Financial Return on Ammonium Sulfate for Nitrogen Deficient Peanuts Peanut Notes 120 2022
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Collapse ▲In a recent post, I discussed how to address a nitrogen deficiency. I just did some calculations on the “best” case scenario with current nitrogen prices to obtain a positive return on investment of 500 pounds AMS/acre.
Assumptions:
- A true nitrogen deficiency is present and the deficiency is present on 100% of the field (this is hardly ever the case, but I am assuming it here.)
- If 100% of the field is expressing a deficiency, between 45 and 60 days after planting, the potential yield loss is 30% (we have observed higher and lower losses, but this is about average.)
- Broadcasting 500 pounds per acre of AMS (current price of $0.63/pound) results in yields close to inoculated yields in a new ground fields.
Yield potentials:
- 4000 pounds per acre (30% loss is 1200 pounds with a financial loss of $312/acre at $0.26/pound peanut). In this case, for the assumptions above, there is a negative return ($-3/acre) when 500 pounds AMS is applied.
- 5000 pounds per acre (30% loss is 1500 pounds with a financial loss of $390/acre at $0.26/pound peanut). In this case, for the assumptions above, there is a positive return ($75/acre) when 500 pounds AMS is applied.
- 6000 pounds per acre (30% loss is 1800 pounds with a financial loss of $468/acre at $0.26/pound peanut). In this case, for the assumptions above, there is a positive return ($153/acre) when 500 pounds AMS is applied.
These seem to be very marginal returns on a $363/acre investment in AMS. Rates lower than 500 pounds can help but peanuts yield less when rates lower than 500 pounds are applied. A major assumption in these calculations is that 100% of the field will respond at this level. Most fields, unless new ground and a complete inoculant failure, will be at 50% nitrogen deficiency and often the deficient peanuts in a field are much lower than 50%. If one assumes 50% of the field is deficient, the financial returns above would be substantially lower. Additionally, if the above are realistic yield potentials we know that we can be higher or lower in any given year. That is a guess at this time of the year.