Wednesday, December 26, 2018

Year End Thoughts On The Us Farmland Market By Benedict T. Palen, Jr.

These are precarious times for the US farmland market.  I have previously written about the headwinds that it was facing from large crop inventories, trade and tariff issues, and rising interest rates.  None of the uncertainty has diminished.  In fact, the longer these issues linger, the greater the concern about this market.

Benedict T Palen Jr


A factor that looms large, and which was not on the radar screen, say, 15 years ago, is the large amount of land owned by investment groups, along with the amounts of “dry powder” that some of these funds have.  It’s important to keep in mind that the newness of many of these funds means that they have not gone through a significant adjustment (downward) in land values, nor have they had too much experience with historical annual cash returns from owning farmland.  

Will the funds be buyers, or will they be sellers?  That is a question that is impossible to answer right now.   And the answer will likely vary by region of the country, with possibly more pressure on these funds in the broad acre crops areas, and less so in the permanent crop areas.

The issue of the direction of some of these funds also has the backdrop of rising yields on interest bearing financial instruments, and a falling stock market. 

It would appear that, for the savvy buyer who understands the cycles of the farmland market, and who has “patient capital,” there will be opportunities during this market reset.   This requires very careful analysis of a farm, the area in which it is located, and, of course, good knowledge of the macro factors that I have noted.

Friday, December 21, 2018

Farm Safety Considerations By Benedict T. Palen, Jr.

Farming is widely considered to be a very dangerous occupation, and according to some statistics, as dangerous as construction.  That being said, it is worth thinking about the differences in safety awareness and accident protocols on a typical farm and construction site.  Having had experience in both industries, the differences can be somewhat surprising.

Benedict T Palen Jr

For instance, on most construction sites, one would find personnel who have had various levels of safety training, ranging from basic first aid, up to CPR.  It is typical on a construction site to have multiple first aid kits, along with protocols for getting injured personnel to the nearest hospital, to accident investigation procedures.   Periodic safety training classes are given, and having trained personnel and a written safety program not only help to ensure a safe workplace, but they can result in lower insurance premiums for the company.


Many farms, even the larger ones, do not seem to have the same level of safety awareness or training.    For instance, thinking about the last farm that you have visited, do you know how many personnel are trained in CPR? Do you know how many first aid kits are in vehicles and buildings?  Do the personnel know what to do in case of an accident? Is there a written safety program?


Sadly, the answers to many of these questions might be surprising—in a negative way.   The safety culture that is often engrained on a construction site is frequently lacking on a farm, especially ones with small numbers of employees.    Given the difficulties in attracting qualified labor to many farms, it would seem that having a safety culture would be a “hook” for bringing capable employees into a farm situation. 

Monday, December 10, 2018

Working As A Volunteer For A Food Bank By Benedict T. Palen, Jr.

Here in America, many people are used to having all or most of what they want when it comes to food. For those who are reasonably well off, it may not occur to them that the lack of enough food is a daily issue for a fairly size able segment of the population.   Many of those folks in need rely on food banks for regular nutritional needs.



It is both a humbling and satisfying experience to volunteer at a food bank, and something that I would recommend, without hesitation, for people who can find 1-2 hours a week to help out.  Let’s be honest—we can find that small amount of time if we really want to make a difference.   Put aside the focus on oneself and do something for others. You will find it to be highly rewarding.

As a long time volunteer with charitable organizations, the memories that I will carry with me for all of my days come from the simplest acts of kindness—handing packages of food to those in need, and seeing their faces brighten up, and receiving a heartfelt thank you from them, or helping to sort food received in a food bank warehouse so that quality products were provided to its customers. 

This is simple stuff. It falls into the category of the little things in life that I have written about elsewhere. But it is these little things that help to give us meaning in our lives, and help us to maintain a perspective as we go about our daily routines.

Volunteers are always needed at food banks and other charitable organizations.  Check them out, and no doubt you can find one where there is a good fit.   You will find that you get back far more than you give of your time.

