Crop nutrients aren't getting any cheaper, and as crop prices continue their advance in the face of ever increasing ethanol demand, there is no reason to think that will change in the near future. At the same time, crop producers are eager to capture as much profit margin as possible.

Increasingly, growers recognize that precision fertilizer placement is a vital tool to protect those margins. Offering and emphasizing precision placement is also key to retaining and building business for full-service ag retailers. According to Dave Clark, South Dakota Wheat Growers, Bristol location manager, having precision placement capability even helps in business recovery.

"We've seen a tendency with large growers to buy their own fertilizer delivery systems using spinner-based applications, but once they figure out how inaccurate they are compared to our air delivery systems, they tend to come back," says Clark. "We have a lot of wind in South Dakota, and there is a lot of inaccuracy with spinner delivery. Having accurate delivery with Air Spreader systems from Ag-Chem™ helps hold our customers." Even when there is no wind, it is much more accurate to drop the fertilizer directly where it is needed rather than trying to fling it to an exact spot, he notes.

Precise placement of crop nutrients as one element of a complete precision ag program is nothing new to customers of CS Agrow Services Inc., Calumet, Iowa. They've had it available as an option since the independent retailer bought its first Ag-Chem™ air delivery system in 1994. However, it is gaining increased recognition as customers seek to maximize returns from increasingly expensive inputs. Craig Struve, CS Agrow owner, says every grower/manager is more interested in being part of a precision ag program because they see what it is doing for their peers who have adopted it.

"Our top managers know the importance of intensive soil sampling and putting nutrients in the right place, not to save money, but to maximize yields," explains Struve. "We can show them where their highest yields come in the field and with proper nutrient placement and nutrient replacements, we can maximize yields in these areas even more. These managers just keep pushing the envelope, and they drag everyone else along, even if at a slower pace."

Although maximizing yields drives his top managers, Struve sees economics as a driving force for a growing number of precision practitioners. Grid sampling shows them the increased return on investment they can have from variable rate technology (VRT) application of nitrogen. That becomes the selling point, but then the program begins to sell itself.

"Once you do that, they quickly realize how they can maximize their use of inputs to maximize production," says Struve. "With the Air Spreader system, we can deliver exact precision across the length of the boom. We spread all types of ground here in northwest Iowa, from terraced and waterways to nice square flat quarters, and the Air Spreader boom equipped for VRT handles it all."

All dry machines at the Calumet location are equipped for variable rate application. Custom anhydrous ammonia applicators are also equipped for variable rate, as are many of the rental NH3 units. The investment in equipment illustrates for customers the commitment the organization has made to precision agriculture.

"We aren't a 'me too' operation, and that fact has to be sold to customers," says Struve. "We tell them we charge a little more per acre than some of our competitors, but it is necessary if we are going to maintain the type of equipment and operators needed. Good managers know the cost of good equipment and good operators."

SGIS software from Ag-Chem™ has been another important element in C-S Agrow Services’ precision program. It is the SGIS software program that first made it possible for C-S Agrow to build VRT lime and fertilizer formulas. While he says the Ag-Chem™ air systems are quick to respond to changes in application rates and product mixes, the agronomy staff at C-S still appreciates the way SGIS interpolates data for gradual changes across the field through different application rate areas.

"Equipment and software have treated us well, and our customers have total confidence in both," says Struve. "They know that both will deliver as promised."

Customers recognize the value inherent in quality equipment, agrees Clark . With commodity prices trending up, his growers are increasingly willing to spend a little more for precision fertilizer placement. He notes they are excited about the addition of a four-bin 8103 TerraGator® this spring. "It has definitely generated their interest," he says. "Our growers are happy with the air delivery systems. The two 8103s with single tanks and air booms have done a great job spreading urea over the top, and with the new four-bin system, we will be able to do even more."

Clark sees only growth for precision placement and VRT with the rising crop prices. Even though the initial emphasis is on expansion of corn acres as growers change rotations and bring non-row-crop acres into corn, he expects a shift over the next several years.

"As cash rent goes up and the price of land goes up, farmers will be more focused on maximizing production rather than expanding acres," he says.