Fluid Fertilizers … 2008 and Beyond

Paul FixenInternational Plant Nutrition Institute

pfixen@ipni.net

Dale Leikam Fluid Fertilizer Foundation

Dale.Leikam@sbcglobal.net

Second Brazilian Symposium on Fluid FertilizersJuly 7-9, 2008 Piracicaba, Brazil

Summary comments1. “Today, agricultural inputs are under the careful scrutiny of several

groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.”

2. “Fluid fertilizer inputs have experienced substantial growth as agriculture evolved into an increasingly efficient industry.”

3. “Fluids now make up nearly 40% of fertilizer consumed in the USA.”

Fluid Fertilizer Symposium, PiracicabaFluid Fertilizer Symposium, PiracicabaSeptember 13, 1993September 13, 1993

4. “High residue cropping systems have offered both opportunities and challenges to fluid use.”

5. “Site-specific technologies and management offer many opportunities for fluids.”

6. “Crop production systems are undergoing exciting changes. Those changes hold many more opportunities than challenges for fluids.”

Wright

Highly P fixing soilHighly P fixing soil

Nearly 15 years later, much has changed … yet in many ways much remains the same.

ScienceScience TechnologyTechnology

Major changes impacting crop production & nutrient management

• Greatly increased input costs and crop pricesGreatly increased input costs and crop prices

• Global food crisis and urgent need for higher yieldsGlobal food crisis and urgent need for higher yields

• Climate change Climate change – Crop demand, soil supply, nutrient losses, etc. (Brouder & Volenec, 2008)

• Genetic changesGenetic changes:– Protection from multiple pests

– Drought stress tolerance; nutrient use efficiency?

– Net effect on optimum nutrient rates?

• Crop production for specific end-use Crop production for specific end-use (nutrient effects?)

• Biofuel crops Biofuel crops – nutrient needs, cycling

• Advances in fertilizer sources, nutrient sensing & Advances in fertilizer sources, nutrient sensing & application technologyapplication technology

Implication of changes to nutrient management approaches

• Future management decisions may need to be more measurement based rather than historical

• Past performance in a region may not reflect future performance …

– your future may be more like someone else’s past than your own past.

$0.10/kg corn & $0.60/kg N vs $0.20 corn & $1.20 N

• Price ratio the same … optimum rate the same• But the economic penalty for over or under estimating need

or for nutrient loss is much greater with today’s higher prices • Greater value and economic justification for:

– Precision input application, enhanced efficiency productsPrecision input application, enhanced efficiency products– Guidance systemsGuidance systems– Soil testing and plant analysis, soil or plant imagingSoil testing and plant analysis, soil or plant imaging– On-farm strip trials, omission plotsOn-farm strip trials, omission plots– Other forms of decision supportOther forms of decision support– Research and education on all of the aboveResearch and education on all of the above

Investing in determination of right source, rate, time and place for inputs helps manage the much higher riskrisk of today’s market … decision support tools

Variable Rate Applicator with GreenSeeker

• Next issue of Next issue of Better Crops Better Crops will focus on will focus on fertilizer economicsfertilizer economics• PortuguesePortuguese translation of selected articles translation of selected articles

Potential negative consequences of increased value of agriculture

• Cassman and Liska (2007)– Potential for higher food prices to increase malnutrition

– Pressure to increase yields without ecologically sound practices

– Pressure to expand production into marginal or natural lands

• Extent these are realized will be greatly influenced by the rate at which crop yields are increasedcrop yields are increased

USDA-FAS, 5/2008

World wheat plus coarse grains, 1978-2008

1998-2008y = -1.80x + 3621

r² = 0.9305

10152025303540

1975 1980 1985 1990 1995 2000 2005 2010

% o

f con

sum

ption

Year (2008 =2008/09)

Ending stocks

We’re under the magnifying glass … like never before

• Food prices & supply• Encroachment on

natural lands• Nitrates in water• Hypoxic zones• GHG emissions• Air quality

1. “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greater OK … even greater

Summary comments1. “Today, agricultural inputs are under the careful scrutiny of several

groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greaterOK … even greater

2. “Fluid fertilizer inputs have experienced substantial growth as agriculture evolved into an increasingly efficient industry.”

3. “Fluids now make up nearly 40% of fertilizer consumed in the USA.”

World N consumption (1974-2006).

Data source: IFA, 2007.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

1974 1978 1982 1986 1990 1994 1998 2002 2006

Mill

ion

tonn

es N

N solutions

Ammonia

Urea

Others

World N solutions market share (1974-2006).

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

1970 1975 1980 1985 1990 1995 2000 2005 2010

Ma

rke

t sh

are

, %

Excludes dir. appl. anhydrous ammonia

World distribution of N solution consumption (2004-2006).

