Land O’Lakes SUSTAIN Feeding Human Progress
Feeding a growing, hungry population… Economically
While Reducing the Affects on the Planet
THE WORLD IS CHANGING
It also generates 24% of global Agriculture Feeds the World What can agriculture do? greenhouse gas emissions
Delivers Collects Connects Practices Products Technology
TOOLBOX AIR SOIL WATER • • • Technologies FARM ES: GHG Footprinting LOL SUSTAIN On-Farm Data LOL SUSTAIN On-Farm Data • Manure Management Roadmap Collection Tool Collection Tool • • • Energy Efficiency Service SoilVantage SoilVantage • • • Nitrogen modeling and AgSolver Nitrogen modeling and management management tools tools • Water Efficiency Solutions in CA • • • Practices Manure management Conservation tillage Water reuse • • • DMI + ration breakdown Crop rotations Conservation Practices • • • Manure application BMP’s Ration optimization Cover crops • • • Crop production Variable rate application for Sampling: soil, tissue, manure • • Sampling: soil, tissue, manure, macronutrients Split application • nitrates Soil sampling • Split application • • • Products Nitrogen stabilizer Cover crops Nitrogen stabilizers • • Soil amendments Phosphorus enhancer • • Biologicals Foliar slow release nitrogen
Insights Engine BASELINE SCORE PROFIT MAXIMIZER REGULATORY RISK ALGORITHM MITIGATION BASELINE PUBLIC FUNDING OPPORTUNITIES CPG / MULTI-NATIONAL /MANUFACTURER PARTNERSHIPS Split Apply Algorithm designed to Stabilize MAXIMIZE $22.18/A • Low Till PROFIT PROFIT • YIELD No Till POTENTIA • L SUSTAINABILITY $15.75/A Cover Crop 189 B/A Conservation Structure YIELD Conservation Program POTENTIA L 174 B/A
Summary of an IA Ag Retailer Pilot
No one farmer, company, conservation group, government entity can scale sustainability efforts on their own. We must work together to connect every link in the food supply chain from farm-to-fork.
Contact Information Matt Carstens E-mail: mdcarstens@landolakes.com Twitter: @mattcars1
The Business Case for Soil Health and Conservation Focused Management David Muth Jr., PhD EFC Systems June 29, 2018
Understandin ing Subfie ield Varia iabil ility
Im Impacts of Subfield ld Varia iabil ility on Profit
Crit itic ical Message Environmental Performance and Economic Performance are driven by the same goal: Maximize the output per unit of input
Id Identif ifying the Scale le of Opportunity • Between 2-3 million acres annually at an expected loss • Over $1B annually in misallocated working capital
ROI I Focused Agronomic Management Expense Limited Zone Revenue Zone No Cost Zone
Precis ision Busin iness Pla lanning – Practi tical Im Implementati tion Analysis and reports Identify what is happening Create a Product and plan service placement Evaluate plan performance Business and agronomic performance analysis
Precis ision Busin iness Pla lanning Workflow Intelligence Gathering Agronomy Land and Business Improvement Performance Operations Review Opportunity Analysis Alternative Precision Business Low Cost Management Planning Revenue In-season Plan Adjustments
Real l In In-Fie ield Data
Real l In In-fie ield Data
Economic Opportunities to Deplo loy Conservation • Improve annual cash flow • Reframe and improve land asset value • Create alternative and diversified revenue sources • Deliver commodity market access
Case Study – Data in into Decis isions NC Iowa Situation Assessment • Long history managing the field • Highly variable soil characteristics • January of 2011 included in a 3,500 acre lease auction Data Outcome • Identifying unique business units and how to manage them
Case Study – Data in into Decis isions 2009 Corn: Actual Production 2010 Corn: Actual Production
Case Study – Data in into Decis isions
Case Study – Data in into Decis isions 2015 Soybeans: Satellite Analysis
Case Study – Data in into Decis isions
Case Study – Data in into Decis isions Business Yield Goal Seed NH3 N UAN N Phosphorus Potassium Units (bu/ac) Population (lbs N/ac) (lbs N/ac) (lbs P/ac) (lbs K/ac) (seeds/ac) Low ROI 90 19,000 100 0 30 20 Good ROI 205 34,500 100 110 66 45 High ROI 230 37,500 100 135 74 51
Case Study – Data In Into Decis isions Metric VRT Plan Tile Investment Pollinator Zone Profit Impact $22.02/ac $47.65/ac $23.78/ac ROI Impact 2.8% 7.4% 4.0% Nonprofitable Acres 19% 19% 22%
