The price of anhydrous ammonia in December was in the neighborhood of $280 per ton. Recent prices quoted in Central Illinois and Central Indiana have been at $425 per ton, which would be a more than 40% increase in just 4 months. Since anhydrous ammonia is a product of the natural gas industry, experts say supplies are down because of the cold winter, and demand will be up because of the conflict in the Middle East. If you had fall-applied anhydrous, you are ahead of the game. If you are looking forward to spring applications the costs are going to be higher.

Use the University of Illinois recommendations of 1.2 lbs of nitrogen per bushel of target yield. Target yield should be established for each field, taking into account the soil type and management level under which the crop will be grown. If yield records are available, use the 5-year average yield as the basis. When figuring the average, eliminate years of abnormally low yields resulting from flood or drought. Increase the average yield by 5% because of improved varieties and cultural practices.

If your target yield is 175 bushels per acre, your nitrogen demand is 210 pounds per acre. Subtract 40 pounds per acre from that as a credit for your prior crop of soybeans, and your nitrogen requirement becomes 170 pounds per acre. The increase in the price per acre is about $14.16, due to the higher prices.

Ways to conserve on costs may include an examination or your cropping goal, especially if have a new farm, or do not have recent soil tests. Even though you would like to have a 200 bushel yield, if the farm has not produced a 200 bushel average in the last five years, this would be the year to adjust your cropping goal and the nitrogen level closer to the last five year average. It is never a good idea to put more nitrogen on a field that can be reasonably used because it will be wasted, but this year an overapplication will cost you a lot more than in past years.

In December of 2002, #2 diesel fuel was approximately $1.09 per gallon, but recently the prices have increased to $1.44, which is a 32% increase in price. The profit margins in farming are not large enough to take a 32% without some strong calculation of how you cover the cost increase. But what does the increase really mean to the cost of a field operation?

Implement	#2 Diesel @$1.09	#2 Diesel @$1.44	Cost
18 ft. Coulter Chisel Plow per acre	$10.04	$10.45	+$0.41
20 ft. Anhydrous Applicator per acre	$7.40	$7.60	+$0.20
12 Row No-Till Planter per acre	$8.08	$8.25	+$0.17
40 ft. Field Sprayer per acre	$2.45	$2.52	+$0.07
30 ft. Rotary Hoe per acre	$4.43	$4.51	+$0.08
150 HP Tractor per hour	$50.22	$52.75	+$2.53

These field operations are based on University of Illinois figures for cost of operation and they include all costs, like depreciation, purchase price, oil, maintenance, fuel and others. But for understanding just what the increased cost of fuel is going to do to your bottom line, it is a fair comparison.

It may be time to reconsider your operational practices in an effort toward fuel conservation. When stopping at the end of the field to wait for seed or water for the sprayer, turn the tractor ignition off. If you are going to have lunch in the field, turn the tractor ignition off. Any time the tractor is going to be setting over 15 minutes, turn the key and shut it down. For a safety's sake if you are going to get off the tractor, put it in park and shut it down. These things won't cover the increase in fuel prices, but every little bit helps.

If you would like to input your cost, visit "FarmDoc" web site at: www.farmdoc.uiuc.edu. Click on the "Management" tab and then go down the page to Field Operations.

University of Illinois Extension has helped make Macon County the highest Illinois county with farms signed into the Farm Program. As of March 26, 91% of Macon County farms were signed up, which is well above the state average of 78%, and the national average of 65%.

Unit Leader Stu Ellis saluted Farm Business Educator Paul Mariman for his effort to help farmers individually in selecting their options for updating base and yield on their farms. Last June, 101 farmers attended meetings on the Farm Program, put on by Extension, in addition to another 475, who attended August meetings sponsored by Extension and FSA.

Extension's computer laboratory made three visits to Macon County, which allowed 96 farmers to input their own statistics and evaluate their Farm Program options. Mariman met individually with dozens more to work through their farm information and give personal assistance.

Using an average of 300 acres per FSA farm number, Extension estimates that an additional $4.5 to $4.9 million dollars in farm program payments will be coming to Macon County as a result of Mariman's efforts. Great job, Paul.

The Resource Review is now available through the e-mail. The goal is to provide you information faster in a format that will be at your fingertips. The format will be in Adobe Acrobat and the reader program is free on the web, so there will not be any additional cost. To be able to get the Resource Review in an electronic format, please send an e-mail note to Paul Mariman, which will allow us to capture your correct e-mail address. University of Illinois Extension will not sell your e-mail address and the address will only be used to send you the Resource Review. If you would like to get the Resource Review in an electronic format send an email to pmariman@uiuc.edu.

