Author: cglen

TFI Urges Agreement or Congressional Action to Avoid Rail Shutdown

Arlington, VA – The Fertilizer Institute (TFI) today again urged Congress to take action to avoid a freight rail shutdown on September 16th. TFI sent a letter to Congressional leaders on Sept. 7th pushing for intervention to prevent a stoppage from occurring.

“A stoppage hasn’t yet happened, but we are already feeling the negative effects of non-resolution,” TFI President and CEO Corey Rosenbusch said. “Rail networks are complicated, and carriers must make preparations ahead of a potential stoppage to keep certain types of cargo safe and secure. Fertilizer falls into that category and is being taken off the rails. That is bad news for farmers and food security.”

Rail carriers announced Friday evening that shipments of fertilizer products, such as ammonia – a key fertilizer and building block for approximately three-fourths of all fertilizer – will start coming off rail networks as early as this Monday.

“Supply chains are already strained and there is currently zero elasticity in rail transportation,” Rosenbusch continued. “This situation will get exponentially worse every day there is no resolution. Over half of all fertilizer moves by rail year-round, and there are some fertilizer products that move almost exclusively by rail. If they can’t be shipped farmers won’t have them and if they can’t move production slows down. In the end the consumer will be footing the bill for this inaction at a time when household budgets are already strained.”

“TFI would like to see an agreement between the rail carriers and labor unions,” concluded Rosenbusch. “But if they cannot reach an agreement, Congress must act to avoid an economic catastrophe that will only add to inflation and increase consumer pain.”

 

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TFI Urges Congressional Action to Avert Nationwide Rail Stoppage

Arlington, VA – The Fertilizer Institute (TFI) yesterday sent a letter to Congressional leadership urging congressional action to prevent a Sept. 16th shutdown of freight rail operations in the United States. The potential shutdown comes as rail carriers and labor unions continue negotiations on a contract agreement.

“A disruption to freight rail operations would be catastrophic,” said TFI President and CEO Corey Rosenbusch. “Over half of all fertilizer moves by rail year-round throughout the United States and the timeliness and reliability of fertilizer shipments is absolutely critical. If farmers do not receive fertilizer, it results in lower crop yields, higher food prices, and more inflation for consumers.”

The letter sent by TFI urges Congress to begin preparations to implement the Presidential Emergency Board (PEB) recommendations that fall in the middle of the carriers’ and unions’ contract proposals to avert a total stoppage.

“A speedy resolution is paramount,” concluded Rosenbusch. “With less than two weeks to go, carriers and shippers have already begun contingency planning and if no agreement is reached soon rail shipments will have to wind down days before Sept. 16 to allow carriers to carefully clear their networks. Fertilizer shippers and their farmer customers want carriers and their unions to reach a compromise, and if necessary, Congress needs to act to prevent a devastating halt to our nation’s supply chain.”

 

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Ag Retail Leader and Sustainability Advocates Headline InfoAg Conference in St. Louis

Arlington, VA – InfoAg, the leading conference and expo in precision agriculture since 1995 for the agriculture retail community, will this year be headlined with a keynote from GreenPoint Ag President and CEO Jeff Blair and a robust panel discussion on sustainability and stewardship with growers Tom Connors and David Myerholtz moderated by AGI Farmobile Vice President of Data Services Steve Cubbage.

“We are extremely excited to have Jeff Blair as our keynote speaker at this year’s InfoAg Conference in St. Louis,” said The Fertilizer Institute (TFI) President & CEO Corey Rosenbusch, whose organization holds the event. “Jeff is well-known and well-respected among his industry peers. Jeff is passionate in elevating the agriculture industry while driving the development of GreenPoint through steadfast customer engagement, performance improvement and operational excellence.”

During his keynote, Jeff will share his vision for the future of agriculture and ag retail, including the value of advancing sustainability, crop science innovations in soil sampling, variable-rate fertilizer application, effectively applied crop protection products, and empowering farmers and growers.

