19. Profitability Mapping
- 1. myveritas.ca Profit Mapping Answering the “So What”
- 2. myveritas.ca What’s your decision-making Process? 1. Input Type and Rate? 2. Equipment Needs 3. Financial Requirements 4. Potential Grants 5. Environmental Issues??? Do you: ✓ Do what I’ve always done ✓ Shoot from the hip ✓ Listen to your Gut! ✓ Follow the trends ✓ Like flashy new tools? Or do you use data to: ✓ Identify a problem ✓ Explore potential solutions ✓ On Farm Trials ✓ Measure the results ✓ Make a proven decision
- 3. myveritas.ca 5% Rule: Increase Crop Yields by 5% Decrease Input expenses by 5% 5% increase in Grain Marketing Current Status: 200 Bu X $3.50/ac - $600/ac in expenses = $100 profit per acre Goal with 5% rule applied: 210 Bu X $3.68/ac - $570/ac in expenses = $203 profit per acre What if you are miss by 5% 190 Bu X $3.32/Bu - $631/ac in expenses = $1 profit per acre Do you know where your 5% opportunity is Hiding? Dr. Danny Klinefelter,TexasA&M (South West Ag Conference2018) KristjanHebert (Farm Smart Conference2018) Dr. David Kohl,VirginiaTech(Great Lakes Crop Summit2019)
- 4. myveritas.ca Current Farming Practices Using Field Averages 0 50 100 150 200 250 300 350 400 450 Low Productivity Areas Medium Productivity Areas High Productivity Areas Yieldvs. Inputs Current Yield Current Imput level Yield Goal Input Goal Over application Wasting $$$ Environmental Impact ??? Under Application Loss of YieldPotential Opportunity Opportunity Field Average Limited Potential
- 5. myveritas.ca Technology Will Change Our Future 0 50 100 150 200 250 300 350 400 450 Low Productivity Areas Medium Productivity Areas High Productivity Areas Yieldvs. Inputs Current Yield Current Imput level Yield Goal Input Goal Very little Waste Targeting Maximum Yield Potential
- 6. myveritas.ca
- 9. myveritas.ca Profit Mapping Creates • Detailedlook at productivitylevels • Clearly identifiedareas of improvement = DetailedZones! • Defined measurements to create managementopportunities • Managementgoals at a zone level (Focuson improving the areas with the most opportunity.Notfarming averages) • Insightinto how your scripts should manage your variability • A shift in mindset, and a new way to measure the low hanging fruit!
- 10. myveritas.ca Yield Data Alone is not Enough!
- 11. myveritas.ca ProfitabilityMaps: Finding your Hidden Potential Accurate Measurement Generates Clearer Decisions
- 13. myveritas.ca Measure the Variability for Higher Profit: Soil Sample to determine fields potential
- 14. myveritas.ca Managing Polygons for Profitability
- 16. myveritas.ca Soil Optix CEC LayerCorn Yield Layer Soil Sampling Resolution 25 ac Grid10 ac Grid5 ac Grid2.5 ac Grid1 ac Grid10 ac Zones5 ac Zones2.5 ac Zones1 ac ZonesSoil Optix
- 17. myveritas.ca 25 ac Grid @ $4.00/ac 10 ac Grid @ $6.00/ac 2.5 ac Grid @ $16.00/ac 1 ac Grid @ $40.00/ac5 ac Grid @ $10.00/ac 10 ac Polygon@ $7.00/ac 5 ac Polygon@ $12.00/ac 2.5 ac Polygon@ $18.00/ac 1 ac Polygon@ $40.00/ac Soil Optix @ $25.00/ac BEST VALUE??? The Cost of Resolution!
- 18. myveritas.ca Know the Value! Zone Sampling PolygonSampling Soil Optix
- 19. myveritas.ca • What do all thesenumbers mean? • How that does apply to my farm? • What Optimumshould I be targeting? • The Soiltest says I am high and low, but how bad reallyis it? • Thereare a lot of Values,Whichone is most limiting? • What is going to giveme my greatest ROI? Common Soil Testing Questions?
- 20. myveritas.ca How It works! Soil Sample Zones K20 LayerP2O5 Layer 2016 CornYield
- 21. myveritas.ca
- 22. myveritas.ca Identify Your Optimum Level By Field WilsonBros. (BlenheimFarm):
- 23. myveritas.ca Identify Your Limiting Nutrient by Zone
- 24. myveritas.ca Limiting Nutrients made easy!
- 25. myveritas.ca Manage the Variability: Prescriptions based on actual values
- 27. myveritas.ca Variable Rate Seed and Nitrogen Scripts Least Productive Areas Low Average Areas High Average Areas Most Productive Areas Gal of 28% 35 30 25 20
- 28. myveritas.ca Script Validation Generates Clearer Decisions Variable Rate PlantingResponse of a Corn Variety Variable Rate PlantingResponse of a Soybean Variety
- 29. myveritas.ca Variable Rate Seeding Script Example
- 30. myveritas.ca Variable Rate Seeding Script Example
- 31. myveritas.ca Variable Rate Seeding Script Example
- 32. myveritas.ca 1100 ac * $7.27 = $8000 net profit Variable Rate Seeding Script Example
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- 35. myveritas.ca
- 36. myveritas.ca Simple Example: Selective Spraying Priaxor @$17.00/ac + $10 application = $27.00/acre X $4.50 = $9.45 -$27.00/ac = -$17.55/ac = -65% Return X $4.50 = $19.80 -$27.00/ac = -$7.20/ac = -27% Return X $4.50 = $44.10 -$27.00/ac = $17.10/ac = +63% Return
- 38. myveritas.ca
- 39. myveritas.ca • Every Field has Variability, are you managing yours? • Learn how to look for and find the hidden opportunities. • Change your decision-making process. Validate your success – Learn if it worked or not! • Start with something manageable, something affecting your operation today. • Start collecting today, the data you need to farm tomorrow! Achieve your goals by Digging into Data
- 40. myveritas.ca Thank you Mike Wilson, CCA-ON AffiliateProgramLead,VERITAS Farm ManagementInc. mike.wilson@myveritas.ca @wilsomg www.linkedin.com/in/Mike-Wilson-VERITAS