Reduce Your Fertilizer Costs with Direct Purchasing
Farming has been disrupted by countless changes in technology and logistics. But some habits die hard—and one of them is the way fertilizer gets to farmers.
ADM is changing that. Now producers can lock in favorable prices on fertilizer, up to 18 months in advance, and get it directly from an ADM rail or barge terminal. It can add up to big savings.
Host Doug Roose, V.P. of Producer Marketing for ADM, discusses this new fertilizer supply model with two guests on In the Driver’s Seat: How to Reduce Your Fertilizer Costs.
Here are some tips from guests Jake Niederer, Director of ADM Farm Direct Fertilizer, and Brian Flaska, Fertilizer and Procurement Sales Manager for ADM.
Producers need to eliminate costs and become more efficient. Because fertilizer accounts for one third of input costs, it can play a big part in setting better margins. Direct purchasing gives you ownership of the process and puts fertilizer on your farm at the right time in the right ingredient package.
Cut out the middlemen
Over time, many players have entered the fertilizer supply chain, all adding costs. ADM has streamlined this model, with a near-direct pipeline from mine to farm. By selling out of our large terminals, we can pass the savings to you—with no sacrifice in quality. These are premium-grade nutrients.
Expect transparent prices
The “direct” in ADM Farm Direct Fertilizer also means we’re straight about prices. We provide product at wholesale, and freely share market opportunities so you can lock in favorable prices up to 18 months out.
Add on-farm fertilizer storage
Sometimes the best fertilizer prices occur off-season, before you need to apply. So you’ll need on-farm storage. Discuss your capacity with ADM. How do you normally offload and store? Do you have tender trailers or a spare shed? If you need to put up flat or upright bins, ADM offers choices and financing options.
Prepare for application
With ADM Farm Direct, you’ll need to spread your own bulk product or continue to use your local applicator. ADM is building a network and can help put you in touch with an application company if you need one.
Start with a trial
You don’t have to commit to your full farm to start. Try an order of N, P, or K and see if ADM does what it claims to do for on-time delivery, quality ingredients, and cost savings. If the trial is successful, build on that.
Consider new formulas
ADM is currently field-testing a new crop nutrition solution, POLY4, with promising results. This combination of four macro-nutrients and micronutrients is a minimally-altered homogenous blend, making it more available to the plant during early germination. Look for this promising product for the 2023 crop.
Start with phosphate, sulfate, and nitrogen for fall
There are attractive fertilizer prices available right now on phosphate, potash, nitrogen, and sulfate. We recommend you stock up for fall 2019 or spring 2020 applications.
Want to get started with ADM Farm Direct Fertilizer? Contact your nearest ADM fertilizer or grain representative.
Past performance is not indicative of future results.
ADM is providing this communication for informational purposes, and it is not a solicitation or offer to purchase or sell commodities. The recommendations in this communication do not take into account any particular individual’s or company’s objectives or needs, which should be considered before engaging in any commodity transactions based on these recommendations. The sources for the information and recommendations in this communication are believed to be reliable, but ADM does not warrant or guarantee the accuracy of the information or recommendations. ADM or its affiliates may hold or take positions for their own accounts that are different from the positions recommended in this communication. The information and recommendations in this communication are subject to change without notice.