Verified FBN Member (ND)

Agronomy

If you had the money,, would you buy two years worth of fertilizer today?

I got an SBA EIDL loan 3.75% back in July for $500,000 I could up the amount to $2,000,000 . Wondering if I should buy the next two years worth of fertilizer fuel and crop protection for a 4500 acre crop farm. 1/2 corn 1/4 each wheat and beans.

13


Verified FBN Member (TX)

The interest is cheap. Fertilizer cost should be higher by spring than the interest will cost. The bigger issue may be the lack of availability in spring. But if you work with one of your retailers that can’t stand to make any money off fertilizer then you could lock it in and pay and likely they would store it for you. There was a early buy offered last week on UAN and it’s already high priced and the volume was very limited in the offer. Everyone should look at your crystal ball’s from one year ago when UAN 32 was under $200/ton and glyphosate was $14/gl and now it is $50 plus per gallon on glyphosate and about $500/ton on UAN 32 and there is little to none available of either. If CF Industries is successful in their pursuit to get the Govt to impose anti dumping tariffs and countervailing duties on imported UAN Solution they will raises prices so high you will be questioning if you want to by UAN even for 2023.

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