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: 78

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

Soybean Fungicide Decisions

As soybean crops move into flowering, questions are sure to be raised about whether fungicide applications are needed. In anticipation, let’s take a closer look at the potential disease threats and what Manitoba On-Farm Network research has told us. What Should We Be Concerned About? Foliar diseases infecting soybeans in Manitoba typically occur at low severity levels and are not expected to impact yield most years. These usually include bacterial blight, downy mildew and Septoria brown spot. Stem diseases generally have a greater impact on yield. White mould: infections begin at nodes along the main stem. Wilted plants may be spotted from afar, within a humid canopy may find white mycelial growth and black sclerotia bodies later in the season. This disease is the main target of fungicide applications. Cool, wet conditions throughout July and August favour white mould. For every 10% increase in the percent of plants infected with white mould, 2-5 bu/ac of yield are lost in soybeans.

Fungicide Decision Tool for Managing Mycosphaerella Blight in Field Peas

When your peas have reached V10 (10th node stage), it is an ideal time to start scouting each field to evaluate if a fungicide application to manage Mycosphaerella blight is warranted. Continue scouting for symptoms from V10 (10th true node) to R2 (beginning bloom), during mid-June to late July. Mycosphaerella (Ascochyta) blight is the most widespread and economically damaging foliar disease of Manitoba field peas. Peas are the single host crop of Mycosphaerella but it can be managed by foliar fungicide. This pathogen can be stubble-, air-, soil- and seed-borne. Spores can travel long distances by air, meaning there is a disease risk even in fields where peas have not been grown previously. The impact of disease severity on yield will depend on how early the disease sets in and how quickly it progresses into the upper crop canopy. Early infections during the bloom to early/mid-pod stages cause the most damage if left untreated. Use this fungicide decision worksheet when scouting to

Manitoba pork, canola producers hold steady amid heavy tariffs

A slab of back bacon from Natural Raised Pork comes with a waitlist. Ian Smith points to tariffs. Since the United States placed levies on imports from Canada, Manitobans have increasingly been calling Smith about his farm near Argyle, some 40 kilometres northwest of Winnipeg. “There’s more people wanting to support local and I’m one of few people that do what I’m doing,” said Smith, 62. He estimates 90 per cent of his pork products are bought by Manitoba households; the latter goes to a packing plant. Last year, it was a 50-50 split. Smith works alone, hustling to meet the four-to-six week waitlist that’s accumulated. He keeps hundreds of feeder pigs and a couple dozen sows; it’s a relatively small operation, he noted. “If there’s any mistakes to be made, there’s only one person to blame and that’s me,” he said with a laugh. Smith doesn’t export to China — so he’s shielded from that nation’s levies still hanging over the Canadian industry.

KAP Welcomes Appointment of New U.S. Trade Representative

Keystone Agricultural Producers (KAP) welcomes the appointment of Richard Madan as Manitoba’s new trade representative to the United States. “We commend Premier Kinew and Minister Moses for making Manitoba’s voice a priority in Washington, D.C.,” said KAP President Jill Verwey. “We look forward to working with Mr. Madan to advance the interests of Manitoba farmers and the agricultural industry, ensuring these interests are at the forefront of his work as he forges stronger relationships with American policymakers and trade officials.” Agriculture is an important part of Manitoba’s economy, with $4.29 billion in agri-food exports to the U.S. alone in 2024, and KAP sees the new presence in Washington as instrumental in fostering strategic relationships with key states that are important to our trade interests. “The U.S. is Manitoba’s largest agri-food export destination and is one of Manitoba’s key trading partners on the international stage,” added KAP General Manager Colin Hornby. “

2025 Annual General Meeting

On Wednesday, June 18th, the Ontario Farmland Trust hosted its Annual General Meeting. The meeting was held hybrid again this year, with members and friends joining both virtually and in person.

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service