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In the worst event, you still break even. That's a pretty good scenario when it comes to making adjustments to fertilizer and tillage practices.

One program is offering farmers a risk-free opportunity to experiment with best management practices (BMPs) by paying them if they lose money on yields. The BMP Challenge essentially allows farmers to set up a research plot on their farm at no cost, explained Mark Wilson, who is president of Land Stewards, LLC and is helping to spread the word about the program.

"They've got – on their farm, on their soil type, on their weather pattern -- numbers that will help them in the future," he said

The way the program works is this: a farmer applies fertilizer at university recommended rates on up to 160 acres. That crop is measured against a check strip on which the farmer applies fertilizer at his normal rate. If the net income per acre on the check strip is higher, the farmer gets paid the difference for the BMP land. Even better, the BMP land generates a higher net income through money saved on inputs. A similar program is available for reducing tillage.

Brian Brandt, director of risk management programs for American Farmland Trust, said farmers too often rely on using inputs as a risk management tool.

"Risk is a factor in farms, and it’s the reason sometimes they don't adopt a new practice," he said.

He said farmers could think of this program as insurance. If they try a new practice and it doesn't work, they are compensated. If they save money, they are asked to pay back a small percentage of their savings – a maximum of $6 per acre – to keep the program going.

In 2006, farmers participating in Ohio found they over applied nitrogen by an average of 44 pounds per acre. At current prices, that adds up to about an extra $11 per acre.

"That 44 pounds goes somewhere," Wilson said of the unutilized fertilizer. "Either up into the atmosphere or down into the water." The one place it doesn't go is back into the farmer's pocket.

To find out more about participating in the BMP Challenge, call 608-663-4697 or visit www.bmpchallenge.org.