How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (2024)

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Agriculture news, Variable-rate application

Agriculture news

April 29, 2022

Historical fertilizer prices have been relatively stable or even fell for five years till 2020.

“Fertilizer prices approximately doubled between the summer of 2020 and the end of 2021,” reports Aaron Smith, the Deloach Professor of Agricultural Economics in the Department of Agricultural and Resource Economics at UC Davis.

The last time fertilizer prices rose this steeply was in 2008, by 32 to 100%.

Why are fertilizer prices going up?

Fertilizers are a global commodity, and prices reflect world trends. Low demand for fertilizers was predicted at the start of the pandemic in 2020. But an increase in the prices of grains boosted the international demand for fertilizers. Pandemic-related transport problems caused supply disruptions between countries, and domestic industries couldn’t produce enough to cover supply gaps.

Also, fertilizer production costs rose as they are energy-intensive. Rising energy prices in 2021 contributed further to fertilizer price hikes by making the transport of materials costly.

Consequences of High Fertilizer Prices

Fertilizer prices make up around 15% of the farm costs. The increasing fertilizer cost per acre will raise the cost of production for farmers.

Usually, the “breakeven ratio” for growing cereals is six. That is, six kilos of cereals pay for a kilo of nitrogen. With high current fertilizer prices per ton, that ratio is now ten. In these circ*mstances, farmers are wondering how to keep farming profitable. If they use less fertilizer, that will reduce the yield and quality of food.

A rise in food prices for consumers is inevitable in these circ*mstances. The FAO Food Price Index reached an all-time high in March 2022. Wheat prices are up by 19.7%, and barley, sorghum, and corn prices by 20.4%.

The Solution- Precision Ag

But there is a solution – Precision agriculture.

Precision agriculture can help growers get more yield with less input, by providing field-specific insights and enabling variable-rate application of nutrients. Instead of using broad regional recommendations for growing a crop variety, the farmer makes decisions informed by actual crop status in their fields.

Crop growth and performance vary due to small-scale differences in soil fertility, nitrogen credits from last year’s fertilizer application and cover crops.

These in-field variations are captured by remotely sensed images taken by drones and satellites. Software providers, such as Agremo, use artificial intelligence, machine learning, and computer vision to analyze the images and send reports to clients, who could be farmers, cooperatives, or agricultural, seed, and fertilizer companies.

The reports have an analyzed farm map showing the crop performance levels of the different farm areas. In variable-rate application of nutrients, growers add more fertilizers where crop performance is low, and less or no fertilizers where the crop is doing well. Adding the same amount of fertilizers to the fields raises the risk of overuse in good performing areas, reducing soil fertility and encouraging more weeds, resulting in less yield and food quality. Thus, growers will improve their harvest by optimizing growing conditions for the crops throughout the fields.

Growers can monitor crop performance throughout the season based on crop stand, biomass accumulation, plant vigor and stress, and field conditions to take proactive measures to reduce fertilizer use.

Will fertilizer prices go down in 2022?

Unfortunately no! Fertilizer prices have risen by another 30% in the first quarter of 2022 due to supply disruptions driven by war, sanctions, and export bans. However, there is considerable industry experience in precision agriculture to help growers and agricultural companies reduce their fertilizer use and tide over the current price hike.

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Categories

Crop damage assessment (5)

Drones in agriculture (17)

Precision forestry (2)

Agricultural guides (4)

Stand assessment (6)

Farm management (14)

Trial plot management (7)

Variable-rate application (9)

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  • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (20)

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    Director of Agronomy at Black Gold Farms

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    Agremo helps us better understand and adjust to changes throughout the growing season. The flexibility and agility the Agremo team has shown through their platform enable us to adjust and meet changing demands due to weather or pest developments as the season progresses. In addition, the Agremo team consistently listens to feedback to ensure that everything works as described for our specific use cases.

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    With Agremo reports, farmers they can increase productivity, reduce major problems by having early warnings during the early stages of the crops preventing major losses. Bottom line, increase ROI while minimizing losses.

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    We introduced new farming methods to farmers in Africa, who recognized that Agremo and drones can provide them with quicker, more convenient, efficient and accurate way of gathering decision making information.

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    Of the few vendors who advertised drone imagery analytics, Agremo provided a vastly superior capability. It is extremely important to base any remote sensing assessment in solid ground truth. Agremo clearly excelled over their competitors.

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    Image Scientist @ Falcon Aerial Data // USA

  • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (31)

    Agremo Stand Count analysis shows how successful seeding was and how many plants farmers will be able to harvest. Withal, it can help to apply different sowing standards in different parts of the plot, in order to achieve the highest yields.

