Friday Crop Report on a Thursday.

[SASKFARMER]

When the fertilizer industry is on side with 30% reduction like skippy wants I would say we’re going to have todays prices into the future. They make same profit and sell 30% less. Were fu ked as farmers again.

Our farm groups in the dark again

[bucket]

When the fertilizer industry is on side with 30% reduction like skippy wants I would say we’re going to have todays prices into the future. They make same profit and sell 30% less. Were fu ked as farmers again.

Our farm groups in the dark again

Has anyone noticed the attack on the Liberal fertilizer reduction never mentions the actual cost of fertilizer.

Or what farmers base their decisions on? Soil test , crop rotation , soil moisture, and soil moisture.

Reductions will happen for those three reasons more than anything else.

Now throw in double in price and reduction targets will be met.

Conservatives met with Fertilizer Canada , this has nothing to do with farmers. Its a lobbying effort by the fertilizer companies and the conservatives are puppets.

If they gave a shit about farmers , there would be the same attention to western Canadian farmers as what there was in 1988.

[BTO780]

How will this reduction affect the Canola Council of Canada saying yields will be 50 average by 2025?
I’m sure last years drought brought down the average quite severely.
I sure hope we don’t grow less for less, or else there will “less” of us around.

[dmlfarmer]

Canadian fertilizer pricing is not a environmental/Liberal/WEF plot. It is capitalism at its finest. Canadian fertilizer has been priced off the Black Sea region for years, because this is where competitor product would need to come from to replace Canadian production therefore this is what Canadian fertilizer producers price against. Fertilizer producers do not price on cost of production, they price on competitive replacement of product.

The same situation exists in fuels. Profit is maximized by charging buyers the maximum price before buyers switch to a competitor.

Canada is an net exporter in N fertillizer, fuels, and even ag commodities, and all are priced NOT on production costs, or what Canadians can afford to pay, but rather based on a world pricing basis of what is the maximum value that can be extracted by sellers/traders.

Older farmers will remember Canada once had a 2 price system for wheat whereby the price for domestic use of wheat was controlled. Saudi Arabia still offers low gas prices to Saudi citizens regardless of world price of oil If we truly had a socialist government, fuel, N fertilizer, and food commodity prices could be limited for Canadians use without short term shortages since we are net exporters. However, the blow back by global companies and their shareholders would be immense.

Consolation of industry in the names of ever fewer companies have given those companies more power than the governments of many countries. And the pricing problem will continue to worsen as competition continues to lessen in all industries.

It is easy to blame lefty dogma for high prices. Trouble is, it is the exact opposite that is the cause of high input costs like fertilizer and fuel.

[shortbox]

Has anyone noticed the attack on the Liberal fertilizer reduction never mentions the actual cost of fertilizer.

Or what farmers base their decisions on? Soil test , crop rotation , soil moisture, and soil moisture.

Reductions will happen for those three reasons more than anything else.

Now throw in double in price and reduction targets will be met.

Conservatives met with Fertilizer Canada , this has nothing to do with farmers. Its a lobbying effort by the fertilizer companies and the conservatives are puppets.

If they gave a shit about farmers , there would be the same attention to western Canadian farmers as what there was in 1988.

I think we got more press in 88 but I never received f all from government

[sumdumguy]

Over-Consolodation of industries is hopefully offset with new entrants but those are probably very reluctant to expand or come and do business in Kanuckistan. That’s the problem with poisoning the business world JT and UnFreeland. Just sayin.

[SASKFARMER]

I love your theory and yes that’s how fert is priced and gas but if we had a made in canada system to protect our producers **** what the rest of the world wants. We have gas oil water minerals forest grain etc. maybe once work for the country not what others want. **** them they will want to pay $3.00 for wheat as soon as this shit show is over.

[dmlfarmer]

I love your theory and yes that’s how fert is priced and gas but if we had a made in canada system to protect our producers **** what the rest of the world wants. We have gas oil water minerals forest grain etc. maybe once work for the country not what others want. **** them they will want to pay $3.00 for wheat as soon as this shit show is over.

If you are suggesting price controls on farm inputs, what is the maximum price farmers should be allowed for the crops they sell? Surely feedlots should be protected from high feed grain costs just as much as grain producers should be protected from high fertilizer costs. And bakers should then not be over charged for high priced wheat. And crush plants putting out canola oil should be protected from overpriced canola. On what basis do you feel maximum prices that private industry can charge should be based? How much of a socialist system are you seeking?

[SASKFARMER]

Well you are right but we’re in ****ed up times and you can bet grain will drop and do you honestly think they will drop the chem fert prices?

[bucket]

If you are suggesting price controls on farm inputs, what is the maximum price farmers should be allowed for the crops they sell? Surely feedlots should be protected from high feed grain costs just as much as grain producers should be protected from high fertilizer costs. And bakers should then not be over charged for high priced wheat. And crush plants putting out canola oil should be protected from overpriced canola. On what basis do you feel maximum prices that private industry can charge should be based? How much of a socialist system are you seeking?

I thought feedlots , as part of their business , would have their feed costs protected long in advance.

They know their capacity , the required feed, wouldn't they have priced that back in June when the signs were there.

