Manure has a lot of valuable nutrients. A producer needs to know the quality of
the manure available, the nutrient analysis at the manure, the
crop needs, the current soil test results and the
handling and application costs. Use of manure may result in increased or decreased
yields when compared to traditional fertilizers, depending on any of a number of
reasons. Crop producers need to predict how well they can manage manure as a
fertilizer source and what the overall impact will be over
a number of years. If they can, they will be better able to
determine the value of the manure in their farming operations.
The most common method of valueing fertilizer, is component pricing. The
manure is sampled and tested to determine the nutrient
content. Then this analysis is used to determine the value based on commercial fertilizer prices.
Another method to price manure, is to price it as a bulk
commodity, were you have sellers and buyers. If you are in an area that has an abundance of supply and limited demand, it will drive the
price down. If demand outstrips supply, the price
will increase until it balances out with the demand.
The nutrients would have a different value depending on the location and local
situation. Transportation and distribution costs become a factor in negotiating price. If there’s an
overabundance of manure in one area, and the livestock producers are faced with high transportation costs to move it out of the area, they may be willing to reduce the price
if they can avoid significant transportation costs.