“As part of this study, we conducted a historical analysis going back to 1980 and found that fertilizer costs tend to go up when corn revenues increase. Notably, these prices tend to go up exponentially even after accounting for natural gas prices and higher demand,”

says Joe Outlaw, Ph.D., the AFPC co-director.

Dee Vaughan, a farmer in the Texas Panhandle, says his farm has felt the impact of climbing prices that account for approximately 36% of a farms’ operating cost.

“In just over 2-years, I’ve seen an astonishing 264% increase in the cost of nitrogen fertilizer alone. My farm’s overall fertilizer cost has increased 241%,”

Vaughan says.

Farms are experiencing this price hit regardless of location. Jim Sugarek who farms near Bee County in South Texas also saw a 264% increase in fertilizer costs on his family farm.

“As I prepare to put a seed in the ground in just a few weeks, I couldn’t wait to see if these price hikes would settle to something close to a normal year – much less risk them surging even more,”

Sugarek says.

In the study’s historical analysis of the nitrogen fertilizer industry, four manufacturers, including CF Industries, Nutrien, Koch, and Yara-USA, account for approximately 75% of the total domestic nitrogen fertilizer production.

Inflation and supply chain issues experienced nationwide have been cited by the industry as key factors to the impact on farmers’ fertilizer prices. However, the study shows there are some trends to be considered to the contrary.

Namely, the industry indicates natural gas accounts for 70-90% of variable production costs for nitrogen fertilizer. The study finds that the increase in one type of nitrogen fertilizer, anhydrous ammonia, the value of natural gas accounts for only 15%, or $102, of recent price increases.

“The study shows that once the value of natural gas has been subtracted from nitrogen, the residual tends to closely track the price of corn,”

Outlaw notes.

While this correlation could nod to increased demand for nitrogen products as corn prices rise, it could also be “due to the exercise of market power by nitrogen product manufacturers,” the study asserts.

“Our findings raise serious questions and clearly help explain the frustration with this situation farmers are feeling nationwide,”

Outlaw says.

The study was commissioned by state corn checkoffs and associations in Texas, Missouri, Colorado, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Nebraska, New York, North Carolina, North Dakota, Ohio, South Carolina, South Dakota, Tennessee, and Wisconsin.

As noted in National Corn Growers Association’s release today, looming tariffs would add insult to injury. The AFPC study states,

“Any import tax on nitrogen fertilizers would raise prices for both domestically produced and imported fertilizer by the full amount of the tax rate multiplied by the pre-tax price.

“Fertilizers play an integral role in a crop’s health and success. The steep price hikes hitting farm country are alarming for corn farmers who count on nitrogen and other fertilizers for their plants to thrive. The breadth of how far-reaching this is impacting farmers is telling that something needs to be done to keep America’s farmers from bearing the burden of an industry pushing the limit of how thin they can cut a farms’ margins,”

Vaughan concludes.

The post Family Farms Take Hit from Skyrocketing Fertilizer Prices, Study Shows appeared first on North America FarmQuip Magazine.

On behalf of the Minister of Agriculture and Agri-Food, the Honourable Marie-Claude Bibeau, the Parliamentary Secretary to the Minister of Environment and Climate Change (Canada Water Agency) and to the Minister of Economic Development and Official Languages (Western Economic Diversification Canada) and Member of Parliament for Winnipeg South, Terry Duguid, announced an investment of over $1.1 million for the Manitoba Forage and Grassland Association (MFGA). The funding will be used to develop a new forecasting tool that will help farmers and stakeholders better understand and manage extreme weather events within the Assiniboine River Basin.

With this funding, the MFGA will create a web-based tool that will provide seven-day, forward-looking forecasts for soil moisture, groundwater, and surface water flow. Producers can use this real-time information to adopt better risk management strategies and inform decisions about their operations in the face of extreme weather.

The new interactive tool will also show how soil and landscape management strategies could influence moisture and water conditions over the seven-day interval, with the goal of encouraging the adoption of beneficial management practices.

