Posted on 04/15/2022 5:47:00 PM PDT by blam
A fertilizer supply shock is imminent for US farmers as CF Industries Holdings, Inc. warned Thursday that rail shipments of crop nutrients would be reduced to top agricultural states, which couldn’t come at the worst time as the Northern Hemisphere spring planting season is underway.
The world’s largest fertilizer company said Union Pacific had hit it with railroad-mandated shipping reductions that would impact nitrogen fertilizers such as urea and urea ammonium nitrate shipments to Iowa, Illinois, Kansas, Nebraska, Texas, and California. Union Pacific told CF Industries without advance notice to reduce the volume of private cars on its railroad immediately. This means CF Industries had to decrease shipments by a whopping 20% to stay compliant.
“The timing of this action by Union Pacific could not come at a worse time for farmers,” said Tony Will, president and chief executive officer of CF Industries.
“Not only will fertilizer be delayed by these shipping restrictions, but additional fertilizer needed to complete spring applications may be unable to reach farmers at all. By placing this arbitrary restriction on just a handful of shippers, Union Pacific is jeopardizing farmers’ harvests and increasing the cost of food for consumers,” Will said.
The move is particularly problematic for the Midwest, where 90% of corn and 80% of soybeans are produced in the US. The region is a critical node in the global food system, and tightening the fertilizer supply will only drive up food prices by shrinking harvests.
Farmers have been pressured by record-high fertilizer and diesel costs.
CF Industries released an ominous warning about the lack of fertilizer across the Midwest this year and how it may cause food supply woes:
“If farmers are unable to secure all the nitrogen fertilizer that they require in the current season because of supply chain disruptions such as rail shipping restrictions, the Company expects yield will be lower.
“This will likely extend the timeline to replenish global grains stocks. Low global grains stocks continue to support high front month and forward prices for nitrogen-consuming crops, which has contributed to higher food prices,” CF Industries said.
Josh Linville, direct of fertilizer at StoneX, called this a “black swan” moment for the Midwest.,/B>
UP rail situation:
Sounds like the UP is backed up on shipments. As a result, they are restricting “private car” shipments (i.e. not UP equipment) by almost 20%.
We were already struggling with fert logistics coming into spring. This doesn’t help at all…#blackswan pic.twitter.com/YOo36UWj2J
— Josh Linville (@JLinvilleFert) April 14, 2022
In response to record-high fertilizer costs and tight supply, some farmers have already transitioned millions of acres from corn to soybeans this year (soybeans require very little fertilizer versus corn).
Last month, a tweet from Douglas Karr, the founder of the businesses blog Martech Zone, made the point that “media isn’t even warning you” a food crisis in America is emerging.
That’ll put a crimp in bite-mes plan to increase the amount of alcohol in gasoline.🙄
Except that’s low grade fertilizer.😏
Sounds like it is all going according to plan.
A bit out of context but I still believe the spiritual principle applies.
2 Chronicles 7:12-16 Then the Lord appeared to Solomon in the night and said to him: “I have heard your prayer and have chosen this place for myself as a house of sacrifice. When I shut up the heavens so that there is no rain, or command the locust to devour the land, or send pestilence among my people, if my people who are called by my name humble themselves, and pray and seek my face and turn from their wicked ways, then I will hear from heaven and will forgive their sin and heal their land. Now my eyes will be open and my ears attentive to the prayer that is made in this place. For now I have chosen and consecrated this house that my name may be there forever. My eyes and my heart will be there for all time.
People like to quote just vs 14, but the rest is critical. Repentance must follow when God brings disaster. And for those who wonder why He allows such things, it’s because of this perverse streak of human nature that seems to be that people do not seek God when things are going well. It’s only when something bad happens that we are motivated (or pushed) into seeking Him.
Thus, He allows it to happen. He wants us to be in relationship with Him that much that He will even accept that.
How much better would it be if we would seek Him just because of how wonderful He is, for His own sake alone, not just because we can get out of some mess we are in.
My guess is the feds pressured the railroad to restrict shipments.
“Congestion” due to “breakdowns in the supply chain”, for which they are “hiring aggressively”. Meanwhile they are cutting shipping volume by 20%.
They reportedly complied with the federal vaccine mandate for contractors to the government, requiring all employees to be stabbed by Dec. 8th:
https://www.up.com/employee/covid/vaccine-mandate/index.htm
As of Dec. 8th, when UP stopped the mandate because of the judicial ruling, 73% of their 31,000 employees had been stabbed:
https://news.yahoo.com/union-pacific-suspends-covid-19-165711374.html
UP’s union had filed a lawsuit to stop the mandate:
UP appears to have very bad relations with its union:
UP reported record profits in its latest 10K, per their letter dated 2/4/22:
“
February 4, 2022
Fellow Shareholders:
Union Pacific demonstrated again in 2021 that our team is “best in class” as we navigated challenges from the pandemic and numerous operational disruptions. The pandemic continued to impact our daily lives and disrupt supply chains in significant ways. Despite these wide-ranging impacts, the Union Pacific team achieved record financial results. In 2021, we are reporting earnings per share of $9.95, which is a 26% increase versus 2020. Total
volumes increased 4% versus 2020, as our economy continued to recover from the pandemic impacts. Operating ratio was a record 57.2%, 270 basis points better than 2020’s 59.9% demonstrating continued focus on efficient operations. 2020 results were negatively impacted by a one-time $278 million non-cash impairment charge that reduced earnings per share by $0.31 and increased operating ratio by 140 basis points.”
https://www.up.com/investor/annual/
Just line BlackRock, but you and I know what they are pushing with their investments.
That is one of the reasons why the sanctions need to end and a free flow of fuel, fertilizer, and food needs to be restored.
What rationale is Union Pacific giving for the reported railroad-mandated shipping reductions?
What can be done to reverse those?
The feds are probably the root of the problem.
All a part of the plan. It [the Plan] was implemented when lying Joe Biden was installed in the White House by popular demand of the Republican Party and Democrat Party along with the voters. President Trump, who wanted the people to prosper was replaced by Lying Joe Biden, the biggest liar, thief, and crook in the History of the World. Immediately after being ensconced, he set in motion programs which, if allowed to run their course will lead to starvation. And the sheep cheered, “At least we got rid of Trump” was the battle cry.
This is a serious crisis, even if the msm and dems ignore it. Planet wide.
Yay sanctions! We told that Putin, didn’t we? And although fertilizer is made from natural gas, we are cutting gas production due to imaginary climate something.
Tump would be on the phone with UP, and instead of cutting shipments, they would increase them by 20% overnight.
He’d put together a fertilizer taks force, get all red tape cut, use military transport if need be. Whatever it takes.
Instead, FJB will somehow make it worse. It’s what he does.
Biden Admin’s new rule may have triggered it
Look the article at my post #53. It may add to your list.
Thanks. That almost make it look as if this is a pre-emptive retaliatory move.
There are too many perverts, addicts, and depraved minds for True Repentance of this nation IMHO.
Judgement started a while back and it will be completed.
It makes it look like the Biden Administration WANTS food production disrupted.
“Saint Andreas, hear our prayer” vs. SMOD 2024, you mean?
Isn’t Union Pacific a Berkshire Hathaway company?
Oh, my—so hard to imagine!
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