    Zdravko Hojka

    Agroservice and Product Manager (Maize and Oil Crops), KWS SAAT AG

  • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (32)

    Since we ran our first report with Agremo, both our company and our customers continue to be impressed with the accuracy of the reports compared to our ground truthing. We have leveraged many Agremo reports but find the most value in crop health, weed and stand count analyses. We continue to leverage the Agremo intelligence as a proven way to improve our customers’ bottom line.

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    How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (43)

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      • act timely with the most adequate measures
      • increase yield potential

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      • spot weed-infested areas in time
      • take immediate effective in-season corrective measures
      • get precise spraying maps

      Read more

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      • identify and classify areas with broken plants in the field
      • locate and quantify the crop damage

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      • detect and classify areas with lodged plants
      • locate and quantify the crop damage

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      • get the precise number of plants in a specific area
      • evaluate seed quality
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      • reduce input costs in the low-productivity field areas
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      • get data on the exact location, condition, strength, and lushness of vegetation
      • optimize the usage of inputs, save on them and prevent over-application

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      • quickly and accurately locate all potential waterlogged areas in your field
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      • get vital data on vegetation conditions and primary plant productivity
      • get the necessary details regarding the leaf area index (LAI)
      • determine the most optimal LAI for the fruits, vegetables, or cereals

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    • Plant Count and Size Analysis

      • Count all plants in the field, such as leafy greens, trees, or orchard tree fruits.
      • Classify them per user-set size parameters, and filter out the counted plants per size.
      • Prepare the harvest operation per yield-ready zones

      Previous Next

    • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (54)

      How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (55)

      Plant Stress

      • identify and quantify zones of (potential) stress
      • act timely with the most adequate measures
      • increase yield potential

      Read more

    • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (56)

      How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (57)

      Weed Detection

      • spot weed-infested areas in time
      • take immediate effective in-season corrective measures
      • get precise spraying maps

      Read more

    • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (58)

      How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (59)

      Green Snap Detection

      • identify and classify areas with broken plants in the field
      • locate and quantify the crop damage

      Read more

    • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (60)

      How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (61)

      Lodging Detection

      • detect and classify areas with lodged plants
      • locate and quantify the crop damage

      Read more

    • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (62)

      How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (63)

      Stand Count

      • get the precise number of plants in a specific area
      • evaluate seed quality
      • assess field damages
      • know the zones of potential yield losses

      Read more

    • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (64)

      How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (65)

      VRS Stand Count

      • calculate the percentage under the norm in each zone with the same seeding rate
      • reduce input costs in the low-productivity field areas
      • count plants in the best and the worst zones

      Read more

    • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (66)

      How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (67)

      Plant Vigor

      • get data on the exact location, condition, strength, and lushness of vegetation
      • optimize the usage of inputs, save on them and prevent over-application

      Read more

    • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (68)

      How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (69)

      Waterlogging Detection

      • quickly and accurately locate all potential waterlogged areas in your field
      • reduce the negative effects of waterlogging, regardless of the field size and crop sort

      Read more

    • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (70)

      How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (71)

      Canopy Cover

      • get vital data on vegetation conditions and primary plant productivity
      • get the necessary details regarding the leaf area index (LAI)
      • determine the most optimal LAI for the fruits, vegetables, or cereals

      Read more

    • How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (72)

      How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (73)

      Plant Count and Size Analysis

      • Count all plants in the field, such as leafy greens, trees, or orchard tree fruits.
      • Classify them per user-set size parameters, and filter out the counted plants per size.
      • Prepare the harvest operation per yield-ready zones

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        How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo (2024)

        FAQs

        How Precision Agriculture Can Solve the Problem of High Fertilizer Prices - Agremo? ›

        Precision agriculture can help growers get more yield with less input, by providing field-specific insights and enabling variable-rate application of nutrients. Instead of using broad regional recommendations for growing a crop variety, the farmer makes decisions informed by actual crop status in their fields.

        How is precision agriculture helping farmers with fertilizer application? ›

        By providing a variety of data on crop- and site-specific plant nutrition, soil health and crop status and yields, precision agriculture helps farmers to monitor, manage and apply nutrients more accurately.

        What problems does precision agriculture solve? ›

        Precision agriculture technologies can improve resource management through the precise application of inputs, such as water, fertilizer, and feed, leading to more efficient agricultural production.

        What is a realistic solution for farmers to decrease the amount of fertilizer? ›

        There are three basic practices to reduce synthetic fertilizer use to consider: perennial pasture and crops, cover crops in rotation for annual crops, and good grazing management for livestock producers. These practices build soil carbon, which is the key to fostering soil health and plant fertility.