“Manitoba farmers understand the major impacts that extreme weather events, such as flooding and droughts, can have. The Government of Canada is committed to supporting resources that help to better understand and manage these risks. With this funding, the Manitoba Forage and Grassland Association will create an interactive tool that provides real-time information to help farmers and industry professionals increase resiliency of the land and communities in the Assiniboine River Basin.”

Terry Duguid, Parliamentary Secretary to the Minister of Environment and Climate Change (Canada Water Agency) and to the Minister of Economic Development and Official Languages (Western Economic Diversification Canada) and Member of Parliament for Winnipeg South

“As a producer-led non-profit organization, MFGA has full respect and understanding of the challenges farmers and producers face with their farm operations every day when it comes to planning around water and dealing with climatic events. MFGA is very grateful to AAFC’s AgriRisk Initiatives for the project funding and we are very pleased to be delivering this new interactive forecasting tool for farmers and land managers in the Assiniboine River Basin. Besides the forecasting ability, we are equally excited that the tool will also showcase how beneficial soil and landscape management practices could potentially influence soil moisture, groundwater, and surface water conditions over the seven-day interval.”

Larry Wegner, Chair, Manitoba Forage, and Grassland Association

Source: Government of Canada

The post New Forecasting Tool to Help Manitoba Farmers Better Manage Extreme Weather Events appeared first on North America FarmQuip Magazine.

Titan has enhanced its warranty policy on construction and select small OTR tires in both the Titan Tire and Goodyear Farm Tire brands.

“We’re incredibly confident in the quality of these tires. That’s why we are comfortable implementing a more robust warranty policy with coverage that gives customers added peace of mind and helps Titan stand out from the competition by offering one to three additional years of coverage versus competing brands,”

said Mark Rankin, senior vice president for Product & Business Development, at Titan.

Warranty coverage now includes:

• Titan Small OTR Bias and Radial Tires: The warranty has been extended from 4 years to 6 years, and now comes with 1 year of free replacement for tires with less than 10% wear (mounting and service charges apply). This includes 24-inch and 25-inch E-2/G-2/L-2, E-3/L-3, and E-7 tires for motor graders and wheel loaders. Small OTR lines include select small MXL, TGD2, Super Rigger, Lift Rigger, Motor Grader HD, Super Grader, Loader Grader III, Loader Dozer II, and Super Sand Flotation tire lines.
• Titan and Goodyear Bias Construction Tires: Includes 6-year workmanship and materials warranty, plus free 1-year replacement for tires with less than 10% wear (mounting and service charges apply). This includes skid steer, backhoe, trencher, aerial lift, and compactor tire lines. Many competing brands only offer 5-year coverage for comparable tires.
• Goodyear Radial R-4 Backhoe Tires: Includes an 8-year workmanship and materials warranty, plus free 1-year replacement for tires with less than 25% wear (mounting and service charges apply). This is compared to many competing brands offering only 5-year coverage.

Certain exclusions apply to the aforementioned warranty coverages.

The post Titan Expands its Warranty Coverage on Construction Tires appeared first on North America FarmQuip Magazine.

The six questions are:

As the next leader of the CPC, what would your top priorities be for farmers and the agriculture industry across the prairies?

What is your position on free and competitive markets in international trade, including the elimination of export subsidies, reduction of trade-distorting domestic support, and reducing tariffs and non-tariff barriers that inhibit market access?

What is your position on a carbon pricing system, including a credit and debit system that acknowledges the significant carbon reductions being achieved by prairie grain farmers through modern farming techniques and carbon sequestering?

Farmers depend on road and rail infrastructure to bring in inputs (seed and fertilizer) and export grain. What is your position on the grain transportation system and the ability to maintain an accountable and efficient system considering possible future overcrowding on the rail system? How will you support rural infrastructure investment?

What is your position on the development of agricultural innovations that make farmers more profitable and sustainable, with a science-based regulatory approval process for the introduction of new technologies, including the adoption of genetically modified crops?

Modern agriculture depends upon technology for market info, equipment software updates, timely communication, and the ability to reduce our carbon emissions. How will you ensure that improved cellular and broadband technology will be available to rural areas?

The responses are available here.

Source: Western Canadian Wheat Growers

The post Conservative Party Leadership Candidates Response to Agriculture Policy Issues appeared first on North America FarmQuip Magazine.