OK lets all put money in for the FNA seed capital

[LEP]

There is no question that more North American
manufacturing capacity will help reduce prices.

But with the other announced plants it will never get
the financing.

I just think FNA has trouble following through so you
might be better to take your $1,000 and take your
significant other for a wild weekend in the city.

The screwin' you get will feel a whole more satisfying.

[Hopperbin]

If nothing else happens but the 100 year Gas field gets bought up with rail access that should be enought of a threat to lower prices. Thinking out of the box here but what if us FNA farmers with all our acres get together and demand a price on our N or we go ahead with the plant? This plant is not going to be owned by FNA but only by us farmers putting the seed money into it. We could actually get together and demand a lower price on fertilizer and leave the rest with a higher price. Just some out of box thinking that could come of this. The seed money shareholders will have some power here and as I am hoping we are a lot further ahead than the public is allowed to know.

[Hopperbin]

Putting power in farmers hands may actually work against them (FNA). Out of box but a lot of things can be done with power. Just think of how happy the wife will be when she feels the power. Will be no need for shopping in the city. LOL. Get the fifth wheel stuck in the snow and break out the sleds.

[makar]

Pricing from canada instead of the gulf of mexico would help. Insane. We have paid freight both ways for years.

[makar]

This was tried years ago in the peace by john neil. failed. the big money will not let it happen.

[Hopperbin]

Makar the big money will not let it happen? We are the money. What the hell you talking about???? We pay for the fertilizer, there is no other money. Do you go with the conspiracy that big oil shuts down every fuel saving technology?

[Hopperbin]

Kathy Mathers, vice president of public affairs for The Fertilizer Institute, said the cost of natural gas represents 70 percent to 90 percent of the cost of producing nitrogen. Natural gas is the heat source in the chemical process that produces nitrogen.

http://qctimes.com/news/local/article_ac1798b4-d153-11e1-8b79-001a4bcf887a.html

[Hopperbin]

Activist shareholder Jana Partners LLC thinks Agrium is underperforming in its retail arm.

http://in.reuters.com/article/2012/08/15/us-agrium-jana-meeting-idINBRE87E18Q20120815

Perhaps the bigger they are the harder they fall cause no way in hell the retail arm will do better. Yet the Makars would like to believe it. Not sure why.

[sumdumguy]

I have no idea if this will actually materialize and
all will be better off, but I do remember Round-
Up and how expensive it was. Maybe history will
repeat.

[bucket]

But FNA never built a glyphosate plant. They made deals with the manufacturers.

I think they could do the same thing now with an overseas supplier of fertilizer.

[Hopperbin]

Jana wants to sqeeze more money out of
agriums retail

[Hopperbin]

Jana wants to sqeeze more money out of
agriums retail

[dmlfarmer]

Bucket, if it is cheaper to bring in off shore fertilizer, don't you think someone would already be doing it and competing with the Agrium and Cargill and CHS's of N.A. That is the nature of the open market and free enterprise.

The fact is Agrium knows exactly what is would cost to bring in off shore fertilizer and they price their N.A. supply at that price which stifles any competition from importing. Meanwhile, their profit margin is boosted by the fact natural gas in N.A. is cheaper than elsewhere, that China imposes export tarriffs on fertilizer, that N.A. imposes import tarriffs on Russian fertilizer, and that the shipping costs and risk costs for importing fertilizer are much greater than other commodities because of physical composition of fertilizer. It cannot get wet and tends to dust off when handled. And it does not hurt that nearly all the N.A.port facitlites that could handle unloading fertillizer are owned or operated by the current fertilizer manufacturers or their partners.

Agrium also know building a new, efficient production facility will cost about a billion dollars and take 3 years to construct. They know farmers alone can not come up with that type of money with no payback for 3 years and that investors are not going to support a plant working on selling the product at cost.

A single new plant in Canada will have little or no effect on fertilizer price now or in the future. However, investors in a new plant may do well provided the world fertilizer price stays high,our natural gas prices stay low, and demand for N continues to grow.

[dmlfarmer]

correction to my last post "CF Industries" (not CHS)

[HappyFarmer]

Well said dmlfarmer
My thoughts exactly!!!!!!