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View Full Version : Fert prices, yikes!


CrabtreeLawn
08-24-2008, 11:39 PM
so lesco is increasing starter fert from about $13/bag to about $37/bag... just found out last week, if i calculated right that is a about a 300% increase? ( i admittedly dont know how to calculate that..) so now i gotta go back on some of the bids i gave earlier this year and increase. not really a problem as long as i still get what i need out of it but i still have a big bid to turn in this week and i have no idea what to price the preemeergent apps at. I've been using dimension + fert ( i think it is 19-3-6 for the first round...) does anyone have any idea or speculation on how much of an increase we should expect? Dimension was already like $27/bag, i guess its only the NPK thats going up, and not so much the chemical in it. but if it goes up 300% as well, then thats gonna make it about $80/bag!
and yes, those are the per bag prices not counting any quantity discount...

CrabtreeLawn
08-24-2008, 11:41 PM
sorry guys i see there are a number of threads on this, shoulda searched first...

tremor
08-25-2008, 09:09 AM
Fertilizer aside, Dimension tech is also going up. Early indications are 20%+ for the tech.
If you paid $27 this spring then I'd budget $32 for next spring.

gorknoids
08-26-2008, 01:05 AM
Next election, find out what your candidate thinks about ethanol, and what he/she plans to do about this frigging disaster. The damage this crap has wrought on the national and global economies won't be known for years.......

Marcos
08-26-2008, 02:13 AM
No better time to resurrect the famous words Joni Mitchell originally penned immidiately in the aftermath of the Woodstock Music & Art Festival:

" ...it's time to get ourselves...back to the garden".

Marcos
08-26-2008, 02:41 AM
[QUOTE=CrabtreeLawn;2482216] 300% increase? ( i admittedly dont know how to calculate that..) QUOTE]

Go fish!!!!.....for a new vendor, if all you say is precisely accurate.

Even if you don't end up changing vendors in the end, spending time listening to alternative points-of-view from other salesmen, as well as hearing about new and different products from them, will often have you walking away, and back to Lesco (or wherever) more savvy, armed, and ready to 'negotiate' than ever before! :cool2:

You may also want to look around locally for a landscape / lawncare 'business mentor' of some type, too, who would be willing to spend some time with you...to show you invaluable business math principles that every business bookkeeper HAS TO know to survive today.

olive123
08-26-2008, 06:54 AM
ethanol is the biggest scam going...$1 corn to make $1 of fuel...

Runner
08-26-2008, 02:05 PM
I fully agree. And then,...take what I read in a god article a few weeks ago... Even though you pay a bit less "per gallon" at the pump for this stuff, you are not getting the mileage that you get with gasoline,...So, if you figure up the miles per dollar, just exactly how much are you really saving?
On the first part of the conversation, we were talking at tour supplier, and it is being said that our $23 per bag price for medium analysis ferts (24-0-11, 32-0-8, etc.) could actually double next season. that will put us to $46 per bag.

rcreech
08-26-2008, 03:51 PM
Next election, find out what your candidate thinks about ethanol, and what he/she plans to do about this frigging disaster. The damage this crap has wrought on the national and global economies won't be known for years.......

I am not a big Ethanol fan...but it has very little to due with fertilizer prices increasing!

It gets blamed for everything....but I can promise you that the fert prices have not gone up becasue of ethanol!

Soybeans take off more P and K then a corn crop...so usuage hasn't changed.

Corn does take more N, but again, being in a global market things haven't really changed much as far as usage compared to last year.


I see corn acres going down next year due to input costs, and I think N, P and K will be at all time high's.

Fertilizer and crop production are not tied together in anyway. This is a supply and demand market ONLY!

cpa4t9r
08-26-2008, 04:22 PM
PCS and the other big potash/fertilizer producers announced a few months back that they contracted to sell a large block of next years production to China. The negotiated price was a 200% increase over last year!!! :dizzy:

That's what is driving prices up - as previous poster mentioned - demand goes up, meets supply at price.

grassguy_
08-26-2008, 07:08 PM
Well lets hope they are selling to China at $2000.00+/ton that others are projecting for us at the bag price!....yeah....not likely with our trade deficit!
We're getting sold up the river as usual!

kppurn
08-26-2008, 07:15 PM
On the first part of the conversation, we were talking at tour supplier, and it is being said that our $23 per bag price for medium analysis ferts (24-0-11, 32-0-8, etc.) could actually double next season. that will put us to $46 per bag.