Wednesday, December 5, 2018

What Direction For Farmland Prices? By Benedict T. Palen, Jr.

It is clear that there are challenges for farmland prices, and that is causing concern among all sectors of agriculture.   A layer of uncertainty that was not much of a factor, say, 10 years ago, is the degree of capital put into this asset class by outside investors, and the fact that a large amount of dry powder resides with some of those investors, waiting to see where the market trends.

Benedict T Palen Jr

It would be fair to say that investors who put money into farmland over the past ten years have enjoyed outsized returns—as compared to long term historical averages.   And the question is whether that capital will still be attracted to the asset class now that returns are trending downwards, and much more in line with historical averages.   With the recent increases in yields on Treasury securities, one has to wonder whether farmland will maintain its appeal with some investors, and what impact that might have on land prices.

For most areas of the US, local farmers, and those closely associated with farming, have been the primary buyers of farmland.   That said, there are areas where investors have tended to dominate the market, especially on very large tracts of land.   With the diminished current returns on farmland, and the softness in the long term trends for land prices, will those investors abandon the market?  If so, what impact will that have if the liquidity aspect of the market is sharply reduced?

These are questions that will be addressed in later blogs. Suffice to say that anyone considering an investment in farmland has a number of things to consider that were not of significance 10 years ago.

Monday, November 26, 2018

Developing A Strategic Plan For Your Farm By Benedict T. Palen, Jr.

It is a common practice in corporate America, in companies large and small, to have strategic plans to guide the business over, say, the next five years.   These strategic plans serve as road maps for each part of a company, and they are revisited, say, once a year, for updating, and progress reviews.

Benedict T Palen Jr

How many farmers have a strategic plan? Anecdotal evidence suggests that the percentage is well under 50%.  Reasons for not having a plan run the gamut from believing it is unnecessary, to concerns about cost or the amount of time that may be required to put one together.

From my perspective of 40 years in agriculture, a strategic plan is a key for helping to ensure that a farm can deal with the headwinds, cycles and opportunities that have been persistent features of agriculture for decades.    One example—of many—is that factors such as GMO crops, precision agriculture, and blockchain, which are in the forefront of today’s agriculture, were just blips on the horizon not too many years ago.  In other words, change is a constant, and a well done strategic plan is a way to deal with that inevitability.

Understandably, farmers maintain a very intense focus on what is right in front of them—their crops—throughout the growing season.   But it is important to step back, and see the big picture, because it is from there that elements of a good strategic plan will emerge.   I recommend that farmers engage a consultant who can offer a deep and thoughtful perspective on the farm business, someone who knows which questions need to be addressed. 

These can run the gamut from how operating decisions are made, to company culture, succession planning, capital structures, and marketing programs—just to name a few things on a long list.

The consultant will take the time to understand the farming operation, and to observe its processes, and its people.  This is an effort that should take place over a period of several months so that, for instance, a crop is followed from start to finish.  With the knowledge gained on a specific farm, and coupled with the consultant’s overall knowledge base, the ingredients of a good strategic plan can be developed, and discussed, along the way, with the stakeholders.

Saturday, November 3, 2018

Steps To Precision Agriculture By Benedict T Palen Jr

After zone mapping a field with the VERIS machine, it would be worthwhile for a farmer to compare the results with NRCS soils maps.  In many instances, those soils maps are more than 40 years old, and their margin of error could be plus or minus five to ten acres—as compared to sub inch accuracy with GPS devices and today’s high tech tools for agriculture.
 Benedict T Palen Jr
The soils from each of the zones in a field should be sampled, and then lab results obtained that will provide details on nutrient levels, but also for organic matter, pH, and soil texture.  It is important to know the inherent fertility in a particular soil, the water holding capacity of that soil, and the potential for enhancement of crop yields on each soil type.

This precision soil testing will likely involve hundreds, if not thousands, of soil tests on a typical farm.  While there is a cost associated with this task, these are some of the best dollars that a farmer can spend to gain an in depth understanding of the “bones” of the farm.  

