A 25 cent increase in the value of
the Canadian dollar and dismal commodity prices should have lowered the
value of a tonne of fertilizer. But the opposite has happened.
Last year a tonne of potash sold
between $290 and $320 dollars on the Ontario market. This year farmers are
looking to pay between $340 and $380 per tonne.
Harry Bennett, a crop consultant
with Harvex in Kemptville, says the number of world suppliers has
decreased and world demand has put upward pressure on the price. China, a
new buyer, has bought between one and one and a half million tonnes of
potash.
"Potash suppliers have been
left with very low inventories," he said.
Nitrogen, following the increase in
natural gas from which it is made, rose about 10 per cent over last year,
while phosphates have also gone up by 10 per cent.
Harvex’s phosphates, which come
from Florida, should have decreased in price, considering how the Canadian
dollar has jumped.
"I don’t know what’s going
to happen," he said. "There’s a lot of indecision among
farmers on what they are going to plant. Except for dairy farmers. They’ve
made up their minds."
But farmers can’t vary too much.
"It’s still in a farmer’s best interest to have a good crop
rotation."
Instead of big swings in crops, he
sees a change in planting strategies. Some farms are minimizing fertilizer
rates while others are using bin run seeds.
"I see no real bright spot," he said.