Fertilizer pricing

[dfarms11]

Does anyone here purchase their fertilizer straight from the manufacturer? I am just wondering if I could save some money that way. Especially with the high dollar right now and the expected rise of natural gas coming for purchasing this fall.

[henbent]

Years ago, here in A.B. companies used to sell to individual farmers. There was a least one company in Fort Saskachewan where farmers could line up and wait for service (meanwhile commercial vehicles passed the lineup) and were loaded. Farmers waited for hour upon hour to have a chance to load up themselves and save a bit. This practise however stopped. In fact, the last I heard was that companies refuse to sell to individuals, instead directing them to their retailers. Farmers recently tried without success to buy spray products, but were denied.

[sshiels]

I have a friend in southern MB that buys direct. What are you looking for and where?

[rain]

Interestingly if fertilizer cost are supposed to be 60-70% energy cost (natuarl gas)since june of this year natuarl gas prices have depreciated by 40%. I hate talking conspiracy theory x-file stuff. I do not see why fertizer prices are higher then last year. Each day you wait to buy and neighbors do buy your fertilizer in theory will get cheeper as more expensive natural gas in storage is replaced with cheaper new gas new make more fertilizer.

[henbent]

rain, You are not suggesting that the open market would take advantage of us poor farmers! It appears to me, that when grain prices are good, or we've had a decent crop, FERTILIZER PRICES ARE HIGH. This tends to repeat time after time. What a racket!!

[rain]

Open markets are good. 0 competition is not good.

[dfarms11]

Well I guess I would for the most part be looking for urea since it is the most volatile and most needed. Although if the prices were right I would buy 11-51 as well. I am from the Edmonton area.

[dfarms11]

On another note, about your discusion on the prices being not really related to natural gas price because it should have been cheaper this year, this is something I have been told. All the big wigs that have the natural gas don't like to produce fertilizer. They would rather store their excess "cheaper", natural gas produced in the summer than create fertilizer with it. The obvious reason being that they can make their top dollar selling that natural gas in the winter at the high rates. Therefore fertilizer prices are based on the highest price of gas throughout the year, not being priced accordingly throughout the year. Hope what I just said came out right!

[henbent]

I thought that, supply and demand was what drives the open market. Apparently in reality, it is greed! Everyone is grabbing and gouging. The only exception to that rule is commodity prices, grain is cheap and according to some, should be cheaper!!

[wd9]

So why do we buy more expensive fertilizer to produce more grain to lower its value?

[sshiels]

Alot of times it seems counterproductive to be a better farmer. The better and more efficient producers get, the more they grow, and the more supply problems, and lower prices we have. If the past years are any indication, we are overproducing (if you want to believe the low prices). What to do? Back to half and half?

[sshiels]

Henbent good to hear from you, are you still hugging the CWB and dewelling in your solialistic chicken house. I haven't had a good arguement since last winter when we conversed on these threads.

Hen have you seen the Alberta gov. survey on markerting choice. I bet that curled your "we'll all go broke together single desk selling attitude.

Lets remove ourselves from the CWB choke hold and enter the greedy world of corportations who only want to make your world better through choices of betterment. It might give you a chance to risk manage your little spread to unknown before profits.

Even Chairman Ken Ritter of the CWB stated "They must be expected to go head to head with meaningful competitors who will force them to continuously strive for the lowest cost structure and the best service in an open and fair marketplace. The federal government's refusal to adopt effective rights is unacceptable."

Sounds like and odd statement coming from the Chairman of the CWB Monopoly which is dead against rights or competition for selling grain. His speech was made in effort to get the govenment to allow joint running rights for any rail companies who might want to use the rails to move grain. He's starting to make different rules for different folks to suit his situation. His statement actually is ridicuous to his own ideals. Sounds like a pot calling the kettle black.