Fretting Focused On Fertilizer

Fertilizer costs and sales are very much top-of-mind these days for you and your grower-customers. In fact, most of the chatter on the CropLife website has been about fertilizer lately.

For example, one anonymous reader offered this confirmation of rumors the CropLife staff has been hearing: “N (Nitrogen) could be short in spots this spring, especially NH3 (anyhydrous ammonia). There may be solutions in some areas of the Corn Belt.

“Otherwise,” he continues. “I think P & K (phosphorus and potassium) will be off considerably due to the dealers being upside down. They cannot afford to write down their inventories and farmers are going to demand a cheaper price; therefore, they will hold off on application where they can.

“I think to sum up the problems out there, the retailers were led to believe there was never going to be a downside on fertilizer and the producers were telling the dealers and resellers the product would be tight again in ’09, thus they made the commentment to purchase high end inventories. That’s where the rubber hit the road back in July of ’08 at the Southwest Fertilizer Conference.

“I was in the business 39 years and I never remember an upside like we just went through. There will be dealers going out of business due to the pricing problems they are facing today. Given this. it will be a very interesting spring season in ’09. The men and boys will be separated this year, for sure,” he says.

Another reader, listed as ECIL, commented after reading “Storms Don’t Destroy ’08 Crop Bounty.” The article noted that USDA’s latest corn and soybean harvest reports show an excellent year for these crops.

“But this has knocked the heck out of growers’ interest of purchasing high priced imputs from last summer!” ECIL says. “Thanks PCS, Agrium, and Mosaic for your GREED!!!”

If fertilizer is also high on your agenda, be sure to check out our February issue of CropLife® magazine. Our fertilizer focus will target fertilizer industry trends, viewpoints of various fertilizer manufacturers, and a look at the micronutrient industry.

Do you know professionals in the ag retailer industry who might find this news briefing of value? If so, we hope you will pass along a copy of CropLife eNews to them, with our compliments. Their subscription will be free, as is yours. And they’ll thank you for it.

Leave a Reply

3 comments on “Fretting Focused On Fertilizer

  1. Less than 15 years ago Muriate of Potash was priced @ $90 per ton FOB. Now I understand the price reached near $1,000 per ton prices last summer. With the same mines, the same people, and the same machinery, where was the justification for these monstrous price increases? Potash producers were saying it was a supply/demand problem, then within the past few weeks Potash Corp and Mosaic have announced major production cutbacks and layoffs at their potash mines. Somebody didn,t seem to be telling the truth, now they want to cut production? A few things have changed in the past 15 years, then their were about a dozen competitive potash producers, now we have 3 large but very greedy firms who dominate and minipulate prices. Maybe it is time to regulate pricing during this time of crisis as was done during WW11,. Better yet, maybe the Canadian Government should nationalize some or all of the Canadian mines as they did when they created PCS in 1985.

  2. I posted and feel comfortable with the above. I worked in the Potash Industry for 18 years and would be very ashamed to call my self part of that industry now. There has been to much assimilation of smaller firms by the larger, in mining, manufacturing and in retailing. I can remember when the federal government investigated conglomeration, maybe with the changes in Washington smaller non-monopolistic enterprises will be regained and protected. Anonymous

Fertilizer Stories

FertilizerThe Fertilizer Institute: New President, Renewed Energy
February 3, 2014
Chris Jahn relishes the opportunity to lead the organization through the challenging times ahead. Read More
FertilizerA New Cycle For Fertilizer Demand
January 2, 2014
Changes in the corn market could have a major impact on the crop nutrients sector in 2014, say experts. Read More
FertilizerOSHA Hammers West Fertilizer With Over $100K In Fines For April Explosion
October 10, 2013
The Occupational Safety and Health Administration is fining the parent company of the West Fertilizer plant, Adair Grain Inc., $118,300 for 24 violations. Read More
FertilizerTFI Appeals Chesapeake Bay TMDL Ruling
October 10, 2013
The Fertilizer Institute joined a coalition appealing a U.S. District Court ruling on the Chesapeake Bay Total Maximum Daily Load (TMDL) for nitrogen and phosphorus. Read More

Trending Articles

Retail FacilitiesWaconia Manufacturing Builds Facility Designed For Speed, Efficiency
July 7, 2014
To make its new hub facility more efficient, Cooperative Elevator enlisted the aid of Waconia Manufacturing. Read More
EquipmentSummer Show Preview 2014: Superior Sprayers Take The Field
July 3, 2014
In this final installment of our coverage of the major categories of Big IRON that retailers can expect to test-drive at this summer’s events, here is a look at 19 sprayers. Read More
Scouting a soybean patch at Green Valley Ag.
EmployeesCropLife Compensation Survey: Battling Talent Drain
July 2, 2014
Retailers too often lose employees to companies outside of agriculture, while recruiting efforts are most often limited to competitors and other ag-focused organizations. Read More
HerbicidesDow AgroSciences Introduces SureStart II Herbicide
June 16, 2014
The enhanced formulation has improved viscosity and increased stability under heat and controls more than 60 high-anxiety grasses and broadleaf weeds found in corn fields. Read More
HerbicidesBASF Investing $270 Million To Expand U.S. Herbicide Production
June 11, 2014
BASF has invested more than $270 million to expand herbicide production capacities in the U.S., including more than 20 new products to be launched over next two years. Read More
EquipmentGPS: 25 Years And Still Growing
June 2, 2014
The evolution of global positioning systems applications in agriculture remains ongoing as the technology hits a notable milestone. Read More