The following day’s general session luncheon, titled Profitable Practices, Sustainable Solutions and sponsored by AGI Farmobile, will key in on real-life examples of how sustainability and profitability can go hand-in-hand and provide attendees insight into the tools and innovations utilized by a set of growers and how they achieved maximum efficiency and profitability while being environmentally sustainable, including 4R Nutrient Stewardship practices.

“The credibility of the industry’s collective work around 4R, sustainability, regenerative ag, and carbon programs hinge on the integrity of the data used to document practices and measure progress so participants can be rewarded for their efforts,” says Bradford Warner, AGI vice president of sustainability for Farmobile. “That is AGI’s focus. We seek to help ag retailers and their growers capture, maintain and control high-quality, standardized data sets to foster these new markets and benefit their own operations.” During the event, AGI will roll-out a new100k-acre pilot collaboration with TFI and ag retailers to advance the use of the 4R calculator.

“The world’s population is set to reach 8 billion people by this November and 10 billion people by 2050,” Rosenbusch elaborated. “So how is the agriculture industry positioning itself to feed this future? How can we increase land use efficiency while protecting the farmer’s bottom line? These are the questions we are helping to answer through InfoAg and dynamic speakers like Jeff, Tom, David and Steve.”

The InfoAg Conference and Expo addresses the challenges of the ag retail agronomist through the lens of precision ag, environmental stewardship, sustainability, and product innovation. The conference features opportunities for crop consultants, agronomists, and other agricultural retail employees to learn more about innovative practices and new products and technologies that can be put into action with their grower customers. The conference also offers unique opportunities to share information and stories among industry peers.

“The information obtained through education sessions and on-site networking is extremely valuable to advancing shared goals of sustainability,” concluded Rosenbusch. “The final piece to this is the tradeshow aspect of the conference, where you can hear firsthand about the products, practices, and services being talked about among farmers across the country.”

InfoAg is being held in St. Louis, MO on July 26 and 27. Information about the conference and registration can be found by clicking here.

 

About GreenPoint Ag:

Headquartered in Decatur, Alabama, GreenPoint is one of the leading retail agronomy providers in the southern United States with a team of more than 1,000 employees across 10 states. To learn more, click here.

 

About AGI (Ag Growth International Inc.):

AGI is a provider of the physical equipment and digital technology solutions required to support global food infrastructure including grain, fertilizer, seed, feed, and food processing systems. AGI’s digital division includes leading data-driven brands that build value from field to bin, including Farmobile, BinManager, SureTrack, and CMC. AGI’s Farmobile data technology is a leader in auto-collecting and standardizing complex agronomic and machine data sets from a mixed fleet of equipment so it can be easily viewed, shared and streamed into other software systems. A To learn more, click here.

 

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

Iowa State University Study Can’t Refute that Increased Production Costs and Commensurate Supply Chain Issues Drove Increase in Fertilizer Prices

Fertilizer prices increased to 10-year highs over 2021 and 2022, leading growers, policymakers and others in the agriculture industry to look for the reason why. Those in the fertilizer industry who experienced the back-to-back-to-back events first-hand that drove prices up over the course of those 24 months are keenly aware of the reasons why, but many outside the industry latched onto something more nefarious: market consolidation and greed.

A recently released report undertaken by the Center for Agriculture and Rural Development (CARD) at Iowa State University (ISU) at the request of Iowa Attorney General Miller came to the primary conclusion that they did not have enough evidence to refute that “increased production costs and commensurate supply chain issues were the main cause of increased fertilizer prices in 2021/2022.”

This finding was not news to TFI. In fact, TFI has been spending a good chunk of these last two years educating commodity groups, farmer organizations, and policymakers about the myriad issues impacting fertilizer markets and influencing fertilizer prices. You know, things such as the COVID-19 pandemic, supply chain disruptions, increased energy costs, hurricanes, deep freezes, geopolitical unrest, political sanctions, and the Russia-Ukraine war.

