All posts by mickeybarb@charter.net

USDA Freezes $2.3 Billion in CFAP Payments

The USDA on Jan. 27 posted a notice that $2.3 billion in supplemental Coronavirus Food Assistance Program (CFAP) payments will be temporarily frozen. The previous administration had announced expanded eligibility for the CFAP 1 and 2 programs on Jan. 15, just days before President Joe Biden’s inauguration.

“In accordance with the White House memo, Regulatory Freeze Pending Review, USDA has suspended the processing and payments under the Coronavirus Food Assistance Program – Additional Assistance and has halted implementation until further notice. FSA local offices will continue to accept applications during the evaluation period,” said a notice on the USDA CFAP page.

“In the coming days, USDA and the Biden Administration intend to take additional steps to bring relief and support to all parts of food and agriculture during the coronavirus pandemic, including by ensuring producers have access to the capital, risk management tools, disaster assistance, and other federal resources,” the notice continued.

The program expansion announced by the Trump administration was targeted mostly at contract pork and poultry producers and others previously excluded from the relief payments. USDA said in the notice that it will continue to take applications for the CFAP program, but no checks will be issued while the program is reviewed.

FCL, Blair’s Announce Joint Venture

Saskatoon, Sask.-based Federated Co-operatives Limited (FCL) announced on Feb. 3 that it has entered into a joint venture agreement with Blair’s Family of Companies, a fourth-generation, family-owned retail business based in Lanigan, Sask.

The joint venture will own and operate Blair’s seven ag retail locations in Saskatchewan, located at Lanigan, Nokomis, Watrous, Liberty, McLean, Lipton, and Rosthern. The locations will offer a broad range of crop inputs and animal nutrition products and services to area farmers and ranchers.

“Blair’s is a trusted and well-respected local family business with a history of serving farm customers and communities for generations, and whose values match our own,” said Ron Healey, FCL Vice-President of Ag and Consumer Business. “The joint venture is an opportunity for FCL to expand our presence in central and southeastern Saskatchewan, which will ultimately benefit our local Co-op member-owners and the entire Co-operative Retailing System.”

Founded in 1948, Blair’s business operations include Blair’s Crop and Livestock Solutions, Blairs.Ag Cattle Company, Blair’s AgIntelligence, and TexCana Logistics. Blair’s Texcana Logistics fertilizer terminal located near Hanley, Sask., and its farming operations, including Blair’s Ag Cattle Company, are not part of the joint venture.

“A key part of our strategy to continue demonstrating value to our customers, employees, and communities, has been preparing our business for the future,” said Darren Blair, Blair’s Chief Operating Officer. “We believe the joint venture with FCL, which shares the same core values and long-term commitment to agriculture as us, will ensure that we continue demonstrating value to our customers, employees and communities in the future. We are stronger together and better positioned to provide our customers with the solutions they require.”

FCL and Blair’s said the joint venture is subject to standard closing conditions, including Competition Bureau and other regulatory clearance. The companies said operations will largely remain unchanged for customers. Blair’s management and team continuing to lead the day-to-day operations of the ag retail business after closing, while FCL will procure and supply fertilizer, crop-protection, and seed products to the Blair’s locations.

FCL is owned by approximately 200 retail cooperatives that form the Co-operative Retailing System (CRS) in Western Canada. FCL was established in 1955 to provide centralized wholesaling, manufacturing, marketing, and administrative services to member co-ops.

Simplot Fertilizer Facility Under Construction in Oregon

A Simplot Grower Solutions liquid fertilizer storage and distribution facility is under construction in Baker City, Ore., according to the Capital Press. The facility in Baker City’s industrial park is slated to be open for the spring planting season, and will employ seven people initially, with the potential to increase to about a dozen.

Josh Jordan, Simplot’s Senior Manager for Communications and Public Relations, told the Capital Press that the company has operated a temporary Simplot Grower Solutions facility in Baker City, but had longer-term plans to build a permanent facility to meet the needs of area farmers. To reach that goal, the company paid $235,620 to purchase a 14.28-acre parcel in the city’s 64-acre Elkhorn View Industrial Park, he said.

In February 2020, the Baker City Planning Commission approved Simplot’s request for a waiver from the 50-foot height limit in the city’s zoning ordinance to accommodate a 75-foot fertilizer storage tower at the site. Jordan told the Capital Press that the facility will have 2,300 tons of capacity and enhanced fertilizer blending capabilities. The facility will also supply other crop products and services to growers.

FVC Partners with VantagePoint on Branded Inputs

Frenchman Valley Farmers Cooperative (FVC), Imperial, Neb., recently announced the launch of a new partnership with VantagePoint™ crop performance to provide FVC’s member-owners with a new line of trademarked crop inputs.

The VantagePoint™ initial product portfolio will include crop input additives widely used by corn, soybean, and wheat growers, including Watchtower™ ST seed treatments and Standking™ plant growth regulator, Outpost™ drift control, water conditioners, surfactants, and Royal Green™ micronutrients. FVC is also evaluating possible crop protection offerings through the Resilienced™ brand.

“Through the VantagePoint™ brand, FVC will be positioned to provide customers with the most agronomically sound chemistry at a cost point that lowers their cost without compromising performance,” said John Bender, Frenchman Valley CEO. “FVC will be better able to provide the necessary crop enhancement products and further grow our relationships with our customers.”

FVC offers crop inputs, precision ag services, grain storage, grain marketing, energy, feed, and hardware from 21 locations serving growers in southwestern Nebraska and the Nebraska Panhandle, northwestern Kansas, northeastern Colorado, and Wyoming.

“These branded-label products will be produced specifically for us and will fit well into our long-term strategy of serving members/customers all across our four-state service area,” said Jim Haarberg, Chairman of the FVC Board of Directors.

