Posted by NY 986 on November 22, 2015 at 09:38:28 from (174.236.38.178):
In Reply to: Re: Fertilizer Trends. posted by JD Seller on November 22, 2015 at 07:32:05:
It should also be stated that as other countries increase their usage of fertilizer that the US share of the overall volume sold is shrinking as a percentage. This in turn makes non-domestic producers less sensitive to the US ag economy. My supplier many years ago stated that the pricing strategy on the wholesale end reflects the desire to extract more dollars from top producers versus marginal ones. Which is to say marginal producers can be sacrificed in terms of sales volume if the same or higher net profit can be extracted from the remaining customer base. Any soil science instructor will tell you there is no such thing as a free lunch when it comes to fertility which means plants use definite volumes of nutrients whether they already exist in the soil or come from application. Once removed from the soil a farmer can either bring the level back up to what it was previous to the last crop or have less available nutrients for the next crop. As you stated crops such as corn it is all or nothing in terms of applied fertilizer. It only makes sense to fertilize to get the maximum yield possible as it is in the last quartile of yield where profit is realized and that is based on the expectation that the crop will run in excess of 175 bushels per acre. Planting with a goal of under that means there will be no return beyond cost so don't bother with ground that only yields 130-140 bushel corn best case scenario.
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