Further, it will then be possible to do a cost/benefit analysis for the precision ag tools needed to implement a changed farming program, along with the change in inputs needs (more in some areas of a field, less in others), so that a precision farming budget can be developed.   In those cases where a farmer seeks additional financing to make these changes, the level of detail produced from the zone soil mapping, and the subsequent financial analysis, can be a persuasive tool for lenders.  Likewise, on rented land, with leases where there is landlord participation in certain costs, the same could be true as far as getting some financial participation from the owner for these improvements.

Friday, October 12, 2018

Some Thoughts on the Current Investment Climate By Benedict T. Palen, Jr.

There have been some serious headwinds in US agriculture over the past 3-4 years, including lower farm incomes, large carryover stocks of grains here and around much of the major producing areas of the world, and unfavorable trends in the costs of most crop inputs. 
This has come at a time when billions of dollars have been raised by large funds to invest into agriculture here, and in other countries.  In addition, more recent events of concern were earlier this year, when the Trump administration created major concerns in many sectors of the economy by seeking major changes in tariff arrangements with other countries, many of whom are major purchasers of US farmers’ crops, along with the recent rise in bond yields, which are often used as a benchmark by some investors when considering the income potential from farmland. 

All of these factors beg the question of what direction a prospective investor, or current landowner, should take with respect to US farmland.    The answers are not easy to ascertain.   However, some distinctions can be made.   

The ups and downs for farm incomes and carryover grain stocks, as well as trends in crop input costs, are not particularly out of the norm. In fact, they are in line with the cyclicality of US agriculture and the mega factors that influence it.   Many investors and landowners understand the cyclicality, and build that into their financial modeling.
The tariffs are, however, an entirely different story.  They have the potential to adversely impact the world market share of certain grains for US farmers, and that is likely to mean that competitors, whether South American or eastern European countries, will step in and pick up the slack.  That could mean long lasting negative impacts will be felt in the US.  

Many lenders and farmers are expressing concern, and the government’s so-called “aid” to help US farmers is nothing more than borrowing money from one government pocket to put it into another for distribution to farmers.   

There can be a fine line between being opportunistic, and cautious.   Here, at this time, we have the added factor of several billion dollars of dry powder from institutional investors looking for farmland deals in the US.   Each situation is different, and of course there will always be those publicized farmland sales that are suggested by some as evidence that the market is “strong,” or “stable.”   From the perspective of someone who has been in this market for 40 years, caution is the byword.  

There is more downside risk at this time—due to the tariff talk—than we have seen in the past ten years.   If I were a prospective seller, I might take advantage of “an offer I couldn’t refuse.”  If I were writing a check to buy a farm, though, I might just want to keep that money in the bank until I saw how all of this settles out.   These tariffs are more than a short term cyclical event; they are fundamental to US agriculture.

Friday, August 31, 2018

Benedict T. Palen, Jr. | The Home Garden—What Is The Return On Investment?

With the cost of food being a large part of the budget for many families these days, it makes sense to think about ways to lower that cost.   The home gardening can be a good way to do so.

Benedict T. Palen, Jr.
With a space of, say, 15 by 20 feet, one can grow the following crops—as an example:
  • ·         100 onions—roughly 30-40 pounds; value $30-40; can plant early and late season crops
  • ·         10-12 green bean plants—25-30 pounds; value $45
  • ·         Two rows of lettuce—value $20
  • ·         Three rows of sweet corn---value $15-20
  • ·         Four tomato plants—value $30-40
  • ·         Two rows spinach—two plantings—early and late season—value $15-20 each time
The cost of the seed for these items should be about $25.   Water costs will depend on the part of the country where you live, but it should be around $20-30 for the season.    Total costs for seed, water, and a little fertilizer, should not be over $55-60. 