The 2002 crop year will always be remembered as a challenge to the farmers of Macon County. Nowhere are those weather and yield challenges more apparent than in the data compiled by the Illinois Farm Business Farm Management Associations. FBFM analyzes the data from over 3000 farms in the state to aid those farmers in their management decisions.

With the five weeks of wet weather after mid-April followed by the subsequent weeks of dry weather, crop prospects appeared bleak. The resulting corn yield on Macon County FBFM farms was an average of 132 bushels per acre. Late rains in August gave new life to soybean yields and the county average was 47 bushels per acre. Many farmers will remember 2002 as the poorest corn yields since 1988. The average yields for the entire state were 145 bushels for corn and 47 bushels for soybeans. Couple these yields with lower FSA farm program payments and the result is an accrual net farm income per operator of $16,199 for FBFM farms in Macon County. This represents a decrease of approximately $6,500 from 2001. This difference is consistent with results seen across Central Illinois. Farmers can be envious of areas of the state that experienced above average yields like Warren and Mercer Counties, but need only look to Southern Illinois to see county yields as low as 56 bushels for corn and 25 bushels for beans.

With the lower net farm income in Central Illinois comes a deterioration of the balance sheet, lower working capital and a decrease in the number of capital purchases. Macon County FBFM farms averaged less than $13000 in capital purchases during 2002. It is difficult to justify the purchase of equipment when looking at poor crop prospects, even in light of more generous depreciation rules that were in effect for 2002. Farm program payments were substantially lower during 2002 for most farmers. Many Macon County farmers received only about 25 percent of the amount that they realized during the preceding year. Unless prices fall below the trigger level for the Counter-Cyclical payments, farmers should not expect higher amounts for the coming year.

For 2002, the average costs to grow corn and soybeans in Central Illinois on good soils were $2.56 and $6.65, respectively. These costs include land costs and a non-land interest charge that reflects a farmer's opportunity costs for his investment in machinery and buildings. Increasing costs for fertilizer, chemicals and seed were only partially offset by lower costs for machinery repairs and fuel. Higher prices received for both corn and soybeans is the sole reason that these costs to grow corn and soybeans are less than last year. For farmers in Macon County, lower yields than the Central Illinois averages would push those costs even higher.

With a new crop year at hand, farmers should attempt to keep costs as low as possible without sacrificing too much yield potential. Knowing one's cost of production is a must in determining the price that is needed to be profitable. Only when the cost of production is known can a producer be sure that he is receiving a price that will cover his needs. A marketing plan should be developed and followed. With the implementation of these tools and others, we can look forward to a better year in 2003.

- By Bob Daggett, Area FBFM Fieldman

The USDA has extended the sign up procedure to update your yield and base acres due to the slow sign up process. If you have been putting it off now is the time to go to the FSA office and get it done. If you cannot get an appointment before the April 1 deadline, go to the FSA office, place your name on a register, and complete the paperwork during your appointment that will be scheduled after April 1.

Even if you cannot prove your yields or are too late to be eligible to prove acres and yields, you still need to sign up for the 2002 Farm Program. The LDP program is still in place, and can be beneficial to you, and any disaster payments that come up in the next six years will probably be tied to the program.

The price of fuel is up, the price of fertilizer is increasing, and prices for crops are predicted to be on both sides of what they are today. To keep an operation profitable most farms are going to need the financial help provided in the Farm Program. The opportunity is comparable to what your grandfather said: "You can watch the horse run away or you can throw your rope and ride him."

The Illinois Department of Agriculture will hold a Clean Sweep collection in June, enabling you to dispose of unwanted agrichemicals for free. One collection is scheduled for Macon, McLean, DeWitt, Piatt, and Moultrie counties. Farmers, retired farmers, nursery owners, private applicators and landowners who inherited agrichemicals with their property are eligible to participate.

The program gives you an excellent opportunity to go through barns and storage sheds and dispose of unneeded pesticides that could pose a safety hazard. The program is free, and the State of Illinois will assume liability for the proper disposal of all agrichemicals collected. The program is responsible for safely disposing of more than 300,000 pounds of unwanted agrichemicals since its inception in 1990.

Participants must register the products they want to get rid of by May 9. Registration is necessary to give the waste disposal contractor ample time to prepare for the different kinds of materials that will need to be handled. Forms are available at the Extension office at 2535 Millikin Parkway, or by calling the Illinois Department of Agriculture's Pesticide Hotline at 1-800-641-3934. They must be returned by the May 9 deadline to the Extension office. After returning these forms, you will be mailed a reservation card indicating the date, time and location of the collection.