Fertilizer Price For Next Spring

[wade]

Stopped at local CPS outlet inquiring about year-end fertilizer prices. Not yet available but they informed me of a new program they have. Instead of giving them money for a specific tonnage and amount, they will take your money (of course!) on account @ 5%.
How do you think fertilizer prices will be next spring compared to now? And would this be an eligible expense for year end?

[food4u]

Not an eligible expense, must be for a
specific item,(chem or fert) but must be
named.

[farmaholic]

Wade: If they are paying you 5% on your money you had better hope fert doesn't rise in price more than 5%. For easy figuring a $600 tonne of urea better not be more than $630/tonne(that would be 5% for a whole year,or $15 for six months). That isn't a bet I would make. If the price goes to $700/tonne you will be getting about 17% less fert for the money you have on deposit with them (minus the value of the 5% they are paying you for the amount of time they have your money before you take the fert). Another helpful program designed for the farmer. Unless I am missing something it sounds like it sucks. Almost a scam.

[farmaholic]

Find a Retailer who will give you a firm price, buy it, take delivery, and you'll be on the right side with the taxman too. Especially if you have the money to give them in the first place!!!
I can't understand why they can't give you a price even if you want to take delivery later. Fert pricing doesn't seem that volatile.

[ajl]

I don't think it a scam but it will not
create an eligible expense until the
product is priced. I expect that the
best fertilizer deals will happen in Jan
or Feb before a run up in the spring like
last year. The fertilizer industry knows
that farmers hate taxes so they will
relieve you of that problem for year end.
Either pay the government or Agrium your
choice.

[SASKFARMER3]

I think it's a crock of shit program by a crock of
shit group.

[ALLFARMER]

Sounds like they want to play banker with your
money.....without any pesky banking rules.

[wd9]

What? Crop input companies don't have the
best interest of the farmer in mind?
Couldn't be.

[Farmkid1]

They had the same program last year on seed/chem anyway. IMO possesion is 9/10ths of the law on fert...and we love NH3 in the north east. We didn't get on what we hoped so we are buying (and taking possesion of) dry...not great but don't want to seed for 4 weeks either. NH3 delivery could be scary in 2013....

[farmaholic]

Too funny, it's like they are paying the premium on your money and you don't get any price protection, reverse insurance. Could someone point out the possible benefits of this program?

[SASKFARMER3]

CPS wins farmer Doesnt!
Simple plan.

[wade]

I didn"t like the sounds of it either but thought I would run it past my peers in case I was missing something.
What I think is- if you prebuy now and the price is lower in the spring, then they can say that you had the option to not preprice, taking them off the hook for maybe bad advise (price gouging).
In your view, willl fertilizer prices be up, down, the same next spring?
And by the way, I will be pricing for year end.

[farmaholic]

Wade: I can't predict fert prices but I can tell you that more often than not buying in fall was an advantage. Only once did we get hurt badly when be bought in fall--08(I think). That year erased afew years of the prebuying advantage. But most times it was cheaper in fall than spring, sometimes not by much but still cheaper and if you're doing it for tax purposes there is that advantage to consider as well. Another advantage to have all or most of your fert needs on the farm is not waiting in spring line-ups or the retailer not having inventory. Good luck with your decision.