Farmers are reporting a run on crop inputs this spring, but retailers say growers shouldn’t be forced to scrimp on product, despite tight supplies.
“Shortages of a number of crop inputs have been reported, including chemicals, innoculant, seed and fertilizer,” the Saskatchewan agriculture ministry said in its April 13 crop report.
Southwestern Saskatchewan reported a lack of seed treatments, Edge, Roundup, inoculants, Factor, Rival, phosphate fertilizers, trifluralin and Clean Start, while people in southeastern and central Saskatchewan also complained of difficulty accessing various inputs.
Agricultural Producers Association of Saskatchewan president Glenn Blakley said his members are also talking about empty store shelves.
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“It is a major concern for us that producers have access to the inputs they need,” he said.
“Right now we’re not sure if those inputs are going to be available or not.”
David MacKay, executive director of the Canadian Association of Agri-Retailers, said he has not heard his members mention the word shortage.
“The actual supply situation can be sort of summarized as snug but secure,” he said.
Supplies are tight, but these days most purchases are made through advanced contracts, and most of them have been fulfilled at the negotiated prices.
Farmers may have difficulty filling large last-minute fertilizer orders, but even then there are ways to find supplies.
“In other words, get a little from here, a little from there and pull from various locations to complete an order,” MacKay said.
He acknowledged that supplies of phosphate and potash fertilizer have become tight in Canada.
Glyphosate, a phosphate-based chemical for which there is strong global demand, is also tight. However, producers should be able to find some even if their local retailers have run out.
He said he hasn’t heard anything about seed supply problems.
Blakley said drawing in supplies from other retailers will work if seeding happens in an orderly fashion, but significant logistical constraints will result if weather forces everybody onto their fields at the same time.
Because of cost and supply constraints, farmers didn’t do as much fall shopping as they usually do, which means they might need to bolster supplies in coming weeks.
“There is probably less (product) on farm than there is under normal conditions,” he said.
MacKay said sales of crop inputs have been brisk this spring because of high grain prices, and he encouraged farmers to start planning for their fall supplies because advance contracts are becoming more common.
“It’s a necessity and it’s something that in the future will be an absolute necessity.”
Retailers are already negotiating supplies and prices with chemical and fertilizer manufacturers for the fall season and need to have a reasonable idea of what farmers require.
Blakley agreed that advance bookings are the way of the future, which works as long as fertilizer, chemical and seed suppliers offer incentives for pre-ordering.
“It boils down to economics,” he said.
“In the past we’ve been able to get our fertilizer significantly cheaper in the fall versus the spring. Those kind of benefits are good tools to use on the farm.”