Excludes dir. appl. anhydrous ammonia

67.4

14.3

5.4

2.0 1.91.7

7.2

USA

France

Germany

Canada

UK

Argentina

Other

4.3 million tonnes

USA

France

Germany

0

5

10

15

20

25

30

Ma

rke

t s

ha

re,

%

1988-1991

2004-2006

Change in N solution market share for leading solution consuming countries across 15 years.

Data source: IFA, 2007.Excludes dir. appl. anhydrous ammonia

03/04 4%04/05 6%05/06 19%

Solution market share increases

• Argentina (Melgar, 2007) – Reasons given in survey of 400 farmers, 30 distributors and 30 crop advisers

– Ease of use, speed of application, application precision

– Larger farms more likely to use fluids than smaller farms

– 90% of solution fertilizer is applied post-emergence for corn; 70% for wheat

– Perception of lower N volatilization

• Germany (Kuecke, 2007)– Yield response from fluid injection that is similar to or higher than

conventional surface application

– Reduced nitrate leaching and ammonia volatilization

USA fertilizer consumption by class.

Data source: Commercial Fertilizers, AAPFCO & TFI

0

10

20

30

40

50

60

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Mill

ion

ton

ne

s m

ate

ria

l Total

Dry

Fluid*

Ammonia

*Excludes dir. appl. anhydrous ammonia

USA fertilizer market share by class.

Data source: Commercial Fertilizers, AAPFCO & TFI

y = -0.013x2 + 53.62x - 53654R² = 0.98

0

10

20

30

40

50

60

70

80

90

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Ma

rke

t sh

are

, %

Dry 61.5%

Fluid 31.0%*

Ammonia 7.5%

*Excludes dir. appl. anhydrous ammonia

USA N fertilizer consumption by product.

Data source: Commercial Fertilizers, AAPFCO & TFI

0

2

4

6

8

10

12

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Mill

ion

ton

ne

s N

Total

Ammonia

Urea*Solutions*

Ammon. nitr.*

*Blended multi-nutrient materials excluded

USA N fertilizer market share.

Data source: Commercial Fertilizers, AAPFCO & TFI

0

5

10

15

20

25

30

35

40

45

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Ma

rke

t sh

are

, %

Solutions* Urea*

Ammon. nitr.*

Others

Ammonia

*Blended multi-nutrient materials excluded

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

US

$/kg

N

Ammonia

N solutions

Urea

Ammon. Nit.

USA retail N fertilizer prices (1965-2008).

Data source: USDA-NASS, 2008.

Spring prices

USA P fertilizer consumption by product.

Data source: Commercial Fertilizers, AAPFCO & TFI

0

200

400

600

800

1000

1200

1400

1600

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

10

00

to

nn

es

P2O

5

DAP

MAP

APP

TSP

Product used in manufacture of mixed fertilizers excluded

USA P fertilizer market share.

Data source: Commercial Fertilizers, AAPFCO & TFI

0

10

20

30

40

50

60

70

80

90

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Ma

rke

t sh

are

, %

DAP

MAP APPTSP

Others (includes mixed fertilizers)

USA retail P fertilizer prices (1965-2008).

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

US

$/kg

P2O

5

DAP

APP

MAP

TSP

Spring prices

Data source: USDA-NASS, 2008.

Summary comments1. “Today, agricultural inputs are under the careful scrutiny of several

groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greaterOK … even greater

2. “Fluid fertilizer inputs have experienced substantial growth in some in some countriescountries as agriculture evolved into an increasingly efficient industry.”

3. “Fluids now make up nearly 40% (38.5) (38.5) of fertilizer consumed in the US.”

Summary comments

4. “High residue cropping systems have offered both opportunities and challenges to fluid use.”

5. “Site-specific technologies and management offer many opportunities for fluids.”

1. “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greaterOK … even greater

2. “Fluid fertilizer inputs have experienced substantial growth in some in some countriescountries as agriculture evolved into an increasingly efficient industry.”

3. “Fluids now make up nearly 40% (38.5) (38.5) of fertilizer consumed in the US.”

Nutrients in high residue systems

• Increased need for starter fertilizer bands and N early in the Increased need for starter fertilizer bands and N early in the season.season.

• Concern over stratification of P and K near the soil surface.Concern over stratification of P and K near the soil surface.

• Concern over volatilization of unincorporated urea Concern over volatilization of unincorporated urea containing fertilizers. containing fertilizers.

Developments in knowledge and technologyDevelopments in knowledge and technology• Apparent mobility of surface banded P in soilsApparent mobility of surface banded P in soils• RTK technologyRTK technology• Nutrient source technologyNutrient source technology

Equipment for placing starter 5 cm to side of row (Kovar, 2007).

Surface banding of starters near the row has been surprisingly effective.

3 weeks

19 weeks

0

15

cm

0

15Profile distribution of available P after surface application of liquid P fertilizer.

