Good News, Why is Ammonia Going to $1,000 per ton. Ammonia Pricing,
 Not a Problem with Exactrix Technology and Storage.

Why is ammonia going to $1,000 per ton or 61 cent N.  

Because it went to $800 per ton previously.  

Your best bet is still Exactrix.  

Natural Gas Pricing in Million BTU  

Koch Bros. made Exactrix TAPPS formulators a really good decision for the top producers in Kansas.  

In fact Koch Bros. could be singularly responsible for the Exactrix success story.  

If ammonia was $200 per ton….not many producers would own an Exactrix system….just producers that wanted the top yield.  

So why not get top yield with less invested…and take a 12% greater profit margin.

1

Natural Gas Wholesale pricing at Henry Hub, OK.   
Very low at $1.85. How low can it go. This pricing stops wind power and nuclear power interest.

Retail Pricing of Ammonia in Kansas, Nebraska, South Dakota and North Dakota. Spring 2020 DTN $496 to $585.

2

Why don’t producers just build Anhydrous Ammonia themselves like they used to do up to 2005?   

Because there is not a competitive climate in Kansas.  Producers need to take control of the manufacturing or just not use as much NH3 as TAPPS.  

Natural Gas Pricing has nothing to do with building Ammonia with a 12% profit industry standard.  

3

Accordingly Natural Gas is now $1.85 per MBTU requiring about $66 of Natural Gas and $15 of electricity to build 1 ton US NH3 at Dodge City, KS. Cost is $81.00 per ton…with about 75 to 80 employees to build 1,000 ton per day.  

The wholesale price appears to be about $250.00 per ton at Dodge City and Borger, Texas….So an estimate of 3 x markup to wholesale 1 ton of ammonia and at least 6 to 7 times to get it to the producer.  

So for the Ammonia Manufacturing operation at Dodge City, KS 1,000 times $170 is $170,000 per day of pure profit.  

So for the Ammonia Retailing system about the same of $170,000 per day to cover the overhead and make a profit.  

Now for the philosophy of the non-competitive fertilizer Industry so they do not have to build NH3 storage and reduce their prices….
the role of Urea and the Third World. 

Raise the Ammonia Price high enough to force small, (not well capitalized) producers to consider Urea and dry fertilizer spread over the top….with a 30% to 50% loss of surface applied Nitrogen to the environment.  This approach looks a lot like China loosing 2/3 of their Nitrogen to the environment.  

In 2019/2020 there are tremendous losses of dry Urea Nitrogen at Dodge City , KS, right next to the ammonia plant….on high pH soils….Coops are spreading dry Urea fertilizer all winter long for Milo production in May of 2020….about 5 to 6 months on top of the high pH soil surface.  

This is a very bad practice and promoted by Coops with poor management and paying homage to Koch Bros.  

So who makes these decisions to make giant margins when producers are failing,  The Koch Bros in Wichita make this decision…..and nothing to do with producer driven economics and cost of production. 

A monopoly in KS…with the closure of the Magellan Pipeline…..Kansas Ammonia Pricing is controlled by Dodge City and Wichita and Nutrien in Borger, Texas.  

Plot as solution…..Buy an Exactrix TAPPS formulator system set the tractor controller at .6 of nominal….and put the NH3 producers on notice….you do not need as much NH3 to raise a good crop with TAPPS and TAPPKTS.  

And you can raise more with Exactrix TAPPS and TAPPKTS formulators.  

What is TAPPS and TAPPKTS?  Here is top production Tip. http://www.exactrix.com/EWAC.htm  A complete compendium of Exactrix training and development. Sign up for news here. 

Sub Notes.
If you are well capitalized you can consider your own storage system….which gets Ammonia down to $300 per ton with a 5% to 10% markup for the wholesaler. 

If you want to form up about $6 million in capital you can start building your own at 10 ton of NH3 per day. 

And furthermore you can use wind power or nuclear power in small 10 megawatt reactors. Or you can use a Cat Generator set.  

You can take control…and drive land values up….with Exactrix TAPPS formulators……and TAPPKTS formulators.

Your Great Plains Reporter,

    Guy  J Swanson.
www.exactrix.com
NH3 Efficiency Experts
Exactrix Global Systems.  

John Cory Security West Financial

Call your new banker, John Cory, Security West Financial. http://swfinco.com/contact.html   (509) 994-8555 You can go off the balance sheet and work with the best using the strength of Farm Credit and others. John will help you spend about $40,000 annually to make $150,000 more annually by spending only $60 per acre in irrigated production for fertilizer. John understands the cycles of agriculture and how to keep your balance sheet looking good. At the end of five years you will own a powerful machine that continue to produce good returns having already been paid for at the end of the first year.  You can even apply for your neighbors with a Mustang Tool Bar. At 1,000 acres of corn, An internal bottom line savings of $750,000 over five years on 5,000 acres of corn.   An Exactrix Mustang Tool Bar capable of producing $550,000 of internally available funds in five years.

See Video
Top yields, best margin and the new leader in VRT-Site Specific, Small Grains Expert. Eric Odberg at Genesee, Idaho breaking winter wheat yield records. Exactrix TAPPS at Catholic Canyon using 4 management zones. Exactrix Site-Specific, Variable Rate EO.htm	"Paul Gangwish, Drone Video" Track Machines improve production 200%. Application time cut in half at 1 acre per minute. Up to $150 more net income per acre.

The 2017 Agronomy Review.
http://www.exactrix.com/Broadcast_12_29_2016.html