The Story about Anhydrous Ammonia
you did not know......
Demonstration and Economics Clinic
Feb. 28 and March 1, 2017
Hugoton, KS Golf Course
Winter Canola, Mustang Banding
Demonstration.
Two Day Option, Pick your day. Meetings Start At 9am
High Speed Banding Demonstration to follow after lunch.
7 inch deep banding into Winter Canola with TAPPS.
Making Winter Canola your leading winter crop.
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Meet the leaders in Winter Canola. Make 5 big
bets.
Place your bets in 2017 in advanced cropping systems.
How to raise irrigated 80 to 100
bushel Winter Canola.
Meet with the producers. Inspect the fields.
Learn how to plant Canola. Learn how to fertilize Canola for top oil
content?
What is the correct population?
Learn how to pick the correct variety?
What is water injection?
What does Winter Canola do for future crops?
How big is ammonia?….
Guy J Swanson says, “The Big N maintains the lion’s share of the
market. NH3 directly applied is the top of the mark. Anhydrous
Ammonia is primary nitrogen. It is the highest quality Nitrogen
source, and the most competitive form of Nitrogen directly applied.
“
Large or small US and Canadian producers can participate in the
greatest technological achievement in the last 200 years.
The material is highly responsible for higher land values and can
typically move $60 to $150 more net income per acre to the bottom
line.
Large commodity crop producers can increase their net margin by
millions of dollars each year with Exactrix NH3 directly applied and
highly crop available with 1% CV of application.
Most US and Canadian producers have it and they don’t (second and
third world countries lack the investment required to
directly apply). Thus world-wide export of commodities is possible
due to low cost NH3.
Thank you Wall Street investors and for the strong
endorsement of the USDA, the Shell Chemical Company, the
Tennessee Valley Authority, National Fertilizer Development
Center, and the Bank for Cooperatives.
These agencies and firms developed infrastructure and support system
for NH3 to be directly applied to agricultural crops.
In North America commodity crop producers can directly apply NH3 to
the land….directly
applied to the land with highest possible accuracy and done safely.
And
today
with support from Exactrix Global Systems providing even
further advancement of NH3 utilization with Exactrix Processors
applying TAPPS at 1% CV is nominal.
Time Proven Fact….Exactrix TAPPS NH3 application is 166% more
crop available than any other approach of applying all types
of nitrogen.
The bottom line of the commodity crop producer can be
improved an additional 12% with Exactrix Technology.
How does on farm storage and filling work? Triple G Partners,
Deerfield, KS loading their 61 foot Mustang TAPPS applicator
utilized on large Kansas farm.
NH3 is guaranteed analysis (82.4% N) and stores well for long
periods of time.
If the nitrogen comes from the atmosphere where does the hydrogen
come from to build NH3?
T-Rex’s era supplies the hydrogen. Deep in the earth’s mantle from
60 million years ago when the planet was warmer.
http://www.kgs.ku.edu/Publications/GeoRecord/1998/vol4.3/Page1.html
How about the carbon footprint of anhydrous ammonia?
NH3 has the lowest carbon footprint of all nitrogen
fertilizers used in agriculture. University of Nebraska,
Lincoln, F. John Hay, Associate Extension Educator, Biological
Systems Engineering.
How does NH3 transport?
The 80,000 psi, pressure vessel steel in the tank cars and the 2
cycle locomotive engines were built just after World War 2.
The Cimarron Railroad is an operating short line railroad. It runs
from Boise City, OK to Dodge City , KS.
The high pressure 265 psi compressed gas cars and the locomotives
are a result of a powerful nation with a rock solid economy and no
windmills.
A legacy moment at Sublette, KS as the Cimarron Railroad races for
more low cost NH3. It is not a good sign when the railroads can
not make the grade regarding insurance and reliability and have to
run at 15 mph.
Currently this a period of time in the USA with wavering world power
brought on by the EPA promoting windmills and delaying lower cost
power sources.
The steel to build a railroad does not come from a windmill.
It is time to put capital in the right places. Nothing can exceed
this technical development of low cost NH3.
The base root of the US economy and the world economy is
manufactured NH3.
Koch Nitrogen at Dodge City, KS purchased an old Farmland plant from
the 60’s. The source of syngas for this noncurrent plant is the
Hugoton Gas Field often promoted by T Boone Pickens.
The Hugoton Gas Field was the greatest Gas Field in North America in
the 60’s and 70’s. Mesa Limited Partners (Pickens) valued the field
as their number 1 asset in the 80’s.
Dodge City’s NH3 Farmland Koch plant is located about 42 miles east
from the marginal edge of the Hugoton Gas Field.
Today
the Hugoton Gas Field is the 2nd largest in the world and
the largest gas field in North America.
Kansas feedlots are located close by with 2.5 million cattle on a
ration of corn and distillers grain from the ethanol plants.
