Illinois Fertilizer & Chemical Association
Supply · Service · Stewardship

Canadian Farmers Store Fertilizer to Fight Dealer' Pricing Power

Canadian farmers are plowing profits from bumper crops into fertilizer storage facilities to mitigate the pricing power held by major retailers and producers.

Having their own storage lets farmers buy nutrients more cheaply during the off-season and creates fewer transport bottlenecks in the spring planting season.

Over time, the practice might erode the steep premiums farmers pay in the spring to retail businesses owned by Agrium Inc, Richardson International and Cargill Ltd , while shifting distribution patterns of producers Potash Corp of Saskatchewan, Mosaic Co and CF Industries.

The trend is part of a wider shift by North American farmers to gain more control over both costs and the prices they collect. In the U.S., farmers are building silos and bins to store grains and oilseeds until crop handlers entice them to sell.

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