        What is the role of precision agriculture for improved nutrient management on farms? ›

        Precision agriculture focusses on improving nutrient use efficiency at the appropriate scale requiring (1) appropriate decision support systems (e.g. digital prescription maps), and (2) equipment capable of varying application at these different scales, e.g. the footprint of a one-irrigation sprinkler or a fertiliser ...

        Does precision agriculture prevent fertilizer runoff? ›

        Use of Precision Techniques in Sustainable Land Management

        This reduces water consumption and minimizes nutrient runoff, safeguarding water quality and aquatic ecosystems.

        What are the benefits of precision agriculture? ›

        Precision agriculture leverages technologies to enhance sustainability through more efficient use of land, water, fuel, fertilizer, and pesticides. Essentially, farmers who use precision agriculture technologies use less to grow more, reducing both cost and environmental impact.

        Is precision agriculture cost effective? ›

        Precision farming allows farmers to be more precise in their use of resources, leading to higher crop yields and cost savings. Techniques like site-specific planting, variable rate application, and crop monitoring are just a few examples of how precision farming is making farming more efficient and sustainable.

        What is a major focus of precision farming? ›

        Increased efficiency: Precision farming techniques allow farmers to optimise their use of resources such as fertilisers and pesticides. By precisely targeting inputs based on specific crop needs, farmers can reduce wastage and improve resource efficiency, leading to cost savings and environmental benefits.

        What is the disadvantage of precision farming? ›

        Advantages and Disadvantages of Precision Farming
        AspectAdvantagesDisadvantages
        Pros- Increased Yields- High Initial Costs
        -- Resource Efficiency- Data Management Challenges
        -- Environmental Benefits- Technical Skill Required
        Cons- Predictive Capabilities- Infrastructure Limitations
        1 more row
        Aug 24, 2023

        How can we solve the problem of fertilizer? ›

        More efficient use of animal manure and greater use, in rotations, of nitrogen-fixing crops – such as legumes which convert nitrogen from the air into a form that is biologically useful – will be crucial to replace synthetic nitrogen as part of the process of rebuilding soil fertility.

        What happens when a farmer uses too much fertilizer? ›

        Excess nutrients can cause harmful algal blooms (HABs) in freshwater systems, which not only disrupt wildlife but can also produce toxins harmful to humans. Fertilized soils, as well as livestock operations, are also vulnerable to nutrient losses to the air.

        How do you prevent too much fertilizer? ›

        Here's how to prevent over-fertilization.
        1. Always test soil before applying fertilizer.
        2. Water plants thoroughly, immediately after applying fertilizer.
        3. In some cases, organic compost might be a safer way to enhance your soil. ...
        4. Always add more water to your liquid fertilizer than directed.

        How many farmers use precision agriculture? ›

        While precision agriculture technologies, such as variable rate fertilizer applications and yield monitoring, have been available since the 1990s, only 27 percent of U.S. farms or ranches used precision agriculture practices to manage crops or livestock, based on 2023 U.S. Department of Agriculture (USDA) reporting.

        How does precision agriculture help food security? ›

        Precision agriculture provides a means to monitor the food production chain and manage both the quantity and quality of agricultural produce.

        What is precision agriculture or smart farming? ›

        Unlike with PA, the focus of smart farming is not on precise measurement or determining differences within the field or between individual animals. The focus is rather on access to data and the application of these data – how the collected information can be used in a smart way.

        What is precision fertilizer application? ›

        Precision fertigation is a process of applying water-soluble fertilizer to the root plant along with water in a simplified way, with the goal to provide the adequate amount of water and nutrients directly to the root zone.

        What do we use fertilizer for why is it important to our agricultural system? ›

        To grow healthy crops full of nutrients, farmers need to ensure they have healthy soil. Without fertilizers, nature struggles to replenish the nutrients in the soil. When crops are harvested, important nutrients are removed from the soil, because they follow the crop and end up at the dinner table.

        How is fertilizer applied on farms? ›

        At Planting. During planting, fertilizer is applied below the soil surface close to the seed row. Often, the fertilizer is placed 1 to 2 inches below (or below and to the side) of the seed row. In cool, wet areas, a “starter application” of fertilizer is placed in a subsurface band to boost seedling growth.

        Is using fertilizer a good option for farmers? ›

        Of course, fertilizers are especially important when it comes to agriculture, and are responsible for boosting crop yields. Fertilizer application is believed to have been responsible for at least 50 percent increase in crop yield in the 20th century, according to an article published in Agriculture in 2022.

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