Are you set for inoculants for the coming year? Many farmers seem to have stocked up on traditional fertilizers last fall, but some are holding off buying the crop inputs that may be the difference between average and high yielding crops.
At XiteBio we see many farmers and ag-retailers are seizing on the opportunities presented by a changing market. We believe that those who continue to move forward and become early adopters of new technologies are the ones who will see the most success long-term.
Agriculture and Agri-Food Canada has announced its intention to shift strategy with its new Strategic Plan for Science that rolled out last fall. As the Winnipeg Free Press points out “with a research budget of around $650 million annually, 400 scientists and their assorted support staff, and a national network of 20 research stations and 30 satellite stations, the Canadian government remains the largest investor in agricultural research (1).” So whether you agree with the strategy or not it will have a huge influence on the direction taken by agricultural research in the coming years.
This strategy shifts some of the focus away from simply obtaining the highest yield possible and towards these goals:
- mitigating and adapting to climate change
- increasing the resiliency of agro-ecosystems
- advancing the circular economy by developing value-added opportunities
- accelerating the digital transformation of the agriculture and agri-food sector (2).
When this strategy was announced some people focused on the target reduction of N fertilizer and said that the government was trying to hurt farmers’ yields and pocketbooks. But realistically the Canadian government wants to have a healthy agricultural sector because agriculture is related to 1 in 9 jobs in Canada and makes up 6.8 per cent of GDP (3). Agriculture and Agri-Food Canada is just pointing out that the economics of agriculture are changing. Whether that change comes through regulation, the increasing scarcity of natural resources, extreme weather events, or likely a combination of the three, farmers will need to adopt new technologies to stay secure and profitable.
In the US lawmakers recently signed the Inflation Reduction Act (IRA) which has provisions for rural Americans including a mandate to advance climate-smart agriculture while at the same time maintaining record agricultural exports. Part of this $19.5 billion in new conservation funding will go towards nutrient management plans. These will target smart reductions in the usage of commercial fertilizer. The USDA estimates that “there are 89 million acres of cropland (28% of total U.S. cropland) currently exceeding the nitrogen loss threshold; and if all those acres implemented a nutrient management plan, the average net savings would be $2.6 billion (4).
A recent article in the Manitoba Co-operator suggests “N reductions (are) possible without significant economic losses”. The article points to two studies that could help with this. One relying on new technology and one on an older technology that is coming back into vogue. The first is MERN (the most economic rate of nitrogen) this is a data driven approach that balances the cost of inputs vs the return of outputs. The other is crop rotation with legumes (5). Adopting these practices requires investment in soil testing and statistical analysis to calculate the most efficient use of fertilizer. Those who wish to maximize output from rotational crops will also be looking to inoculants to fix nitrogen from the atmosphere efficiently and cheaply.
A recent Crop Life survey suggests that the biologicals market will continue to expand in 2023 with 50 per cent of respondents spending more on biostimulants and 48 per cent spending more on biologicals (6). These technologies will only become more important for growers who want to stay ahead of both regulators and a tight fertilizer market.
Farmers seem to have have stocked up on the traditional inputs they will need like NPK. But don’t forget to bolster those inputs with force multipliers like N-fixing inoculants and P-solubilizing ag-biologicals. These biotech inputs can help to increase on-farm ROI while promoting conservation practices and can play a key role in nutrient management by helping growers ensure they are making the most efficient use of every macronutrient they apply to the soil.
At XiteBio we suggest securing all your inoculants and ag-biologicals well before seeding. Unlike fertilizer, inoculants are living things that have a set shelf life. Each year manufacturers only produce as much as they think they can sell. If farmers hold off on buying inoculants they could find lower supply when they go to purchase later in the season. Farming in the 21st century is one of the most fast paced markets in the world. But much like chess the most successful players will be those who stay many moves ahead of the game.
- https://www.winnipegfreepress.com/business/2023/01/28/time-for-more-investment-in-agriculture-research
- https://agriculture.canada.ca/en/science/scientific-research-and-collaboration-agriculture/agriculture-and-agri-food-canadas-strategic-plan-science
- https://agriculture.canada.ca/en/sector/overview
- https://www.usda.gov/media/press-releases/2022/08/15/usda-announces-new-opportunities-improve-nutrient-management
- https://www.manitobacooperator.ca/news-opinion/news/n-reductions-possible-without-significant-economic-losses/
- Crop Life, January 2023