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It is time to get back to low cost NH3.
Good
News for Certain Producers, Big Risks Coming, Low Cost NH3 changes
the game.
Producers Know Now That Bigger Risk Taking Is Back In The Farming Game.
Most young producers and very large producers cannot move ahead
with cuts in the Crop Insurance programs. Producers need a good
margin to control their destiny.
Unpredictable weather and difficult expansion with very low
commodity prices is predicted for the next 4 years.
The top managers in the fertilizer manufacturing industry and their
retailers have determined that low cost NH3 directly applied is the
only competitive trick left in their offerings.
Exactrix owners get powerful benefits from TAPPS formulation with a
full and uniform moisture profile.
Exactrix provides Fall TAPPS and TAPPKTS Banding, stability of
the nutrients, improved work load saving millions of tons of top
soil with Mustang Single Disc openers.
Exactrix Mustang Openers allow No-tillage nutrient management with
new rotations adding up to $200 per acre more net income.
Saving topsoil is a big deal because it means moisture is conserved
and the snow and rainfall is located geometrically for seminal
roots. Moisture goes in the ground exactly where if fell to the
earth. A major contributor to yield is No-tillage with highly crop
available and stabilized Exactrix TAPPS or TAPPKTS.
Typically the margin is increased with Exactrix TAPPS by 12% and up
to 18%. That is a lot of money over your farming career.
Plus some of the best farmers do not need Crop Insurance to make
it.
You can “Dare To Be Great”. Insurance is not critical for every
enterprise if you are a good manager and you know it.
Federal Crop Insurance is subsidizing undercapitalized farmers
allowing them to compete for resources of the really good stewards
of the land.
Conservation and Yields go together with a little advanced planning
for now and the future.
The best farmers are prepared with Exactrix Global Systems reducing
risk in nutrients, using No-tillage and the result of improved
yields.
Exactrix offers higher yields with the highest level of TAPPS and
TAPPKTS crop available nutrients at 1% CV using Weigh Master
Technology and Yielder designs.
No-tillage yields go way up and production costs go way down
reducing risk. In fact Exactrix owners remain expansionary in 2017
and focused on profits for the next 4 years.
You don’t need to jump off the Snake River canyon walls to prove
your point but you can clean up your operation by going with
No-tillage Mustangs with Exactrix TAPPS formulators.
World Market Price on NH3 is expected to drop below last year’s
low of $190 per ton.
Oligopoly fertilizer manufacturing may be dismantled? In the US
manufacturing of NH3 continues to improve at 4 new locations
primarily west of the Mississippi River on the Great Plains to
California and Washington State.
In fact the race to build more and more NH3 will continue due to
expanding market in energy storage.
Over sizing NH3 supply with true market duplicity expands the market
and lowers the price.
NH3 is predicted to return to year 2002 pricing with some sales in
the equivalent $120 per ton range with on farm storage using
Exactrix Technology.
NH3 is more and more competitive than ever.
Anhydrous Ammonia and Snow go together hand and glove in a
No-tillage fit with Exactrix TAPPS formulators.
Your Great Plains Reporter.
Guy Swanson
STRONGLY OPPOSED: Farm groups are voicing strong opposition
to proposed cuts for ag programs in the federal budget for fiscal
year 2018, released by the White House last week.
USDA budget cuts worry Iowa farmers
Trump administration’s proposed fiscal year 2018 budget has
significant cuts for agriculture.
Rod Swoboda 1 | May 30, 2017
The Trump administration on May 23 unveiled its proposed budget for
the federal government’s 2018 fiscal year, starting Oct. 1. This
includes substantial cuts to many ag programs, including cutting the
federal crop insurance program by $28.56 billion over the 2018-27
period.
APR 24, 2017
The proposed budget would totally eliminate funding for the Market
Access Program (MAP) and Foreign Market Development (FMD) program
for export promotion. MAP is a $200 million per year program; FMD is
$34.5 million per year. The proposed budget would reduce
conservation program funding by $5.8 billion for 2018-27 by cutting
technical assistance to farmers, eliminating the Regional
Conservation Partnership Program (RCPP) and reducing producer
eligibility to participate in USDA conservation programs.