So, based on two crops of onions and spinach, and the other listed crops, a gardener can raise about $200 worth of food for a very modest cost.  Some of the produce, such as the green beans, sweet corn, tomatoes, and spinach, can be frozen easily for eating during the winter, when the costs of these items fresh in the grocery store are typically higher than during the US growing season.   Onions can be stored for 90 or more days in a cool location so that they can be used during the late fall and winter.

Without question, gardening will save money for more folks who can devote a little space, and a small amount of time, to the preparation, planting, and watering, of the crops.   But gardening also serves larger purposes—it is good for the soul.  It keeps us connected to the earth, and is a relaxation from the every day stresses that many of us have to deal with.  

Second, it gives the satisfaction of growing one’s own food, and the possibility of sharing that food with friends and neighbors. This is something that I have done for years, and the giving to others is the best part.

For a beginning gardener, there is plenty of free advice from local county gardening “extension agents,” who are usually part of the particular area’s agricultural university, along with talking to fellow gardeners and garden center personnel. 

Give it a try; ultimately, the rewards are priceless.

Friday, August 17, 2018

Crop Forecasts And Their Reliability As A Planning Tool For Agricultural Investors


Benedict T. Palen, Jr
There is always much anticipation when the USDA issues long term forecasts for grain supply, demand, and prices.    Some market participants seize on trends that they believe they detect when, say, acreage of a certain crop declines over a couple of year period, or when there is an apparent large amount of over supply of one grain or the other.

From the perspective of a farmer, and market participant for 40 years, all of these forecasts need to be taken with a grain of salt.    One need only look at, say, the USDA price forecasts for a 10 year period for a commodity, and then look back to compare the actual prices during that period, to see, that these long term forecasts are inherently flawed.   

As another example, there were articles in some publications within the last year predicting the demise of wheat production in Kansas (which has long been a leading wheat producer in the USA), all because of low prices for wheat, and shifts to other crops.  Ah, some writers have not been around long enough to know how quickly things can change in agriculture! This year, the crop in Kansas was large, and wheat prices have rebounded to profitable levels for growers.

How then does one considering an agricultural investment, make sense of all of these forecasts when building a financial model?   The answer has several parts. First, and perhaps foremost, one must understand the long view of ag markets; there are almost always unexpected events in some area of the world that impact production, and prices.  

History teaches us to expect the unexpected.  Second, to get a grasp of the “big numbers” that are often thrown around when talking about usage, it is helpful to break down the numbers into the number of days of consumption that that usage, or supply, really means.   And then taking that number and figuring out the per capital availability around the world of a certain commodity really brings things down to an understandable level.  
When one realizes, for instance, that there is a 60 day supply of soybeans at a given time, and that the market price is X, it is a bit easier to see a scenario where the supply drops to, say, 45 days, and what the impact on price is at that point.   Those hundreds of millions of bushels of supply mentioned in the headlines of some article become easier to get one’s arms around when it is viewed in days of supply.  To use a pun, that is when the numbers come down to earth. 

Third, one must keep in mind the big picture, and that is the world’s ability to feed itself is precariously balanced.   There are real world limitations on land use, water availability, and infrastructure, that are often overlooked when some writers suggest that there is great potential in some developing nations for food production.    

Some of this makes for great headlines, such as when Asian investors announced plans to develop enormous acreages for farms in remote parts of the world, with the suggestion that that would somehow adversely impact grain prices in established areas.  But, unless one digs into the details, it would not be known to most that those plans were not much more than pipe dreams.
Agriculture is, and always will be, a long term asset.  Investors should not be swayed by short term trends, or by the efforts of some to predict prices over a long term horizon.   My advice is to look back over, say, the last five years, and understand supply, demand, and their relation to pricing—that is the most sensible predictor, in my view, because over that time period there will have been any number of events in some parts of the world that have impacted prices in a good or negative way.  It is not the perfect approach, but at least it offers a sound rationale for making investment decisions.

