Why is the price of anhydrous 150.00 a ton less in the USA across the board and looks like it will increase by only 15.00 a ton from fall to spring price but Agrium and Westco etc feel it should be 80% higher.
Am I missing something, yes granular will go through the roof do to the Americans seeding more corn they love granular fert. but Natural gas is the lowest price in winter in almost 10 years so why have our company's chosen to gouge the Canadian farmers. ASK YOUR REP ITS A JOKE> phone any farm supply company in ND Kansas SD Illinois etc and you will see its all 150 or more less than Canada.
Read a article done January 27 from the University in USA on prices for inputs in 07 then judge our guys.
Expected Input Prices in 2007
Raymond E. Massey
Economist, Commercial Ag Program
Prices likely to prevail in 2007 are presented in an effort to help plan demand for funds and to evaluate operating loans.
Budgets at the end of this book give projected costs to produce specific commodities.
Input 2006 Price Estimate 2007 Planning Price
Retail Gasoline $2.48/gallon $2.41/gallon
Retail Diesel $2.66/gallon $2.55/gallon
N from Anhydrous Ammonia 31¢/lb. of N 27¢/lb. of N
N from Urea 40¢/lb. of N 36¢/lb. of N
P2O5 26¢/lb. of P2O5 26¢/lb. of P2O5
K2O 22¢/lb. of K2O 22¢/lb. of K2O
Labor $10.40/hour $11/hour
Corn seed (conventional) $95.00/bag $90.00 - $110.00/bag
Corn seed (biotech) $137.00/bag $130.00 - $150.00/bag
Soybean seed (biotech) $35.00/bag $30.00 - $40.00/bag
The 2006 August-to-September retail gasoline price decline was the second largest on record, second only to the decline in November 2005. In other words, the volatility of prices over the last two years has been some of the largest in history.
The U.S. Energy Information Administration (EIA) estimates that retail gasoline in 2007 will average $2.51/gallon in the U.S., down from the 2006 average of $2.58/gallon. They project an average U.S. retail diesel price of $2.66/gallon in 2007, down from an expected average of $2.76/gallon in 2006. Though the EIA does not forecast prices by region, their historical data do indicate that the Midwest region of the U.S. is normally about 10¢ per gallon lower than the whole U.S. In the table of 2007 planning prices above, I adjusted the gasoline and diesel prices down 10¢ to account for this regional difference.
Kevin Dhuyvetter, Kansas State University Economist, projects anhydrous ammonia prices based on natural gas futures contracts. He currently projects March-April 2007 prices for anhydrous ammonia to be about 10% less than a year ago. That would put anhydrous near $425/ton of product or near 27¢/lb. of actual nitrogen. Urea is the second most used nitrogen source in Missouri. If its price also declines by 10% from 2006, expect it to be about $330/ton of product or 36¢/lb. of N. Ammonium nitrate continues to decline in use in Missouri as its price relative to other nitrogen fertilizers continues to increase.
Phosphorus and potassium prices continue to be at record levels. The most common forms of potassium fertilizer in Missouri seem to be MAP and DAP, both of which contain some nitrogen. Farmers will be inclined to capture the value of the nitrogen this year because of the high cost of nitrogen. For planning, the following prices should be adequate: 26¢/lb. for P2O5 and 22¢/lb. for K2O.
The USDA reports that in 2006, 59% of corn acres, 93% of soybean acres and 97% of cotton acres in Missouri were planted to genetically engineered seed. USDA data indicate that overall field seed prices increased almost 10% from 2005 to 2006. Price increases were highly variable depending on what type of seed was purchased. Biotech corn seed increased less than 5%; nonbiotech seed corn increased less than 2%. On the other hand, while the price of biotech soybean seed actually decreased 1% last year, the price of nonbiotech soybean seed increased 10%. Using historical trends, 2007 planning prices for biotech corn seed would be $145/bag; for non-biotech corn seed, $97/bag; and for biotech soybean seed, $35/bag. The table on the previous page gives a range of prices because seed prices vary so much by genetics, timing of purchase and other supplier incentives.
The USDA index of agricultural chemical prices revealed an almost 10% increase in chemical prices from 2005 to 2006. Insecticide prices increased 5% in 2006 from 2005, fungicide prices increased 9% and herbicide prices increased 14%. The USDA reported the average wage rate for all agricultural employees in the Iowa and Missouri was $10.40/hour in July 2006. Livestock workers earned $10.15 while field workers earned 9.85/hour. For planning purposes, wages can be expected to reach $11/hour in 2007. Hours worked per week are estimated to be almost 42.
The USDA reports farm machinery increased in price almost 5% in 2006. According to the Assn. of Equipment Manufacturers, tractor sales in 2007 are expected to be flat or down for 2- and 4- wheel drive tractors with the greatest decline in tractors over 100 horsepower. Equipment sales are also expected to be down except for air seeders/air drills and field cultivators. If these forecasts are accurate for Missouri, equipment prices should remain relatively stable over the next year.
