In 2025 and 2026, our pilots offered a profit warranty (also called “profit guarantee”) that provided a safety net to support improved on-farm management. This allowed farmers to try a new practice while protecting their profitability. Our goal was to assess if a profit warranty can be a helpful new tool to optimize nitrogen use.
Our pilots were designed to help Ontario corn farmers optimize nitrogen rates through split nitrogen application in their fields, but without the risk of losing profit. Just like a warranty or a guarantee, this project paid farmers in the case of lost profits (factoring in yields, operating costs, and input cost savings) due to implementing split nitrogen application on enrolled acres. The objective was to help minimize the risks associated with implementing this practice.
Participation was free for selected farmers and included technical support for nutrient management planning and recommendations, full reimbursement for a required pre-sidedress nitrate test (PSNT)—a soil test used to determine appropriate nitrogen application rates—and an honorarium in recognition of farmers’ time and participation in the project.
Today’s producers face increasing challenges, from extreme weather to rising input costs. It may be harder than ever to farm today, with tight margins and complex management decisions that can have significant impacts on profitability. Every farm business is unique, and considering whether to integrate a new practice can come with different risks, unique to each operation. Part of a broader project exploring new tools to de-risking on-farm innovation, these pilots were designed to improve farm profitability, boost resilience, and optimize nitrogen use.
Participating farmers were required to:
Grow grain corn in Ontario in 2026.
Select between 1–3 fields to include in the project.
Have existing insurance coverage (e.g., multi-peril protection covering weather issues) for the project field(s).
Perform soil-applied split nitrogen application on at least 20 acres of grain corn, with no greater than 30 lbs N/ac at planting/pre-plant.
Maintain a minimum of 5 acres using business-as-usual practices in a representative area compared to the enrolled area, e.g. same soil type, similar topography, similar previous management practice.
Collect and share data, including accurate yield data (yield monitor, weigh wagon, truck scales, etc.), fertilizer management, and other field management practices.
Follow Good Farm Management Practices, including appropriate weed control and soil fertility management (i.e. maintaining appropriate pH and meeting crop nutrient needs for phosphorus and potassium, etc.).
Work with an agronomist, or be an agronomist, to interpret a PSNT and apply the recommended rate.
Participate in post-harvest project evaluation through a short survey and/or conversation to gather feedback and insights.
At the end of the season, potential profit warranty payments are calculated using this equation:
Per Acre Coverage =
Change in Yield & Management Costs - Fertilizer Savings
The 2026 pilot is ongoing, and a project report presenting results and key findings will be launched in 2027.
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- Contact innovation@farmersforclimatesolutions.ca to share ideas or ask questions.