Friday, August 10, 2018

How Accurate Is Your Center Pivot Irrigation System? | Benedict T. Palen, Jr


Many farmers probably take for granted that their center pivot system is applying water evenly across the spans of the system.  Unless there is something glaring, such as a broken hose, or leak in a pipe, what looks good to the eye may seem good enough. 
Benedict T. Palen, Jr 
A client of mine was certain that he was getting even water application across the spans of his several dozen center pivots.   I began to question that assumption while scouting some of the corn fields, and doing soil moisture tests, which suggested more water was being applied on some spans than on others.

For a cost of about $20 each, I purchased several measuring pitchers, placed one under each of the seven spans of the center pivot system, and the results were a shock to the farmer.  From a cross section of the pivots on this large farm, and with different crops and varying water application rates based on how he was operating the pivots, we found a range from high to low of over 20% on average!  
In other words, where a particular span on a pivot might be delivering .50 of an inch of water, a nearby span was putting out .40 of an inch.  Similarly, because this farmer was applying liquid fertilizers through the pivots, some parts of the field were getting too much fertilizer, and others not enough. 

In this particular case, the farmer was preparing to spend thousands of dollars to set up variable rate irrigation on many of his center pivots. But he changed his mind based on the results of this extremely low cost, and low tech, evaluation, of his water application patterns. He realized that, before spending thousands of dollars per pivot to go with variable rate irrigation, he had to address the basic issues of re calibrating each pivot so that the nozzles were set to deliver water at an even rate.
  
Benedict T. Palen, Jr., is a fifth generation farmer who provides consulting services to farms in the US and overseas.
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Tuesday, August 7, 2018

Benedict T. Palen, Jr. | Simple And Low Cost Ways For Environmentally Friendly Gardening


Gardens of whatever size always deal with the issues of water and weeds.  It can be expensive to water the garden, and for those busy gardeners who do not have the time to water on a regular basis, the crops can suffer.   And, of course, weeds are never the gardener’s friend, but they always seem to find their way into the best laid garden plans.

Benedict T. Palen, Jr

There is a technique that I have used for years to deal with water and weed issues. It has the added benefit of building up the soil over time.  I use small bales of wheat or barley straw to mulch around the plants once they get 3-4 inches tall.   The bales typically cost less than $10, and one of them will usually cover at least 400 square feet. 

What I do is add a loose layer of straw around the plants, and between the rows, about 4 inches in depth.   This has let me reduce my watering cost, and time for watering, by about one third, each week.  The straw shades the ground, and it reduces evaporative loss from bare soil.

To check soil moisture so that I do not over or under water my plants, I use a screw driver, and if it can be pushed into the ground easily to about 6 inches, then the soil is in good shape for moisture; if not, give the plants a good soak.
The straw also helps to suppress weed growth. Weeds, just like desirable plants, need sunlight for the seed to germinate, and for the plants to grow.  The straw shades the ground, and I have found that it will reduce weed growth by at least one half. The key is to put the straw out early before weeds get started.

The added benefit of the straw is that, unlike wood mulch chips, it degrades easily, and can be plowed into the garden in the fall to add organic matter for the following crops. 
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Friday, May 18, 2018

Benedict T. Palen Jr. - Turning Around A Struggling Farm


In 30 plus years of agricultural advisory work, I have encountered a number of farms that were successful, but also a fair number that were experiencing difficulties.  Each situation is unique, but there are some common, broad, themes that are applicable across almost all of those farms having issues.  While inherent in the notion of a struggling farm are financial issues, this essay takes aim at three basic things that, in some combination, lead up to financial issues.  There is a tendency in a struggling business to look for a panacea, or in the case of agriculture and its current rapid evolution of technology, the newest and greatest “big idea.”  Unfortunately, the quick cures and big ideas often miss the underlying basic issues.

Benedict T. Palen, Jr.


The first item is the soils.  The understanding of soils has come a long way from the time when NRCS soils maps were developed, which, in the case of many parts of the US, was 30 or more years ago.  There are now several more precise ways to evaluate soils on a farm, and then to better understand their capabilities and their limitations.  A starting point, for example, is using the Veris technology to map a field by zones; once those management zones are established, then soil samples are taken in each  of the zones, and prescriptions can be devised to match input usage with soil capabilities within each zone. 