Grain farmers are told to have next year's supplies priced or booked and ready for delivery in August.

Otherwise are told they are poor managers.

[Guest]

Well you are right but we’re in ****ed up times and you can bet grain will drop and do you honestly think they will drop the chem fert prices?

High prices cure high prices

[dmlfarmer]

I thought feedlots , as part of their business , would have their feed costs protected long in advance.

They know their capacity , the required feed, wouldn't they have priced that back in June when the signs were there.

Grain farmers are told to have next year's supplies priced or booked and ready for delivery in August.

Otherwise are told they are poor managers.

Again, we are back to free market forces. There must be a seller for a buyer to be able to price; be if physical commodities or futures. Or buyers could use options to protect the price. Unfortunately, black swan events, like the severe drought or Russia attacking Ukraine can derail even the best plans.

Hindsight is perfect in marketing, unfortunately the same cannot be said for predicting markets or supply/demand. Furthermore every producer comes to the marketing table with different starting points, goals, and strategies. There are those who will swing for the fences everytime and can afford to miss the highs in sales, or will not be critically hurt if fuel prices or fertilizer has not come down by spring and they end up paying even more. Others, are forced by cash flow issues to resort to monthly sales regardless of price and are at the mercy of financial advisors telling them when to buy inputs regardless of cost.

The biggest problem is farmers have no effective voice in the industry. We are a collection of individuals with zero power. And we are easily played against each other all the time. Today the story is high grain prices and gets told to governments and consumers alike by grain traders and buyers. Fertilizer dealers tell of how farmers could have bought last year and have stocks in place. They never tell about farmers overpaying for fertilizers when the price drops - in fact they are just as much at risk - having to have filled their own sheds at high prices to be able to have a supply for customers when needed. Market advisors do not talk about the sell advice they told the clients before the prices when up, but if prices drop there great sales advise is all they can talk about.

Socialization of input prices is not the answer, unless producers are willing to give up the closest thing we have to a free market for selling our grains. What we do need is more buyer competition, we need more sales information, we need stronger checks and balances on buyers, we need anti trust regulations upheld, we need an effective voice representing farmers! We do not need to be told the maximum price we can sell our grain for is ____.

[SASKFARMER]

I agree I took at that at the UofS

BUT DO YOU BELEIVE WHEN THE WORLD TURNS RIGHT SIDE UP GRAIN WILL DROP BUT THE PRICES WE PAY FOR EQUIPMENT ANHYDROUS FERT CHEM WILL STAY THE SAME.

[bucket]

I agree I took at that at the UofS

BUT DO YOU BELEIVE WHEN THE WORLD TURNS RIGHT SIDE UP GRAIN WILL DROP BUT THE PRICES WE PAY FOR EQUIPMENT ANHYDROUS FERT CHEM WILL STAY THE SAME.

Wages never decline, farm incomes do.

Equipment prices never decline, farm incomes do

Input prices might fall, after farm income and farmers disappear.

[poorboy]

Again, we are back to free market forces. There must be a seller for a buyer to be able to price; be if physical commodities or futures. Or buyers could use options to protect the price. Unfortunately, black swan events, like the severe drought or Russia attacking Ukraine can derail even the best plans.

Hindsight is perfect in marketing, unfortunately the same cannot be said for predicting markets or supply/demand. Furthermore every producer comes to the marketing table with different starting points, goals, and strategies. There are those who will swing for the fences everytime and can afford to miss the highs in sales, or will not be critically hurt if fuel prices or fertilizer has not come down by spring and they end up paying even more. Others, are forced by cash flow issues to resort to monthly sales regardless of price and are at the mercy of financial advisors telling them when to buy inputs regardless of cost.

The biggest problem is farmers have no effective voice in the industry. We are a collection of individuals with zero power. And we are easily played against each other all the time. The story is high grain prices and gets told by traders. Fertilizer dealers tell of how farmers could have bought last year and have stocks in place. They never tell about farmers overpaying for fertilizers when the price drops - in fact they are just as much at risk - having to have filled their own sheds at high prices to be able to have a supply for customers when needed. Market advisors do not talk about the sell advice they told the clients before the price when up, but if prices drop that is all they can talk about.

Socialization of input prices is not the answer, unless producers are willing to give up the closest thing we have to a free market for selling our grains. What we do need is more buyer competition, we need more sales information, we need stronger checks and balances on buyers, we need anti trust regulations upheld, we need an effective voice representing farmers! We do not need to be told the maximum price we can sell our grain for is ____.

Not sure you are totally correct. In a perfect free market system with multiple aggressive players, the price is fair and accurate. We are fast moving to places with only a few buyers or sellers and prices may or may not be competitive.

Do you really feel the price of gas at service stations is “competitive “? Only like 4 big players and all the same price!!

North Americans have become too dependent on companies that are on stock exchanges and companies that will f over everyone to get good returns to appease stock market investors. Most of these stock shares are owned by the worlds rich.

We do need some way to add “humanity” back into society from this corporate stock market mentality. How many donations does Amazon make to smaller or larger communities?

Once only Amazon is left you are getting told you can only sell your grain for $xx, you are just too blind to see it.