Compass Minerals – Management Brief

Suraj Deshmukh, Ph.D., has joined Compass Minerals as the company’s new Vice President, Innovation and Product Development. Dr. Deshmukh will lead the organization’s research and development (R&D) program at its North American Innovation Center. Compass said he has over 14 years of experience in driving new product development, developing strategy, managing teams, and building an innovation pipeline.

Most recently, Dr. Deshmukh was a senior R&D leader at Dow. He was also a research scientist at Massachusetts Institute of Technology (MIT).

He has a Bachelor of Technology in chemical engineering from the Indian Institute of Technology Bombay in Powai, India, and both his graduate and doctorate degrees in mechanical engineering from MIT. He is the inventor and co-inventor of several products, and has authored or co-authored numerous articles, patents, and publications.

Aussie Potash Receives Environmental Nod

Junior sulfate of potash developer Australian Potash Ltd. (APC), Subiaco, Western Australia, said Feb. 2 that Minister of Environment Stephen Dawson has agreed that the development proposal for the Lake Wells Sulfate of Potash Project (LSOP) can proceed.

“Receiving this full environmental approval allows us to now secure the operating licenses and permits to develop the project and proceed to development on making a Final Investment Decision,” said APC Managing Director and CEO Matt Shackleton. “The LSOP is now positioned with environmental approval to develop, and 100 percent of forecast output under binding take-or-pay agreements.”

“Due diligence by lenders, including the Northern Australia Infrastructure Facility, Export Finance Australia and commercial lenders are either complete or nearing completion,” added Shackleton. “We expect to update shareholders on the financing program over the balance of the quarter.”

All offtake for the 150,000 mt/y project is now finalized, with the last component inked with Helm in November for 20,000 mt/y to be marketed in the U.S. (GM Nov. 25, 2020).

Dissidents Continue to Prod Karnalyte

Junior potash and nitrogen developer Karnalyte Resources Inc., Saskatoon, reports that disputes over its governance continue, even after a shareholder vote late last year that turned aside proposed changes by dissident shareholders (GM Dec. 18, 2020). Karnalyte said on Feb. 1 it received an originating application filed by Peter Matson and Gregory George Szabo against Karnalyte, major shareholder Gujarat State Fertilizer and Chemicals Ltd., each of the current directors of the company, the Interim CEO, and a former director.

Among other things, the applicants are seeking a declaration that Karnalyte oppressed its shareholders; the removal of all current directors; fixing the size of Karnalyte’s board at six; appointing Joe Vidal, Neil Yelland, Joe Clavelle, Todd Rowan, and two GSFC nominees; reimbursing all costs incurred by the applicants and Mark Zachanowich in connection with requisitioning the special meeting of shareholders held on Dec. 15, 2020; and damages in the amount of $3.25 million.

Karnalyte said it is thoroughly assessing the application with legal counsel and is considering all available recourse. The application was filed with the Court of Queen’s Bench of Alberta.

CDFA Issues $2.2 M in Research Grants

The California Department of Food and Agriculture (CDFA) Fertilizer Research and Education Program (FREP) has announced $2.18 million in grant funds are being awarded to agricultural organizations and universities as a result of the 2020 cycle of the competitive FREP Grant Program.

The grants will fund 11 research projects to improve the efficiency of nitrogen (N) fertilization in California agriculture, reduce the associated environmental impacts, and advance farmers’ understanding and implementation of best management practices (BMPs) for fertilizer applications in farmlands. The research topics cover a broad range of crops, and now includes hemp.

Bion Reports Completion of Trials

Bion Environmental Technologies Inc., New York City, a developer of patented waste treatment technology, said on Feb. 3 it has concluded the core optimization testing of its third generation (3G) technology platform. It said the completion has resulted in further increases in system efficiencies and performance and opens the way for the design and implementation of a commercial scale 3G platform at a livestock production site. Bion has been in discussions with several potential production partners across multiple animal species.

“While we will continue to optimize the system as opportunities arise, we can now move forward with final design and engineering for our initial full scale 3G commercial system,” said Craig Scott, Bion Director of Communications. “In addition, we anticipate subsequent product filings with OMRI (Organic Material Review Institute) in the near future.”

Univar Inks Partnership with Nutrien; Secures New Florida Production

Major distributor Univar Solutions Inc., Downers Grove, Ill., on Jan. 26 announced an exclusive partnership with Nutrien Ltd., Saskatoon, for the marketing and distribution of hydrofluorosilicic acid (HFS or FSA) in the U.S. and Canada. Univar will be sourcing the product from a new plant at Nutrien’s phosphate facility in White Springs, Fla., which is expected to be operational near the end of 2021.

Univar said the agreement strengthens its ability to reliably service municipal drinking water plants with HFS/FSA. “We are pleased to add to our strong, existing HFS/FSA business and market-leading water treatment capabilities,” said Brian Jurcak, Univar Vice President of Product Marketing Management.

“This incremental addition of Nutrien’s HFS/FSA strengthens our long-term supply of this critical product primarily used in drinking water, and will enable us to continue supporting essential products and services for our customers well into the future,” he added.

Under the new contract, Univar has exclusive marketing and distribution rights for HFS/FSA produced at the White Springs plant. The agreement will supplement Univar’s historically sourced supply from Nutrien’s Aurora, N.C., facility, which is expected to terminate supply to Univar by year end.

Nutrien said it is not ending production of HFS/FSA at Aurora, but is redirecting it to the previously announced project for Arkema’s anhydrous hydrogen fluoride (AHF) plant (GM June 5, 2020), which is scheduled for commissioning in early 2022. It said the new HFS/FSA plant at White Springs is expected to meet most of the demand previously served by Aurora.