We have got it and they don't.
Europe is not competitive in the world market when
up against the US farmer, one reason stands out.
Europe does not have 82-0-0, (Mass Flow corrected to 82.4% Nitrogen)
Ammonia. It is not directly applied on massive acres.
In the USA Ammonia is directly applied on large acres with
streamlined delivery of the nutrients and is key to strength and low
European Agriculture has no alternatives but to take it and take it
hard from Yara.
In the USA, without the TVA supervising the Fertilizer Industry
there is now a crash scenario of this critical US industry.
The Fertilizer Industry could actually have collapsing margins due
to unhealthy competition or lack of competition. Lack of
competitiveness or large margins over time has created too much
overhead from the last 10 years for fertilizer dealers.
The need for nitrogen fertilizer is greatly reduced with products
1. Exactrix TAPPS and TAPPKTS in No-tillage and Strip Tillage.
2. Deere GS-3 with VRT and high speed application with special tank
3. Exactrix No-tillage Mustang 7 inch deep banding openers
4. Rotational Band Loading for future crops makes undisturbed
nutrients much more effective.
5. Cover Cropping fits into top yields with the no fertilizer input.
The Fertilizer Industry or FI is killing the “Golden Goose” by
adjusting prices with a false run-up in NH3 to protect 32-0-0 and
46-0-0 prices…there are no competitive pressures to price to the
effective margin of NH3. Their competition is now the farmer intel
system due to the FI elevated price. The NH3 margins are way out in
left field with 3 and 4 x margins. Vertical integration of the FI
does not help.
In the USA there is a FI instigated doom across the land with
absolute dominance by 3 to 5 manufactures in world’s largest
agriculture land mass.
The “Robber Barons of Ammonia” are losing customer confidence.
Thanks primarily to hedge fund managers demanding ridiculous returns
the fertilizer oligarchs that must now merge again. Reduced
competition is the only answer for companies like Potash and Agrium.
The collapse of "The Big Five" could come with the advent of farmer
or producer driven Cooperative Manufactures observing this Big Five
failure. The inability to be competitive and offer on time delivery.
Co-Ops may be king again with smaller plants on the drawing boards
and now close to production of NH3 on a more local basis.
In the so called super cycle of the last 7 years, billions and
billions of dollars have been taken from the farmers pocket book and
delivered out to the Big Five using non competitive elevated pricing
of NH3 at the retail level.
About 400 million acres of agricultural land values have been
reduced in value for 5 straight years due to the failure of the
Fertilizer Industry to compete in free enterprise.
Hybrid Seed corn is another industry that is loaded with overhead at
the corporate office. Study the overhead of these suppliers and you
walk away wondering how they hit the sweet spot of your land values.
Late November 2016 and ready for snow,
and In the Heart of Nebraska at Seward/David City, No-Tillage
Deep Banding with Mustang Openers is reducing the need for
Nutrients, 166% more crop available N and 200% more crop available P
with Exactrix TAPPS.
“We are lucky in the USA to have Anhydrous
Ammonia and Snow with No-tillage capability and to use both to the
maximum with stable Exactrix TAPPS and Mustang Openers.”
Engineers made it happen. Engineers rate high and have made
Anhydrous Ammonia the ideal choice for Commodity Crop Production.
“Stay away from the marketing and pricing tricks, Get on the high
road and place your financial bets with engineering and scientific
investigation of what the crop prefers.”
In fact the pricing of nutrients is not in line with the producers
budget so producers are counting on cover cropping to help with
their fertilizer bets.
Super elevated fertilizer pricing is feeding new industries like
Cover Cropping and Exactrix TAPPS.
Has Price Fixing Occurred with NH3?
Anhydrous Ammonia leads in the roll out of the world's highest
quality nitrogen product built for direct application to the land.
About 2/3 of our planets population is alive and moving ahead due to
low cost NH3.
Yes, in our investigative process we can confirm NH3 Prices are
price fixed and the nitrogen NH3 futures market points out to the
problem. Yes, Sir can you imagine selling commodity corn to the
Cargill elevator in your home town for $4.00 per bushel and Cargill
getting $12.00 per bushel at the same Houston Terminal where the NH3
Anhydrous Ammonia is a commodity and the base root of our Ethanol
Industry. There are no patents, there are no infringements to deal
with, the product is the true base root
of our society and it has been tampered with by just a select few
Fertilizer dealers and manufacturer purposely elevate the Ammonia
price way above typical margins and drive producers away from
Primary and High Quality Nitrogen.
Some producers are not quick enough to figure out why his fertilizer
dealer and manufacturer needs a 3X margin on low risk Anhydrous
Ammonia. The cost to build is about $125 ton and yet the retail
price is $550 per ton.
Exactrix Owners have Intel.
About half of the Exactrix owners pay in a range of $285 to $325
per ton for NH3 and in actual use their effective price is $180 per
Working for the company store gets old fast when you are trying to
pay for land that keeps loosing value due primarily to fertilizer
One more thing…..NH3 has the lowest Carbon
Footprint of any commercial fertilizer.
Your Great Plains Reporter
YARA RIPPING OFF FARMERS WITH FERTILIZER
08 Feb 2017
YARA RIPPING OFF FARMERS WITH FERTILISER PRICE HIKES
IFA President Joe Healy has accused European fertilizer
manufacturers of ripping off farmers by jacking up prices since the
beginning of the season.
Speaking at a protest at the Yara depot in Ringaskiddy in Cork, Joe
Healy said, “Yara, one of Europe’s leading manufacturers, has hit
farmers with seven price increases since last June.
Wholesale EU CAN prices have risen by a massive 48%, with Ammonium
Nitrate prices up by 34%”. He said this level of price increase is
unjustified. It clearly demonstrates that increased concentration of
the industry and anti-dumping duties and customs tariffs have
resulted in a lack of real competition in the EU fertilizer market.
Joe Healy said, “The continuing rise in input costs coupled with
falling commodity prices is eroding family farm incomes. This cost
price squeeze is hammering farmers and damaging the competitiveness
of Irish and EU agriculture.
Fertilizer is the second largest expenditure item on Irish farms.
Following the introduction of anti-dumping duties in 1994, Irish and
EU fertilizer prices have increased at almost double the rate
compared to other inputs”.
“European fertilizer manufacturers have profiteered from this
protection over the last decade while farm incomes decline. Duties
and tariffs are putting farmers at a significant competitive
disadvantage. The EU Commission must level the playing field,
abolish anti-dumping duties and tariffs on non-EU fertilizer imports
immediately and help to restore competitiveness to Irish and
European agriculture. This move would save Irish farmers an
estimated €32m per annum and European farmers €1bn.”
The International Food Policy Research Institute (IFPRI)
report, commissioned by IFA, shows that:
· The EU fertilizer manufacturing industry is highly concentrated;
· EU fertilizer prices are among the highest in the world;
· This is to the detriment of farmers and food consumers;
· The imposition of anti-dumping duties and customs tariffs on non-EU
fertilizer imports is costing European farmers an estimated €1bn;
· Prices in Western European countries increased by 123%, while
prices in Brazil decreased by 65%; this further suggests that
additional factors, such as price fixing and cartels, might be
operating in highly concentrated markets such as Western Europe.