Am I missing something, yes granular will go through the roof do to the Americans seeding more corn they love granular fert. but Natural gas is the lowest price in winter in almost 10 years so why have our company's chosen to gouge the Canadian farmers. ASK YOUR REP ITS A JOKE> phone any farm supply company in ND Kansas SD Illinois etc and you will see its all 150 or more less than Canada.
Read a article done January 27 from the University in USA on prices for inputs in 07 then judge our guys.
Expected Input Prices in 2007
Raymond E. Massey
Economist, Commercial Ag Program
Prices likely to prevail in 2007 are presented in an effort to help plan demand for funds and to evaluate operating loans.
Budgets at the end of this book give projected costs to produce specific commodities.
Input 2006 Price Estimate 2007 Planning Price
Retail Gasoline $2.48/gallon $2.41/gallon
Retail Diesel $2.66/gallon $2.55/gallon
N from Anhydrous Ammonia 31¢/lb. of N 27¢/lb. of N
N from Urea 40¢/lb. of N 36¢/lb. of N
P2O5 26¢/lb. of P2O5 26¢/lb. of P2O5
K2O 22¢/lb. of K2O 22¢/lb. of K2O
Labor $10.40/hour $11/hour
Corn seed (conventional) $95.00/bag $90.00 - $110.00/bag
Corn seed (biotech) $137.00/bag $130.00 - $150.00/bag
Soybean seed (biotech) $35.00/bag $30.00 - $40.00/bag
The 2006 August-to-September retail gasoline price decline was the second largest on record, second only to the decline in November 2005. In other words, the volatility of prices over the last two years has been some of the largest in history.
The U.S. Energy Information Administration (EIA) estimates that retail gasoline in 2007 will average $2.51/gallon in the U.S., down from the 2006 average of $2.58/gallon. They project an average U.S. retail diesel price of $2.66/gallon in 2007, down from an expected average of $2.76/gallon in 2006. Though the EIA does not forecast prices by region, their historical data do indicate that the Midwest region of the U.S. is normally about 10¢ per gallon lower than the whole U.S. In the table of 2007 planning prices above, I adjusted the gasoline and diesel prices down 10¢ to account for this regional difference.
Kevin Dhuyvetter, Kansas State University Economist, projects anhydrous ammonia prices based on natural gas futures contracts. He currently projects March-April 2007 prices for anhydrous ammonia to be about 10% less than a year ago. That would put anhydrous near $425/ton of product or near 27¢/lb. of actual nitrogen. Urea is the second most used nitrogen source in Missouri. If its price also declines by 10% from 2006, expect it to be about $330/ton of product or 36¢/lb. of N. Ammonium nitrate continues to decline in use in Missouri as its price relative to other nitrogen fertilizers continues to increase.
Phosphorus and potassium prices continue to be at record levels. The most common forms of potassium fertilizer in Missouri seem to be MAP and DAP, both of which contain some nitrogen. Farmers will be inclined to capture the value of the nitrogen this year because of the high cost of nitrogen. For planning, the following prices should be adequate: 26¢/lb. for P2O5 and 22¢/lb. for K2O.
The USDA reports that in 2006, 59% of corn acres, 93% of soybean acres and 97% of cotton acres in Missouri were planted to genetically engineered seed. USDA data indicate that overall field seed prices increased almost 10% from 2005 to 2006. Price increases were highly variable depending on what type of seed was purchased. Biotech corn seed increased less than 5%; nonbiotech seed corn increased less than 2%. On the other hand, while the price of biotech soybean seed actually decreased 1% last year, the price of nonbiotech soybean seed increased 10%. Using historical trends, 2007 planning prices for biotech corn seed would be $145/bag; for non-biotech corn seed, $97/bag; and for biotech soybean seed, $35/bag. The table on the previous page gives a range of prices because seed prices vary so much by genetics, timing of purchase and other supplier incentives.
The USDA index of agricultural chemical prices revealed an almost 10% increase in chemical prices from 2005 to 2006. Insecticide prices increased 5% in 2006 from 2005, fungicide prices increased 9% and herbicide prices increased 14%. The USDA reported the average wage rate for all agricultural employees in the Iowa and Missouri was $10.40/hour in July 2006. Livestock workers earned $10.15 while field workers earned 9.85/hour. For planning purposes, wages can be expected to reach $11/hour in 2007. Hours worked per week are estimated to be almost 42.
The USDA reports farm machinery increased in price almost 5% in 2006. According to the Assn. of Equipment Manufacturers, tractor sales in 2007 are expected to be flat or down for 2- and 4- wheel drive tractors with the greatest decline in tractors over 100 horsepower. Equipment sales are also expected to be down except for air seeders/air drills and field cultivators. If these forecasts are accurate for Missouri, equipment prices should remain relatively stable over the next year.
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