Saskatchewan Farmers Face Larger Fertilizer Prices: ‘It is Positively Affecting Our Backside Line’

After rising from a drought this summer season, Saskatchewan farmers now face one other problem: larger fertilizer prices.

Mike Floer, who farms in Minton, Sask., mentioned he paid practically double what he normally pays for fertilizer.

“It positively impacts our backside line. When bills improve whereas revenue stays excessive, all the things works. However when commodity costs come again down and fertilizer costs are nonetheless at file highs, it is not a enjoyable day to be a farmer.

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Fertilizer helps farmers get off to a great begin by offering vitamins all through the season, mentioned Agricultural Producers Affiliation of Saskatchewan (APAS) President Todd Lewis.

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“With out fertilizer you will have decreased yields and in lots of circumstances considerably decreased yields. So it is an necessary a part of sustainable agriculture right here within the province,” Lewis added.

Fertilizer is a worldwide commodity bought all over the world, so it tends to have a worldwide value construction, defined Clyde Graham of Fertilizer Canada.

Graham added that value is set by provide and demand.

“The value of fertilizers tends to be decided primarily by demand from farmers. One of many largest components proper now could be that grain and seed costs are very excessive, so farmers in lots of elements of the world need to get fertilizer to maximise their manufacturing,” Graham mentioned.

He mentioned farmers are benefiting from excessive costs for crops like corn, canola, wheat and barley.

“A part of the rationale these crops are fairly excessive is that shares or inventories of those grains and oilseeds are at present fairly low by historic requirements, which tends to drive up the value of grains and oilseeds, then improve the demand for fertilizer,” Graham added.

Farmers use 4 principal varieties of fertilizer: nitrogen, phosphate, potash and sulphur.

Together with the demand for fertilizer, Graham defined that there have been challenges in producing fertilizer globally.

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Considered one of Canada’s principal nitrogen vegetation was shut down this fall, and there have been additionally disruptions in a manufacturing space in america.

There have additionally been weather-related points for phosphate manufacturing in Florida.

“In Europe, there’s been a major market disruption with pure fuel, which is a key a part of fertilizer manufacturing, after which in Russia and China, which usually export a whole lot of fertilizer, (they) preserve that in-house fertilizer proper now,” Graham defined.

Floer mentioned essentially the most irritating half for farmers is that the state of affairs is out of their management.

“But we’re those who’ve to put in writing the checks for high-priced inputs,” he instructed World Information.

Lewis mentioned this value hike is large for growers.

“It comes at a time when for lots of growers it should create an actual money circulate disaster within the spring,”

“Sadly their incomes are down and low with final 12 months’s drought and now to place in a crop subsequent spring goes to price much more.”

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Lewis mentioned growers might look to different crops, including that there are different choices in Saskatchewan.

“Canola is a crop that typically makes use of a whole lot of nitrogen. You may get away with utilizing rather less in a crop like spring wheat or durum wheat,” Lewis defined.

“There are additionally vitamins left within the soil in areas that did not have a lot rain final 12 months and naturally final 12 months’s crop was arrange with a full set of vitamins. vitamins and, in some circumstances, a few of these vitamins stay within the soil for the subsequent 12 months.”

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Graham’s recommendation to farmers is to remain in shut contact with the agricultural retailer who provides them with fertilizer, pesticide seed or different agricultural inputs.

“They are going to be the most effective supply of knowledge on market developments,” Graham mentioned.

Graham suggests farmers speak to their agri-retailer about the kind of crops they develop and their fertilizer wants to determine the easiest way to find out provide.

“We actually perceive the frustration of growers coping with present market situations,” Graham mentioned.

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“I believe our business is doing all the things it may possibly to make sure that farmers have entry to supply this spring in time for spring planting and that any provide points are rectified as quickly as potential.”

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