Cut Costs, Not Profits: Nitrogen Rates for Higher Returns

December 23, 2024

Nitrogen fertilizer is one of the most significant input costs for farmers, yet many are applying more than necessary—and it’s cutting into their profitability. Precision Conservation Management (PCM) data collected over nine years shows that applying nitrogen above the University of Illinois’ Maximum Return to Nitrogen (MRTN) recommendation consistently reduces profitability.

 

Since PCM began analyzing nitrogen use in 2015, the MRTN system has correctly predicted the most profitable nitrogen application rate every single year. For both high- and low-SPR soils, the most profitable rates are below 200 lbs of nitrogen per acre.

 

If you’re applying more than 200 lbs of nitrogen per acre, it’s time to reconsider your approach. This simple adjustment impacts farm profitability in two ways: save up to $20 per acre in nitrogen fertilizer costs AND receive a nitrogen reduction incentive payment from one of PCM’s partners in exchange for the carbon credits you are generating by reducing your nitrogen fertilizer rate. That’s what we call a win-win!

 

Farmers See the Benefits

Farmers enrolled in PCM are increasingly adopting MRTN recommendations. According to a recent survey, 60% of PCM participants reported they are likely to apply nitrogen at MRTN rates based on insights provided by the program.

 

As Stark County farmer Noah Forlines explains: “I appreciate the insights PCM provides to give me confidence to lower fertilizer rates while maintaining strong returns. It is a win-win for farmer profitability and improving water quality.”

 

PCM data shows that nitrogen application rate is important in ANY financial climate, but in low-return years applying nitrogen in-season (pre-plant or sidedress) equally as important for maintaining profitability. 

 

Take Action in 2025

The time has come to shift the focus from maximizing yield to maximizing profitability. Higher nitrogen rates may get you a corn yield boost, but the additional costs of nitrogen fertilizer often outweigh the marginal gains in yield, leaving farmers with slimmer margins.

 

For 2025, make it your goal to apply less than 200 lbs of nitrogen per acre. Wondering what the most profitable rate is for your farm? Enroll in PCM to get an individual farm data analysis for free. PCM’s tools and expert support will help you identify the most profitable in-field practices while improving environmental outcomes on your farm.

 

By cutting nitrogen rates to MRTN recommendations, you can save money, protect water quality, and increase your farm’s profitability—all while earning incentive payments. It’s a small change with big benefits. Let PCM help you make it happen.

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