Submitted by Hardscrabble Farmer
A fertilizer supply shock is imminent for US farmers as CF Industries Holdings, Inc. warned Thursday that rail shipments of crop nutrients would be reduced to top agricultural states, which couldn’t come at the worst time as the Northern Hemisphere spring planting season is underway.
The world’s largest fertilizer company said Union Pacific had hit it with railroad-mandated shipping reductions that would impact nitrogen fertilizers such as urea and urea ammonium nitrate shipments to Iowa, Illinois, Kansas, Nebraska, Texas, and California. Union Pacific told CF Industries without advance notice to reduce the volume of private cars on its railroad immediately. This means CF Industries had to decrease shipments by a whopping 20% to stay compliant.
“The timing of this action by Union Pacific could not come at a worse time for farmers,” said Tony Will, president and chief executive officer of CF Industries.
“Not only will fertilizer be delayed by these shipping restrictions, but additional fertilizer needed to complete spring applications may be unable to reach farmers at all. By placing this arbitrary restriction on just a handful of shippers, Union Pacific is jeopardizing farmers’ harvests and increasing the cost of food for consumers,” Will said.
The move is particularly problematic for the Midwest, where 90% of corn and 80% of soybeans are produced in the US. The region is a critical node in the global food system, and tightening the fertilizer supply will only drive up food prices by shrinking harvests.
Farmers have been pressured by record-high fertilizer and diesel costs.
CF Industries released an ominous warning about the lack of fertilizer across the Midwest this year and how it may cause food supply woes:
“If farmers are unable to secure all the nitrogen fertilizer that they require in the current season because of supply chain disruptions such as rail shipping restrictions, the Company expects yield will be lower.
“This will likely extend the timeline to replenish global grains stocks. Low global grains stocks continue to support high front month and forward prices for nitrogen-consuming crops, which has contributed to higher food prices,” CF Industries said.
Josh Linville, direct of fertilizer at StoneX, called this a “black swan” moment for the Midwest.
UP rail situation:
Sounds like the UP is backed up on shipments. As a result, they are restricting "private car" shipments (i.e. not UP equipment) by almost 20%.
We were already struggling with fert logistics coming into spring. This doesn't help at all…#blackswan pic.twitter.com/YOo36UWj2J
— Josh Linville (@JLinvilleFert) April 14, 2022
In response to record-high fertilizer costs and tight supply, some farmers have already transitioned millions of acres from corn to soybeans this year (soybeans require very little fertilizer versus corn).
Last month, a tweet from Douglas Karr, the founder of the businesses blog Martech Zone, made the point that “media isn’t even warning you” a food crisis in America is emerging.
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“The world’s largest fertilizer company said Union Pacific had hit it with railroad-mandated shipping reductions…Union Pacific told CF Industries without advance notice to reduce the volume of private cars on its railroad immediately.”
Atlas Shrugged anyone?
Why would the railroad, apropos of nothing, with no advance notice, at precisely the time when product is needed, decide to reduce its business by 20% immediately? How can anyone consider this is not a deliberate action meant to impact agriculture?
Manufactured crisis. As soon as we get down to 500 mil., it will bee paradise on earth. For Them.
Manufactured Crisis? Not quite accurate enough, we have seen manufactured crisis for decades now.
This in a new level.
Controlled Demolition is the phrase being bandied about. Seems quite accurate.
its inflate or die
inflation well over 20% but cd’s paying .1%, they want us to spend all of our money, everything is being planned.
Gee, I wonder who owns Union Pacific???
Buffet, correct?
Right. The Demon Spawn From Omaha. I forgot that.
And he’s up to no good…
Not correct. Buffet’s Berkshire Hathaway owns Burlington Northern.
Biggest shareholders of UP are the usual institutional suspects: Vanguard, Blackrock, etc.
PS I think Berkshire Hathaway was the love child from that time Jethro Bodine and Miss Hathaway went on a cruise together…
Having spent most of my working life in the rail industry, I can attest that management knows all about fertilizer.
Is the mask completely off, or does this count as thin veneer?
The just in time supply model doesn’t work anymore.
This year – soy. Next year- Soylent Green.
Prepping cat continues to say keep on prepping,listen to prepping cat!
JFK’s comment that he heard businessmen were son of a bitches immediately came to my mind.
A president with balls and sense would be all over this railroad thing.
The administration is part of this railroad thing. The president doesn’t actually exist as an independent entity at this point.
Whats telling too is that corn takes a lot of nitrogen to grow and yields aren’t really that great in the plant mass to yield ratios. I don’t know anything about soy except that its a key ingredient to turning boys and men into effeminate boiz and tight jeaned manz… GMO corn and soy in the food chain are not healthy for human consumption on the scale of current use.
If grains are required as food products then perhaps growing somewhat healthier grains like rye, oats and even wheat would be better. And, require less nitrogen than corn. But then that would probably mean healthier people and wouldn’t help population reduction goals… So its best to add an insurance policy by reducing available fertilizers AND keep pumping the grow corn and soy messaging to farmers…
So you are saying there may be a need of willing participants for future considerations???
hhmmm Might need to start prep’n for active duty, pure blood contributions, in reversing the declining human population… The sacrifices we must endure at times…
I need to know more about this…
“The world’s largest fertilizer company said Union Pacific had hit it with railroad-mandated shipping reductions…”
Avian Flu news is big here.
They thought Sheep Flu (Ovis Flu? Arian Flu?) would be too obvious.
How about Snake Flu? Serpens Flu.