Agriculture in the 21st Century

Who Is Your Competitor?

(It May Not Who You Think It Is)

Three Centuries of Agriculture

Do You Remember When?

• Fertilizer came on a box car in burlap

bags?

• Pioneer Hybrid Seed Corn Bags had

“Every Ear From a Detasseled Plant”

printed on them?

• Many farms had a few chickens, pigs, and

cows?

• The can truck picking up milk?

How Far Does Your Crop

Travel Now?

What Do You Compete For?

• Products & Services--IMPUTS• Equipment repairs, parts

• Land Leases and Rents

BUT WHAT ABOUT?

• Seeds and Chemical

• Fertilizer

• PRICE of your crop, grain or vegetable!

SO….

Who Is Your Competitor?

The World in the 21st Century

Times are different

Regions of the world are enjoying more

prosperity

We all like to eat

The balance of production

The balance of need

SHOW ME THE MONEY!

Country % World Population % Growth in Spending

Africa 32% 6%

Asia 52% 32%

Europe -5% 22%

North America 5% 27%

Russia 0% 4%

South America 11% 9%

Nitrogen Solution

• Mainstay of nitrogen sources here in East

Simple to use

Easy to move around

Easy to get

• In the WORLD

Costly to transport—a lot of water per unit N

Not as easy to store as urea

The Producers of UAN

Nitrogen Solution

Country %Consumption

United States 80

France

Spain total of 17%

Italy

Germany

Energy Facts

• Over twenty new fertilizer production

plants scheduled to be built in the world

and not one of them is for UAN

• U.S. Natural Gas remains well above

prices suitable to use in nitrogen

production DESPITE…

• U.S. has second largest stockpile of

Natural Gas in recorded history

WHY??

•Speculators now invest heavily in N/G

simply for profit. Product has become

non seasonal (remember soy meal)

•Fertilizer business is not primary purpose

for N/G (first fertilizer company were oil)

•Need for some changes to the energy

policy

Make the Most of Your Choices

The Potash Market

Country %Production

Canada 90

U.S. 10

Country %Consumption

China 30

India 15

Thailand 10

Indonesia 15

U.S. 30

A little fact: China now consumes 50% of ALL concrete made in the WORLD

Fertilizer is a World Product

• The whole world now shops for fertilizer

• Countries want food for their citizens

• Ocean vessels and barges have come

into huge demand. With freight rates over

double what they were before.

Here is the GREAT NEWS!

• The world has A LOT of people to feed.

Be ready like the N/G investor to make a

profit on your products

• North America continues to be the leader

in ag technology and innovations

• Make the most of the changes and

improvements

In Closing

• Nations are starting to feed their people

• The days of the Can Run are probably

over

• Private companies sell eliminate boundries

• Look for better ways to raise a crop

• Always look for ways to improve you

fertility program and try a little

Nitrogen determines your yield

Use it wisely…not just more

Each source has it’s pros and

cons

IN CLOSING…

Never Forget Were You Live!

We Have Much to be Thankful For

THANK YOU!