FNA Fertilizer

[Rareearth]

Their are many design build companies to build a
plant, most of the planned projects will go with
this. The challenge is financing, do the farmers
really need other investors or is it a security
blanket? Depends how much is raised, control is
everything.
Any one can build a business, processing pant,
manufacturing facility. The real challenge is the
marketing and distribution. That is why
institutional investors are interested, captive and
committed market.
It's a perfect hedge for the farmers if they have
control, as they are the end users, in full control of
the value chain, with significant logistical
advantages. Who would be able to produce, and
distribute at a lower cost?
If market prices are high, the processing plant
makes money and pays dividends, if shit hits the
fan, plant breaks even all other plants go away,
and farmers have low cost N hopefully maintain a
cost of production(grain) that is competitive with
other unemcumbered grain producers.

Why wouldn't FNA just buy a operating plant in
Sask or Alberta vs build? A unconventional take
over or merger acquisition? This should be the
strategy. Some of the independant grain
terminals did this on the west coast, and very glad
they did