Ontario Agriculture

The network for agriculture in Ontario, Canada

Potash: BHP or PCS - Which is the best deal for farmers? Farmers of North America Comment...What do you think?

 
Potash:  BHP or PCS - Which is the best deal for farmers.
 
Commentary from FNA-STAG
 
The coverage of the offer by BHP Billiton to buy potash mining giant Potash Corporation of Saskatchewan (PCS) has been missing one very important element - the potential impact on agricultural producers.  This important stakeholder is, after all, the end consumer of the important fertilizer product.
 
There has been full and complete analysis and speculation of the impact of the deal for shareholders, governments, and citizens of Saskatoon and Saskatchewan.  These are all important stakeholders to be sure, but the potential impact of the takeover on the farmer who uses that potash seems to have been left out of the mix. 
 
Bob Friesen, CEO of FNA-STAG, comments, "Have either of these companies talked about their farm customers yet?  What effect would this deal have on farmers?  Fertilizer costs are one of the biggest expenses for most farmers, but there hasn't been any talk about retail pricing and the impact it has on farmers' ability to grow the crops that feed the world".
 
Farmers are in a bad position compared to the fertilizer companies who set prices based on what they think they can extract from farmers for crop nutrients.  Add to that the small handful of potash companies out there, and you have a situation where the farmer has no choice but to pay the price that's given.
 
In June, 2008, according to a Bloomberg report, potash jumped to $650 a metric ton from $190 a year earlier.  This was in response to rising grain prices, including corn and soybeans, two major crops that use potash.  Friesen points out, "When a farmer finally catches a break and the price of grain goes up, the fertilizer companies go right after that margin by increasing the price of fertilizer." 
 
Friesen continues, "When the price of grain went up in 2008, there was a perceived food shortage and farmgate prices were blamed for some people having to go hungry.  Yet there were reports of some farmers around the world not producing because they could not afford to buy the requisite fertilizer".
 
FNA-STAG questions which company would be the best for farmers.  PCS's history of managing production to increase the price may be good for shareholders, but it has a negative impact on the price for farmers and the price of food.  It seems unlikely that they would change this monopolistic behavior.  As the potential new owner, would BHP continue the same price strategy that is used by PCS, or would they increase production and sell higher volumes?  This important question has so far not been addressed.
 
FNA-STAG also urges the Governments of Saskatchewan and Canada to consider their farm constituents and use whatever tools they have to ensure the interests of farmers and input costs are considered.  FNA-STAG's number one priority is farmer profitability and believes profitable farms are just as important to the economy as mining companies.
 
As the debate about the future of these two companies goes on, FNA-STAG would like to ask both PCS and BHP:  Do either PCS or BHP care about the impact that fertilizer prices have on farmers and what are you planning to do about it?
 

Views: 124

▶ Reply to This

Replies to This Discussion

As you can see by the response no one cares. You know that the price is going to go up who ever buys it. And I bet ten to one the Saskatchewan and Canadian governments will buy shares with your tax money to get the lions share out of the higher prices you will be paying, after the deal is done.

▶ Reply to Discussion

RSS

Agriculture Headlines from Farms.com Canada East News - click on title for full story

BC farmers gearing up for collection of pesticides and livestock medications this Fall

This October, Vancouver Island and Fraser Valley farmers in BC are readying to participate in Cleanfarms’ longest running environmental stewardship initiative: the Unwanted Pesticides and Old Livestock/Equine Medications (UPLM) program. Operating on a rotating schedule year-over-year, this well-loved Canada-wide program helps farmers in BC (and in other regions) protect their land and communities by accepting unwanted commercial-class pesticides and obsolete livestock/equine medications for safe disposal, free of charge. This year in BC, there are eight single-day collection events from October 6 to October 16, operating 9AM to 4PM daily: four in the Fraser Valley and four on Vancouver Island, including a first-time event in Port Alberni. “The reach of this year’s events means even greater convenience to BC farmers,” says UPLM’s Program Coordinator Heather Bradley. “Greater program participation, combined with the promotional work of our agricultural retail and regional district par

U.S. Winter Wheat Planting, Emergence Lagging

U.S. winter wheat planting made decent progress this past week but continues to lag last year and the five-year average. Emergence is also running behind. According to Monday’s USDA crop progress, 27% of the American winter wheat crop was planted as Sunday, up 10 percentage points from a week earlier. That was below both the 32% planted at the same point last year and the 2021-25 average of 34%. Meanwhile, winter wheat emergence also increased nationally, with 8% of the crop emerged, up from 2% the previous week. That remained below 12% last year and the five-year average of 11%. Kansas planting advanced to 18% from 10% the previous week, compared with 16% last year and the five-year average of 24%. Oklahoma reached 7% planted, up from 4% a week earlier, but well behind 30% last year and the 25% average. Michigan moved to 18% planted from 14%, ahead of 15% last year and equal to the five-year average. No planting progress was reported for Ohio as of Sunday; the state was 10% p

FCC Economists Examine Trade, Interest Rates and Economic Risks Facing Agriculture

Farm Credit Canada is highlighting trade uncertainty, interest rates and broader financial conditions as key economic issues for Canadian farmers and agribusinesses through the remainder of 2026. In an economic update webinar released Tuesday, FCC’s economics team reviews the major economic and financial variables affecting farms, food and beverage manufacturers and agribusinesses, while providing its outlook for the months ahead. The 39-minute presentation features FCC chief economist Craig Johnston, principal economist Krishen Rangasamy and deputy chief economist Desmond Sobool. The update comes amid a challenging backdrop for the Canadian economy, including renewed U.S. trade barriers, geopolitical uncertainty and elevated borrowing costs. FCC has previously estimated Canadian economic growth at around 1% for 2026, with trade restrictions weighing on non-energy exports and contributing to weaker business conditions. Interest rates are another important consideration. Alth

Manitoba Harvest Passes Halfway Mark

The Manitoba harvest passed the halfway mark this past week, although rainfall, fog and heavy dews continued to limit fieldwork in several parts of the province. Tuesday’s weekly crop report showed the Manitoba harvest at 51% complete as of Monday, up from 43% a week earlier. The largest regional advance came in the Northwest, where overall harvest progress jumped to 40% from 24%. The Central region moved to 71% from 64%, the Eastern region to 66% from 62%, the Interlake to 59% from 56%, and the Southwest to 32% from 27%. Provincially, spring wheat harvest reached 77%, up from 71% a week earlier. Barley advanced to 81% from 76%, oats to 72% from 66%, and canola to 57% from 43%. Peas remained at 96% complete, while soybean harvest increased to 5% from 1%. Dry bean harvest doubled to 32% done. Quality concerns are becoming more prominent in later-harvested cereals, with sprouting, weathering, and bleaching causing downgrades in some areas, the report said. Canola yields are gener

Secretary Naig Welcomes Applications for Urban Water Quality Project Grants

Iowa Secretary of Agriculture Mike Naig today announced that the Iowa Department of Agriculture and Land Stewardship (IDALS) is accepting pre-applications for cost-share grants to support urban conservation and water quality projects. The locally led projects, available to Iowa communities of all sizes, support implementation of the Iowa Nutrient Reduction Strategy and are part of the state’s continued efforts to improve water quality. “Communities – big and small – have been putting proven conservation practices to work to improve water quality across Iowa since 2015,” said Secretary Naig. “From managing stormwater to reducing nutrient loss and protecting local waterways, these locally led projects help improve water quality and mitigate urban flooding. Many of these projects also become attractive community features that enhance quality of life. IDALS will continue working alongside communities to deliver cleaner water for Iowans because there is no finish line when it comes to cons

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service