Net value is the difference between the value of the manure as a fertilizer and the cost of applying the manure to the land.
Manure has greater value when it is applied where it is needed. Manure's value can be increased by applying it to crops that need the nitrogen component of manure and soils that need phosphorus and potassium. Applying manure to crop rotations that can use all of the nutrients over a several year period can increase value.
But the cost of application has to be taken into account. A commercial hauler is generally paid by the "meter." Every time it clicks another gallon, he gets paid. If he spends his time on the road hauling to a farther field and not hearing the meter click, his profits go down. Even small distances can significantly reduce the gallons applied per day. Most commercial haulers can get all the business they want. They have a limited time frame and season. Therefore, they would have to be paid to haul the farther distance. As an alternative, a crop producer may have an available tractor and more time to haul the manure a greater distance. The producer doesn't incur any additional fixed costs for the power unit.
A crop farmer that can capture more nutrient value should be willing to pay the higher transportation cost up to the value of the nutrients.
Author: John Lawrence, Livestock Economist, Iowa State University
