Will recession spark global food crisis?

As farmers cut back on fertilizer, the impact could reverberate far beyond Potash Corp.’s bottom line

Like millions of farmers around the world, David Start is slashing the amount of potash he uses on his Ontario farm and the impact is rattling the agricultural industry.

Mr. Start has cut his potash use by 75 per cent because the price of the fertilizer is just too high. He hopes that by using a limited amount of potash he’ll still produce the same amount of corn, beans and wheat.

“If you can’t afford the input, then you have to start to strategize,” he said from his farm near Woodstock.

Farmers across Canada, the United States and elsewhere are making similar decisions and holding off on fertilizer purchases in the hope prices will fall. Their collective action has sent fertilizer sales into an unprecedented nosedive and pummelled the bottom lines of agriculture giants like Potash Corp. of Saskatchewan Inc., Viterra Inc., Bunge Ltd. and Terra Industries Inc.

Globe and Mail