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Fertiliser prices


wombwell
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Yup 80% increase in last year and climbing

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  Energy price increase is a double whammy.  Nitrogen fertilizers may need natural gas in their production which has greatly increased.  In the Northeast traditionally freight has accounted for a 1/3 of the cost to a dealer and freight cost has gone up.  

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Just checked here.  19-19-19 is up to $650/ton.  We paid $450 this spring.  Some say spring will be higher.  One co-op nearby is up to $860/ton!

I believe I'll call around and see if I can find any of this year's bagged fertilizer for this year's price.  It would be a pain, but I'd buy some now and store it, if I thought spring price would be higher.

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39 minutes ago, 766 Man said:

  Energy price increase is a double whammy.  Nitrogen fertilizers may need natural gas in their production which has greatly increased.  In the Northeast traditionally freight has accounted for a 1/3 of the cost to a dealer and freight cost has gone up.  

The freight rates I am seeing haven’t gone up!! Fuel is almost double what it was 2 years ago. Tires are nearly twice, my rates, nope. The same as they were 2 years ago. 
I am hauling some fertilizer for a coop east of Abilene, $20/ton and 175 miles. 

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18 minutes ago, Lazy WP said:

The freight rates I am seeing haven’t gone up!! Fuel is almost double what it was 2 years ago. Tires are nearly twice, my rates, nope. The same as they were 2 years ago. 
I am hauling some fertilizer for a coop east of Abilene, $20/ton and 175 miles. 

  A lot more distance to move N, P, or K from their respective sources to Western NY.  I'd be surprised that whether by truck or rail the hauling rates are exactly the same as 2 years ago.  

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5 minutes ago, 766 Man said:

  A lot more distance to move N, P, or K from their respective sources to Western NY.  I'd be surprised that whether by truck or rail the hauling rates are exactly the same as 2 years ago.  

So what you are saying, is you have no clue what the rates are, but you suspect that they aren’t the same as 2 years ago? 
Sorry to be so growly, but I get tired of hearing how much freight costs have increased. Maybe in other aspects of the industry, but hopper rates are the same as they were 2 years ago. Now maybe if all farmers would quit hauling commercial, there I go saying things I know not. 

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1 minute ago, Lazy WP said:

So what you are saying, is you have no clue what the rates are, but you suspect that they aren’t the same as 2 years ago? 
Sorry to be so growly, but I get tired of hearing how much freight costs have increased. Maybe in other aspects of the industry, but hopper rates are the same as they were 2 years ago. Now maybe if all farmers would quit hauling commercial, there I go saying things I know not. 

  I don't get insider information on a lot of things just like 99 percent of the US population does not.  All I can do is apply logic.  Nearly all fertilizer is railed in from the South or the West.  The rail business is more or less a cartel.  Unlike the mid-1970's and prior these guys are not working for cost or below cost.  They will charge X amount per ton or they will not move it.  I don't control the trucking business.  I don't know if you contracted to haul for Y number of years at a certain rate.  I've been told by the local elevator among other businesses that most years that there are not enough rail cars to cover all needs.  As far as the railroad is concerned it does not matter what those cars haul.  It only matters that they bring in the best profits possible for the railroad whether it be ag commodities or some other bulk product.  The 1/3 freight cost to the retailer is not an assumption as a fertilizer dealer told me this more than one time directly to my face.  

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33 minutes ago, Lazy WP said:

So what you are saying, is you have no clue what the rates are, but you suspect that they aren’t the same as 2 years ago? 
Sorry to be so growly, but I get tired of hearing how much freight costs have increased. Maybe in other aspects of the industry, but hopper rates are the same as they were 2 years ago. Now maybe if all farmers would quit hauling commercial, there I go saying things I know not. 

Double that on grain farmers that have nothing better to do than drink coffee and haul grain at or below break even rates in the off season. That’s why my hopper has essentially been parked for 4 years. Cattle rates are SLOWLY starting to climb, from a $3.90 base rate two years ago to a $4.10 base rate today. 

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14 minutes ago, ihrondiesel said:

Double that on grain farmers that have nothing better to do than drink coffee and haul grain at or below break even rates in the off season. That’s why my hopper has essentially been parked for 4 years. Cattle rates are SLOWLY starting to climb, from a $3.90 base rate two years ago to a $4.10 base rate today. 

  Well, they do bid land up past what is economically reasonable for a return on a given parcel.  Sure, they might have 750,000 dollars to spare on a 50 acre parcel that is lucky to produce 175 dry bushels of corn once every 5 years.  That if that 50 acre parcel had to pay its own way off of net profits it might do so in 125 years if nothing upsets that apple cart.  Anyways, that does not change the fact that nearly all fertilizer is railed in and that the railroad will do it at a profit or it will not make the cars available.

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This fertilizer I am hauling was made in Wyoming, I think. Put on the rail, and warehoused. I can only imagine how much the price has changed. 
I also haul out of the Port of Catoosa, in Oklahoma. I know for a couple months, they couldn’t get barges up the river, so imagine the price increase there. Lots and lots of fertilizer is made in Egypt and other middle eastern places. Yep, I can believe that a third of the price is in transportation, but it sure as **** isn’t local guys jacking it up. 

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3 hours ago, 766 Man said:

  Well, they do bid land up past what is economically reasonable for a return on a given parcel.  Sure, they might have 750,000 dollars to spare on a 50 acre parcel that is lucky to produce 175 dry bushels of corn once every 5 years.  That if that 50 acre parcel had to pay its own way off of net profits it might do so in 125 years if nothing upsets that apple cart.  Anyways, that does not change the fact that nearly all fertilizer is railed in and that the railroad will do it at a profit or it will not make the cars available.

I totally agree with your statement on land prices. Makes it impossible for someone like me to ever own land unless I were to inherit it. Yep, trains are in the business to make money. But there are only a couple railroads. WAY more trucks, which means any dingleberry who wants to haul for cheap “to keep the wheels turning” can. Infinitely more competition in trucking than there is on the rail. 

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10 hours ago, ihrondiesel said:

I totally agree with your statement on land prices. Makes it impossible for someone like me to ever own land unless I were to inherit it. Yep, trains are in the business to make money. But there are only a couple railroads. WAY more trucks, which means any dingleberry who wants to haul for cheap “to keep the wheels turning” can. Infinitely more competition in trucking than there is on the rail. 

  Trucks for around here are only a local factor where a fertilizer business, elevator, etc does not have a rail siding.  Fertilizer has to come hundreds of miles which I would think was impractical to do so by truck.  Yes, there are guys who will do hauling jobs for pennies above cost.  I think that all dry phosphate comes out of Florida at least here in the East.

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