CROP PRODUCTION SERVICES, INC. Implementation of Sustainable Agricultural Initiatives



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CROP PRODUCTION SERVICES, INC. Implementation of Sustainable Agricultural Initiatives TFI and FIRT Fertilizer Outlook and Technology Conference Presenter: Bill Grillo November 2010

TOPICS Crop Production Services, Inc. a brief overview Seed Technology contribution to Sustainable Agriculture Soil/Tissue sampling important to Sustainable Agriculture Precision Placement of P growing use of Pop-Ups Nutrient Efficient Fertilizers growing importance

PART 1: Overview of CPS

Crop Production Services - US, Canada, South America - Approx 900 Branches/Terminals - Approx 9,000 Employees - Sales: - Revenue: $6.1 billion - Fertilizer Tons: 6 million 16% 43% 41% Sales Fertilizer Crop Protection Seed, Services, Other Source 2009 Agrium Annual Report

CROP PRODUCTION SERVICES

PART 2: Seed Contributing to Sustainable Agriculture

Sustainable Agriculture and Seed Technology Seed Applied Insecticides Sustainable Factors Insect Traits Herbicide Traits

Benefits of Herbicide Traits Existing Seed Herbicide Traits RR/Glyphosate Resistance Liberty Resistance Sustainable Agriculture : Benefits of Herbicide Traits Majority of CPS Corn/Soybean Seed is Traited Better weed control Less active ingredient used per acre Wider windows for application with improved crop safety

Insect Traits Bt Technology Corn Seed Insect Traits that contain Bt Technology: Controls many insects: Earworm, cutworm, borer, rootworm, etc Majority of CPS Corn Seeds have a BT technology. Sustainable Agriculture : Benefits of Bt Technology Carries season long insect control. Eliminates potential rescue treatments. Trait = 100% control Soil applied = 60-90% control. In most cases trait is cheaper per acre than soil applied controls.

Seed Applied Insecticides Treated Seed: Applied Insecticides The last 7 years has seen an explosion of low usage seed applied insecticides on Corn seed. Seed Applied Insecticides+Bt Traits has significantly reduced soil applied insecticides on corn. By not spraying wide spectrum insecticides, beneficial insects are spared. Less worker exposure as a result of less soil applied insecticides.

Corn Seed Traits Coming Next Drought protected corn protect 10-25% of yield during weather stress next 5yrs. Nitrogen Efficiency Gene will have in less than 10yrs Improve Corn s nitrogen usage efficiency doesn t necessarily mean less N volumes but rather Higher Yield Potential.

Seed & Sustainable Agriculture Seed technologies that Lower the amount of pesticides used per acre. Improve the quality of life for the grower/retailer Season long control requiring less time scouting Reduce use of soil applied herbicides and insecticides Less worker exposure Less off target applications on beneficial insects Next 5-10yrs Corn Seed Drought Protection & Nitrogen Efficiency

PART 3: Soil and Tissue Sampling Contribution to Sustainable Agriculture

Richard Mead Fresno, California

The Process Tissue & Soil sampling Testing Input Results Make the Sale Recommendations Consulting

Grower sees NS as a translation of laboratory data offering a turnkey solution to a particular nutritional problem in the field. CPS Salesperson sees NS as a tool customized to his/her market that helps sell specific products for each nutrient that s required. CPS Management sees NS as an analytical tool that can glean agronomic data within local geographies to discern trends in order to market this or next season s products.

Justus von Liebig (1803 1873) was a German chemist known as the "father of the fertilizer industry" for his discovery of nitrogen as an essential plant nutrient, and his formulation of the Law of the Minimum NutriScription looks at ALL nutrients, NOT just NPK The plant never lies

What is a recommendation? A recommendation connects a nutrient range* with a potential product * Source could be agronomic literature, NS certified labs or universities

Graphically illustrate data Lab data Recommendation % p.p.m.

Use of soil & tissue analysis to 1. Apply only those nutrients that are needed to meet the agronomic yield goal 2. Correct costly deficiencies before they reach critical yield loss stages 3. Aggressively push for increased yields when crops are in good shape (Adequate moisture, degree days etc.) The utriscription Program is a key initiative in CPS focusing on sustainable agriculture for our grower customers!

PART 4: Precision Placement of P Use of Pop-Up Fertilizers on Corn

Why Precision Placement of P 1. Maximize yield through supplementation of standard fertility programs 2. Highly efficient, low salt, loaded P products are EXPENSIVE 3. Allows us to maximize that investment through lower application rates in furrow 4. In furrow applications are usually more efficient than broadcast

What Are We Applying (7-17-3) - P based starter with Cu, Fe, Mn, Zn used at 2.5 gallons/acre OR (6-20-0) Organic Acid based P starter with Zn used at 2 gallons/acre PLUS Concentrated biochemical fertilizer catalyst used at 2 pints/acre

What Are We Getting Since the ear is determined at V5 stage A strong, healthy plant at V5 allows us to reach the yield potential by maximizing the number of rows. Assuming adequate fertilization after the ear is determined.more rows equals more yield!

Precision Placement of P 1 21 22 1 2 14 2 12 13 3 20 19 3 11 18 4 17 10 16 5 9 15 8 7 6 14 12 10 9 1312 11 4 5 6 7 8 Same variety, same day, same field The only difference was the in furrow starter program providing the plant the right the opportunity to reach it s potential!

PART 5: Nutrient Efficient Fertilizers and Applications

Nutrient Efficiency 1. Controlling N loss Management of denitrification, volatilization and leaching 2. Highly efficient foliar applications Combined with highly efficient product formulations 3. Supplementation of standard programs with high efficiency products

Nutrient Efficiency tissue sampling to diagnose and prescribe the right product to Feed Your Crop s Hidden Hunger family of fertilizer catalyst products to both protect and free up soil applied fertilizers

Sustainable Agriculture

Summary CPS - helping our Grower Customers ensure Sustainability Starts with the right seed It s all about traits! NutriScription Soil/Tissue Sampling Program The right products at the right time! Precision Placement of Phosphates with Starters And Use of Nutrient Efficient Fertilizers The right products in the right place at the right time!

Questions? Thank you!! Bill Grillo, CPS bill.grillo@cpsagu.com