Editorial: The Fertilizer Situation

There has been shaving of prices—and harsher words have been used—as well as special credit practices and other merchandizing and distributing tec...
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WALTER J. MURPHY, Editorial Director

The Fertilizer Situation in several years, it appears the that the t\ro are directly comparable, as they may lie sale of plant food has taken a downward turn. I t "evoluting in different directions." has heen predicted, a n d now it is with us. T o delineate all the factors and their relationships is not something As we have observed in a direct survey study, soine tc) be undertaken in brief comment. .AG . ~ N D FOOD'S of the hlidwestern distritiution operations may seem a field editors have taken a concentrated look a t the hit do-it-yourself, as compared with the older western situation during the past six weeks (page 508) a n d have systems. T h e latter greiv more slowly and in one of the most scientifically developed farming areas of the counoilserved a numlier of ch.anges from the situation of this try. T h e development of distribution systems for antime last year. T h e big influence it appears is the old hydrous ammonia suggested a pattern. And there \vas Iiasic principle of suppl!- a n d demand: particularly \cith not so much of either the idea that use of fertilizer \vas nitrogen. Ammonia plants have been going u p a t a dizzy rate for several years. Predictions of excess a n admission of poor land or the old traditional style c f capacit)., although a tiit previous in past years, at last dealer. are coming true. I n the hIidwest there has lieen a great postwar groivth of the appreciation of fertilizer. NOLVwith the idea of T h e farm income slide is a factor, but less than it solutions catching hold there is another rash of en\could have been 10 >-ears ago. T h e traditional relationship Iienceen farm income of one year and fertilizer thusiasm that may carry fertilizers into farms that ne\rer purchases of the next has been pried out of its old parallel liefore used them. T h e dealers in neutral solutions channels. T h e great rise of technical influence in farmserve a limited area and can tie expected to lie aciiig a n d thc pressure 011 producers to sell can be exquainted Lvith their customers a n d potential customers. They have a new type of product a n d have invested in pected to prevent retrogression into the old shortsomething new. Sever tiefore have they tleen in such a siqhted approach. favoralile position to get information and technical adT h e dip during the palit year appears to have included vice from their suppliers of basic materials. a slight drop in plant nutrients consumed. This is a change over recent years, but it does not appear to tie a It is conceivalile that this may lie a live opportunity for putting into constructive action some of the eagerness drastic drop. T h e most suffering, apparently, is in to do n i x e with dealer education. profits. There has been shaving of prices-and harsher O n the other hand there is the danger that the ivhole Lvords have been used-as well as special credit practices a n d other merchandizing a n d distributing techniques thing may look too easy. Enthusiasm and the appearthat cut into profits. I n this gray: foggy area lie some of ance of simplicity may draw too many moths into the the prolilems and decisions that are going to he very flame. Entrepreneurs without a n understanding of important to the health and stability of the fertilizer selling to farmers could be lured liy considering on+- the industry during the next few years. As profits aren't favorable. or even ideal, picture that shoLvs high returns lush enough to attract i?y-ti!--nighters and as the solid on the investment. A new idea soon can sour if it is elements in the fertilizer industry have rather heavy mishandled i n a few areas. investments in the future, it seems reasonable to hope Alread>- there is evidence that the direct application that suicidal follies can tie avoided. of anhydrous ammonia suffered, in the Slidwest, from Perhaps the most colorful as well as controversial some careless practices. I n some states it is beginning to development in the ind-ustry a t the moment is that of fade even before it has made a good start. This is a lesson fertilizer solutions. This; is particularly true of the turn that ma!- not yet have penetrated well enough to be taken in the hlidwest (page 502). \$'hat could be inapplied to the development of neutral solutions. l y e ferred from a superficial look to be helter-skelter growth hope it has. .4ny development that contributes to the may prove to be a more profound evolution. T h a t improvement of agricultural practice as well as to the situation differs considerably from the older one in health of the fertilizer industr)- as a whole deserves some California, hut the hlidwesterners aren't convinced careful nursing.

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OR THE FIRST TIME

V O L . 4 , NO. 6, J U N E 1 9 5 6

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