Latest News

CropLife 100Pinnacle Forms Alliance With Wildlife Managment, Seed O…
July 25, 2014
The strategic alliance will provide Tecomate with key wildlife products, processing facilities, distribution centers and sales through Pinnacle’s ever-growing retail network. Read More
ManagementFranken Presses White House On RFS Support
July 25, 2014
Al Franken and a group of Senate democrats recently met with senior White House official John Podesta to urge the administration to change its position on an EPA proposal. Read More
ManagementASA, FarmLink To Launch ‘Operation Benchmark̵…
July 25, 2014
The American Soybean Association (ASA) and FarmLink are teaming up to help farmers close the $11 billion gap between what they harvested in 2013 and what they could harvest annually. Read More
StewardshipNorthey: Farmers Commit $1.4 Million to Try New Water Q…
July 25, 2014
The practices that are eligible for funding include cover crops, no-till or strip till and using a nitrification inhibitor when applying fall fertilizer. Read More
Precision AgFarmers Learn How Changing World Will Impact Iowa
July 24, 2014
Technology and understanding global consumer demand for Iowa farm products brought hundreds of farmers and agribusiness leaders to Ames recently for the annual Iowa Farm Bureau Federation Economic Summit. Read More
HerbicidesPurdue: Late Season Weeds May Require Manual Removal
July 24, 2014
Hand-rouging and pulling late season weeds by hand may be the best way to remove them, more so than using a herbicide, a Purdue Extension weed scientist says. Read More
Soybean Field
InsecticidesTransform WG, Closer SC Insecticides Receive R&D 10…
July 23, 2014
Dow AgroSciences has received the award from R&D Magazine for Transform WG insecticide and Closer SC insecticide with Isoclast active. Read More
EquipmentKinze, Raven Team Up On 4900 Planter Monitor
July 23, 2014
Kinze Manufacturing announces a partnership with Raven Industries to develop a standalone monitor solution for the Kinze 4900 series planter. With this new Read More
LegislationNew Farm Bill Continues To Confuse As Growers Await USD…
July 23, 2014
The new five-year Farm Bill eliminates many of the direct payments previously payed to growers and could benefit from USDA clarification, reports a Toledo Blade columnist. Read More
EquipmentPrecisionAg.com Relaunches With Responsive Design For M…
July 22, 2014
PrecisionAg, the worldwide leader in precision agriculture information and analysis, announces the launch of its completely redesigned website, PrecisionAg.com. Read More
FungicidesEPA OKs Two Willowood Fungicides
July 21, 2014
The EPA has approved Willowood Azoxy 2SC and Willowood AzoxyProp Xtra. two widely used broad spectrum, preventative fungicides with systemic and curative properties. Read More
Precision AgFarmers Learning Fast As UAVs Take Off
July 17, 2014
Farmers and others interested in how UAVs can be used in agricultural applications were able to learn more about the technology during the recent Precision Aerial Ag Show. Read More
CropLife 100Bobby Knight, Richard Petty To Highlight Ag PhD Field D…
July 17, 2014
Attendees at the July 24 Ag PhD Field Day at Hefty Farms will learn about the latest agricultural technologies, and get a chance to meet legendary sports figures Bobby Knight and Richard Petty. Read More
WebinarsUpcoming Webinars
July 17, 2014
Register for one of our upcoming Webinars or access our archive of past Webinars to view recordings of presentations that may be of interest to you. Read More
A finished Willmar 16-ton side-shooting tender.
TendersNew Production Facility Helps Willmar
July 17, 2014
In 1963, a group of businessmen started Willmar. Today, a half-century later, the company is one of the ag industry’s longest-running brands. Read More
FertilizerCF Industries Sells Carbon Credits To Chevrolet, Donate…
July 17, 2014
CF Industries has completed the sale of a large block of carbon reduction credits to Chevrolet, and will donate the net proceeds of $600,000 to the National FFA Foundation. Read More
CropLife 100Grainland Cooperative, Minier Cooperative Grain To Merg…
July 17, 2014
The shareholders of Grainland Cooperative and Minier Cooperative Grain Co. approved a merger of company operations effective August 1, 2014. Read More
ManagementStudy: Drought Costing California Billions
July 17, 2014
A new study has found the drought has cost the state $2.2 billion, primarily in lost farm revenue and wages. Read More