Man, I sure hope that doesn't happen. Gone are the days when I could get 24-0-11 or 24-5-11 for $12-$13 a bag.:(

LIBERTYLANDSCAPING
08-26-2008, 07:35 PM
I fully agree. And then,...take what I read in a god article a few weeks ago... Even though you pay a bit less "per gallon" at the pump for this stuff, you are not getting the mileage that you get with gasoline,...So, if you figure up the miles per dollar, just exactly how much are you really saving?
On the first part of the conversation, we were talking at tour supplier, and it is being said that our $23 per bag price for medium analysis ferts (24-0-11, 32-0-8, etc.) could actually double next season. that will put us to $46 per bag.

And......It would cost more per gallon at the pump, if not for government subsidies:hammerhead: I am convinced if it were not for the presidential elections kicking off in Iowa every election cycle, we would not have near the handouts & freebies going to these farmers with their hands out;) All the politicians go out to Iowa & start promising the world in order to get their vote:hammerhead:

While I realize ethanol is not the only reason, it definitely has put pressure on the market.

PSUTURFGEEK
08-26-2008, 08:03 PM
CPA hit it right on the head, all the futures and reserves of raw materials are already reserved for China and India to dictate our prices back to us.

shovelracer
08-26-2008, 08:33 PM
This is similar to what my lesco dealer sent us. Basically it went like this:

Due to the several mine collapses years ago the US government shut down the majority of the small coal mines around the country. Leaving our country at a shortage of raw materials to make fertilizer. This coupled with an increased demand for renewable fuels has left our country's manufactures seeking alternative solutions. They have gone to China which houses more coal mines than anywhere else. China's exports grew 250% in the last year. The Chinese government realized this and started a 125% excise tax on these exports. So our manufactures are now paying more than double for the raw materials to make our fertilizer. Price gets passed down.

Not sure how much of this is propaganda and how much is fact, but it seems to go with what I have seen.

I also have a client that works for one of these manufactures. He has been taking lots of business trips to China in the last few months. Ive asked him what he thinks about the situation and he plays stupid and keeps asking about next years pricing. I think he knows a lot more than he lets on, plus hes never pushed pricing like this.

If you could sum up a reason for price increase into a 5-7 sentence paragraph, what would it say?

mikesturf
08-26-2008, 08:56 PM
Man, I sure hope that doesn't happen. Gone are the days when I could get 24-0-11 or 24-5-11 for $12-$13 a bag.:(

Back in January of 2008, Lowes was discontinuing their "Sta-Green" 29-2-5 granular fertilizers and selling each 48 pound back for $4.74. I wish I filled my garage with the stuff (and made my wife park on the driveway). Their seed starter fert was going for $2.00 per 48 pound bag.

phasthound
08-26-2008, 10:05 PM
So, it seems more people are finally figuring out that the world economy is changing. It's not about JD taking over Lesco and all us poor lawn care companies are getting screwed by them. It is due to a fundamental change going on.

Let this sink in, prices will continue to rise for the foreseeable future. Whining about this will not help. Looking for more sustainable, home grown methods will help.

The USA has plenty of it's own chicken sh*t and people sh*t to mix with some conventional ferts to provide us with good crops and lawns.

Instead of letting these waste products leach into our drinking water from concentrated sources, doesn't it make some sense to use it in small amounts to grow things with?

Not only does this free us from importing fertilizer, but it also helps the "green" industry show that it is contributing to clean water solutions instead of adding to the problem?

Maybe this would help get the regulators off our backs & show them that the industry can police itself for everyone's benefit? Or maybe you are all happy with the Fed's telling us what to do?

But I'm only here to sell fertilizers. :)

shovelracer
08-27-2008, 07:45 AM
Your right. I can think of a few lawns Id like to poop in. Does anyone know the real story behind all this or are there too many factors.