ADM Program Can Help Mitigate Surging Fertilizer Prices

As China focuses on its own issues at home with limited power supplies, they have placed a moratorium on phosphate fertilizer exports through next June, while also limiting the amount of export of all fertilizers. In the U.S. and Europe natural gas prices have also soared. That is the main feedstock in much of the world’s nitrogen fertilizer. So, the fertilizer supply chain and pricing concerns are intensifying.

Since 2017, the ADM Farm Direct Fertilizer program has attempted to help farmers manage the upside risk we’re seeing now.

“Our thought process there is to work more direct with growers to help them capitalize on our investment in the river terminal systems and save them some margin on their fertilizer side,” says Luke Halter, territory manager for ADM Farm Direct Fertilizer in southern Indiana, Kentucky, and southeastern Illinois.

Halter says getting started is easy with the new grower portal that launched about a year ago.

“It is an app you can download on a smartphone or go to and get a new account. You can access fertilizer pricing based on your zip code, and that is a great starting point that will tie you to a Farm Direct rep who is a rep for your local area.”

Farmers can get better control of fertilizer costs by taking advantage of deferred values to lock in prices.

“One thing we offer is the ability to book twelve months out, something most retail outlets don’t allow guys to do. So, as you sell grain you can spread your risk by going ahead and locking in your fertilizer pricing.”

He explains there is minimal cost to get started, and there are terminals to access throughout the Midwest.

“Some inland terminals and several on the river system,” Halter said. “As far as equipment, really a guy only needs a spreader, or on the liquid side just some storage tanks, so a pretty minimal investment to start. We book in two-month windows typically, so a guy can access that and order based on his delivery needs and utilization needs.”

Halter added ADM Farm Direct Fertilizer works with Meridian and some flat storage companies to help growers access different storage programs.

You can visit the website  for details, or download the ADM fertilizer app.

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