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: 108

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

Guinness World Record attempt to take place in St. Albert on Aug. 22

?ST. ALBERT – If you have ever wanted to witness an attempt at a Guinness World Record, then you will want to be in St. Albert, Ontario on August 22 when an attempt will be made to set a record for the most plow blades pulled simultaneously.

Why Alignment Matters: Domestic Check-Off and the Import Levy

When Canadian beef producers sell cattle, they contribute to the national beef check-off. That investment supports work that benefits the broader Canadian beef industry, including market development, consumer demand, public and stakeholder engagement, and research. When beef or beef cattle are imported into Canada, an import levy is also collected. While the structure is not identical in every detail, the principle behind it is straightforward: beef marketed in Canada should help contribute to the programs that support beef demand in Canada. The national check-off paid by producers and the import levy paid on eligible imports are two parts of a broader investment approach. Together, they help ensure that both domestic beef production and imported beef products are connected to the market development work that strengthens beef’s position with Canadian consumers. For producers, the domestic cattle check-off is collected at the point of sale and includes both national and provincial po

I’ve noticed a lot of wild oat escapes in some of my fields this year; what can I do to prevent it from getting worse next year?

Despite our best efforts, sometimes even the best laid weed control plans go wrong! The first thing to remember is that not all weed escapes are created equal. In some cases, weeds can survive because of application timing issues, challenging weather conditions or late flushes that emerge after spraying. However, when weeds aren’t controlled by herbicide applications, herbicide resistance should also be on your radar. A recent survey in Manitoba found that in fields with uncontrolled wild oats, 100 per cent of populations were resistant to Group 1 products, 82 per cent were resistant to Group 2 products, and 82 per cent were resistant to both Group 1 and 2 herbicides. Those numbers show how important it is to take a closer look at wild oat weed escapes. Identifying why your herbicide failed to control wild oats is the first step toward finding a solution. Start by scouting the field to narrow down the cause. Consider factors such as application timing, weather conditions, late flush

Is fungicide actually effective on Sclerotinia head rot in sunflower?

This is one of the most difficult questions to answer because there are many things to consider. I also don’t want to be outright negative because we do still have options for sclerotinia management in sunflowers. However, management is the operative word. First of all, sclerotinia head rot infections have an interesting pathway. Spores use dead sunflower florets, plus pollen, as the base to infect a sunflower plant. The spores grow into the receptacle, infecting and decaying the entire head after a period of time. Sclerotinia wilt (basal stalk rot) and mid-stalk rot are also infected by the same sclerotinia species, but it will be via the mycelia that grow from the sclerotia bodies in the soil for basal stalk rot. Mid-stalk rot is also infected by ascospores, but this can be earlier in the season than head rot or at the same time. So, management of sclerotinia does not start at flowering. Crop rotation is the most obvious management tool that we are familiar with in sunflowers, but

Using Water More Efficiently in Beef Packing Plants

Packing plants use a time-tested approach to clean their facilities. The first step uses high-pressure hot water to remove fat and meat scraps from equipment, floors and walls. Next, surfaces are cleaned using detergent. Finally, sanitizers are used to further reduce bacterial numbers. Processing companies want to reduce water use as part of their environmental goals and to reduce energy bills. High-pressure water and steam can produce aerosols that capture bacteria and spread them throughout the plant. They can then settle on and cross-contaminate clean surfaces long after the cleaning has been completed, which complicates efforts to effectively clean facilities. Biofilms are another problem. Biofilms are colonies of bacteria surrounded by a protective layer that firmly attaches them to surfaces and shelters the bacteria from hot water, detergents and sanitizers. Biofilms are hard to remove and are commonly found in hard-to-reach places. These researchers investigated potential cro

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service