Iowa farm organization leaders are voicing concern, pointing out
that the time and place to debate farm bill programs is during the
farm bill authorization and development, not the annual budget
process. The farm bill represents
a five-year commitment to America’s farmers, which Congress made in
2014. “We are counting on Congress to honor that commitment, and
we’re asking them to reject cuts that would be harmful for rural
America,” says Kurt Hora, Iowa Corn Growers Association president.
“These proposed budget cuts would hurt farmers’ ability to manage
risk, grow their revenues and farm more sustainably.”
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Crop insurance and conservation critical
These funding cutbacks would have lasting impact on rural America at
a time when many farmers are facing tough economic challenges. The
federal crop insurance programs were written in a way to provide a
basic level of risk protection to help offset bad economic times and
severe weather. As part of this coverage, farmers pay premiums
ensuring they have skin in the game and assume some of the risk. “As
a farmer, your biggest factor is weather,” says Hora. “This
insurance provides protection you need to stay in business and cover
input costs for the crop in the ground.”
The proposed budget includes decreased funding for federal
conservation programs that will directly impact farmers’ ability to
improve and conserve land, air, water and habitat. This includes the
RCPP and conservation technical assistance programs, which provide
farmers tools to accelerate adoption of conservation practices.
These programs deploy on-the-ground conservation practices that help
to improve Iowa’s water quality.
Export promotion programs are needed
The MAP and FMD programs support promotion of corn, ethanol and
distillers grains, as well as value-added U.S. red meat products, in
international markets. Continued congressional support for
maintaining the level of funding for MAP and FMD programs is
crucial, as they are the muscle that drives export programs for corn
in all forms.
MAP and FMD are successful programs that build global demand for
U.S. farm products, and increase income and jobs in Iowa’s local
communities. According to USDA data, MAP and FMD create an average
return on investment of $28 for every $1 spent, and account for 15%
of all U.S. ag export revenue, making them a solid investment. “At a
time when the farm economy is struggling, we should be investing
more in these programs, not less,” says Hora.
Calling on Congress to reject these cuts
“The protection of all of these vital federal ag programs continues
to be one of the top priority issues of ICGA,” he adds. “We urge
Congress to reject these proposed cuts.”
On crop insurance, the proposal would limit each farmer to receiving
at most $40,000 a year, while imposing income eligibility limits
that would deny subsidized crop insurance to those with more than
$500,000 in adjusted gross income. It would eliminate the harvest
price option, which protects farmers from losses if a crop’s price
at harvest is higher than the guaranteed price at planting,
preventing what critics contend are government-subsidized windfall
profits.
The budget calls for streamlining conservation programs, including
eliminating any new enrollment into the Conservation Stewardship
Program. “Voluntary conservation programs such as CSP help farmers
to be good environmental stewards, benefiting everyone,” says
Rolland Schnell, Iowa Soybean Association president.
Don’t cut the farm financial safety net
Targeting the federal crop insurance program is extremely
shortsighted, Schnell says. It’s especially harmful during an
extended period of low commodity prices. Farmers say crop insurance
is their most important risk management tool. “This public-private
partnership helps farmers manage their financial risk, and it saves
taxpayers money in the long run by reducing reliance on ad hoc
disaster assistance,” says Schnell.
U.S. Sen. Chuck Grassley, a farmer from northeast Iowa, a Republican
and a veteran of budget battles in Washington, D.C., made the
following comment last week on Trump’s budget proposal and possible
USDA farm program reductions for fiscal year 2018:
“The president is right to take a close look at spending. Taxpayers
deserve and expect the most bang for the buck from programs at every
agency. In our system of government, the president proposes and
Congress disposes. Congress has the power of the purse strings. I’ve
never seen a president’s budget proposal not revised substantially.
As a member of the Senate Budget Committee, I’ll carefully
scrutinize and assess priorities as the president has with his
proposal, and I will work on behalf of Iowans.”
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