There was a flurry of activity on the fertiliser scene this week as farmers and merchants began to agree on prices, payment terms and delivery timelines.

The greatest scarcity is with urea and most merchants have limited stocks and are rationing supplies.

Glanbia is limiting supplies to between 6t to 8t of urea per farmer, regardless of farm size.

Dairygold is limiting urea to 50% of the order and is treating members who normally buy from the co-op more preferentially than others.

Liffey Mills is offering regular customers 40% of their normal urea purchase.

General payment terms are cash up-front and delivery in the next few weeks.

Urea is being purchased for between €890 to €930/t

Most merchants are insisting on full loads being delivered, so in the majority of cases, farmers are buying compounds or CAN in addition to the urea, in order to fill the load.

Urea is being purchased for between €890 to €930/t while CAN is making €700/t, 18:6:12 at €750/t and 0:7:30 at €740/t.

There is very little difference in prices between merchants, with availability the main selling point. None of the merchants are offering protected urea at this time.

Small farmers

Speaking to merchants and farmers further west, they are adopting a wait and see approach, with many farmers pinning their hopes on a price drop before March and April, when fertiliser spreading would normally begin on smaller and more marginal farms.

Many of these smaller farmers buy fertiliser as they use it and are not used to buying in fertiliser in large quantities, so they are willing to take their chances on a price drop before then.

However, some merchants and those close to the trade are concerned that if these farmers don’t have agreements in place to buy a certain tonnage at a certain price, merchants may be unwilling to forward buy fertiliser now, in order to have enough stock for March and April.

The Fertilizer Association is advising farmers to;

  • Soil sample – carry out in December and January, testing for soil pH, P and K.
  • Create a nutrient management plan using these soil test results.
  • Apply lime where required – following soil test results.
  • Target the use of slurry and organic manures using your soil tests and nutrient management plan.
  • Include sulphur in nitrogen applications. This can increase efficiency and crop yield.