Another factor for the soils is how they have been managed on a long term basis in terms of farming practices.  I have found otherwise productive soils to have serious issues with, say, hardpan layers, that will limit optimal results no matter the amount of money that is put into inputs for them, or the amount of water applied (if irrigated).  Correcting bad soil management practices requires patience, but it first demands the level of detailed understanding of the soils that can only occur by way of careful zone mapping of the fields. 

Benedict T. Palen, Jr.


An example of the above is a current project on a large irrigated farm where a one size fits all fertility and water management program has been used for years on various crops. The farm is failing, and our initial analysis has revealed exactly the kinds of soil related issues that I have just noted.  Crop yields are 50-60% of the true capability of the soils.  Water use efficiency is 20-25% less than what it should be because the years of poor farming have taken their toll on the ability of the soil to absorb water.   Steps are being taken to do the Veris mapping, zone specific soil testing, and then a prescription farming program will be put into place so that each field can be managed at a micro level basis.  While an ultimate goal of the program on this particular farm is very focused on no till practices, all fields are being deep ripped as a means of breaking up two hardpan layers that severely limit root development, and water movement.

The second factor is water management.  In a non irrigated situation, this generally means limiting tillage—which depletes plant available water with each pass over the field—and relying more on a no till or minimum till program.     It also means making frequent use of soil probes to check stored soil moisture prior to making planting decisions, and then during the growing season as a means of assessing crop potential, and the wisdom (or not) of applying additional fertilizer to achieve a certain yield goal.  Further, it means looking at the varieties of crops that can be planted, and determining whether evidence suggests that some varieties are more water efficient than others.   This goes hand in hand with understanding the soils because the water holding capacity of soils varies, and hence, one may make cropping decisions related to how water is available in some soils at differing levels than in others.

Benedict T. Palen, Jr.


On irrigated farms, I have found a fairly wide variance in the understanding of the importance of water management.    This is not just a question of applying X inches of water per acre. The key is making the water available where it is needed—at the ground level for the plants.  Many irrigated areas of the world have high evapotranspiration rates, and it continues to amaze me that inefficient irrigation techniques are still in use in a number of those areas.   What this comes down to is making a water budget for the farm, on a field by field basis (taking into account the aforementioned system of zone mapping of fields), looking at more efficient ways to get the water to the ground, and then tracking water use during the season, along with making good judgments on irrigation scheduling.  This is not a simple process, and there are several moving parts, but systems are available, at reasonable cost, for a farmer to tighten up water management.   In my experience, I have found instances where water use efficiencies could be improved from the 60% range to the high 80s with a few simple, and low cost changes to hardware.  In some of those examples, the updates paid for themselves with one season of use.

Benedict T. Palen, Jr.


The third item is people.  I like to say that all of the technology in the world will not fix a failing farm unless there is a sea change in one place—between the ears.  That’s right—attitudes have to change, to reflect the reality of tight margins in this business.   It involves going back to the basics, to the two most critical assets on the farm—soil and water resources—and how they are managed. Everything flows from them.   There are generational issues that get in the way of clear thinking in some cases. There is the attitude of “well, we have always done it this way.”   I tell my clients that we are starting with a clean sheet of paper, and that taking a step back and realizing that they have been stuck in a rut for a long time, will go a long way towards finding solutions.  As I said earlier, all of the hottest new tech out there will solve nothing if a farmer fails to sharpen his or her focus on the basics. Get them right, and then good things will start to fall into place.

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Benedict T. Palen, Jr. is a fifth generation farmer who works in an advisory capacity with farmers, investors, and others, involved in agriculture. He can be reached at 720-626-7661.               

Saturday, May 12, 2018

Soil Moisture Sensors As A Tool For Irrigated Farm Management by Benedict T. Palen, Jr.

