Summary

A recent China study on application rate of nitrogen for corn production could have a large impact on volume used. Recent historical research of nutrient use within the USA may suggest there is more to corn yield performance than fertilizer use. 

Analysis

    In a recent field study of annual grain crop production, the research suggests China farmer practices are likely to over apply nitrogen. More specifically the study suggests Chinese corn farmers could cut nitrogen fertilizer application rates by 40% without harming the quantity of corn grain produced. The focus of the study is directed at over application of nitrogen and the adverse environmental impact it may be creating. 
    For the purpose of this report, Allendale Inc will not only address China application rates of nitrogen and resulting corn grain produced but also address recent history of nitrogen application rates in the United States and resulting corn grain production. 
    The China study revealed when its North China Plain farmers applied 234 pounds of nitrogen per acre, the resulting corn yield per acre was 135 bushels. However when the amount of nitrogen per acre was reduced to 141 pounds (40%), corn yield actually increased to a level of 141 bushels per acre. Allendale Inc must note the average annual production of corn for all of China is approximately 85 bushel per acre vs 73 bushels per acre in 2000 and its most recent five year average of 83.5 bushels per acre. 
    It is interesting to compare this recent China study vs recent historical performance data within the United States. As you are able to view via the graph, the pounds of nitrogen applied per acre have been in a range of 130 to 141 pounds since 1995 and yet corn yield per acre has been trending higher. Most notable was the separation of yield performance vs application rate of nitrogen beginning 2003. Even though the application rate of nitrogen has held in a range of 136 pounds to 141 pounds, the United States corn yield divergence has continued to widen. 
    Allendale Inc suggest improvement in United States seed performance as well as technological advancements may play more of a key role in volume of corn produced than nitrogen or for that fact, phosphorus and potash application rates. Allendale Inc does has research dating back to 1964 regarding US fertilizer application rates and corn yield performance which may be of interest to you. ........Joe Victor

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Joe Victor, Vice President
Joe Victor

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Analyses are solely the work of the authors and have not been edited or endorsed by GLG.