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Are Canadian Farmers Just Stupid!

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    Are Canadian Farmers Just Stupid!

    For years I have been giving examples of what we are charged for products VS our Cousins in USA and for years nothing changes Canadian farmers pay what ever the company's ask and we keep going.
    FNA is a prime example they do all the work to get Clear out 41 into Canada. I mean look at all they had to do, dealing with Bureaucratic idiots isn't easy, trust me. But I have neighbors that are totally pissed at them because they cant go to the US and get the product now. I told the one guy look for a new generic and you do all the ground work to get it in Canada and then see if you feel the same way.
    But anyway here is a few Anhydrous, comments.
    Anhydrous Could Hit $800 per Ton This Spring in the USA. 1 short ton converting to metric tonne .9078 but in Canada my guy is saying could be $1200.00 a tonne out of Belleplain. Hm is someone BSing us again. $400.00 per tonne difference then do the math and its worse.
    Last summer retail prices averaged around $500 per ton in the USA and went up as high as $650 per ton into the fall application season," he says. "We're going to see a substantial increase in spring prices, starting at around $645 per ton up to the high $700s and maybe over $800 per ton."
    'Money grab'

    While some retail dealers are offering forward pricing for spring application, many are still waiting to see how it "shakes out," says Dillier. Either way, farmers aren't happy.We just got quotes from our usual source for fertilizer - $685 per ton for ammonia and $360 per ton for 28% solution," says Brian King, who farms near Marion, Ind. "These are up from $640 and $340 just three weeks ago. The manager says the prices may be good for one day or two weeks, until the next round of increases comes along. What a bunch of B.S. this has become.

    "Farmers have finally started to be rewarded for the risks we take and now every supplier has their entitlement mentality in high gear and are forcing their collective hands deep into our pockets to extract their piece of the pie," he adds.

    "Where is the 'extra' demand coming from? Are there magically more acres created in some far flung area? There is more to this money grab than is being reported."

    Price relief

    Dillier believes some price relief will occur later in 2008, thanks to added production capacity. "Prices may not fall back to the levels of a year ago, but I don't think they will continue to rise dramatically from the prices we are at now," he says.

    Added fertilizer capacity is scheduled to be built in countries where there is cheap natural gas - mostly the Middle East, Qatar, Latin America, and in places where there hasn't been any production until now, such as Peru and Trinidad. But it will take some time to get those new plants and additions online.

    World fertilizer production has increased in the last two years and will increase even more in the next two years. The problem now is, demand outstripped that capacity. "Three years ago the marketplace was worried that these capacity additions were going to hurt the market price for fertilizer because of oversupply," says Dillier. "That was from the industry perspective. That has not happened; prices have shot up to record levels.

    If a recession occurs in Brazil, China or India, where economies are growing fast, fertilizer demand will fall. But even without an economic hiccup, increased production capacity should somewhat temper these higher prices.

    "I have to believe we will have seen most of the big price run up by the end of the spring 2008 planting season," says Dillier. "But prices will continue at pretty strong levels. I don't think we'll go back to the levels of a year ago for at least a couple of years."
    So yes their are differences in Anhydrous again on each side of the Border. Canada high Vs US cheaper. Production from Canada.
    NO WOUNDER WE STILL HAVE THE CWB INPLACE!

    #2
    To answer your question SASKFARMER3, I would say basically we are stupid! As far as controlling the cost of our inputs, sometimes we have no choice in this matter.However, we do have a lot of control on our revenues and more so if we had no CWB. Now that is the definition of stupid to keep this useless,obsolete, piece of CRAP in existence. Mr. Harper, bury this damn organization!!

    Comment


      #3
      What I am trying to say is yes we can control the price we receive for all crops except CWB crops and that is a great thing but we need to have our organizations, Canola growers Wheat growers Barley,flax oats plus provincial groups to quit taking money from Chem and Fert industry and actually look at whats happening on Inputs. Taking your fair share is normal but Steeling is a crime and on the Canadian fertilizer industry its just plain Highway Robbery.

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        #4
        Capitalism at its best(or worst scenario). As much as I despise socialism, there seems to be no middle road in the short term. If the price of product gets to high, hopefully more players get into the game to reep these excessive profits and bring the prices down. Like my broker told me, if the companies are doing exceptionally well, buy the company and not their product. If the prices of our grain stay at the current levels, there is still a greater margin for us even at the high cost of N.

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          #5
          Lesm and S.F.,

          Fertilizer, we are a "small" market in relative terms... with Canadian Law that allows anti-competitive alliances that fix prices. The CWB mentality has been encouraged by the Liberals since the second world war.

          Large funds now mean that hedges themselves carry a huge risk. If you hedge yourself @ 10/bu... and the market goes to $20/bu... have you the 100% margin for the $10/bu?

          In the mean time the Banks are just waiting on the other side... to clean up on us... if we do something "stupid". Take a margin call on 100,000 bu of wheat... @ $10/bu... do you have the 1M sitting there to pay out cash for the margin?

          Then everyone wants us to hold our inventory... pay our advance off by Jan 1, it just goes in circles!

          And the "professionals" have no more idea or knowledge where this goffy thing is headed... than you or I.

          Larry Martin and the folks at the George Morris Centre are smart, hard working people. Yet as good as they are... the Hog people are being wiped out because why?

          THis I the way it was in the 1920's. Pools are very useful to subdue volatility... IF properly managed.

          So would the CWB... if they would set the politics aside and be honest with us.

          But the world is all about politics. We need CGC Producer Security more than ever in these volatile financial times... yet this is set to be removed.

          WHY?

          Let us not just swing the axe... because folks did not do a good job... lets do a better job and build a stronger unit... not smash it to pieces!

          We do have much to be thankful for... the reality is hyperinflation of the monetary system. $100/b oil means $10/bu wheat and $15/bu Canola... along with a doubling of fertiliser costs.

          ON BNN I just heard a smart guy talk about sand and gravel.

          As the transport cost rises... so does replacement cost. A $1M cost to set up a crushing system... the big Agragite boys have consolidated... in Canada just like every one else.

          All of a sudden... bingo... sand and gravel costs twice as much! Inflation!

          When the Deflation comes... will you be ready?

          Ask a livestock guy... if it will come! IT WILL!

          Comment


            #6
            SF3 FNA is a coumpany that sells farm chemicals. The only reason they did all the work to bring clearout into Canada was to make money for their company.

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              #7
              Tom,your talking about extremely complex things.

              http://www.financialsense.com/fsu/editorials/schiff/2007/1221.html

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                #8
                Should have added that this is an extremely good article.

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                  #9
                  In my opinion.

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                    #10
                    s.j. on the same note, after they did all that work and brought in the clearout, I sure noticed the price of roundup in the store drop. Same with the easy and cheap importation of pour on chemical for cattle. For many northern farmers, FNA has definitly helped out. I can't afford to spend 2-3 days traveling to the border & back to go shopping. I'd rather pay a bit more and have someone else do the work for me and deliver it up and still save 50% over brand name. Thats worth something. FNA has definitly yanked these chemical co.s chain, and their pissed now.

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