In the rapidly evolving world of ag tech, there are many options—too many in the eyes of some observers—from which a farmer can make choices when he/she is looking at ways to manage water usage decisions in a more precise manner.   Perhaps the biggest questions for most farmers when considering a piece of ag tech are how is the data useful for me, and how does it add value?

Soil moisture sensors are not new, nor are they particularly high tech when compared to some of the precision ag tools that are available today; however, it has been my experience that, in many irrigated areas of the US and around the world, their use is not that common—unless there has been a push by, say, the local Natural Resources Conservation Service, or others—to increase their usage.  Many irrigated farmers still rely on the time honored method of using a shovel or soil probe, along with looking for areas of crop stress.  I find it interesting that, in this time where most farmers are very conscious of precise decisions with each step of the way for producing a crop, soil moisture sensors are not in wider use. 

Soil Moisture Sensors As A Tool For Irrigated Farm Management by Benedict T. Palen, Jr.


All of this came full circle for me during a recent NRCS sponsored event on soil and water conservation.   The gentleman who gave a presentation before mine was a researcher from Kansas State University who showed a slide that captured the essence of why these sensors are such an important tool in the toolbox.   Last year, K State had a pivot field (120 acres), of corn, with all cultural practices being the same across the field.  The only difference was that one side had soil moisture sensors installed, while on the other side, irrigation decisions were made by the “shovel method.”   Records were kept on irrigation water usage.  The crop yield difference was one bushel per acre between the two halves of the field.  But the water usage difference was significant—5.8 inches applied on the part with the sensors, and 13 inches on the side where a crop consultant used hand check methods!

There is no doubt that many irrigated farmers have taken steps to improve efficiency of water application, whether by using a drip irrigation system, or by updating center pivots with LEPA or LESA installations.  Further, an increasing number of farmers are using weather data to help in deciding when irrigation is needed, and how much.   That said, there is a missing ingredient in the equation.   And that is to know when to irrigate based on available soil moisture.   If you think of that stored soil water as a bank, consider that prudent folks do not decide how much money to spend on something without knowing how much they have in the bank.  It is the same concept, although this time it is with water.



There are a number of choices for soil moisture sensors, and some of the considerations for the decision include cost, which can range from a few hundred dollars to over $1,500, ease of installation, ability to capture data from the sensor remotely, the format of the data, and the soil types across a field.  

As far as the latter point, in theory one should have soil moisture sensors in use on all soil types across a field if one holds true to the idea of variable rate irrigation.   But the practicality of the cost of having multiple sensors comes into play.  I have worked with farmers who will use the approach of, say, two sensors in a field to pick up the majority of the soils types, and then extrapolating from the data that is generated to make decisions for the field as a whole.   It would be fair to say that, with higher value crops, such as almonds, there is a strong case for using sensors in almost all soils types; almonds are very sensitive to over or under watering, and using a “water prescription” that is too broad based can lead to uneven plant conditions, and yields, across a field. 



As far as the format of the data, it is important that the grower obtain it in a way that does not require elaborate interpretation; in other words, the sensor should indicate available soil moisture, and whether there is a need to irrigate.   Similarly, capturing the data through dashboards that the farmer may be using for other purposes is possible with some sensors, and it would be important for a farmer to give this consideration in the purchase decision, especially where multiple fields are involved, and time for data collection is constrained. 

In this time of much technological evolution in agriculture, what must not get lost is the usefulness of a relatively low tech tool—the soil moisture sensor.  As with any kind of changed practice in agriculture, this one requires an adjustment in mindset.  Breaking an old habit, in this instance, water application decision techniques, is not easy, but the proof is out there, from the aforementioned K State study, and elsewhere, that the soil moisture sensor is a tool of much value.   There are opportunities for cost sharing and other funding for the sensors via the local NRCS, and certain other conservation organizations. 
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Benedict T. Palen, Jr., is a fifth generation farmer with substantial experience in many phases of agriculture, and especially with regard to soil and water conservation techniques.   He has provided consulting services to farms in the USA, Africa, and in the Middle East.  He can be reached at ben@agmgmtpartners.com