cancel
Showing results for 
Search instead for 
Did you mean: 
rickgthf
Senior Advisor

I don't care if Nat gas is $3.8o per therm, ...

It takes 33 million BTUs to make a ton of ammonia, that's only $125 worth of natural gas.   If urea (46% N) is $747 per ton then ammonia (82% N) is worth $1334 per ton. That's a 1076% markup.  Now maybe it costs something to build & operate an ammonia production plant but there's not much labor cost

  It's beginning to look like price gouging to me.  I wonder how much high-priced urea they'll be sitting in the summer.

11 Replies
Hobbyfarmer
Honored Advisor

Re: I don't care if Nat gas is $3.8o per therm, ...

Why u complaining?

U need to get Slo Joe and Hyena Harris a happy holidays card in the mail.

Fert has trippled, gasoline is 50% higher. The sky's the limit with this regime.

BA Deere
Honored Advisor

Re: I don't care if Nat gas is $3.8o per therm, ...

If fertilizer production is like everything else, labor costs especially trucking are more than the ingredients.   It`s hard to find grain cart operators and trouble finding restaurant workers, I doubt the fertilizer industry is immune to those issues as well.  

Fertilizer is time sensitive, you only get one chance at it every year and if the logistics doesn`t jive such as home heating taking more of the NG supply.  Then the "Go Go! Gonna git the anhydrous on by Halloween!" crowd bid it up.  If the coop has 100 on the list to get tanks and there`s only so much product to be had in the entire state, of course prices go up.  I know when propane was $4, $5 a few years ago, trucks were sitting in line at the terminal waiting 8 hours to fill their truck, that adds a crazy amount of cost to the business.  That was when they would put a couple hundred pounds in customer`s tanks just to keep everyone warm and not run out.

0 Kudos
sdholloway56
Senior Advisor

Re: I don't care if Nat gas is $3.8o per therm, ...

The fascist mind sure do take some interesting twists and turns.

 

0 Kudos
BA Deere
Honored Advisor

Re: I don't care if Nat gas is $3.8o per therm, ...

If nitrogen is too high, don`t buy it.   If nitrogen is too profitable to the manufacturers, then start your own factory.   Capitalism is pretty simple when you get right down to it. 

0 Kudos
sdholloway56
Senior Advisor

Re: I don't care if Nat gas is $3.8o per therm, ...

I recently gave up thinking I’d seen everything. On first blush, farmers defending the pore N monopolists sorta seems like having KICK ME embroidered on the seat of their Carharts.

But anyway, N production margins have been obscene for a long time. The last few $hundred is a bit different- largely the product of a messed up global LNG market hitting production  in Europe and China. They don’t directly make N from LNG but piped gas was being diverted to cover it. But US producers are hauling in obscene, windfall profits.

 

0 Kudos
sdholloway56
Senior Advisor

Re: I don't care if Nat gas is $3.8o per therm, ...

Cheer up.

Best NFI since 2014 and the gubmint didn’t even have to kick in 40% of it.

0 Kudos
BA Deere
Honored Advisor

Re: I don't care if Nat gas is $3.8o per therm, ...

"the world is flat" how are farmers in other countries handling high nitrogen prices? 

0 Kudos
sdholloway56
Senior Advisor

Re: I don't care if Nat gas is $3.8o per therm, ...

A reminder-

LNG is a bit of a Rube Goldberg, but probably necessary into the intermediate future.

But in the long run, renewables are cheap, price stable and constructive for national security. Putin or Prince Bonesaw can’t hold leverage over you.

 

0 Kudos
sdholloway56
Senior Advisor

Re: I don't care if Nat gas is $3.8o per therm, ...

The machinations required to defend the status quo are sometimes breathtaking.

The reactionary mind is sumpthin’.

 

0 Kudos