Beyond the study’s primary conclusion, TFI has examined the report and provided additional key takeaway points and provided them below.

  • The study acknowledges and articulates well a variety of factors influencing fertilizer prices and markets. While there is always an ability to add more detail and background, the study provides a more holistic view of the market than the Texas A&M white paper that only focused on the change in domestic natural gas price. The ISU study could have made a stronger connection between global energy and fertilizer markets and the domestic fertilizer market.
  • A trend analysis of the price relationship between ammonia, granular urea, Henry Hub natural gas, international natural gas and corn price showed that “[A]nalyses imply fertilizer prices are likely to rely more on input costs than output prices most of the time. In recent years, anhydrous ammonia prices have depended on international natural gas prices, while urea prices relied more on domestic natural gas prices.” Several statistical and economic methods were utilized to arrive at these conclusions.
  • The authors provide a robust conversation on market power and economic profit, explaining “that while economists agree concentration is a necessary condition for market power, they have for decades now mostly abandoned the assertion that concentration is sufficient for market power.” This statement means that looking only at the correlation between the level of concentration or number of firms and the reported profits of an industry to determine market power and influence has been abandoned for other more robust techniques.
  • The media often discusses the fertilizer industries profits, stock prices and returns as evidence of market power. Economists have always been wary of looking at these metrics as these measures are not identical to the economic profits economists seek when measuring market power.
    • “The fertilizer industry’s average net income return over the past few years is high but comparable to other large industries, especially when taken over a longer run as fertilizer companies had low (sometimes negative) profits prior to 2020. The fertilizer industry’s average stock price return is also comparable to that of other firms in other large industries and comparable with a large portfolio of other firms and seems to be commensurate with its relative risk. A similar comparison to Iowa farm incomes and land value returns shows that the fertilizer returns actually lag those slightly.”
    • “Stock prices, especially, reflect what investors think the potential for earnings are, and stock price returns for these companies before and during the pandemic should reflect investors’ broader market perceptions of each firm’s risk and return. The takeaway from examining stock price returns is that the fertilizer industry is similar to the broader market from an investment return perspective.”

Upon publication of the study, Iowa Attorney General Miller in a news release thanked ISU for studying the fertilizer market and prices and for publishing the report. He also promised his office would continue monitoring the situation.

TFI is appreciative of economist at ISU for completing this in-depth study that highlights both current market supply and demand factors and their influence on markets, as well as their explanation of key economic principles related to common questions about the industry. While the study does leave several questions unanswered, the study provides the best analysis data will allow to date.

TFI welcomes any member feedback or perspective on conclusions of the study and ask that you please send those comments to TFI Director of Market Intelligence Jason Troendle at [email protected] or (202) 515-2710.

 

TFI Lauds Congressional Leadership on Rail Service Issues

Arlington, VA – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch today praised the bipartisan leadership of Congressmen Ralph Norman (R-SC-5) and Jim Costa (D-CA-16) for organizing a letter to the Surface Transportation Board (STB) regarding poor rail service and the negative impact it is having on the fertilizer industry and the overall agricultural sector.

“With over half of all fertilizer moving by rail, we are grateful for the leadership of Congressmen Norman and Costa in bringing the issue of inconsistent rail service to the attention of the STB,” Rosenbusch said. “Their dedication to working with all stakeholders will help ensure that essential crop nutrient inputs reach farmers when and where they need them.”

Fertilizer shipments rely heavily on rail to reach farmers, but imposed restrictions, along with skeleton crews and railroad-led initiatives such as precision-scheduled railroading (PSR), have forced fertilizer shipping reductions and potential production delays.

“Fertilizer is attributable to half of all crop yields,” Rosenbusch continued. “With the world leaning on U.S. farmers now more than ever before to feed our growing population, we must ensure strong yields and our food security. Fertilizer must reach farmers in a timely manner and crop harvests also need to get to their destinations, including the kitchen table.”

