Fertilizer Supply Ready for an Early Application Season

Landus Cooperative is well positioned on fertilizer for the upcoming spring season. This season so far has been much different than last year. Our open winter has allowed us to continue dry fertilizer applications. Our spring NH3 applications started on March 5th which was 26 days earlier than last year’s spring application season. Our fertilizer sheds have ample product and resupply plans are already being worked on. Our large hub UAN tanks are full and we are currently working on moving UAN to our smaller spoke facilities as weather cooperates. 

After logistical struggles last year on NH3 we took an aggressive approach to help minimize some of the issues. We have increased our trucking capacity to help. We have also worked with select locations on vendor managed inventory. Landus Cooperative also has the capability to bring NH3 in on a rail delivered basis, so we have two locations that have cars slated to be delivered into to better serve our customers and members.

There is fear with the Coronavirus that is spreading through the industry. Many are saying that we will see supply issues on phosphates, urea, as well as some chemicals. I would say that I feel the U.S. is in a good place to start the season on most products since many of the products are already on hand. Several people took strong positions on phosphates over the winter to prepare for spring, also Chinese manufacturing on phosphates were scheduled to be back in production this week. Several of the active ingredients on chemicals that are sourced in China are already in the states and we could potentially see a run on urea if we get an early start and corn planting intentions increase.

There are some logistical concerns in the lower Mississippi as water levels have remained high and flood conditions are continuing. If conditions continue for an extended period, this could potentially cause some resupply issues in certain geographies.