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

FertilizerPhosphorus: Is Band Or Broadcast Application The Better Method?
February 3, 2016
Is band or broadcast application the better method when it comes to phosphorus? The answer to this question depends mostly Read More
Potash storage at Growmark
FertilizerThe Phosphate And Potash Outlook For 2016
February 2, 2016
Like other commodities, prices of the leading plant nutrient products dropped sharply in 2015. At this writing, the price of Read More
Young Corn Plants
FertilizerNutrient Considerations For Low Corn Prices
February 2, 2016
Corn prices are low and many producers are asking tough questions about their nutrient management programs. Here are some suggestions Read More
Granular urea from CF Industries urea plant in Donaldsonville, LA
FertilizerWhat’s In Store For Nitrogen In 2016
February 2, 2016
Supply is the overriding theme for the North American 2016 nitrogen outlook. In the last 12 months, global factors have Read More
Top 100 Articles
Elburn Cooperative
CropLife 100Elburn Cooperative Members Vote To Join CHS
December 28, 2015
With 81% of eligible producers voting, 94% cast an affirmative ballot for Elburn Cooperative, a diversified agricultural retailer based out Read More
West Central Cooperative, Jefferson, IA
CropLife 100Farmers Cooperative-West Central Merger Approved
December 21, 2015
The members of Farmers Cooperative Co. (FC), Ames, IA, and West Central Cooperative, Ralston, IA, have both approved the merger Read More
Wheat Growers Innovation Center, Bath, SD
CropLife 100Wheat Growers Opens Innovation Center
December 21, 2015
Wheat Growers’ commitment in providing its farmer-owners with the latest in technological advancements now has a one-of-a-kind focal point, as Read More
CropLife 100ARA Selects The Andersons As 2015 Retailer Of The Year
December 9, 2015
The Agricultural Retailers Association today named Maumee, OH-based The Andersons as its Retailer of the Year for 2015. The award Read More
CPS Washington Court House John Deere Sprayer
CropLife 100Application Equipment Report: It Is Easy Being Green For Top 100 Ag Retailers
December 5, 2015
On The Muppets television show, Kermit the Frog is famous for singing a song about the troubles he encounters in Read More
Fertilizer Bin
CropLife 100Fertilizer Sales: Another Down Year For Top 100 Ag Retailers
December 4, 2015
In pure number terms, the fertilizer category still dominates all crop inputs/services among CropLife 100 ag retailers. In 2015, for Read More
Latest News
Crop InputsBayer Contests EPA’s Decision On Valuable Insecticide F…
February 5, 2016
Crop Science, a division of Bayer, has announced it has refused a request by the Environmental Protection Agency (EPA) to Read More
Wheat Field North Dakota
Seed/BiotechSyngenta Wins Seed Fraud Suit Against South Dakota Grow…
February 5, 2016
Syngenta has obtained a $25,000 settlement from Paul and John Mayclin, Mayclin Farms, Plankinton, SD, in response to their Plant Read More
ManagementOABA Annual Conference Wraps Up In Columbus
February 5, 2016
More than 300 Ohio AgriBusiness Association (OABA) members and industry professionals were on hand to engage in collaborative learning and Read More
Crop InputsBayer To Contest EPA Flubendiamide Decision
February 5, 2016
Crop Science, a division of Bayer, announced today it has refused a request by EPA to voluntarily cancel the uses Read More
Syngenta
Seed/BiotechNot So Fast: ChemChina Syngenta Takeover Could Draw Nat…
February 5, 2016
State-owned China National Chemical Corp. (ChemChina), which plans to buy Swiss seeds and pesticide maker Syngenta, will promptly start preparations Read More
Rendering of Syngenta Seedcare Institute expansion
Seed/BiotechExpansion Of Syngenta’s North America Seedcare In…
February 4, 2016
As demand for seed treatment knowledge and products grows among farmers, retailers and others in the seed industry, Syngenta is Read More
Soybean Field
Industry NewsArysta LifeScience Strengthens Sales Team
February 4, 2016
Arysta LifeScience North America recently announced three new personnel additions: Jake Cook and Peter White are Territory Sales Managers for Read More
Davor Pisk Syngenta COO
Crop InputsSyngenta COO: Why ChemChina Offer Beat Monsanto’s
February 4, 2016
Syngenta Chief Operating Officer Davor Pisk says he is confident the proposed acquisition by ChemChina will ultimately help preserve choice Read More
Young corn plants in soil
Crop InputsKoch Biological Solutions Invests In Pathway Biologic
February 4, 2016
An affiliate of Koch Biological Solutions, LLC has acquired a minority equity position in, and entered into collaboration with, Pathway Read More
Crop InputsABG: China Signs Off On Monsanto’s Roundup Ready …
February 3, 2016
Monsanto Co. on Wednesday announced it plans to launch its Roundup Ready 2 Xtend soybeans in time for the 2016 Read More
Syngenta headquarters in Basel, Switzerland
Crop Inputs6 Things To Know About The ChemChina-Syngenta Deal
February 3, 2016
After months of rumors and speculation, Syngenta has announced that ChemChina has offered to acquire the Swiss-based company. “In making Read More
FertilizerPhosphorus: Is Band Or Broadcast Application The Better…
February 3, 2016
Is band or broadcast application the better method when it comes to phosphorus? The answer to this question depends mostly Read More
Syngenta Sign
Crop InputsChemChina Nearing Deal To Buy Syngenta For Record $43 B…
February 3, 2016
China National Chemical Corp. is nearing an agreement to buy Swiss pesticide-and-seeds-maker Syngenta AG for about 43.7 billion francs ($42.8 Read More
Herbicides2015 ASA Trials Demonstrate Valent Fierce XLT Herbicide…
February 2, 2016
Valent U.S.A. today announced that new Fierce XLT Soybean Herbicide ranks in the top tier among growers for length of Read More
Crop Protection Products in storage
Paul SchrimpfCrop Input Selling: Return Of The Price List
February 2, 2016
It was a good 15 years ago, shortly after I first started writing for this esteemed publication, that it all Read More
Potash storage at Growmark
FertilizerThe Phosphate And Potash Outlook For 2016
February 2, 2016
Like other commodities, prices of the leading plant nutrient products dropped sharply in 2015. At this writing, the price of Read More
Chesapeake Bay
StewardshipKeeping A Watch On Water Issues
February 2, 2016
During a down cycle in the market, it’s difficult to think about investing for the long term. For retail businesses, Read More
Young Corn Plants
FertilizerNutrient Considerations For Low Corn Prices
February 2, 2016
Corn prices are low and many producers are asking tough questions about their nutrient management programs. Here are some suggestions Read More