People manning fertilizer booths at the Western Canadian Crop Production Show in Saskatoon are anticipating quite a few questions over the next few days focused on the federal government’s efforts to cut greenhouse gas emissions at the ground level.
Graig Whitehead works for the fertilizer division with Archer-Daniels-Midland (ADM). Primarily, he said the company acts as an import and export commodity trader that specializes in risk-management logistics and distribution.
The company also has wholesale and retail arms.
Whitehead said the company works to connect fertilizer with futures and paper trading, similar to how the grain business operates. He added the company’s commitment to transparent market pricing brings “above-average traffic” to its booth regularly.
“We bring a lot of information to the farmers that they might otherwise find difficult to get,” Whitehead said.
In his second visit to the Western Canadian Crop Show since COVID-19 hit, Whitehead said he’s anticipating a lot of conversations at the booth centred around the Canadian government’s intent to cut carbon emissions through restrictions on fertilizer.
“My understanding is that the Canadian government has a lot of refining in the legislation yet to do,” he said, noting ADM’s stance on the issue has yet to be seen, given that no decision has been made yet.
Whitehead did note that it’s an issue that the company is certainly aware of.
“If a reduction becomes mandated, that will affect the customers’ business, which will ultimately affect our business,” he explained.
With appropriate notice, should any changes be made by the government, Whitehead said ADM would certainly be able to adjust as needed. The situation, however, remains unknown.
That uncertainty is what Whitehead thinks will be top of mind for fertilizer-minded visitors in the next few days.
“I expect a lot of those discussions,” Whitehead said, anticipating farmers will wonder about ADM’s opinions.
“We don’t necessarily have a stance. We’re not a urea or a nitrogen or a fertilizer manufacturer so we don’t have that vested interest in maintaining that level of production. But at the same time, it is the core of our business too.”
Mario Gaudet said making the most efficient use of nutrients through high-efficiency fertilizers, accessing already-present nutrients through soil conditioners and using environmentally friendly fertilizer stabilizers is the focus of Timac Agro Canada.
He said some of Timac’s products do fall into the initiatives being considered by the federal government currently.
The company’s Excelis Maxx is “a big topic of discussion right now with the federal government’s initiative to reduce NO2 and nitrogen emissions,” Gaudet said.
The idea, he explained, is to keep more nitrogen in the soil to get better and more efficient use from it.
“It’s still applicable regardless of any program. There’s still value on a farm to grow your margins, to grow your farm (and) to make better use,” Gaudet said.