Case Study – Data in into Decis isions The Whole Story • County average cash rent • Tile input by land owner with $20/ac increase in rent on 3 year lease • 15 acre pollinator zone on sand ridge • VRT & Split N application
Case Study – Envir ironmental Im Impacts
Real l Data from the Fie ield – Soil l Healt lth Partnership ip
Real l Data from the Fie ield – Soil l Healt lth Partnership ip
Questions & Thank You Dave Muth VP Agronomic Planning and Sustainability 515-520-2730 dmuth@efcsystems.com
Usin ing Conservatio ion Agronomy Practic ices in in In India iana to Im Improve On On-Farm Sustain inabili lity – One Retailer’s Experience Betsy Bower Ceres Solutions Cooperative June 26,2018
Ceres Solutions Co Co-op At t a Glance • 100% farmer owned • 35 agronomy retail facilities servicing farmers in 35 Indiana and Michigan Co • Crop nutrition and crop protection products and services, crop and cover crop seed, soil and tissue sampling services, agronomic consulting including conventional, conservation and irrigation • Corn, soybeans, wheat, seed corn, pop corn, specialty crops • Gasoline, diesel, propane and lubricants • Synergy Feed LLP, feed manufacturing and animal nutrition consulting
Ceres Solutions Co-op op Go to Market Strategy • Lead with agronomic expertise • Solve customer problems using experience, information and services • Build lasting relationships • Help customers successfully integrate conservation practices on the farm, but also • Continue to investigate products and services that create positive ROI
Common Conservation Agronomy Practices • Site specific soil sampling by grid or zone and variable rate application – nutrient management • Split nitrogen applications, the use of nitrogen stabilizers, fertigation, the use of nitrogen models - nutrient management • Cover crops seed offerings – soil and water management • No-till cropping systems agronomic consultation – crop management • Pest management planning in conservation cropping systems – pest management
Why Customers Use Conservation Agronomy Practices • Economics, economics, economics • To reduce needed extra on-farm labor • To reduce soil loss from farm fields • To improve nutrient efficiency • Access to conservation dollars through NRCS-EQIP, SWCD programs, 319 grants • To improve soil health long term
Purdue Agriculture – Center for Commercial Agriculture 2017 Indiana Farm Custom Rate Survey Operation Conventional-Till Strip-Till No-Till Cover Crops Chisel Plowing $15.20 $25.00 Seed Field Cultivating $12.86 $10.00 Application Planting $17.43 $17.77 $17.77 Dry Fertilizer Application $7.00 $20.00 $7.00 Total $52.49 $37.77 $24.77 $35.00 * Did not come from the Indiana Farm Custom Rate Survey – estimate from a customer and ag retailer
NRCS EQIP Cost Share Opportunities in In Indiana Indiana Cost Share Opportunities Practice Units Indiana EQIP Max Payment Cap 340 Winter-Kill Cover Crop ac. 36.07 $18,000.00 590 Basic-Nutrient Management ac. 5.96 $2,980.00 590 Basic Precision Nutrient Management ac. 36.39 $18,195.00 590 Grid/Zone Soil Sampling, VR NM ac. 26.35 $13,175.00 329 No-Till/Strip-Till ac. 15.4 $7,700.00 114 Interrated Pest Management < 50 ac ea. 1,471.89 114 Interrated Pest Management 51-250 a ea. 1,884.03 114 Interrated Pest Management > 250 ac ea. 2,943.79 104 Nutrient Management Cap >100 ac ea. 1,766.27 104 Nutrient Management Cap 101-300 acea. 2,355.03 104 Nutrient Management Cap >300 ac ea. 2,943.79
How does Ceres Solutions Sell, Consult, Support Conserv rvation Agronomy on th the Farm • Economics, economics, economics • Gaining nutrient efficiency – split nitrogen applications, fertigation, variable rate P, K and lime • Reducing the loss of the most productive soil, the surface soil, on the farm • Keeping applied nutrients on the farm not washed from the soil surface or through the soil profile • Improving long term farm health- productivity and financially • Ceres Solutions SUSTAIN initiative • Big Pine Regional Conservation Partnership Program (RCPP)
Ceres Solutions and Big Pine Watershed Betsy Bower and Tom Stein Ceres Solutions Cooperative
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