Tuesday, October 29, 2024

How to Buy and Sell Liquid Manure in Iowa: Key Steps and Requirements

 Buying or selling manure may sound straightforward, but liquid manure adds a layer of complexity due to specific regulatory requirements. Unlike solid manure, which is generally covered by more straightforward guidelines provided by 200A, liquid manure requires coordination with a farm's management plan, especially if the seller's operation has more than 500 animal units.

Here's a breakdown of the requirements and steps for selling liquid manure.

1. Understand the Role of the Manure Management Plan (MMP)

Liquid manure applications are tightly regulated for any farm with over 500 animal units. The field receiving the manure must be included in the farm's Manure Management Plan (MMP). This plan essentially documents where, when, and how much manure will be applied to stay within environmental and agronomic limits.

For liquid manure sales, this means:

Sellers must ensure the buyer's application fields are listed in their MMP. The field needs to be soil sampled and have Phosphorus Index tests run before manure is applied. These results are good for up to four years (assuming they align with the timing of the farm's manure management plan).

Buyers need to provide a "Statement of Intent" to specify the amount of commercial nitrogen they plan to use on the field receiving the manure.

2. Statement of Intent for Commercial Nitrogen

The Statement of Intent from the purchasing farm clarifies how much additional nitrogen they propose to apply. This document helps regulators and sellers confirm that the buyer follows appropriate nutrient management practices. The Statement of Intent also ensures that applications don't exceed environmental thresholds.

3. Why Liquid Manure Requires a Plan (and Solid Manure Doesn't Always)

In the case of solid manure, sales are often managed through simplified "200A regulations," which allow farms to record sales without extensive management plan updates. Generally, the solid manure analysis goes through a process to get registered with the Iowa Department of Agriculture and Land Stewardship (IDALS), which provides a "guaranteed" nutrient value basis. The guaranteed analysis is generally set lower than anticipated for nutrient concentration to ensure it always meets this level. Farmers can use this, or other sample analysis results, to negotiate a sale price based on the actual value, not just the guaranteed value.

Liquid manure, however, isn't sold through IDALS. The regulatory burden to ensure good use of manure nutrients is adhering to the MMP and ensuring a compliant nutrient application strategy.

4. Finalizing the Sale: Ensuring Compliance and Environmental Responsibility

The final steps involve ensuring both parties understand the value and nutrient content of the liquid manure. Although a nutrient guarantee isn't required, many sellers will still provide an analysis to give the buyer a reliable estimate. This analysis can help both sides negotiate a fair price and set application rates that respect crop nutrient needs and environmental limits.

In summary, selling liquid manure can be a practical and profitable move with some additional planning:

  • Ensure the application field is in the seller's MMP if the operation exceeds 500 animal units.
  • Buyers should provide a Statement of Intent for commercial nitrogen.
  • Clarify the nutrient value of the liquid manure with a shared analysis.

By following these steps, buyers and sellers can take advantage of liquid manure's benefits, navigating the regulatory requirements smoothly while maintaining their farm's productivity and environmental compliance.