The eight meat packing plants
(5,000 killed per day on average per plant)
on the Hugoton field are using NH3 to refrigerate the fresh
pack meat and also dry ice is coming from this plant.
How is ammonia priced?
Kansas, Colorado, Texas and Oklahoma Coops like their just-in- time
transport delivery from Accord of Weatherford, OK.
Railroads keep losing ground…because over the road DOT transports
can make quick delivery.
Transports also allow the ammonia price to be manipulated to much
higher prices for the manufacturer.
The dealers cannot change their margin..the manufacturer changes
their margin by holding back supply since they know the storage
situation.
Is fear a marketing technique?
The manufacturer can shut down the ammonia plant and drive the
price…and then DOT Transports are called to make delivery in the
nick of time.
This is a pretty tricky operating line from neo-oligarch NH3
manufacturer and not really a competitive game since there is no or
very little competition in their marketing region.
Railroad delivery requires advance planning or more storage on site.
Railroads provide a more competitive ammonia price. Pipelines help
improve supply to major delivery points.
The Coops and farmers need to have more storage of NH3 to develop a
no-nonsense approach to making money on more equitable terms.
Railroads have some major advantages for the NH3 market if they
could become more reliable.
Shortline Railroads need reinvestment to help producers become more
competitive.
The Ammonia Industry needs more investment in storage to even up the
supply and drive the demand curve in favor of the producer.
Railroad delivery will return with SCR injection into
the flue stack. A great program for coal fired energy plants.
Note: Ammonia pricing is included at the last paragraph typically 18
cents to 21 cents per lb. N. Nov. 16.
Wow!!,
and the proud driver was willing to talk about his great rig.
One of the best delivery trucks on the road.
High Speed, No-tillage, deep banding to 8 inch depths using Mustang
P-51C and P-51CUE openers.
Operating at grounds speeds to 12 mph with Exactrix TAPPS
formulators covering a flow range of 20x.
Exactrix 2KC, Series 3 Laminator delivering liquid NH3 to the high
pressure injection system.
Sliding vane pumps are used to raise pressure to 300 psi.
Applying ammonia in sight of the Dodge City, KS, Koch Nitrogen
plant. Kevin and Denton Durler custom apply for others and
apply their own No-tillage acres.
No-tillage 4 to 5 inch
deep banding saves water and nutrients at Dodge City, KS. Kevin
Durler, 8 year Exactrix owner applies TAPPS on 7,000 acres per year
and has had very good yields at low cost.
Joel McClure, Hugoton seeding in tillage Milo with Exactrix TAPPS
applicator and a 1990 drill from John Deere. Exactrix Wing Injection
at 2.5 inch depth allows for good yields at reduced cost using
low cost NH3.
Wing Injection is a powerful tool for producing fewer passes and
ideal root pattern geometry for growing crops. Joel has evolved
his production system with Exactrix over a 12 year period.
Milo or sorghum is vermiculated at an Elkhart Coop, in SW
Kansas. NH3 helped make Kansas the number 1 state in the nation in
Milo production.
About 45% of the production in the US is in Kansas.
About 20 miles from this vermiculated pile of Milo is Dr. Walter
McClure‘s family farm of Hugoton, KS.
Dr. McClure was part the initial breeding team to develop Milo at
Oklahoma State in the 60’s.
Local talent made the difference for cattle on feed and ethanol
production. A good crop for Kansas, Oklahoma and Texas.
Chromatin
has
unique sorghum
genetics and has signed on with Dow
Agro Sciences for world-wide marketing.
Daphne Preuss, CEO of Chromatin “The materials
licensed from Dow Agro Sciences add critically
important genetic diversity and allow Chromatin to
bring higher yielding crops to our international customers.”
Ammonia prices
In 3Q16, the median price of ammonia, fell by an average of 35%.
Of these producers, PotashCorp (POT)
saw its ammonia price fall the most by 42% to $278 per short ton,
followed by CF Industries (CF),
which saw it fall by 36% to
$287 per short ton.
Terra Nitrogen’s (TNH)
ammonia price also fell 35% to $297 per short ton YoY
(year-over-year).
Agrium’s (AGU)
average ammonia price fell by 28% to $345 per short ton,
At $300 per short ton. The Anhydrous Ammonia N is priced at 18.3
cents per lb of N.
Most producers are budgeting 18 cents to 21 cents per lb. of N for
high quality nitrogen as NH3.
A shift to more soybeans in the US market should stabilize N prices.
GJS
As reported.
http://marketrealist.com/2016/11/comp-nitrogen-fertilizer-prices-3q16-offsets-shipment-growth/
Time for
Training on Mustang Tool Bars operating at field speeds to 9 mph in
No-tillage banding.
Saving millions of dollars over your farming career with Exactrix
TAPPS and No-tillage production of commodity crops.
Click On Image To View Video
Watch the Mustangs run strong in heavy residue.
https://www.youtube.com/watch?v=QuCAeCfBUnQ&fmt=37
http://www.exactrix.com/mustang.htm