3 cm3 cm

8 cm8 cm

Fluid fertilizer performance compared to granular fertilizers for wheat on highly calcareous soils in Australia.

Fluid Fertilizer Sites showing fluid advantage over

granular

Average advantage for sites showing

an advantage

Ammonium polyphosphate 23/25 = 92% 15%

Phosphoric acid 10/13 = 77% 21%

TG MAP or DAP 14/14 = 100% 18%

Holloway et al., 2008.

Fluid response over granular products thought to be due to greater mobility of the fluid forms in these highly calcareous soils.

RTK Automatic Guidance(Real Time Kinematic)

Auto steer adoption by custom applicators in US:

4% in 200437% in 2008

Source: Norm Larson, Elburn Co-op, IL

RTK Guided Strip Tillage and N application

225 kg N at 12.5 cm versus 0 cm225 kg N at 12.5 cm versus 0 cm

RTK Row Position Effects on Corn Yield Response to Pre-Plant UAN Rates at Wanatah, IN, 2006

Vyn, 2007.

0

0

20

40

60

80

100

120

140

160

180

200

220

ZeroPre

50Pre

100Pre

200Pre

On-Row 5" beside 10" beside

13 25

Corn

Yie

ld (

t/ha) 11.3

7.5

3.8

(cm)

0

20

40

60

80

100

120

140

160

180

200

220

ZeroPre

50Pre

100Pre

200Pre

On-Row 5" beside 10" beside

113Pre

56Pre

225Pre

Sensors for N Management

Nutrient source technology

• Increased fertilizer value justifies greater investment in sources and additives with the promise of reducing the potential for nutrient loss or improving nutrient availability.

• Several new products on the market in both granular and fluid forms.

– Effectiveness varies with site-specific weather and soil factors

– Require evaluation under relevant conditions

• Be aware of long-term soil fertility impacts

Summary comments

4. “High residue cropping systems have offered both opportunities and challenges to fluid use.” Some of the challenges have lessened.Some of the challenges have lessened.

5. “Site-specific technologies and management offer many opportunities for fluids.” OKOK

1. “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greaterOK … even greater

2. “Fluid fertilizer inputs have experienced substantial growth in some in some countriescountries as agriculture evolved into an increasingly efficient industry.”

3. “Fluids now make up nearly 40% (38.5) (38.5) of fertilizer consumed in the US.”

Summary comments

4. “High residue cropping systems have offered both opportunities and challenges to fluid use.” Some of the challenges have lessened.Some of the challenges have lessened.

5. “Site-specific technologies and management offer many opportunities for fluids.” OKOK

6. “Crop production systems are undergoing exciting changes. Those changes hold many more opportunities than challenges for fluids.”

1. “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greaterOK … even greater

2. “Fluid fertilizer inputs have experienced substantial growth in some in some countriescountries as agriculture evolved into an increasingly efficient industry.”

3. “Fluids now make up nearly 40% (38.5) (38.5) of fertilizer consumed in the US.”

The changes in cropping systems discussed earlier …• To meet global demand, must produce exponential yield increases

unlike the smaller linear increases of the last 40 years. This will require more than new genetics.

• To remain profitable, must efficiently utilize nutrient inputs, water, seed and energy without jeopardizing the potential for yield improvement.

• Be managed for minimal negative, or even positive, environmental impact.

Fluids offer opportunity for Fluids offer opportunity for timingtiming and convenience in and convenience in placement. placement.

Nutrient best management Nutrient best management practices focused on application of practices focused on application of the right source at the right rate, the right source at the right rate, time, and place will be essential time, and place will be essential components of these cropping components of these cropping systems. systems.

Source

TimePlace

Rate

Summary comments - 1993

4. “High residue cropping systems have offered both opportunities and challenges to fluid use.” Some of the challenges have lessened.Some of the challenges have lessened.

5. “Site-specific technologies and management offer many opportunities for fluids.” OKOK

6. “Crop production systems are undergoing exciting changes. Those changes hold many more opportunities than challenges for fluids.” OKOK

1. “Today, agricultural inputs are under the careful scrutiny of several groups … growers, general public, and governments. There is tremendous incentive to use inputs wisely.” OK … even greaterOK … even greater

2. “Fluid fertilizer inputs have experienced substantial growth in some in some countriescountries as agriculture evolved into an increasingly efficient industry.”

3. “Fluids now make up nearly 40% (38.5) (38.5) of fertilizer consumed in the US.”

The challenges of the next 15 years appear to hold The challenges of the next 15 years appear to hold significant opportunities for efficient and effective significant opportunities for efficient and effective

management of fluid fertilizers.management of fluid fertilizers.

IPNI Members

See the following for more information

IPNI: IPNI: www.ipni.net

IPNI (Brazil): IPNI (Brazil): www.ipni.net/brazil

Fluid Fertilizer Foundation: Fluid Fertilizer Foundation: http://www.fluidfertilizer.com