The Congressional letter to the STB was signed by 51 members of Congress and can be read in full here.

 

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TFI Applauds Additional Investment in Domestic Fertilizer Grants; Urges Improvements to Nutrient Management Programs

Arlington, VA – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch today welcomed the announcement from President Joe Biden that the United States Department of Agriculture (USDA) will be doubling its initial $250 million investment in domestic fertilizer production to $500 million.

“The importance of fertilizer in food production and national security is taking center stage. Fertilizer increases crop yields that can be attributed to feeding 50% of the global population,” Rosenbusch said. “TFI supports efforts to bolster fertilizer supply through domestic production and technology; and we also urge policy makers to remove the regulatory burdens that inhibit growth of existing fertilizer production.”

Rosenbusch added that the United States has one of the most robust and competitive fertilizer industries in the world and is one of only three countries to have at least twenty unique fertilizer producers.

“We look forward to working with the USDA on how to most efficiently leverage those funds in a way that positively impacts farmers who rely on fertilizers to feed the crops that feed the world.”

President Biden, speaking to local growers at a farm in Kankakee, IL, also addressed the need to increase access to existing nutrient management tools, an issue that TFI has been supporting through its industry-wide 4R Nutrient Stewardship program and by seeking streamlining of USDA technical assistance programs.

“There are barriers to adoption that must be addressed,” Rosenbusch stressed. “The biggest thing the administration can do is to allow Certified Crop Advisors (CCAs) to be recognized as Technical Service Providers (TSP) which would allow them to write nutrient management plans known as 590 plans.”

Additional improvements include expanded eligibility for the 590 grant program, allowing agricultural retailers to be eligible for all Natural Resource Conservation Service (NRCS) grants and Regional Conservation Partnership Program (RCPP) funds, building a dedicated Environmental Quality Incentives Program (EQIP) initiative to support and encourage sustainable, climate smart nutrient stewardship practice adoption, and to increase the cost-share rate within NRCS programs to 75%.

“Food security is national security,” concluded Rosenbusch. “We thank President Biden for his focus on these critical issues and we will continue working with the Administration to ensure U.S. farmers receive this necessary input and have the tools they need to promote the efficient and sustainable use of fertilizer.”

TFI recently released a number of actions that policymakers can take to strengthening domestic fertilizer production and address supply chain vulnerabilities. That document can be found here.

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

TFI Applauds STB Hearing on Freight Rail Service

Arlington, VA – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch thanked the Surface Transportation Board (STB) for holding this week’s hearing on “Urgent Issues in Freight Rail Service.”

“Railroads are critical to the on-time delivery of fertilizer to farmers exactly where and when they need it,” Rosenbusch said. “We appreciate the opportunity to provide testimony on how rail service issues are negatively impacting the cost and timely delivery of fertilizer inputs to farmers.”

In submitted testimony, TFI cited such issues as the implementation of precision scheduled railroading (PSR), a lack of competition, and a lack of structural and market-based incentives to be customer-oriented as leading to reduced rail service, high shipping rates, and poor cycle times.

The STB also heard testimony from Department of Transportation Secretary Pete Buttigieg and Department of Agriculture Deputy Secretary Dr. Jewel Bronaugh, both of whom mentioned the importance and challenges facing fertilizer shippers, as well as other agriculture groups such as the American Farm Bureau Federation and the National Grain and Feed Association.

“The ag economy relies heavily on dependable rail service to get inputs to farmers,” concluded Rosenbusch. “The inclusion of so many other groups experiencing the same challenges as the fertilizer industry shows that these issues are felt broadly, are having negative impacts, and must be addressed through modern reforms.”

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

TFI Disappointed in NEPA Regression, Says Permitting Must be Addressed

ARLINGTON, VA – The Fertilizer Institute (TFI) this week reacted to the Council on Environmental Quality’s (CEQ) final rulemaking reversing 2020 National Environmental Policy Act (NEPA) updates, saying the new rule will make the already costly and time-consuming process of obtaining required permitting even more burdensome.

