Posted on 03/27/2022 12:58:12 PM PDT by RomanSoldier19
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We know that the war in Ukraine has led to sharp increases in prices for both food and fuel. This in turn has sparked concern that we may see a repeat of the famine and food riots that took place in 22 countries in the years following the global financial crisis, caused by a perfect storm of rising commodities prices.
While US wheat farmers should be in a good position to help buffer some of the pain from agricultural disruptions in Ukraine and Russia, they are worried about inflation of another sort — in fertiliser.
The war is part of that problem, too. Russia was until recently the second largest foreign exporter of fertiliser to the US, providing 10 per cent of the total supply. But it is not the only reason prices are rising.
(Excerpt) Read more at ft.com ...
Wonder if Soros holds options on bulk fertilizer and even the big carriers. It would be his m.o. If you want to buy fertilizer you have to go through him.
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I don’t think it’s a matter of quantity right now.
It’s a matter of if a farmer can afford to pay what fertilizer
costs these days, and still remain a viable operation.
Granted, taking lawn fertilizer and redirecting it might
lower the costs. It also takes a whole market away from
sellers too. Could that drive costs up?
These dynamics aren’t clear to me on this one.
The kibosh was put on ammonium nitrate years ago. Apparently, mixed in the right proportions with fuel oil, it is a pretty potent explosive. Now you have to have a government permit to purchase any more than very small amounts of NH4NO3 at a time.
Trading under "IPI" NYSE
A loaf of Bread this fall 2022 will be over ten dollars US.
That's what i thought.
I began to track agricultural investments , including fertilizer - when we entered the Munder Minimum Cycle.
This large decrease in sun activity has historically been marked by food shortages and disease.
The cooler temperatures also require more energy usage.
We are invested in these areas.
Loving it.
There is no threat to crops, just a weak attempt to explain away the rising (pre-Russia invasion) inflation we’ve been facing. They tried pinning gas prices on Putin but they were already rising pre-invasion, now they’re covering food, and they’ll have further BS to explain everything else we pay more for...
What ever happened to manure? Do they still have cattle? Milk cows that eat grass? Horses? Goats? Sheep? I am a city person. I just do not know.
Oh yeah they still lay down manure, at least here in Indiana. But it’s a tiny fraction of what is needed.
“Nitrogen is produced in over 78 countries worldwide.”
This is part of a post I saw today from farmer dealing with this “apocalypse”. An honest to goodness farmer, not some media hack or fertilizer no nothing, like you and me.
“I am a central texas farmer growing mostly forage and small grains and hay for animal production. Fourteen months ago I bought UAN 32 fertilizer for 232 a ton. 18 days ago I bought another load to top off my storage silos for 820 a ton. Friday a friend in South texas called in a panic because he had been quoted 2000 a ton for fertilizer. I gave my supplier a quick call and he had already been selling for 1200 a ton delivered and this next week was planning to go to 1600.
Part of this issue is the fertilizer price and part is the almost 5 dollar a gallon diesel fuel. Fertilizer in this area mostly all gets trucked in from Houston as it is needed.
What people need to realize is what these inputs actually mean as we are just into spring planting here and it goes to the north as it warms up. If fertilizer hits 2320 dollars which it appears it will easily, that will mean my input cost on one single item will be 1000 percent higher. Figure in diesel costs twice as much this year and parts are ridiculously expensive and hard to come by as well as oil and lubricants to service my equipment and you are basically going to come up with a commodity price that is 15 times what it was last year.”
Sound like a potential apocalypse to you?
Our FR neocons want to hurt every American as much as they want to hurt the Russians.
I’ve been out of the business for a while, but I believe that farmers own the biggest fertilizer producers in North America through their membership in agricultural cooperatives.
Ammonium nitrate and urea’s synthesis is from natural gas. The USA has natural gas in abundance. We can not build plants overnight to do this process. We can build them and be totally independent of foreign supplies. We could become the world leader in exports of this product.
We are not due to the fact we could get it cheap from Russian and the Ukraine. That day is over and will not come back.
The solution is simple:
Drill and build. We would then become a net exporter of petroleum and in the future a net exporter of nitrate fertilizers.
ps
New York State has one of the greatest natural gas deposits in the Marcellus Shale. They also have the highest prices for natural gas as they refuse to exploit the bounty that lays beneath there feet. Pennsylvania next door does use this bounty and sells it to New York at great profit. Idiots abound in the New York State government.
See below link explaining the synthesis.
https://www.fertilizerseurope.com/fertilizers-in-europe/how-fertilizers-are-made/
“Nitrogen is produced in over 78 countries worldwide.”
True, but producing much of it is extremely energy intensive and consumes a lot of natural gas. Without it, the present population of the planet would not be sustainable.
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