A24—Lancaster Farming, Saturday, March i, 1980
Adequate supplies but higher fertilizer prices for 1980
BY DICK ANGLESTEIN
LANCASTER - A
relatively mild winter here
at home and a heat-up in
international relations
overseas should help in the
availability of fertilizer for
1980.
But there will be ad
ditional fertilizer price hikes
as' the year progresses,
closely allied to energy
costs, particulary natural
gas.
These are the essential
elements of a fertilizer
forecast offered this week by
a top representative of the
Ortho Fertilizer Division of
the Chevron Chemical
Company.
Paul L. Rushing, Ortho
Manager of Manufacturing,
was in Lancaster County to
address the annual ap
preciation night dinner
meeting of P. L. Rohrer &
Bros., Inc., Smoketown, held
Monday night at Willow
Valley Motor Inn.
“All in all, the outlook for
te availability of fertilizer
this year is very favorable,”
Rushing said. “The mild
winter experience in the
mid-West has been a great
help in the production of
nitrogen.”
Nitrogen production
facilities are on an in
terrupted natural gas supply
system in which first
priority is given to home
heating, Rushing explained.
But due to the mild winter
and lower demands for home
heating, there have been
sufficient supplies for both
uses, resulting in no cur
tailment in nitrogen
production this winter.
“Natural gas is the first
building block in fertilizer
production, particulary
nitrogen,” Rushing ex
plained.
“Since there has been no
interruption in this initial
stage, tiie industry has been
able to build what should be
adequate supplies.”
The current slowdown in
phosphate exports to the
Soviet Union also should
improve is domestic
availability, according to
Rushing.
Rep. Tom Harkm of lowa
IN STOCK HOW
_ A FULL LINE OF
GARDEN SEEDS
AND SUPPLIES
ORDERS TAKEN FOR SEED POTATOES
★ S-K TOOLS
★ GARDEN HOSE
★ KNAPSAC SPRAYERS (ALL SIZES)
★ DUST BAG KITS
★ SHOVELS - HOSE - RAKES
★ CATTLE & HOG MINERALS
★ CUSTOM CANVASS WORK
J PLAN NOW TO ATTEND '
I OUR OPEN HOUSE
I WED. A THURS.. MARCH 12-13
AARON S. GROFF & SON
FARM & DAIRY STORE
RD3, Ephrata, PA 17522 (Hinkletown)
Phone (717) 354-4631
Store Hours 7 A.M. to 9 P M.
Closed lues, Wed. & Sat. at 5:30 P.M.
Paul Rushing
is leading a group in
Congress calling for a halt in
phosphate shipments to
Russia, similar to the grain
embargo, until Soviet troops
are withdrawn from
Afghanistan. The Carter
Administration has
suspended shipments for a
two-week period, which is
just now ending, and is
requiring a case by case
approval of future Soviet
exports.
“By March, the fertilizer
industry pretty well has its
products in the pipeline on
the way to dealers,” Rushing
said. “Therefore, due to the
slowdown in the exports of
phosphate, I don’t anticipate
there will be any severe
production shortages for the
U.S.”
As far as the industry is
concerned, that portion
directly involved m exports
naturally will be affected if
any appreciable phosphate
embargo continues, he said.
But phosphate raw
materials are in adequate
supply to meet U.S. and
export needs, he adds.
While overall fertilizer
supplies appear to be quite
adequate. Rushing is not
discounting possible tran
sportation problems.
“The on-going
deterioration in railroad
facilities and the availability
of rolling stock will continue
to affect the ability to move
these materials and get
them exactly where they are
needed,” he said.
The cost of natural gas will
remain the most important
question mark in future
price increases, according to
Rushing.
“A major new deter
mining factor is the two-tier
gas pricing system at the
well-head,” he explained.
Now, gas supplied from
wells more than 15,000 feet
deep is more costly than that
coming from shallow wells.
Most of the Gulf Coast gas
finds are from deep wells
with the higher prices.
“Assuming present
forecasts concerning an
ticipated natural gas costs
are accurate, I won’t be
surprised to see a 10 percent
increase in fertilizer prices
by the end of 1980,” Rushing
said.
“The mix in gas supplies,
particulary how much must
come from the higher-priced
deep wells, will have a
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significant impact on future
prices though.”
For 1980, total fertilizer
industry shipments may
reach 55 million tons, which
would make it a record
production year.
“For the near term and
the long term, prospects for
the industry and the
availability of fertilizer are
verf healthy,” Rushing said.
He stressed that efforts
must continue to encourage
a shift of natural gas users to
other fuels wherever
possible. Thus, availability
can be better guaranteed for
fertilizer production and
other essential uses.
Before approximately 100
guests at the dinner,
Rushing reviewed Ortho’s
present and future
manufacturing expansion
plans to meet fertilizer
demands. Production
capacity at a plant in .lowa is
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WASHINGTON, D.C. -
The Commodity Credit
Corporation has signed
agreements with 12 grain
exporters to acauire con
tractural obligation for up to
16,095,029 metric tons of
corn, soybeans and wheat
which could not be shipped to
the Soviet Union due to the
imposition of export con
trols, according to CCC
deputy vice president John
Gibbs.
This total will be reduced
by the volume shipped to
reach the 8 million ton level
under the US-USSR gram
agreement, Gibbs said.
Today was the final day
the exporters could accept
the CCC offer.
price, we ask your
cooperation with the
following Provide a
level building site
(our satesman will assist
with site preparation
guidelines), Furnish
unloading help; Participate
in our 3 payment plan
(1 Downpayment,
2 Delivery payment and
3 Completion payment),
And accept delivery and erection
at Morton Buildings J
convenience Also note, travel
expenses will be added if your
building site is more than
40 miles from the sales
office No sales tax need be
added (Price expires April 15,
1980 ) The price shown
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Name
Address
Telephone No
CCC to take contract
tj Send information on MORTON
BUILDINGS
L j Have your salesman phone for an
appointment
five-year program calls for
new manufacturing facilities
in the Southwest.
The 12 firms who accepted
are Bunge, Cargill Inc.,
Continental Gram, Louis
Dreyfus Corp., Farmers
Export, Garnac Grain,
Goodpasture Export Corp.,
Pastemak/Baum, Pillsbury
Co., Tidewater Gram Co.,
Alfred C. Toepfer and
Tradigrain Inc. '\
Gibbs said two firms,
Central Soya and Philipp
Brothers Grain Corp.,
declmded the offer.
The grain m the acquired
contracts includes 10,846,516
metric tons 1427 million
bushels) of com, 710,317
metric tons (26 million
bushels) of soybeans and
4,538,196 metric tons (167
million bushels) of wheat.