“We have a member company who has already spent over a decade and more than $20 million dollars for a mining project that still has not been approved,” said TFI President and CEO Corey Rosenbusch. “The current fertilizer market has policymakers asking for solutions that will help farmers have an affordable and abundant supply of fertilizer; yet here is a regulation that will do just the opposite. What the administration has done here not only doesn’t help the current market environment, it hurts it.”

A more efficient permitting process is needed to ensure that mining projects critical to the needs of US industry and consumers have a clear path forward towards compliance and approval. Positive steps were made with changes to NEPA in 2020, but those updates have been removed and the permitting process has regressed to the badly ineffective 1978 review process.

“This is not progress, this is regression. It’s more red tape, duplicative regulations, and delays that will cost consumers in the end. We are moving in the wrong direction,” Rosenbusch continued. “Our country has resources, and we should access them responsibly. With this move by CEQ, accessibility and the feasibility of utilizing these minerals is thrown into question and the ones who will pay the price for this shortsighted move are individuals and families already struggling with the rising costs of everyday goods.”

There is bipartisan support in Congress for permitting reform, as evidenced in the Infrastructure Investment and Jobs Act passed in 2021. Current legislation is also aimed squarely at building on that support for broader reform, namely the BUILDER Act.

“TFI strongly supports the BUILDER Act and any other legislative vehicle that can make environmental reviews more efficient, reduce duplicative regulatory burdens, provide clear paths to approvals, and make our country more self-reliant and prosperous,” Rosenbusch concluded. “We also urge the administration to rethink their changes to NEPA and instead pay attention to the broad coalition of stakeholders that have experienced the ineffective process of the previous standard being reinstated by the administration.”  

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

TFI Engages with Congressional Ag Committee Members

ARLINGTON, VA – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch today issued the following statement after participating in a roundtable discussion regarding fertilizer markets with House Republican Members and staff of the Committee on Agriculture.

“Fertilizer is an essential tool for farmers to achieve desired yields and we appreciate the opportunity to offer solutions to the current market pressures with members of the Agriculture Committee. During this busy spring planting season – and throughout the year – the fertilizer industry is committed to ensuring adequate supply to meet farmer demand for the nutrients that are so essential to growing healthy and abundant crops.

The effects of COVID-19, extreme weather disruptions, rising energy prices, facility maintenance, geopolitical events, and export bans have dramatically affected our marketplace.  As a globally traded commodity, supply and demand economics drive the fertilizer markets, and ninety percent of the world’s fertilizer is consumed outside the United States. Fertilizer feeds the food that feeds the world, so the issues our industry faces significantly impact global food security. Tackling the challenges to the world’s food supply truly requires collaboration, innovation and partnerships, and we welcome this and future opportunities to discuss these solutions.”

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

TFI Celebrates Ag Day on National Mall

ARLINGTON, VA – The Fertilizer Institute (TFI) is taking part in the National Ag Day Celebration of Modern Agriculture. The celebration, March 21 and 22, is being held on the National Mall in Washington, D.C. and showcases innovations that are enabling modern agriculture to sustainably provide for a growing world. Joining TFI at the event are over 30 agricultural trade associations, equipment manufacturers and grower groups.  

“The fertilizer industry is proud of our achievements in worker safety, energy use and environmental stewardship and we welcome the opportunity to educate the community about the critical role we play in sustainably feeding the world,” said TFI President and CEO Corey Rosenbusch.” Each step of the fertilizer supply chain is focused on doing more with fewer resources and with environmental and community impacts in mind.”

Attendees of the public event will learn about the advances that drive American agriculture’s ability to produce more while reducing its climate impact, water runoff and improving farm safety. Earlier this month, TFI released its annual sustainability report, highlighting industry improvement in the key priority areas of workforce safety, energy and the environment, fertilizer use and industry innovation. That report can be found here.

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.