Fert Pricing Update

Discussion in 'Pesticide & Herbicide Application' started by Plant Buyer 83, Aug 11, 2008.

  1. Plant Buyer 83

    Plant Buyer 83 LawnSite Member
    Posts: 176

    One of my local vendors sent me this link via email this morning I think it will be good to share. It is the latest report from Tim Howard with Gromark, a major fertilizer manufacturer. I know this has been talked about alot so here is so more reading for everyone.

    http://www.turfjim.com/Fertilizer_Crisis.html
     
  2. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,020

    This ain't good! But all I can say is this is fact... so better do something about it before it gets worse!

    Prices have currently doubled since last fall per bag, and I would project atleast another 30% before next spring from what I am picking up!
     
  3. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,842

    Crude is now under $115 a barrel, and it continues to fall on a weekly basis. All sources of fuel & N are tied together. I wonder if the above link is a scare tactic on the part of the distributor. Remember two years ago when realtors said buy now, cuz the prices will only go up? :confused:
     
  4. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,020


    I wish Larry!

    Remember this is a Supply and Demand market now...

    Crude doesn't have near the effect on N as is used to.

    I can tell you from the ag side that this isn't a tactic. Some of the numbers I am hearing are very alarming.

    N may stabalize at some point after going up a time or two...but going down is out of the question unless something crazy happens!

    Most suppliers won't even give prices right now...because they may not get it. This is a true Supply and Demand issue!
     
  5. bug-guy

    bug-guy LawnSite Senior Member
    Posts: 954

    remember fuel cost plays a part in the cost increase but demand vs. supply are the larger villian here. when things cool down in china and india and corn doesn't gobble the gaints share of the demand here, then and only then will things get better.

    has any one tried cloning npk??????
     
  6. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,020


    When things cool down in China and India....?

    When is that going to happen?

    They are going like gang busters and I don't see them slowing down much. Populations are increasing faster then any...and now they have $$$$$!

    If we are waiting on that...we will be waiting for a long time.
     
  7. whoopassonthebluegrass

    whoopassonthebluegrass LawnSite Platinum Member
    Posts: 4,205

    Excuse my ignorance, but if N is derived from Coal, why aren't we mass producing it here in the US?
     
  8. bug-guy

    bug-guy LawnSite Senior Member
    Posts: 954

    i thought nat. gas was the main source of n
     
  9. LIBERTYLANDSCAPING

    LIBERTYLANDSCAPING LawnSite Bronze Member
    from Indiana
    Posts: 1,283

    Urea's biggest cost to produce is natural gas. In the last 10 years the US has lost ~60% of it's Urea producing. There were too many EPA & other governmental regulations for it to be very profitable, whereas Russia & China can make it cheap (they don't have much in the way of pollution regulations-did you see the smog surrounding the Olympics:laugh:) I would think @ todays prices, it would make sense to produce it here, even w/ all the regulations & the extra cost that brings:usflag:
     
  10. Runner

    Runner LawnSite Fanatic
    Posts: 13,496

    This is an old article, and was written back in mid-April.
     

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