a custom application to doing your own spraying.
• Insects: Similarly, with insects, it is advisable to ramp up scouting, and base treatments on thresholds. Scout for damage rather than spraying preventively and pencil in costs for insects that may be a problem later. For example, if you have a problem fighting resistant rootworm, you may be able to switch to a cheaper non-stacked corn variety and apply a soil insecticide.
• Disease: With a plant disease, it is advisable to use all the tools available to you as a spread can cause widescale damage. The biggest disease-management tool is hybrid selection. Selecting resistant plant varieties up front can save you on repeat expenses through the growth cycle. Rotate crops and avoid blanket preventive fungicide applications without scouting.
• Vary nitrogen application: Efficient use of nitrogen can increase crop yields by 22%. Nitrogen is the key element needed for good plant growth, but it is expensive to buy. Varying nitrogen application and reducing loss, therefore, is an efficient way to cut costs. A variable-rate controller and technology like smart sensors can monitor weather, nitrogen loss from the soil and calculate crop needs and timings for more targeted and precise application. You can also try and reduce nitrate loss on your farm with saturated buffers, which can mitigate 41% to 98% of the nitrate concentration being lost. As an affordable and effective edge-of-field conservation method, saturated buffers are designed to treat tile drainage water from fields that are adjacent to rivers, streams, lakes, and ditches. The saturated buffer intercepts a field tile and redistributes the water through a buffer strip’s soil profile. As the water drains through the soil profile, perennial plants take up the excess nutrients. This allows you to reduce nitrogen waste from the field, whilst retaining moisture in the ground.
• Targeted fertilizer application: In times of input trimming, it is advisable to execute a fertilizer management approach that prioritizes resources to just maintaining existing crop yields. Similar to varying nitrogen applications based on requirements, soil tests can help you determine where you can cut fertilizer expenses without sacrificing produce. Another approach to temporarily scale back fertilizer costs is to reduce broadcast applications for a few years in areas where soil test levels are optimum. In soil that is sub-optimal, you might want to establish a fixed amount you are willing to spend on nitrogen, phosphorus, potassium, and lime, and use a soil test to decide where you can cut back. Alternatively, you can set the amount for one farm and adjust from field to field. It does, however, pay to keep in mind that for newly cultivated farmland with low fertility, it’s impossible to reduce fertilizer cost simply by setting a target based on total expenditure. You may have to consider scaling back your yield goal. And if that doesn’t work, you can try and boost fertilizer efficiency. Applying phosphorus and potassium as a starter fertilizer gives you a temporary margin to get away with lower amounts without affecting crop growth during the critical early stages.
• Lower seed costs: For farmers looking to cut costs, early ordering of seeds can produce significant savings. Many farmers tend to buy relatively small quantities of seeds from several different suppliers. You may not realize it but too much diversification of seed purchases may be costing you! Ordering large volumes from a few dealers benefits you from economies of scale. What’s more, a professional supplier may also be able to offer additional savings if you purchase seeds, herbicides, and fertilizers together.
• Change your rotation schedules: Research in the US has shown that there are many advantages to rotating crops on the same area of land. Not only does it reduce fossil fuel expenses, but the soil is also healthier, better in structure, and therefore better able to hold water and absorb nutrients. Healthier soil requires lesser inputs and can save you on extra material costs.
• Plant more cover crops: Research shows that whilst cover crop seed can be expensive, cover crops can help with weed suppression and increased soil fertility. They do a great job of suppressing herbicide-resistant weeds per acre of land in the long run, as well as increase soil organic matter, reduce erosion, and allow additional economic opportunities from grazing cattle.

3. Conserve Existing Resources

It makes sense for any business to conserve and utilize existing resources in a smarter way. Maintaining lower overhead costs for items such as utilities, farm insurance, machinery leases, and equipment depreciation can go a long way in saving money in the long run.

Often finding ways to reduce costs on a farming operation comes down to a daily process of asking hard questions. One way to gauge if a process is working is to determine whether or not the amount you’re investing in a crop or piece of land is meeting your expectations. Here are some ways in which you can maximize usage:

• Find the right suppliers for you and stick with them: There is always a chance that your business is missing out on a better deal when it comes to buying supplies. If you feel like you are paying too much, look at other options in the market. Do your homework and then switch to a company that works for you.
• Find out about options other than machinery upgrades: The right kind of machinery is vital to running a farm, but you don’t necessarily need to make updates and purchase new equipment all the time. Find out if your suppliers can set you up with other options like leasing or rental. You may also want to ask for consulting and advisory help, especially if you are looking for ways to get the work done without spending extra money. As they are the specialists, they are best advised to suggest options that may work for you!
• Be smart about how you use your water: Farmers have seen real value for crops when they install drip irrigation systems to stretch their water resources. With flood and gravity flow irrigation, you can also pressurize and force water across larger areas of land at a much lower cost.
• Make your own fertilizer: If you are an enterprise that also runs livestock, you can cut costs by making your own fertilizer and meet your composting requirements through an on-site facility.
• Postpone machinery upgrades: Before you invest in new machinery you need to ask yourself if it will improve your bottom line. Whilst equipment such as individual row planter clutches and variable-rate controllers might reduce seed expense and increase yield, you can delay a purchase by tackling maintenance issues on current equipment. Again, in cases like this, you need to have reliable professional support to ensure that you are not spending more by delaying upgrades.
• Invest in alternative energy sources: Admittedly, an investment in alternative energy is an upfront costly endeavor and should not be considered when a business is facing a crunch. However, investing in alternative energy solutions, like wind power and solar panels can help you reduce energy costs and increase profits in the long term. Wind turbines provide a cheaper form of energy to power farm equipment than conventionally generated electricity. Similarly, another growing trend in Saudi agriculture is the use of solar power to generate energy for water desalination. It’s helping farms like yours increase water efficiency, as well as significantly reduce irrigation costs.

Without a doubt, technology is a huge investment – in both money and time. Yet it is the only way that can intelligently map inputs against productivity to show profitable trends. With the right technology, you can compare the performance of different seed varieties to improve seed selection. So, during harvest, map and record crop yield and moisture data in real-time and drive automatic irrigation/ fertilizer/ herbicide application methods. The uses are endless.

When margins are tight, these same technologies allow farmers to gain the most accurate data that can help them control costs. Information is power. With section control, you can dial in on the inputs you’re putting on a field to avoid waste. Investing in software can manage your data efficiently to help you make better decisions, whilst integrated solutions can optimize workflows.

As Saudi sets itself a broader vision for agricultural self-reliance, it is only by riding a technological wave that we can generate real savings across agribusinesses. It is also the only way that agriculture can become sustainable in the Kingdom.

For more information on how agribusinesses can cut costs, get in touch with us or .