When is best time to buy fertilizer before year end?

[countryguy]

Using half the fert = producing half a crop = doubling of crop prices with alot less risk. A win win situation don't you think?

[ColevilleH2S]

If y'all think fertilizer is too
expensive, don't buy it. You have plenty
of other options. Legumes, grass,
organic. But if all you are going to do
is bitch about it, and then turn around
and buy it anyways, you are part of the
problem. Whining does not a market
signal send.

[Hopperbin]

Countryguy I am pretty sure if you produced half a crop that the price of grain will stay the same

[farmaholic]

Bucket: What do you base the timing of your fert purchase on. Price, cashflow, close to the time you actually need it?

I do agree that we don't get fairly compensated for storing fert over winter. Storage risk and capital investment for bins, etc. The industry has us committing earlier and earlier all the time because of threats of price increases or supply issues, for fert and seed. I do look forward to the time I can tell them to F@(K off and kiss my @$$. I too apologize.

[farmaholic]

Hopper, why don"t you just do an optional inventory adjustment in 2012 (or in any tax year as far as that goes)to increase your income to whatever level you want? You don't need to have your actual "cash" income numbers where you want them. As long as you have grain inventory or prepaid expenses, you can add an amount into your income and claim the deduction the following year.

I always use this to make sure my company is taking advantage of as much income available at the right rate.

And now that Saskatchewan tax is 13% on the first $500,000, I will make sure I take my income to that level so that 2013 is easier to manage.

[ado089]

I buy my fert in March every year and
take delivery just before road bans, I
likely pay more than I should but until
I don't think $20-30/mt is payment
enough to guarantee agriums cash flow,
production and to cover their storage
shortfalls. it's my little rebellion
against the system.

A neat little project now that everyone
has a little extra cash sitting around
would be to buy 50% more fertilizer this
year and store it instead of flipping
machinery. This would send a message to
the machinery folks that $500k is not an
acceptable price for a tractor or
combine and it would also cut fert sales
by 50% in the following year. The only
thing that scares shareholders more than
reduced profits is irradic cash flow.
Haha crazy thoughts

[fjlip]

I like that idea.
All the papers in the mail are full of used unsold machinery.
Wonder if these will sit on the lot?

[TOM4CWB]

SKfarmer99,

I agree. Inventory allowance allows bad years to be floated over with no income tax... yet building a base for the good years. A person can continue 100 percent dep of equip... stick that aginst inventory in the field or bin... (On cash Accounting basis) and build a reserve for the deducton in good years.

Buying needed fert also reduces income... May ways to reduce taxes on a good year...

Cheers!

[bobofthenorth]

Bucket I don't know whether "gouging" is the right word, more like "what the market will bear". Are you selling your canola for $10 or are you taking all you can get for it too?

And the big eff'n-eh announcement has a lot more to do with maintaining membership sales than it has to do with actually turning nat gas into NH3. Their revenue model depends on memberships - brokering product is more of a nuisance than a revenue stream.

[tipsy]

B of the north if you can explain to me the difference between gouging and what the market will bear, You could then probably sell me some ocean property around Phoenix also. For me the WHOLE petroleum industry is all about consumer GOUGING, or in your words "what the market will bear"..