by PeakOiler » Thu 24 Nov 2005, 10:45:37
$this->bbcode_second_pass_quote('Doly', 'T')hat's always been my point: nobody is going to stop making fertilizers. Especially when you think that we aren't running out of oil, only cheap oil. If fertilizers become more expensive, so be it, but nobody is going to stop using them. A lot of other things would have to go before anybody considers cutting on fertilizers.
Have you read these articles?:
Reference
Excerpt:
"The U.S. fertilizer industry is suffering "ongoing damage" from a crisis in natural gas production, a representative of the The Fertilizer Institute (TFI) told a Congressional committee this week.
"The current U.S. natural gas crisis is exacting a heavy toll on America's nitrogen fertilizer producers and the farmer customers they supply," said TFI President Ford B. West. "The resulting negative financial impact on the North American fertilizer industry is unprecedented and threatens to irreversibly cripple the U.S. nitrogen fertilizer manufacturing industry, which supplies approximately one-half of U.S. farmers' nitrogen fertilizer needs."
West told the committee members that in recent weeks three of the largest remaining U.S. nitrogen fertilizer producers have announced production capacity reductions of 50 percent or more."
Reference
Excerpt:
" Heating bills are not the only place Minnesotans will feel this winter's soaring natural gas prices. Expensive natural gas means expensive fertilizer and an uncertain spring for the region's farmers.
THERE'S NOT MUCH FARMING TO BE DONE IN JANUARY, so John Wojtanowicz brings his mammoth potato picker in for a tune-up. Before the picker sees any action this spring, his 1,200 acres of potatoes will need hundreds of pounds of nitrogen. The same goes for his 2,000 acres of corn and kidney beans, hungry for anhydrous ammonia and urea - two popular fertilizers made by mixing raw nitrogen with natural gas.
Soaring natural gas prices have pushed fertilizer prices to double what they were a year ago. Wojtanowicz guesses his cost per acre of potatoes will go up $35. But that's a rough guess in a wild market like this one and, like many farmers,
he's bought less than half of the fertilizer he'll need this spring.
A little more manure from a neighbor, and some creative crop rotation might help cut down on fertilizer need, but like many cash crop farmers, Wojtanowicz admits he's dependent on fertilizer.
"We only use what is the optimum amount anyway, and decreasing our usage of nitrogen would just get us lesser crop, and so we wouldn't do that," Wojtanowicz says. "Any farmer that is reasonably successful is already being as efficient as he can and the only thing we can do is try to be more efficient to make up for this. But there is not much wiggle room."
Farmers are used to laughing off tough situations. But nationwide, nitrogen fertilizer plants are producing at only half their full capacity. Last year's hot summer and a shortage of new gas wells have made farmers just one of many groups clamoring for limited supplies."
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