Agriculture & Natural Resources, University of Wisconsin-Extension

Extension Responds

Natural Gas and Nitrogen Price Increases

Earlier this summer, some news reports speculated that the price of natural gas, already about 20 percent higher than it was a year ago, could see another huge increase in the coming winter. Since natural gas is the most costly component in the manufacture of nitrogen fertilizer and because much of our electricity is generated by burning natural gas, Wisconsin farmers would suffer a double hit if the price rises again. More recent projections seem to indicate that the natural gas prices might not increase significantly -- prices on the futures market for natural gas to be delivered next winter and spring have actually dropped. Regardless of the outlook for the price, farmers can always benefit by using management techniques that save energy and money.

Outlook for natural gas supplies and costs

Spreadsheets and Calculators

A simple spreadsheet you can use to evaluate different net return per acre scenarios involving N source, cost, and expected corn price. (Created by Mike Rankin, UW-Extension Crops and Soils Agent, Fond du Lac County .) 

Use this calculator to measure and track the costs and energy efficiency of your grain drying process.
Graindrying Audit tool (requires MS Excel)

Fact Sheets

Low Cost Energy Conservation

A series of fact sheets outlining simple and inexpensive ways farmers can conserve energy and save money prepared by Scott Sanford, senior outreach specialist, Focus on Energy, UW-Extension.

• Grain Drying
• Heating Hot Water
• Indoor and Outdoor Lighting
• Ventilation and Heating Systems
• Irrigation and Crop Storage Facilities
• General Farm Enterprise

Economics of nitrogen use

“Reacting to currently high nitrogen fertilizer prices and potentially limited supplies: Is 2003 a repeat of 2001?” Kelling and Bundy

“Reacting to High Nitrogen Costs and Limited Supplies.” Five strategies for using available N supplies efficiently, Bundy and Kelling

Click here for a PowerPoint Presentation based on this paper

“Economics of nitrogen fertilizer use with low crop prices.” How to figure the economic return, Kelling and Bundy

“Use Nitrogen Fertilizer Efficiently to Offset High Prices.” Management strategies, Bundy and Kelling

“Nitrogen Credits for Winter-Killed Alfalfa.” Calculating these credits helps farmers avoid unnecessary fertilizer costs and minimize the risk of losing excess N to the environment, Bundy

“Getting the most from your 2001 nitrogen dollars.” Hoeft and Nafziger, Jan. 2001

Volatile prices for fertilizer may cause some producers to buy their fertilizer this fall rather than waiting until next spring. The income tax consequence of the purchase is one factor to consider when making that decision.

Get tips for drying grain more efficiently from Scott Sanford, of Wisconsin Focus on Energy.

Energy costs are the second largest expense for greenhouse owners and heating costs are 70 to 80 percent of that energy use. Here are some tips for greenhouse growers for reducing the energy use and costs.